Why Barter?
Bartering with the iTM Network will give you a competitive edge on many levels. Barter can be an impactful tool whether you are just starting out, in a phase of growth or a Fortune 500 Company.
Bringing You a Better Life Through Barter
The most important challenge facing your business today and in the future is to maintain a competitive edge. This means rethinking the standard way of doing business. It also means exploring new sources of revenue.
Conserves Cash
That’s right. Every time you complete a trade transaction, you did not have to pay cash out of your pocket for that item. Cash is the life of a business and without a positive cash flow, a business cannot survive. So by bartering, you can conserve cash for the items you cannot get with trade.
Gets Rid of Surplus
Plenty of companies have surplus lying around that they cannot liquidate. This is stale merchandise that is only COSTING the company money. Things that won’t move in the cash world have every chance of moving in the trade world.
Lowers downtime and unused capacity
When a hotel room sits empty, it isn’t making anyone money. With barter and trade, a company can fill those rooms with clients and create trade dollars which can be used to purchase more needed items, making it a double win situation for the business.
Creates More Customers
What someone may not be willing to pay for in cash, they may be willing to get with trade. Many companies utilize leverage in creating trade dollars. Therefore the $1 they spent, did not cost them $1 to create. So, they are leveraging their time and resources into larger amounts that benefit them better in the long run.
Creates cash sales and transactions
Like in the example of the hotel, though a customer may pay for a room with trade, the room service, valet and the numerous other amenities they use while at the hotel are paid for in cash, which is bringing more cash into the business than would have originally been there than if that room sat empty. These cash transactions of course help with the cash flow of the business and in turn help the business survive.
Purchasing Power
All of us will agree that cash is no more than a means to an end. When it comes to making your purchases, the form of payment is unimportant. Using your goods and/or services is an excellent way to make the purchases you and your business need in both good times and bad.
Access to Network
When you sign up for membership, you’ll join a powerful network of thousands of businesses that use the same network. By doing this, you’ll have exposure to millions of people, be able to network rapidly, make new sales, and save money.
Frequently Asked Questions
iTM increases profits by utilizing excess capacity to generate incremental business, reduce cash expenditures and fund unbudgeted expansion. This is accomplished without making any changes in how you do business. All you will do is add an additional form of payment.
One of the most important considerations about barter is that the IRS deems barter transactions to be taxable events. The fair market value of products or services you receive via barter must be reported as income to the IRS. This may result in income, self-employment, or excise tax liability, as well as capital gains or losses. If you make transactions via a barter exchange, you should receive a Form 1099-B from the exchange that details your barter activity.
Benefits
Bartering with the iTM Network will give you a competitive edge on many levels. Barter can be an impactful tool whether you are just starting out, in a phase of growth or a Fortune 500 Company. The needs may be different but the value and savings are measurable. Membership will immediately put you in a strong network of thousands of businesses all using this same network daily. In turn, this will give you access to millions of impressions, exposure, the ability to network quickly, generate new sales and conserve cash.
We offer a full brokering and marketing team to support and assist your business both in the generation new business as well as utilizing your funds to the fullest potential.
Through bartering, iTM will be a dynamic partner for your business whether you’re just getting started or looking to expand. With thousands of products and services available, iTM is the smartest way to increase your spending power without increasing your cash debt.
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Charitable Giving
Trade can be a great benefit to charitable organizations just as it is for businesses. Charities often have similar needs and can thus make use of the same goods and services as businesses. Leveraging the power of barter for such goods and services helps these organizations put their cash dollars to better use in their programs and do more good!
Charities are able to do this by accepting donations of trade dollars in the same way they take cash donations. This creates opportunity for them as well as existing members of the network. The charity takes in barter donations, which they can use in the operation of their organization while those making the donations take advantage of the tax benefits of donating as well as knowing that their barter dollars are helping a good cause. It really is a win-win for everyone!
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Increase Cash Flow
Every business wants to increase cash flow. The traditional approach to this is to try increasing sales and/or reducing expenses. Utilizing barter can help accomplish both by bringing in new customers while reducing or eliminating cash expenses at the same time. Leveraging trade dollars to pay for needed goods and services frees up cash which can be put towards further growing the business. Barter can also be used to purchase advertising to drive additional cash sales and bring in new cash customers. This can all be purchased utilizing trade from new barter customers, many of which will be new customers brought to you by iTrade!
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Increase Employee Stability
No matter the size or stage your business is currently at, having employees leave is just bad for business. As the Wall Street Journal notes, a high employee turnover rate can cost “twice an employee’s salary to find and train a replacement.” Not only are there financial repercussions, a high turnover rate can also lower the knowledge base in your company and decrease performance and morale.
Employee retention is highly important for businesses of all sizes and kinds. Finding the right employees and then keeping them however are things with which many business owners and managers struggle. Trade can help by allowing businesses to offer things to which they might not otherwise be able such as health & wellness benefits, incentive programs, childcare, bonuses and teambuilding activities.
Many business owners need childcare services for their own children. Childcare is a struggle for many employees as well but necessary to maintain a position. Using trade to supplement or cover this cost can save you money as well as provide a huge incentive or reward for an employee without costing you cash out of pocket.
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New Customers
Barter is a powerful tool for businesses to move excess inventory, fill unused time and maximize existing resources. It can also create new opportunities and bring in new customers. Members can create additional business, including new cash business using trade dollars and the trade network.
Perhaps the most obvious source of new business from joining a trade exchange is from the existing members. iTrade has a network of thousands of existing members. They want to utilize their trade dollars rather than spend cash so they will seek companies within the network first. Therefore, becoming an iTrade member brings these thousands of existing members as potential new customers. They also become potential new vendors with whom you will be able to utilize your own trade dollars as part of the iTrade community.
Barter can also help you generate new cash business. The relationships created within the trade network can lead to referrals. Trade customers can refer their non-trade friends, family, clients and associates. When a member has a great experience with another company in the exchange, they are likely to refer them just like they would for a company with whom they used cash and those referrals can bring in new cash customers.
Finally, you can leverage your own trade dollars to actively drive additional cash business through advertising and marketing. With hundreds of advertising options including magazines, newspapers, radio, television and digital advertising as well as website development, optimization, branding, social media and much more, there is bound to be an option that fits your needs. By using trade dollars to advertise your business, you can increase your exposure, attract new customers and generate additional cash business. Advertising is a large cash expense for many businesses so you save cash at the same time!
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Using Barter in Your Startup
If you’ve recently started a new business or are thinking about starting one, then you might be aware of the cash flow challenges that await you. However, consider a strategy that both startups and established businesses have used since commerce began that can help you preserve precious cash while still obtaining the goods and services you need to run your business: barter.
Barter is the exchange of goods or services between businesses or individuals. It can be especially beneficial for small and startup companies because it allows each party to get what it needs by providing a product or service to the other party instead of laying out cash.
For example, consider a small website development firm with five employees. It wants to grow by gaining market share but it can’t afford to pay for professional advertising or marketing services. If it could find an ad agency in need of website development, the firms could trade services with one another, each obtaining a valuable service it needs without having to spend cash to get it.
Bartering can work just as well for manufacturers and retailers that have excess or outdated inventory that won’t move, which they can exchange with other businesses for needed goods or services. This allows companies to get some value out of inventory that they may otherwise have to mark down substantially or simply write off as a loss.
One of the best ways to engage in barter is to join a large barter exchange group with an excess of 1000 members. iTM is one of the few exchanges that can offer you this and the only one in Arizona. Here is the main premise behind what we do:
Companies sell their goods or services to other businesses in the network and receive trade credits (or barter “dollars”) in exchange, which they can use to buy goods and services from other member businesses.
iTM offers full business consulting to start ups that will explore all avenues of cash expenditures that may be needed during the first year. We develop a plan with you to help get you started without the out of pocket cash expense.