| Bartering was the original way business was done. | | | | He used a hotel as one example. You as the seller |
| It was practiced long before the evolution | | | | can agree to accept a specified number of room |
| invention of money. Money as we know it, in the | | | | nights per year for a specific number of years as |
| form of paper currency, and credit, largely | | | | part payment. Combining that with the capital that |
| replaced barter. So if money replaced bartering, is | | | | the prospective buyer will already have will reduce |
| there any good reason why the reverse can't be | | | | the amount of capital he needs to secure from |
| true? Replace money with barter. At least in | | | | third parties. He used a law firm as another |
| some areas of your business. It will reduce your | | | | example. You as the seller can agree to accept a |
| need for cash for working capital. | | | | specified number of hours of legal work each |
| Like many less known areas of business, bartering | | | | year for an agreed number of years. Again, the |
| has been largely used by the knowledgeable few. | | | | result will be a reduction in the amount of |
| However, just to give you an example, Carnival | | | | additional capital a prospective buyer needs to |
| the cruise line traded cruise tickets for advertising | | | | secure. When access to capital is difficult, and the |
| when it started out. And perhaps for other things | | | | amount available limited, this technique could make |
| as well. They were short of money, and couldn't | | | | the difference between a transaction closing and |
| raise any. Bartering is something that can help you | | | | not closing!! |
| ease the sale of your business. However, to use | | | | Cash Is King So Cash Convert. |
| it effectively to help make it easier for a | | | | When asked whether there were any business |
| prospective buyer to acquire your business you | | | | where this couldn't work, David was unable to |
| will need guidance. You will need expert guidance | | | | think of any. He did elaborate a bit on how this will |
| from a barter specialist. | | | | work. He acknowledged that a seller really doesn't |
| Bartering creatively can help you make it easier | | | | need an inventory of room nights, or a number |
| for a prospective buyer to finance the purchase | | | | of years worth of legal advice. And so on. |
| of your business. And in challenging times, when | | | | However, as a seller has experience in his |
| access to capital is severely limited, that can | | | | industry, he will know how and where to convert |
| make all the difference. That is the underlying | | | | the barter accepted, to cash. |
| premise behind the information on barter. | | | | Remember that cash is your ultimate objective. |
| Consult The Expert. | | | | And when you are agreeing on the amount of |
| However, mine is a layman's view and I wanted | | | | product or service that you will accept in this |
| you to benefit from the advice of a skilled | | | | way, remember to consider the profit margins in |
| practitioner of barter. So I contacted David | | | | the business. Where significant margins apply a |
| Wagenvorrd, a man with decades of experience | | | | buyer can afford to give more product or service |
| using barter for his own business, and for others. | | | | without impacting overall business performance, |
| Notably Carnival Cruise Lines in their earlier days, | | | | than if margins are modest. When you utilize this |
| where he traded surplus room nights for | | | | technique, be sure that everything is in writing. |
| advertising and other working goods and services. | | | | Get certificates representing ownership of the |
| In response to my question about whether it is | | | | product or service that you accept as part |
| reasonable to consider barter as a tool to be used | | | | payment. And have it broken down into |
| in a business, his response was enthusiastically | | | | reasonable increments, so it is easier for you to |
| positive. However, while agreeing that my original | | | | sell. Make sure that the claim that the certificates |
| approach would work, his basic approach was | | | | represent is legal and enforceable. And that it is |
| different. His basic approach reflects his vast | | | | transferable to third parties. You will probably |
| experience in barter. And it is more direct than | | | | need legal advice on these points. This discussion |
| what I had contemplated. Essentially he | | | | of barter has barely scratched the surface. It was |
| recommends that you as a seller take part | | | | not intended to do more than get you thinking |
| payment in kind or trade. Whatever product or | | | | about another way to help a buyer acquire your |
| service your business sells, agree to accept a | | | | business. Even if it is a way that seems relatively |
| specific amount of it as part of the price. | | | | obscure. |