Bartering is the original way to trade before money came of age. Is it still feasible to barter to do business today?
Bartering in 2011
Bartering is a great way for businesses that have a need for a product or service but may not have the cash to pay for it. In the current economic climate there are many businesses that have a need but not the finances. This particularly works well in the services industry where time can be exchanged. A web designer might get some legal work in exchange for a website, a business consultant might help a hotel in exchange for a accommodation. The possibilities are endless. Of course you need to keep in mind that bartering for something you don’t need will not be a productive use of your time and resources.
For anyone starting a business and most that do usually have limited resources and therefore to be able to barter can help with bootstrapping a business and getting it off the ground with little money to spend.
A search on Google will reveal a number of bartering websites that can help people come to together to trade by bartering.
Bartering and Tax
You will need to keep in mind that the tax authorities may view goods or services received in lieu of payment taxable and may well demand tax to be paid on the value. This is certainly the case here in the UK.
Bartering can be a very effective way to manage your business so do keep in mind the possibility of using it.