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Bartering Professional Services
Manage episode 491710280 series 3527542
In this episode, host Molly Beyer discusses the practice of bartering, a form of trade that’s been used since before money was invented. However, there are important things to consider before simply jumping into a trade arrangement, such as the specifics of accounting and tax considerations. Molly walks us through the benefits and potential drawbacks of bartering professional services and highlights some best practices so our exchanges are fair.
The benefits of bartering can be a win-win because the exchange of services conserves cash flow, which, especially for new entrepreneurs or small business owners, is a critical consideration. It also makes use of excess capacity, such as time in our schedules or underutilized resources. Bartering also fosters good long-term connections and bolsters affiliate partnerships. Molly explains the value of each benefit.
The challenges and potential downfalls are also addressed by Molly, and they include unequal value exchange, tax implications, and record-keeping and accounting burdens. Each of these drawbacks is examined in detail by Molly, with cautions and advice on how to avoid them included. Successful and unsuccessful barter relationship examples are detailed, leading to vital takeaways designed to help all entrepreneurs set up balanced and positive bartering partnerships.
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