A couple of years ago I met a woman who had started a new business. I was, at the time, offering freelance services, and we joked that we could hire each other. After a few chance meetings, I finally mustered up the courage to present a proposal. She accepted, and we quickly worked out a mutually-beneficial arrangement that we are both still profiting from.
Our relationship grew out of convenience. We were in the right place at the right time and found it easy to make a trade. However, we are reading that individuals and businesses are also using bartering techniques out of necessity. Business owners and independent contractors are always looking for ways to cut costs while maximizing sales. When faced with a challenge, such as the current economic climate, one must be creative.
The New York Times last month, profiled an artist who traded paintings for legal services. And she is not alone. About.com states that bartering offers a means to move goods and improve your operations and can give a boost to companies during recessions to help move excess inventory and goods.
Businesses must still be cautious when entering into an agreement. For instance, it is important to place a value on goods or services to be bartered to ensure an even trade is being made. But as USA Today discusses, some organizations exist for the sole purpose of uniting business owners interested in bartering. The BBB recommends checking out these organizations before joining.
And businesses involved in bartering must also remember that, even though no money is exchanged, there are tax responsibilities attached to bartering. Check the IRS website’s information on bartering here.
