New business owners are often strapped with limited budgets and a heightened need to get creative. Even well established businesses need to make smart purchasing decisions in our current economic climate. Today, I invite you to recognize the power of your capital – and it has nothing to do with cash.
As the leader of a growing organization, I do not hesitate to barter; I am responsible for our limited budget and need to make smart and cost-effective choices. But being cost-conscious doesn’t diminish a company’s rapidly-growing needs. Sound familiar?
Bartering is what smart businesses use to keep their budgets in check, build strong relationships and grow business. Think you have nothing to offer? Think again! If you are in business you have capital. Capital is much more than dollars – it’s power.
Maximize Your Budget and Barter
1) Identify your need. Don’t limit yourself. Will you barter for a Bentley? Might be tough, but there is no harm in thinking big – in fact, I encourage it.
2) Select potential partners. Bartering is about creating a mutually beneficial relationship; think about who you choose to pursue through that lens. Ask yourself, does this company act with integrity, are they a brand I want to be aligned with, check out the press they’ve received and decide if it’s a good match.
3) Assess your capital. Your capital could be the value of your product or service or perhaps you can offer prominence, recognition and exposure to thousands of targeted consumers to drive business to their door. You have great value, don’t underestimate what you offer.
4) Pitch. Start with building great rapport and take it from there. Be confident and remember, you aren’t asking for ‘something for nothing.’ You have valuable capital and you are looking to ‘create a mutually beneficial partnership.’ Be clear in your intentions, you are looking to find the right partnership so everyone comes out whole and successful.
5) Write it up. Do not think because you are not exchanging dollars that a formal agreement is unnecessary, outline who will provide what and when, etc. Don’t put yourself, or your business, at risk of getting burned; bartering is business, handle it as such.
The beauty of bartering is that it moves you out of transactional business and builds relationships. Businesses that are based on relationships typically grow and profit faster. Bottom-line, most people make purchasing decisions based on relationships. Go out and flex a little capital muscle!
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