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What You Need To Know To Make Sense of Business Bartering

What You Need To Know To Make Sense of Business Bartering

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    Bartering, trading one good for another, is becoming increasingly popular as the value of the dollar continues to plummet. There are several bartering systems available online (some better than others) and activity on these web sites has increased as the economy has gotten more and more troubled. However, when you move into cashless economies, it’s easy to get sucked in. Here are a few things you need to know to make it work for you.

    1. Use an established bartering system.

    Bartering on your own is often fraught with difficulties. Establishing “what’s fair” is rarely easy, especially if you’re the guy who charges $100/hour and you’re negotiating with someone who charges substantially less. One hour isn’t always equal to one hour, and that’s not always an easy concept to explain.

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    Instead, use established systems that operate with their own version of “dollars” and have structures in place to ensure that everyone follows through on their end of the bargain. The way these systems work is that you join the system and let people know what you have to offer. People use dollars they already have in the system pay you for your products or services. Then you use your system dollars to pay for products and services that you need.

    2. Use bartering systems as a marketing tool.

    Bartering systems can act as a solid marketing tool for your business, when used the right way. People already in bartering systems have dollars that have to be spent in the system. So you’re entering a marketplace of willing investors.

    Plus, people tend to look at these dollars slightly differently from “real dollars” and are more willing to spend them. Bring the right product or service into the system, and you could introduce your product or service to a large group of willing buyers very quickly.

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    3. Avoid getting too heavily invested.

    One thing you want to avoid is getting too heavily invested in any bartering community. If there’s something in the system that you really need and would have invested in anyway, this can be a good way to obtain it. However, you can’t guarantee the quality of the professionals in the system. Just because they’re in the system doesn’t mean they’re the best ones for the job.

    And let’s face it…your mortgage company and the utility companies probably don’t accept bartering dollars. You need real dollars for the real world, and bartering dollars just don’t transfer.

    4. Spend your bartering dollars right away.

    There’s another truth about bartering dollars, and that’s that all of these bartering systems are businesses that are owned by someone. In this uncertain economy, companies go out of business in the blink of an eye. So make sure you don’t leave your bartering dollars in these systems for long. Spend your dollars quickly, just in case, so you don’t have thousands invested in this system that could drop off the face of existence without any warning.

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    5. Transition bartering relationships to cash relationships.

    When clients ask me about entering into bartering systems, I advise them to keep their offerings to introductory services only. Figure out which services frequently act as a “point of entry” to your business and offer those as barters, then convert your bartering clients into cash-paying clients as quickly as possible to avoid getting too heavily invested in the long-term.

    And, make sure you don’t get behind the eight-ball on any transaction — don’t offer to barter for something you yourself have to pay real dollars for.

    6. Prepare for taxes.

    Finally, don’t forget that the IRS views bartering dollars as exactly the same as real dollars. Earn a dollar in a bartering system, and you’ll still have to pay taxes on that money in real dollars later. Plan accordingly!

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    Bartering can be a great way to market your business and gain new clients and trade for services you need for your business. However, there are pitfalls. Plan ahead, avoid being too heavily invested, and transition barter clients into cash-paying ones, and you can benefit greatly from these systems.

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    Last Updated on October 15, 2019

    Is Procrastination Bad? The Truth About Procrastination Revealed

    Is Procrastination Bad? The Truth About Procrastination Revealed

    Procrastination is very literally the opposite of productivity. To produce something is to pull it forward, while to procrastinate is to push it forward — to tomorrow, to next week, or ultimately to never.

    Procrastination fills us with shame — we curse ourselves for our laziness, our inability to focus on the task at hand, our tendency to be easily led into easier and more immediate gratifications. And with good reason: for the most part, time spent procrastinating is time spent not doing things that are, in some way or other, important to us.

    There is a positive side to procrastination, but it’s important not to confuse procrastination at its best with everyday garden-variety procrastination.

    Sometimes — sometimes! — procrastination gives us the time we need to sort through a thorny issue or to generate ideas. In those rare instances, we should embrace procrastination — even as we push it away the rest of the time.

    Why we procrastinate after all

    We procrastinate for a number of reasons, some better than others. One reason we procrastinate is that, while we know what we want to do, we need time to let the ideas “ferment” before we are ready to sit down and put them into action.

    Some might call this “creative faffing”; I call it, following copywriter Ray Del Savio’s lead, “concepting”.[1]

    Whatever you choose to call it, it’s the time spent dreaming up what you want to say or do, weighing ideas in your mind, following false leads and tearing off on mental wild goose chases, and generally thinking things through.

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    To the outside observer, concepting looks like… well, like nothing much at all. Maybe you’re leaning back in your chair, feet up, staring at the wall or ceiling, or laying in bed apparently dozing, or looking out over the skyline or feeding pigeons in the park or fiddling with the Japanese vinyl toys that stand watch over your desk.

    If ideas are the lifeblood of your work, you have to make time for concepting, and you have to overcome the sensation— often overpowering in our work-obsessed culture — that faffing, however creative, is not work.

    So, is procrastination bad?

    Yes it is.

    Don’t fool yourself into thinking that you’re “concepting” when in fact you’re just not sure what you’re supposed to be doing.

    Spending an hour staring at the wall while thinking up the perfect tagline for a marketing campaign is creative faffing; staring at the wall for an hour because you don’t know how to come up with a tagline, or don’t know the product you’re marketing well enough to come up with one, is just wasting time.

    Lack of definition is perhaps the biggest friend of your procrastination demons. When we’re not sure what to do — whether because we haven’t planned thoroughly enough, we haven’t specified the scope of what we hope to accomplish in the immediate present, or we lack important information, skills, or resources to get the job done.

    It’s easy to get distracted or to trick ourselves into spinning our wheels doing nothing. It takes our mind off the uncomfortable sensation of failing to make progress on something important.

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    The answer to this is in planning and scheduling. Rather than giving yourself an unspecified length of time to perform an unspecified task (“Let’s see, I guess I’ll work on that spreadsheet for a while”) give yourself a limited amount of time to work on a clearly defined task (“Now I’ll enter the figures from last months sales report into the spreadsheet for an hour”).

    Giving yourself a deadline, even an artificial one, helps build a sense of urgency and also offers the promise of time to “screw around” later, once more important things are done.

    For larger projects, planning plays a huge role in whether or not you’ll spend too much time procrastinating to reach the end reasonably quickly.

    A good plan not only lists the steps you have to take to reach the end, but takes into account the resources, knowledge and inputs from other people you’re going to need to perform those steps.

    Instead of futzing around doing nothing because you don’t have last month’s sales report, getting the report should be a step in the project.

    Otherwise, you’ll spend time cooling your heels, justifying your lack of action as necessary: you aren’t wasting time because you want to, but because you have to.

    How bad procrastination can be

    Our mind can often trick us into procrastinating, often to the point that we don’t realize we’re procrastinating at all.

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    After all, we have lots and lots of things to do; if we’re working on something, aren’t we being productive – even if the one big thing we need to work on doesn’t get done?

    One way this plays out is that we scan our to-do list, skipping over the big challenging projects in favor of the short, easy projects. At the end of the day, we feel very productive: we’ve crossed twelve things off our list!

    That big project we didn’t work on gets put onto the next day’s list, and when the same thing happens, it gets moved forward again. And again.

    Big tasks often present us with the problem above – we aren’t sure what to do exactly, so we look for other ways to occupy ourselves.

    In many cases too, big tasks aren’t really tasks at all; they’re aggregates of many smaller tasks. If something’s sitting on your list for a long time, each day getting skipped over in favor of more immediately doable tasks, it’s probably not very well thought out.

    You’re actively resisting it because you don’t really know what it is. Try to break it down into a set of small tasks, something more like the tasks you are doing in place of the one big task you aren’t doing.

    More consequences of procrastination can be found in this article:

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    8 Dreadful Effects of Procrastination That Can Destroy Your Life

    Procrastination, a technical failure

    Procrastination is, more often than not, a sign of a technical failure, not a moral failure.

    It’s not because we’re bad people that we procrastinate. Most times, procrastination serves as a symptom of something more fundamentally wrong with the tasks we’ve set ourselves.

    It’s important to keep an eye on our procrastinating tendencies, to ask ourselves whenever we notice ourselves pushing things forward what it is about the task we’ve set ourselves that simply isn’t working for us.

    Featured photo credit: chuttersnap via unsplash.com

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