Business owners who are considering getting into trade are sometimes bombarded with incorrect or incomplete information and they sometimes come to the idea of trade with preconceived notions. We know that trade/barter is a great way to help entrepreneurs grow their business while helping the bottom line.
Here are the biggest misconceptions that we hear from potential trade members:
Misconception 1: I can’t pay my employees with barter.
Answer: While you can’t write a paycheck to your employees through trade, you can reward them with a vacation, a night out, gift certificates to restaurants or theaters. Trade dollars can be used for incentive programs.
Misconception 2: I can’t work with a business who sells a product rather than a service so my trade is ineffective.
Answer: Not all trade transactions are a 1-1. Think of trade as selling what you have to be able to buy what you need. Accumulate your trade dollars for purchases of items or services that are available through trade members. You can use trade to purchase items, build a website, frequent restaurants, etc.
Misconception 3: I need to increase my cash flow and trade isn’t going to help.
Answer: As a member of a trade organization you will expand your business network and generate word of mouth for your business and not all of those networking partners will be trade members. By expanding your trade network you will receive introductions to cash partners.
Misconception 4: Sure, but I can’t pay my mortgage or rent with it.
Answer: You won’t likely pay your mortgage, but you can free up cash by using trade to pay your accountant, attorney, advertising or office supplies and that frees up cash to pay your mortgage.
Misconception 5: All I have is inventory and my margins are too low already.
Answer: Do you have outdated inventory? Are your warehouses full of inventory that you have been sitting on for a while now? Is it taking up space that you could be using for more and better inventory? If so, why not have a liquidation sale. Use your trade association contacts to transform your outdated inventory into profit.
There are likely more questions that you have about trade and we have the answers! In addition to the above benefits, being part of a trade group opens new avenues for networking and meeting with new business owners.