Bartering and the Small Business

Know More: Work from Home Advice bartering, business bartering, exchange of services, product exchange, trading

Has your business tried bartering? Bartering is the exchange of products and services for other products and services. I came across this interesting post on business bartering at About.com's Small Business Information site.

I can see bartering being helpful for small businesses that have a slow cash flow. Imagine a bookkeeper bartering tax preparation services in exchange for a series of press releases from a freelance writer. Imagine a designer creating a logo in exchange for a product or product(s) that she wants.

In this article at The Sideroad by Jack Schacht (the president of one of the largest barter exchanges, the National Trade Association) in which Jack rightly points out that barterers must be flexible about the delivery of bartered goods and services. What you want may not be available at the exact time when you want it.

The About.com post also points out that, in the United States, there can be tax consequences for businesses who barter goods and services. Always check with your accountant to determine the specific tax consequences for your business.

But how do you find partners to engage in bartering with? I ran across this post by Chris Gilmer at the downloadsquad about an online bartering service. The service that Chris profiles in his post is mostly based in India (location can make a huge difference in shipping costs), but could it be long before other online barter services crop up?

What about you? Have you used bartering to meet business or personal needs?

Leave a comment and let us know.

I've never used bartering for business but I'm intrigued. I'm a ghostwriter so clips are becoming more and more important to me. This system might be a wonderful way to build a portfolio and references.

Posted by: Tammi | October 23, 2007 1:29 PM | Permalink to Comment

I've never bartered services either, though I have received unexpected presents (such as a tree) for a service I did for free, and payment in kind for services, ranging from bouncy castle hire to a week's holiday in a villa. Worked well for me and for them - no-one needed to find real money.

Posted by: Lucy | October 24, 2007 1:14 AM | Permalink to Comment

Hi Tammi and Lucy!

Tammi, It was an interesting concept to me too. I'd love to find out more about.

Lucy, It sounds like you've already benefitted from some unofficial barter-type situations.

Posted by: Laura | October 24, 2007 9:08 AM | Permalink to Comment

I ABSOLUTELY barter when ever possible! Here are some trades I have made:

I sell on ebay, mostly clothes. I barter with my dry cleaner - she gives me free cleaning, I trade clothes.

I barter clothes for babysitting - teenagers LOVE clothes and will work for them.

I barter advertising for design sevices. I have an ebay blog and trade ad space for graphic design work.

I have traded eBay consulting services for products. Last year, I bartered eBay consulting services for a company who wanted an escort to the eBay live convention, and got a free trip out of it.

I have also bartered ad space for help in writing a press release.

Once you get a busy blog with lots of traffic, you can leverage that ad space for all kinds of things! Get creative girls!

Suzanne Wells
The eBay Coach

Posted by: Suzanne Wells | October 25, 2007 8:01 PM | Permalink to Comment

Hi Suzanne!

It's nice to know that someone is actually using these principles successfully. Thanks so much for sharing your experience.

Posted by: Laura | October 25, 2007 8:55 PM | Permalink to Comment

I started bartering at least 20 years ago in my interior landscape business, and I have continued to barter throughout the eleven years I have been a freelance writer.

I seldom make direct trades because it isn't often that a client and I need something of equal value from each other. I wrote about bartering through trade exchanges in a post: Connecting - Part III: Trade Exchanges

I report barter income just as if it were cash and take business deductions for barter expenses when applicable. My CPA, who has won numerous professional awards and honors, is a member of a trade exchange and has done my taxes for many years on trade.

Posted by: Lillie Ammann | October 28, 2007 3:44 PM | Permalink to Comment

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