Cash is king: in these tough times, that most cherished of truisms is cracking under pressure. Reduced consumer demand means surplus stock, and difficulties financing new supplies. As cashflow continues to suffer in the downturn, you may have already found yourself wishing you could cut cash out of the equation altogether.
Well, some wishes aren’t wasted. If you’re sick of cashflow headaches, it could be time to swap old ways of thinking for newer ones. Or rather, a modern way of thinking for an ancient one.
If you find yourself tight on finance, you can (literally) swap your way to solvency by switching to a very old manner of trade. We’re talking barter -- without the cows and camels.
Outfits such as UK-based Miroma, BizUnlimited and BarterCard, and international networks under the International Reciprocal Trade Association (IRTA), offer businesses a way of getting full value from stock they can’t sell. Instead of money, you receive barter points which enable you to purchase services such as advertising, travel, printing or stock without touching your cash reserves. It’s a win-win.
Andy McLean, MD of web marketing company Open Eye Marketing, has used barter exchange BarterCard for the past five years and is enthusiastic about the business benefits. He has eased cashflow through barter in many ways, using the network to secure advertising and to incentivise staff by paying overtime in trade pounds.
“It’s certainly helped with cashflow,” Andy explains, “but the main benefit is it generates new business. With the BarterCard network, you’ve got trade co-ordinators who are actually actively trying to find business for you. It’s a very effective form of marketing.”
Andy says he gets at least one enquiry a day from other barter network members wishing to use his company’s web marketing services.
So why not ease your cashflow issues with the old fashioned way? It’s our tip of the week for freeing up cash.