FRUGAL FRIDAY: How Bartering Can Help Your Business

Have you ever thought about how you can use bartering to help your business? Barter has a great value for businesses if you take full advantage of the opportunities provided you. And best of all, it’s not overly complicated; you just need a sound understanding of value to become a master barterer.

Determine Your Leverage Position
The first step in becoming an expert at barter is to determine your barter leverage. You need to ensure that there is a market for the products or services that your business provides, which is something you should have been thinking about from the very start, of course. With a market for what you can provide, you’ll be able to barter profitably.

After this, then think about all the things you want or need for your business. Maybe you need technology supplies, office equipment, furniture—whatever it is that your business needs and other businesses in your area can provide.

Bartering for Goods and Services
How does this work? Think about it: the products you make and the services you provide cost less than their retail price. The same is true for other businesses. Retailers have lavish markups for their products, and even when their prices are brought down due to negotiations or promotional pricing, they’re still making a respectable profit on their products. It might not be the full markup of 100 to 300 percent, but it can still easily be between 30 and 50 percent.

When you barter with a retailer, you should put forward a direct exchange of your product for theirs. Offer an equal dollar amount of your goods or services, which they need, in exchange for their goods or services, which you need. Emphasize that you’re willing to make the trade at full retail value, which is a very effective way of getting other businesses interested in bartering with you. When you barter at full retail price, it’s a way for the other business to make their full markup, and all the while you still save money because you’re likewise trading your product at a markup.

As long as the other party has a use for your product, there’s a good chance they’ll be interested, even if it’s not something they need right away. It can always be put aside for future use.

The Advantages of Bartering
Following these simple steps can win your business huge rewards. Because you’re trading at retail price instead of the cost of actually creating your products, you can save as much as 80 percent on the items you barter for instead of purchasing. Moreover, it allows you to not worry about cash at all. You are able to get things you need with money you’ve already spent.

The preceding article was provided by the staff writers at GoSmallBiz.com. For membership information, click here. For a benefits overview, watch this brief video.

Online Advertising Terms Explained

Advertising is crucial to the success of any business, and while old-school methods of getting the word out about your small business may still have some measure of effectiveness, the reality is that an online marketing strategy is becoming more and more important.

Getting started can be a bit daunting, and sometimes it feels like I’m drowning in a sea of online advertising terms as I swim around trying to make sense of it all. If you are like me, you keep hearing words and phrases related to online marketing and may not be clear on what they all mean.

YFS Magazine (Young, Fabulous & Self-Employed) published a great article on this very topic this week. Here it is for your enjoyment (and education):

40 Online Advertising Terms Every Entrepreneur Should Know

 

The “DUH” Moment

Beefy (Turkey) Tater Tot Casserole (cheese will be added later)

As I sit here working from home today, the savory aroma of a new-to-me dinner recipe is filling my little abode – and once I again I feel compelled to state my undying affection for the individual who dreamed up the Crock pot. I wonder if they knew just how thankful so many busy women would one day be that they pursued their dream and made it a reality.

I read an article this week about boosting your creativity. One of the things the author recommended was to make a “bug list” – things that annoy you. Chances are that if something irritates you, it probably also irritates someone else. The idea then is to look for possible solutions. This can understandably lead to an idea for a new product or service.

True creativity is unpredictable and new ideas can come in the most unexpected ways, times and places. More often then not, the most innovative ideas come not from hours of laborious brainstorming, but when we finally reach the end of our rational understanding and walk away from the proverbial box. For me, it is typically accompanied by a “DUH” moment, when what comes out of my mouth is something along the lines of, “Can it really be that easy?” or “How could I have not seen this before?”

We are created in the image of God, who Himself is a creative being. One of the traits that sets us apart from the rest of Creation is the ability to ourselves be creative. We express it in a variety of ways. Don’t limit your thinking about creativity as only relating to visual, musical and other types of art. If you aren’t particularly talented in those areas, it’s easy to think you are not a creative being – but you are! Creativity can express itself through thinking of a better way to do something, or through applying a revised application to something. My husband is a mechanic and not especially creative in the artistic sense of the word. But he is very creative when it comes to finding workaround solutions for things when the standard either is not available or for some reason is no longer effective.

Even altering a recipe to suit your own individual needs and taste is an expression of creativity. As for the Beefy Tater Tot Casserole that is warming its way to perfection in my Crock pot at this very moment, I substituted the beef with ground turkey (cheaper and healthier). I also saved $3 by substituting the called-for Velveeta cheese with a can of Cheddar Cheese Soup.

So, dear entrepreneur – get out there and innovate! You are created to be creative! Creativity is at the heart of American ingenuity and it fuels the spirit of entrepreneurship itself. What’s on your “bug list?” Is there a possible business opportunity in there somewhere?

For your reading enjoyment:
3 Easy Exercises to Boost Your Creativity by Nadia Goodman