Barter concepts have been around long before ‘The Silk Road’ era. It is the exchange of goods and services without the use of cash. Using Barter to trade spare capacity or inventory is the way entrepreneutrial business people get what they need.
Most businesses operate on the earn-save-spend model on purchases. An effective model is when the business is gaining enough money to cover costs but this is not always the scenario.
Barter provides viable solution to some common problems such as :
- excess inventory ( slow-moving, near expiry products, over-produced products etc)
- excess capacity ( office/personnel hours unused, unfilled tables, unoccupied hotel rooms)
During slow periods, you need to grow and increase your business expenses to generate more business. This will cause your inventory or excess capacity to increase. On the downside, by increasing your business expenses, it will cause your cashflow to decrease.
If you incorporate Barter system in your business strategy, you’ll get the opportunity to turn your spare capacity or inventory into value by providing your business purchasing power. Barter will be the competitive edge by trading your products or services to accommodate your business needs.
If you THINK that this will be possible, contact me
