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 . . . Bartering Makes A Comeback (more)
 
     Startup businesses can conserve precious operating cash by making purchases with their products rather than their profits, thus freeing up cash and bringing in new sources of business through the drawing power of the exchanges. When business owners "buy" products or services first by using trade dollars, they are essentially able to make purchases with interest-free credit lines. One small chain of stationary stores West of Boston, for example, was able to expand its operations and set up two new locations by trading for store fixtures, architectural design, and advertising.
     Another key benefit to the entrepreneur is his or her ability to purchase such services as advertising on a barter basis and attract cash-paying customers.
     For those businesses and individuals considering barter as a technique for maximizing profits, the experts suggest some of the following tips:

• Think barter before making any purchase for your business. This is especially critical for startups, when you may well be able to finance the cost of office furniture, phone systems, advertising, phone systems, and the like by using trade dollars now that you won't have to replace until later, once your business is off and running.

• Train your vendors to use barter to your own advantage. When suppliers approach you for business, try to make barter one of the contingencies of making your deal.

• Buy on trade, resell for cash. Barterers frequently have the opportunity to acquire goods on trade which can be resold to cash customers. Graphic designers, for instance, can buy typesetting or color separations on trade and bill the cost of these expenses directly to their cash-paying clients.

• Avoid the temptation of earning barter credits by selling your business products or service and spending credits on personal items. Barter income derived from business sales is taxable; expenditures on personal items are not tax-deductible. d  

"Whether the problem is excess inventory, vacant office space or limited distribution, companies across the globe are gravitating toward corporate barter as a flexible solution and alternate marketing tool."
--Management Review