Bartering for Business and Bucks

2010-02-09T09:14:00.000-08:00

Let’s go way back to early civilization and talk about the original currency, bartering. The original currency was whatever you had that someone else wanted. The simplest definition of bartering is the exchange of personal possessions of value for something else that you want. Historians say that bartering was the only currency until 1200 B.C. The limitation on bartering was that you had to have something that I wanted and I had to have something that you wanted in order for an exchange to occur. This was very limiting.

After the Chinese started using cowry shells as units of exchange in 1200 BC exchanges could occur even if I did not want what you had but you wanted what I had. You could give me cowry shells that for my item. I could then take those cowry shells and exchange them with someone who does have something that I want.

A couple of hundred years later , around 1,000 BC, the Chinese started making cowry shells out of metal. These were the first coins. At around 118 BC they made the first bank notes out of leather. Paper money did not appear until around the 15th century. Now of course, paper currency seems almost obsolete. We are all into digital, virtual currency now, using our debit and credit cards for almost everything.

Have we outgrown the need for or the ability to use bartering? Is there any place in our modern economy for these old ways? Absolutely!

The members of the over 500 barter exchanges in North America and Latin America, and several hundred more throughout the rest of the world agree. While you cannot build a healthy business entirely on barter, it does offer some definite benefits and opportunities, especially for the small business owner, entrepreneur, or solopreneur.

First, bartering allows you to purchase needed goods and services without using your limited and precious supply of cash.

Second, it makes it easier for prospects to try your product or service, once again, because they do not have to pay cash.

Third, by making it easier to get customers, you are able to create references that can be used to acquire ‘cash’ customers, the fuel that every small business most have to survive.

Doesn’t this sound great? It really is great, when properly used. Bartering has been a valuable asset at key times for my business. I have also made just about every bartering mistake possible.

Barter, like any other business tool, needs to be properly used and managed. You decision to incorporate bartering into your business should be deliberate and well-planned. Your long term strategy should be to use bartering to more easily acquire more customers and to leverage those customers to drive cash transactions.

If you approach bartering like any other business building tool and resource and manage it like you would manage any other of your business accounts, bartering can be a fun and valuable tool. I have combined my business planning and bartering experience into a workshop series to help you really benefit from this tool and avoid all of the mistakes that I made. Take the first session to test the waters or sign up for the entire series. Hope to see you there, virtually.

http://smartmoves.eventbrite.com

Market through touch times

2008-11-06T12:07:00.000-08:00

When economic forecasts are dismal and business starts to slow, fear might set in and one might be tempted to reduce marketing and advertising. In fact, many large corporations do just that. They target the marketing disciplines for staff an budget reductions when revenue forecasts are trending down. It may be counter intuitive, but that is absolutely the wrong thing to do. Scrutinize the tactics and how the dollars are spent, yes. But do not choke the engine that is responsible for filling the pipeline with prospects and opportunities that can become paying customers. We all know that paying customers are the life blood of any successful business.

During tough times, it becomes more important than ever to keep the marketing engine working. Your customers may be feeling the same fear that you are. It will take even more compeling messaging and creative integrated marketing tactics to move them from suspect to prospect. If marketing keeps your pipeline stays full, sales will have a continual supply of prospects and will be able to work on increasing their close rate to maintain a healthy revenue stream for your business.

If you are a small business owner like me, there is no such thing as the marketing department and the sales department. There is just one function responsible for getting the customers and keeping. That makes keeping marketing healthy during tough times even easier because you don't have to worry about organizational boundaries and internal politics. However, it is very important that you have a deliberate customer acquisition and retention process.

Your customer acquisition process need not be complicated or long. It just needs to be defined and repeatable so that you can make it a habit. And it needs to be measurable so that you can tell what is working and not working and take corrective action.

SmartMoves for Business

Bartering for Business and Bucks

Market through touch times