There’s no doubt that cash helps small businesses grow most efficiently. It has been, after all, the only universally accepted medium of exchange since the first known coins were created in Turkey, about 2,600 years ago. But what happens when cash (or paying customers) are in short supply?
The answer is deceptively simple: go back to what worked before cash.
People successfully traded goods and services without the use of money for thousands of years. The Latin term Quid pro Quo – literally “Something for Something” – sums up that system. Nowadays, it’s generally called “barter,” “trade,” or “swap,” and it’s still used as a fallback position when cash becomes scarce.
Cash may have relegated barter to the minor leagues of the marketplace, but it’s still a fairly common practice among businesses that know each other and need what each other has to offer.
And make no mistake, that’s what’s going to start happening now as customers are forced to stay home instead of going out to buy the things they need. Oh, they’ll still have cash in their jeans, but they won’t be coming to your store to spend it.
Meanwhile, you’ll still need to conserve your cash to pay your bills.
If your small business has excess capacity – say you’re a business coach whose appointment book has a half-hour open on Thursday afternoon at 3:00 o’clock. There’s a lot to be said for seeking barter opportunities as part of your survival strategy. That unfilled coaching slot is an opportunity lost forever unless you trade it for something you would normally buy using cash flow in a better economy.
But it does have its challenges. You need to be sure you can trust the people you trade with to uphold their end of the bargain in a timely manner. It’s also prudent to make sure their Quo has the same value as your Quid.
That’s where the Exmerce trade community comes in. We are a nexus – offering you the opportunity to earn Exmerce Dollars that can be used like cash to obtain goods and services from the almost 500+ businesses in the Exmerce trade community.
If your sales volume is not enough to operate at full capacity, turn this to your advantage by exchanging that excess capacity for goods and services offered by other Exmerce members.
Both members benefit. Member A receives goods and services without having to dip into cash or credit reserves. Member B receives access to additional production capacity without having to shell out cash or take out a loan.
Write This on a Rock:
“Consider Exmerce in your economic survival plan.”