Issue link: http://cp.revolio.com/i/15024
Barter Smarter NOT ALWAYS AN OPTION But bartering isn’t an option for all professionals. Because barter doesn’t include the tangible exchange of cash, using barter to gain more capital may not work. It will, however, help preserve current reserves. “As money gets tight, we all find ways to save, but I do not think that bartering is the answer,” says Blanca Caballero, founder and president of AvantGard Spa in San Carlos, California. “This will not get you out of financial difficulties.” Oskin agrees with Caballero and says estheticians should barter only to a point. “You should not do everything in barter, as you will still need hard green cash to pay for your supplies, rent, food, and bills,” he says. Caballero says estheticians should only barter for services in exchange for their work and only for things that are wanted or needed. If considering a bartering relationship, keep in mind every good has a dollar value and every service fills a measure of time that equals a dollar amount. Strive to barter for equal-value items “like a massage therapist wanting facials and an esthetician wanting massages,” Caballero offers. “For example, I would write a gift certificate with a year’s expiration date for $200 and the massage therapist would do the same. Every service they receive, the balance gets adjusted. If the services do not get redeemed within that year, they are voided.” Fairness can be an issue if no dollar amount is worked out. Vipperman insists this could be a problem if a spa decides to barter its services. “If your company uses your services for bartering, you should still be paid for your services, unless it has been made clear and agreed to that your services are being used to gain more business for you in the long run,” Vipperman says. Having a dollar amount assigned to the items being traded will also help when tax forms are filed. Keep good records and document all of your trades, because the Internal Revenue Service regards barter exchanges as taxable. Barter participants are required to file Form 1099-B for all transactions, whether Internet-based or with a physical location, unless the arrangements are noncommercial in nature or if there are fewer than 100 commercial transactions during the year. Keys to Bartering You will find companies open to bartering with you—they simply need to be asked. When asking a business to partner with you in a bartering situation, there are some things to consider prior to doing your trade. • Is the company a reputable one? • Does the company serve the same demographic your company is trying to reach? • Will you benefit from a partnership with this company? • Does this company hold the same values and philosophies you do? • Can you afford the in-kind trade agreement? • Will the agreement enhance your visibility? • What will your return on investment be? • Does partnering with this company make sense for your business? —Maureen Vipperman WITH WHOM SHOULD I BARTER? It’s sometimes difficult to know with absolute certainty if you should steer clear or proceed with a barter partner. One of the biggest hurdles is simply finding barter mates. Oskin says you need look no further than your own clients and local businesses and suggests searching the Internet for barter networks, which are available at local, regional, or national levels. Visit Craigslist.com, he suggests. But Dickey has a stronger opinion. “Bartering should be avoided when you don’t already know, trust, and have an established relationship with the person with whom you’re bartering,” Dickey says. “I have never operated through a professional barter service; perhaps those would be worth a try. I prefer having the personal relationship and trust—that way people can be honest with each other if they think they’re getting the short end of the bargain.” Caballero, like Dickey, prefers to barter only with people she knows; for example, her hardware 42 successful business handbook www.ascpskincare.com