In today’s money-dominated business world, e’ve forgotten a traditional practice that could be a secret weapon for bootstrapping entrepreneurs: bartering.
I’ve seen firsthand how exchanging services can accelerate growth when money is tight, or you just want to avoid spending it unnecessarily. Here’s why you should consider it:
How Small Businesses Can Leverage Bartering
- Identify your valuable assets – Your time, expertise, excess inventory, unused space, or equipment access all have value.
- Find complementary partners – Look for businesses that need what you have and offer what you need. The local web designer who needs accounting help might be perfect for your bookkeeping firm. Don’t be embarrassed to start the conversation, you might well find the other party breathes a sigh of relief.
- Formalise agreements – Document what’s being exchanged, deadlines, and quality expectations. Treat bartering with the same professionalism as cash transactions. You don’t want to damage the broader relationship with hiccups here.
- Track everything – Remember, bartering transactions are taxable! Record fair market value of all exchanges and consult your accountant. For example, in the UK, this piece of advice comes from HMRC (His Majesty’s Revenue and Customs) with regard to bartering – “You must account for VAT, and so must your customer if they’re VAT-registered. The VAT treatment is the same as for part-exchanges. You must both account for VAT on the amounts you would each have paid for the goods or services if there had been no barter and they had been paid for with money.”
Pros of Bartering
- Preserves money for critical expenses
- Creates relationships that often outlast the initial trade
- Provides access to services you couldn’t otherwise afford
- Tests potential long-term partnerships before financial commitment
- Greater sense of control on both sides, you can withhold services rather than have to go to court to get your money back
- Potential for unexpected referrals and opportunities
Cons to Consider
- Time-intensive to arrange fair exchanges
- Potential for unequal perceived value
- Tax implications that require proper documentation
- Service quality variability without financial recourse
- Challenges in scaling bartering arrangements
How This Might Work
Process Mapping At Evoco we bartered process improvement for leads. We met another start-up that was leading edge in using LinkedIn for lead generation (this goes back many years). They needed help in creating effective, repeatable processes so they could grow. We needed sales leads for growth. It also created a closer relationship than exchanging a bunch of invoices.
The Office Share A marketing consultant exchanged strategy work for desk space at a creative agency. The arrangement saved the consultant coworking fees while the agency gained marketing expertise they couldn’t afford. Two years later, they merged companies.
The Time Share A SaaS founder with a calendar tool bartered free premium subscriptions with a legal firm in exchange for contract work. The law firm became their biggest advocate, referring multiple paying clients that ultimately funded their seed round.
The Restaurant Launch A chef opening their first restaurant traded cooking classes to a local photographer for professional menu and interior shots. The photographer shared the images on social media, giving the restaurant pre-opening exposure they couldn’t have purchased.
The most successful barterers understand that value isn’t just monetary—it’s about finding creative solutions that benefit both parties.
What’s your experience with bartering? Have you traded services to grow your business? Was it the right thing to do, or did you regret it? Share your story below!
