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Posts Tagged ‘business’

Financing Your Business – A strong financial base is important to the success of a new or expanding business. Source: Florida Small Business

Wednesday, July 21st, 2010
Business Toolbox

Financing Your Business

A strong financial base is important to the success of a new or expanding business.

Danielle Williams
Danielle Williams, director of operations, Oceans 234, Deerfield Beach [Photo: Eileen Escarda]

» Trading Game   When Danielle Williams decided to remodel her upscale Deerfield Beach restaurant, Oceans 234, she relied heavily on barter, one of the oldest forms of obtaining goods and services. Williams, the restaurant’s director of operations, traded restaurant meals for more than $80,000 in new flooring, plumbing, interior design, uniforms, a logo, signs and more. The value of bartered goods added up to more than half the $150,000 total cost of remodeling. “It’s just so smart, so easy,” says Williams, who in late 2008 joined NuBarter, a Savannah-based barter network with offices in Daytona Beach, Sarasota, Tallahassee, Pompano Beach and Boca Raton.

NuBarter and other barter networks let members earn and use trade credits. So when Williams provides $500 in restaurant meals to the barter network, she can use those credits for any member’s goods and services, even if they never eat a meal at her restaurant. “It’s like having a Visa,” says NuBarter’s Karen Roumay. Barter networks charge members an annual fee, a monthly maintenance fee and collect a percentage of the value of the trade. In NuBarter’s case, the annual fee is $395 plus $15 per month in cash and $15 per month in trade credit. They collect 10% of the value of the trade in cash from the buyer.

Williams says that originally she thought she would barter only for a short period, but now that the remodel is finished she is bartering for all types of goods and services for the restaurant on an ongoing basis.

A key, she says, is knowing how much you can afford to trade each month.

Still, says Williams, “There’s no reason I would stop bartering.”

An Excellent Expo: Business Event Brings Companies to the Community

Wednesday, July 21st, 2010

An excellent expo: Business event brings companies to the community

By Savannah Morning News
Created 2010-07-20 00:18
Linda Sickler
Business was booming at the Pooler Business and Consumer Expo. A large crowd turned out July 15 to see what companies in the area have to offer.

The expo was held at the Mighty Eighth Air Force Museum. Many vendors offered special deals during the expo, and some sponsored giveaways.

“We’ve had a nice, steady stream coming in,” said Karen Robertson of the Pooler Chamber of Commerce. “We even had some early arrivals who were here at 5:15 p.m.”

Robertson said the variety of vendors who participated was particularly thrilling. “It’s fabulous,” she said. “We’re sold out with vendors.

“This is only our second time to do this,” Robertson said. “The chamber did one last year, and there was one five or six years ago.

“As people heard about this one, interest has grown,” she said. “The comment we’re hearing most from vendors is that the numbers are up over last year.”

In all, 23 vendors turned out. “It’s everything from banking, healthcare to spas, real estate, travel, entertainment – a very good variety,” Robertson said.

The expo gave vendors a chance to advertise, and customers an opportunity to find products and services. “We’re talking to everyone about our services,” said Patty Anderson of the GeoVista Credit Union.

“We’re here to educate the public about Hospice Savannah,” said Sarah Copeland, community outreach coordinator for Hospice Savannah. “We cover five counties – Chatham, Effingham, Bryan, Liberty and Long.”

While most people are familiar with Hospice Savannah, they’re not aware of all the services it provides, Copeland said. “People are unfamiliar with Full Circle, which provides bereavement services,” she said. “It is open to anyone who has had a loss.”

Heather Parks of Holiday Inn was surprised at the number of people who came for the expo. “The hotel business is vital to our economy,” she said.

Jacquie Stein is a territory licensee/manager with NuBarter, a Savannah-based online bartering company, whose members trade goods and services for other businesses’ goods and services. NuBarter members barter their goods and services to increase sales, reduce cash expenditures and increase profits.

“We’re the largest trade exchange in the Southeast,” Stein said. “We bring added visibility and revenue to our members.”

Events such as the expo are important for businesspeople and community members to network, Stein said. “Every new contact in worthwhile,” she said. “We are trying to educate businesspeople on the benefits of bartering.”

Sarah Sherman of Savannah Commons Retirement Community said this was her company’s first event in Pooler and an opportunity to show the community what it has to offer. “We’re encouraging everyone to come over and take a look at us,” she said.

Sandy Downs of Beazer Homes is a member of the Pooler chamber. “This is the first time we’ve done this,” she said. “I’m really happy with the way everything is set up here.”

Beazer Homes builds houses that range in price from $130,000 to $180,000 and, despite the tough economy, the company is thriving. “All our homes are built with energy efficiency in mind,” Downs said.

Plans already are under way for another expo next year. “We want it to be bigger and better each year,” Robertson said. “We want our vendors to know they have the perfect opportunity to show people what they have.”

Risks Involved in Direct Bartering by Neha Gupta

Tuesday, March 16th, 2010

Like every business transaction barter exchange too has some risks involved with it. Before entering barter deals it’s important to analyze the risks involved along with the benefits for both parties.

Imbalance in trade: there is a possibility of imbalance between what you trade and what you get in exchange. As different products and services have different value units. Also, it is very difficult to measure value of services rendered. For example, one hour of plumbing work is not equal in value to one hour of secretarial or accounting work. Hence, absence of common measure of value or a medium of exchange can lead to imbalances in barter. Therefore, using a well established bartering system or network helps you minimize this risk. The values of the goods and services being bartered are determined by these organizations.

Problem of fraud: imagine you trade with a man to handle his tax books for a financial year and at the end of the year he will give your home a maker over in interiors. You did the work for him throughout the year but when the time came for him to fulfill his end of the trade he backed away. What will you do? Hence, to avoid such risks it becomes necessary to check the credentials of your barter partner. Also, always consider the need for a written contract underlining the terms of the barter contract.

Force majeure: these are referred to those major events which are always recognized as events of force and can arise from several causes, the two most common being either “acts of God or nature” like floods, earthquakes, hurricanes, snowstorms, severe winds, etc. or acts of government” like war, emergency, riots etc. In these situations, you might not be able to complete a barter contract and this in turn might lead to breech of contract. So for managing these risks insurance is important.

Terms and conditions: before entering a barter network go through its policies and procedures. Ensure that you are aware of its working. Before joining the club, ask about the policy regarding members who quit when they have a surplus of units. At one club, the management would give us one year in which to spend them.

Prepare for taxes, barter is not tax exempt: Many times people think that as they are bartering they are not liable to taxation. That is not the case. Bartering dollars are exactly the same as real dollars. Earn a dollar in a bartering system, and you’ll still have to pay taxes on that money in real dollars later. Plan accordingly! Otherwise you might become a tax defaulter.

Bartering can be a great way to market your business and gain new clients and trade for services you need for your business. However, there are pitfalls. Plan ahead, avoid the risks.

Brought to you by Neha Gupta
Marketing Department
Ormita Australia Limited
http://www.ormita.com.au