Reinventing Barter: The New Old Currency
Barter is a form of transaction in which goods or services are exchanged with other goods and services without using an intermediate medium of exchange (like money). Today, barter is picking up popularity amongst small businesses who need to keep their cash and use their products and services as credits instead.
Cash flow management makes or breaks any business. Since cash is almost always very limited for small businesses, proper cash flow control is even more critical. Poor cash flow can lead to bankruptcy. On the other hand, control your cash flow too tightly and it can limit business growth.
This is where online barter exchanges such as Ozone Barter and BarterXchange come in. These online platforms allow businesses to broker their goods and services for online credits, which can then be used to buy goods and services they would otherwise have to pay cash for.
Your office has a couple of spare rooms. Instead of leaving them empty (you are paying a fixed cost in rental and not maximising on the space), you decide you can rent them out for a year to incubate small businesses. You put the offer up on Ozone Barter or BarterXchange. Someone takes up the offer to rent them. They pay you online dollars. You have online dollars to spend. Another company on these sites offer services you want to buy. Instead of paying cash, you pay with your online dollars and keep your cash in the bank.
It’s no wonder small businesses find barter an increasingly attractive option – they get to clear unsold stock in return for usable services.
My company just bartered for public relations advice in return for some corporate rebranding services.
Barter is well and truly alive.
Young Upstarts is a business and technology blog that champions new ideas, innovation and entrepreneurship. It focuses on highlighting young people and small businesses, celebrating their vision and role in changing the world with their ideas, products and services.