Barter The Way to Get Profits

Have you ever faced any of the following situations?
First: You need a lawyer but you don`t have the funds for the retainer, second: You have a warehouse filled with stock that isn`t moving, third: Sales are down and you need more
customers.

Each of the above issues might be alleviated by bartering.

1. What Is Bartering?

Bartering is basically exchanging goods or services without funds.

For example, you give your accountant and his relatives a meal in your restaurant
in exchange for the preparation of your income tax return. This is a barter transaction
because no money changes hands between the parties.

2. Bartering Improves Liquidity & Profits
A shortage of money is not an unusual situation for either businesses or individuals.
Perhaps you would like to promote in a positive publication but don`t have the money.
Have you thought about exchanging something of value that you have
(a service or product) for the marketing you need?

Such a barter deal is mutually advantageous. Neither party has to part with funds
to get the desired goods or services.

Not only does bartering preserve funds, but it can actually generate sales and profits.
Stock turns over more quickly. Service providers sell more of their time
than they would had they insisted on funds.

3. Bartering Creates New Customers
Notice, also, that both parties made a sale to someone they wouldn`t normally have.
You both received a brand spanking new customer.

If happy, your new customer can refer you to lots of more customers,
including ones who pay funds. Perhaps your original barter customer may also start
paying funds in future transactions with you.

4. Barter Exchanges

In addition to trading with individuals & businesses, you might think about joining
a barter exchange.

A barter exchange is a business that facilitates the exchange of goods & services
between its members. There's membership fees for joining. Also, the barter exchange
charges a commission on transactions made through it.

5. Tax Aspects of Bartering

Barter transactions made by your business must be reported for income tax purposes.
Also sales taxes may apply on such transactions.