Small Businesses Bartering In Tough Times

Thursday, April 08, 2010

The White House is taking steps to help small businesses secure loans, but while they wait, those businesses are finding creative ways to stay afloat. The White House recently launched a $21 million program this week to help banks make loans to small businesses. This comes more than a year after President Obama proposed to allocate $15 billion (with a 'b') from the federal bailout specifically for this purpose. Getting even this relatively small amount of money out the door proved a struggle for the White House, as the administration tries to pass more legislation to help small businesses.

Some small businesses are taking steps to help save themselves money including bartering with each other instead of exchanging money. James Taylor, CEO and president of Taylored Athletes in Boynton Beach, FL, started bartering 2 1/2 years ago, when he was having trouble securing a loan from the bank.  But is trading goods and services the wisest move in a tough economy?  Wall Street and financial reporter for The New York Times Louise Story thinks keeping track of accounting and taxes (yes, bartering is a taxable event) while bartering can be very difficult.

Guests:

Louise Story and James Taylor

Produced by:

David J Fazekas

Comments [6]

lisa from Chesterfield, MI

I've bartered freelance graphic/web design services in the past for salon services with a friend. After listening to your program yesterday, I received a call from a painter/re-modeler needing a logo, website and advertising services and I just so happen to need a rental remodeled. I suggested we could barter. It doesn't pay the bills, but it's a good way for us all to get what we need and help one another.

Apr. 09 2010 10:46 AM
TheSign from Sacramento, CA

I think what Louise Story said is interesting: "There’s a reason we have money, and that is because bartering isn’t that easy." It's true that going the barter route alone is not easy, but that's exactly what makes barter exchanges a brilliant idea. Save yourself the time and hassle of running around, making call after call to find someone who needs what you have, and is willing to barter. Let someone else do the legwork for you. Elizabeth's experience with ITEX is a perfect example of what an experience with a barter exchange should be.

Apr. 08 2010 05:26 PM
adriana perry from Brooklyn NY

I am an accountant and I have been bartering for years, with my hair dresser, with my personal trainer, my contractor for some renovations
and I agreed with Renvil, that get you better relationships with your clients.
sometimes it's not that even but sometimes to lose to win.
I love your show!

Apr. 08 2010 04:35 PM
Brittany Bolerjack from Stillwater, OK

I've recently found myself bartering quite a bit! A hair cut to get some guitar lessons and cooking lessons in exchange for a meal out-to-eat. It makes so much more sense when it works and fosters deeper relationships among everyone involved!

Apr. 08 2010 10:23 AM

Hi Celeste.
My name is Renvil. I'm a fitness trainer. I've been doing for 7 years now and love everyday of it. I like your story about bartering because I've been doing it with clients of mine such as my dentist and my financial adviser for their service. It's been working out very well. They are actually talking me up to their clients which is getting me business.
I love your show very much Celeste! Love listening to your voice:) It always seems like you are right there talking to me. I'll give you one month free of training if you mentioned me on your show:)
Have a wonderful day Celeste!:)
Thank You For Making My Day.

Renvil Doman
renvildoman@hotmail.com
renvildoman.com
Boston,Massachusetts

Apr. 08 2010 09:23 AM
Elizabeth DiCandilo from Hoboken, NJ

Years ago when I was consulting in PA I joined a group called ITEX. It was a bartering service for small businesses.

You didn't have to make an even trade but rather posted what you wanted to barter. If someone wanted that, they could take it, pay a % fee of the value and you were free to trade with anyone who had something you wanted. It vastly reduced the complication that you were talking about this morning.

Just checked and found ITEX is still going so I think you should tell people about this option.

Apr. 08 2010 07:10 AM

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