Get Your Business Funded: Creative Methods for Getting the Money You Need

Brands of Barter

There are two forms of barter. The oldest method is called “direct” barter. This is where you simply trade your business's items for those of another company. This is what I did with Norman. The key is to have something someone else wants or needs and then to make contact. You may be surprised how many companies may be open to your barter suggestion.

While direct barter is still quite popular, these days a significant amount of barter is done online via “barter exchanges,” and it may be easier for you to proceed that way. A barter exchange is a company that brings together many different people and businesses desiring to barter, and then facilitates the transfer of their goods and services. Specifically, a barter exchange acts as a middleman that:

• Keeps track of what you have sold, and bought, within the system.
• Issues “barter bucks” to you when you do something for someone else in the group, which you later use to buy the goods or services from anyone else in the group.
• Sends out monthly statements to all member businesses, detailing purchases made, services rendered, and account balances.

For example, say that Carl the chiropractor charges $100 per session and joins a barter exchange. If Carl does five sessions of treatments for someone in the group, the barter exchange will issue him $500 in barter bucks, or barter credit. He can then use this “money” on any other product or service offered by any other member.

Needless to say, the caveat is that if your business ...