Building a local economy:

5 ways to grow your business without spending cash

 

By Rich Creyer, Local Trade Partners, Northwest Arkansas

 

If you are a local small business owner this column is for you. I want to share five ways you can gain new customers without spending your cash. Before we start, we need to determine if YES fits the questions below:

 

Do you have excess inventory?

Do you desire for new customers and more sales?

Do you want to help strengthen the local economy?

Can you think a little outside the box?

 

Great. Here's how you can use local barter to gain customers you would probably never have gained, and, give you access to local currency as valuable to your business as cash.

 

1. Advertising. Marketing your company to prospects tops the list of "how to gain to new customers." When you purchase advertising, you are casting your net to catch new cash customers. Purchase your advertising with trade partners and you can spend your cash on other essential operating expenses, like inventory and payroll. Advertising barter is one the oldest types of trade transactions, and you can choose from top quality opportunities to reach your target market.

 

Did you know? Right here in Northwest Arkansas, you can buy advertising with several magazines, radio, digital and web portals. You can buy signage, customized apparel, promotional items, printing, voice and video talent, coupons and promotional marketing, even graphic design and marketing guidance -- all on barter from local business owners just like yourself.

 

Imagine if you could take your entire marketing budget from last year and shift it to unused inventory budget line. What could your business do with that new profit stream? What if you could double or even triple your marketing efforts using trade? How many new cash customers would you gain from the effort?

 

2. Business Services.  It takes many business-to-business (B2B) services to make the local economy run. Copier leasing and computer servicing, office building rental and furniture, vehicle maintenance, janitorial services, landscaping and maintenance, waste hauling and window washing, coffee service and credit card processing, business luncheons and sales incentives. That's the short list.

 

When you shift these expenses to a trade partner, you free up as many items from your budget that you normally pay for with cash.

 

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3. Professional services. If you could hire a professional to stand in these areas, would your business fare better?  Consider how you might benefit from using lawyers, accountants, business consultants and payroll services as if they were on your very payroll -- without the paycheck.

 

4. Employee benefits and incentives. Imagine if you could offset expenses, bonuses, performance incentives -- even health, dental, vision and eye care -- using local barter? You can put yourself in this group, too, you're an employee of your own company in one way or another. You can pay yourself in trade services you would use cash to pay for otherwise -- from dry cleaning to vacations, dinner and entertainment to jewelry and art 

 

Using trade currency for all of these expenses keeps your hard currency in the business, and gives you a liquidity boost, interest free. You can use credit lines with barter much like those from the bank, without the interest. 

 

5. Fish in a barrel. Because trade organizations are closed currency systems, your "money" is only good at participating businesses. While that may seem limiting at first glance, in actuality it provides businesses like yours an opportunity to compete in the marketplace. Businesses looking for services will look to you first, before spending their cash out of the system. Just your participation gains new customers that you would probably never have otherwise.

 

Monetize your unused inventory. Sell to a unique group of customers. Save your cash. Keep your company moving forward and your local economy growing strong.

Rich Creyer, has a degree in Economics and has worked with big box companies like IBM and AIG. He is currently the Trade Broker for Local Trade Partners, in Fayetteville, a concern that works to build preserve and protect local business and the local economy using “local currency.” Email Rich at rich@localtradepartners.com.