Have you ever had the opportunity, in business, to barter or trade services with another business? When presented with the opportunity, how did it strike you? Some consider bartering and trading services as a negative. If there’s no cash flow, then there’s no point. What do you think? Does it make sense, when you are starting out for instance, to trade with another business for services? What about later in your business cycle? In our opinion the answer is yes, yes, and yes.
Bartering and trading is absolutely good for business. Do you need to have sales? Absolutely. But, what are the benefits to bartering? First and foremost, it translates into a larger network. You are developing a working relationship with another business that can lead to serious referrals and a widening of your network and reach. You are also helping other businesses with your trade of services. Add to that the fact that you’re saving on taxes and you have a recipe for opportunity.
For businesses that are first starting out, cash flow may be tight. Bartering services instead of being paid for them does mean that there is no increase in cash flow in that instance. However, you are receiving valuable services that you may not otherwise have been able to afford at the time. Concurrently, you’re building a relationship with another business that’s going to draw in referrals and increase your visibility.
Bartering and trading in business are a great way to create symbiotic relationships. Mutually beneficial relationships work where both parties walk away feeling like they are getting something valuable from the deal. In order for this to work effectively, you have to do your part to make sure you are keeping up your end of the deal.
So, what about established businesses with great cash flow? Is it still necessary or beneficial to continue bartering and trading services with other businesses? We still say –absolutely yes. Relationships, connections, and networking are essential to successful businesses and to maintaining this success. Cash flow can go up and down, but your reputation through your network and word of mouth recommendations are priceless. When you successfully work with another business in a mutually beneficial way, you are only increasing your accomplishments.
Consider what services you have to offer other businesses and what services could benefit your business if you had this type of partner to trade and barter with. What are your thoughts on bartering and trading in business? Is it a great opportunity or bad business? Comment below!