Running a business isn’t cheap. There is always so much to think about, between marketing, staffing, supplies, technology, and day to day operations. As a result, costs can add up fast, and it’s important to minimise the costs to maximise profits and reduce unnecessary spending.
But what if you could access the services, products, and resources you need without spending cash? This is where a contra deal can come in. A contra deal is a formal agreement where two or more parties exchange goods or services directly, without using money. Instead of paying money, each party provides something the other needs. As a result, this can be good for conserving cash flow and building partnerships with businesses.
Why Contra Deals Are a Smart Way to Save Money
Reduces cash flow immediately
One way contra deals are a smart way to save money is they will help reduce cash flow immediately. Cash is the most precious resource for any business, and using a contra deal can take out the need for using money from a bank account, increasing the amount available.
Use excess capacity
You can use your businesses excess capacity to create contra deals, and bring benefit to yourself where otherwise the resource would have been wasted. For example, if you own a restaurant, there are always going to be unused or slow periods, like empty tables due to slow midweek service.
If the restaurant is lacking a strong photography portfolio, you could use these slow periods as an opportunity to bring a professional photographer in to do a shoot. In return, the photographer could gain free meals from the restaurant.
Improve business relationships
Contra deals will only happen if you have strong relationships, and introducing a contra deal will help strengthen your existing relationships even further. This could lead to longer working contracts, and referrals to other work.
Accessing additional skills cheaply
Building additional relationships will allow businesses to access additional skills without paying the cost. Examples of these could be:
- SEO Services
- Photography
- Copywriting
- Facilities Management
Over time, this will save you significant funds and cut unnecessary spending.
Overall, this article has given a few examples as to how contra deals can be a great way of saving money for your business.