Small business entrepreneurs need every edge they can get. One often overlooked source of business is barter. In my event catering business, I belong to several barter networks. Here’s how it works: someone (either a consumer or event planner) calls me and books my services for an event. Let’s say my fee is $1000. The barter company authorizes the booking, making sure my buyer has the credit available in their barter account. I provide my services and receive $1000 in barter credit to my account. The buyer pays a cash fee of about 10% ($100 in this case) to the barter company and pays me the sales tax, if applicable, directly. Now I have $1000 in my account. What do I do with it? Well, today there are painters up in my kids’ bedrooms. Tomorrow a landscaper is doing new plantings for our yard. Last week we had a big storm and a tree fell–and a tree removal service did that job (and pruned a bunch of other trees). We’ve also used barter for advertising, locksmith services, commercial printing, web design, and many other goods and services. A key benefit of barter is that when you provide your services in this way, you receive leads from many potential cash customers. Barter is often overlooked by entrepreneurs but shouldn’t be. The one caveat I have is to research the barter companies you choose to work with. It’s important they have a strong network of members who will provide services to you. The barter credit you receive is only as valuable as the network through which you can spend it.

Tags: barter, small business, solopreneur