Finance: Bartering for Business Success
March 17, 2009
Ever think of bartering for services?
I had a SCORE client the other day, a photographer, who was in the midst of a business slowdown and having trouble paying the rent on her small studio. We discussed her options (which were not many) and decided she would go to the landlord and try to barter a photoshoot for her rent payment. Amazingly, it worked.
The first month rent was paid by the landlord using her for some brochure work he wanted done. The second month, she took photographs of his staff and locations. These 2 months gave her enough time to get some backlog work to get up and running again. In fact, it worked out so well that she bartered for some accounting work to get her books in order. There are some IRS concerns with bartering so it is necessary to contact your accountant to determine what paperwork is required. This is crucial as values of transactions need to be documented and recorded for tax purposes.
In this economy, bartering sounds like a very good idea. Ever thought of trying it? But, don’t forget to check with your accountant so you have the proper paper documentation. Think about it and let me know.
Entry Filed under: Growing, Managing, Starting, Success. Tags: bartering, bartering for services, helping your business grow.
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Julie Brander
Peg Corwin
Peggy Duncan
Vernita Naylor
Betty Otte
Christine Banning
Rieva Lesonsky
1.
Business articles | March 18, 2009 at 8:58 AM
This is a rare case. Barter died long ago. However, it is well thought of in times of crisis.
2.
Betty | March 19, 2009 at 2:24 PM
Hi, thank you for your comment. I know that barter has long since lost its popularity, but have seen a revisit in the last few months. As long as all the tax issues are handled, it is a way to small business to continue operation.
Betty
3.
bp | March 19, 2009 at 10:33 PM
I have always been a fan of the concept of bartering. Anytime I can trade my PC and IT skills for other products or services, I am happy to do so.
4.
Betty | March 19, 2009 at 11:05 PM
Hi, pb thank you for your support in bartering. Your skills lend exceptionally well to the system. On a smaller scale it is like trading favors. It may not be as old fashioned a concept as we first think.
Betty