Given the current situation many businesses are facing, it is understandable that directors are looking to get a grip on the company finances by tightening up operations, however, if this is done on a large scale it could lead to long-term economic stagnation that may be worse for all businesses in the long-run.
One of the ways that some companies have looked to reduce the cash flowing out of the business whilst staying operational is through bartering. This method of exchanging goods without a currency originated in early sophisticated human civilisation.
Companies are bartering with each other to promote growth
Many small business owners have begun to form groups all around the world as a means of sharing experience and resources to try and find some potential silver innings as the world enters lockdown.
Small farm shops and sole traders have seen a surge in demand for their products with the growing public apprehension towards going to the supermarkets. Goods like eggs and milk are becoming more valuable in many eyes and now offer those that sell them a way to supplement their supplies.
Regardless of whether a country is in a recession or not, bartering or contra dealing can bring a variety of different benefits. Non-cash-based transactions can help you ease your companies cash flow and cut down on unnecessary monthly costs. It is not only physical goods and consumables either; bartering can also be done with skilled workers and services to aid certain parts of your business whilst keeping other areas of it productive during higher-capacity months.
Key Tip: Heading into potentially choppy economic waters could make it difficult to maintain profitable relationships with business partners. Make sure you stay in contact and keep your partners updated with or without contra and barter deals to maintain that business relationship for the future.
Bartering is not only coming back for businesses
Bartering has seen a come back not only for companies looking to trade goods, but individuals have also started to barter with neighbours and friends as a means of helping each other out with a mutually beneficial trade.
Harness the power of bartering to put you in good financial health for the coming months
There are numerous different industries and methods where you can adopt a bartering mindset to save both time and money. The digital trades like graphic design, content writing, SEO and web development lend themselves well to bartering as they are in many cases flexible and can be done from different locations.
If you work in these and other related industries, not only will it keep your resources productive, it will also keep you and your staff members minds focused and better prepared to get through some of the challenges ahead. Have a look at our article on what services are best suited to contra-dealing to get an idea of the type of industries you c