Is It Ok to Barter With My Business?
Most small business owners who barter do so because they undervalue what they’re worth and have a subconscious block towards accepting actual money.
But you need actual money. Your business - and personal life - cannot survive without it.
Watch the Reel!
#1 Someone Always Loses
Let’s say your service costs $75/hour and the other person’s costs $60/hr. Neither of you wants to deal with that math, so you exchange hour per hour, losing yourself $15.
#2 It’s Inaccurate
If you barter instead of charge money, you won’t be able to tell how much your business actually makes.
This will make it difficult for you to plan how many expenses you can take on, can you make that purchase, and how much you can pay yourself.
Not only that, bartering lowers the value of your business, making it more difficult to apply for loans, sell your business, etc.
And if you barter for personal expenses like massages, you’re mixing business with pleasure - which I don’t recommend you do.
Your business should only cover business expenses. So if you insist on bartering, barter for services your business needs.
#3 You Need Money
Bartering doesn’t pay the bills. Your landlord and utility companies likely won’t barter with you, so you need cash.
And as an extension of that, you need actual money to cover your rent, mortgage, groceries, and other personal expenses, so your business should be able to pay you cash owner’s draws.
A tip to make talking shop less awkward is to include pricing on your website and either state your pricing early on in conversations, or say, “Let me send you a proposal.”
If someone asks you to barter, just say no.
Even if come back and say they can’t afford your offer unless you barter. If you barter, eventually you won’t be able to afford other products and services either - and remember, banks and utility companies only take cash.
Have you bartered with your business? What’s been your experience?
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Hey there! I’m Meg:
LOVER OF CATS, ROLLER SKATING, AND VW BUGS
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