Most people don’t start a business just to make money. Most people start a business because they’re really good at this one thing and they want to share it with others. This often means, especially in the beginning, that you’re in a position of selling yourself when the thing you’re really good at might be completely unrelated to sales. It can be hard. And it’s easy to not recognize what your product or service is worth. This sometimes results in a lot of requests for trade from other small business owners. It could be they don’t have the funds because they’re just starting out too, or maybe they don’t realize what they’re worth yet. Trading can be extremely helpful for a new business. You can get things (like maybe a website) done without having to pay out of pocket, but trading can also be a dangerous trap.
When you’re starting out you want to get yourself out there. Part of you is even willing to do it for free so you can maybe get a review or a picture for your socials or maybe just to DO something other than sit around trying to figure out if you’ll ever make this work. Trades are most valuable when whatever you get, you need. It’s even better if it helps your business. Sometimes, they can work to provide some luxury items or some of that self care we’re always talking about without taking money out of your pocket. The bigger you get though, the harder it is to trade. When you are getting the benefit, it’s simple. But when you’re paying a staff to complete the job, is the trade really worth it? Did you get the value of paying your staff back from the trade? If you’re doing it yourself, is it pulling you away from something else you should be doing?
Trades really can be a great way to earn something that is hard to pay for, especially when you’re starting out. Take some time to really think about them before you agree though. Does this work best for you and your business? Or is this taking money out of your pocket more than it’s contributing? Is maintaining this relationship taking more time than it’s worth? On the flip side, if you’re the established one and it’s not hurting you, does it help someone whose getting started? Can you make someone’s journey a little easier? Regardless of where you’re at, make sure you’re revisiting your trade agreements at least a few times a year. Ensure they’re lifting you up and not dragging you down. And, as always, as your accountant to make sure you stay on the up and up!