Barter Exchange Ignites Small Business Profitability

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Why would a small business utilize a barter exchange? 

For small business, expanding networks, preserving cash, and increasing profitability are the fundamental necessities of survival and success. Barter exchanges allow businesses to minimize their outlay of cash.

For example, say a business provides a service and/or product for another business and as part of the exchange “x” amount of cash on behalf of the business providing the service and/or product was utilized in order to complete the transaction. However, as a result of the transaction, the business providing the service and/or product receives barter/trade dollars in which they can choose to spend or save. Since all services and products offered on barter exchanges are valued at their fair market value, the premiums that are sometimes placed on certain services and products in traditional marketplaces are virtually eliminated.

Therefore, a business can save cash by utilizing their barter dollars for a service or product that would otherwise cost more (in real terms) if the business were to go out and purchase the service and/or product with a traditional medium of exchange. By preserving cash, businesses are able to increase their profitability and maintain healthy levels of liquidity.

Barter exchanges also provide businesses with the ability to increase their network since they can both provide and receive services and/or products from a wide range of businesses. By increasing networks, business can increase their ability to maximize sales and ultimately profitability.

Small business owners that are interested in learning more about local barter exchanges should visit The National Association of Trade Exchanges website; the site has a directory of barter exchanges all across the United States. There are also a number of local exchanges for example, if you are a business owner in Westchester County, New York, the Hudson Barter Exchange (HBX) is a premier barter exchange within that region.

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