By Catherine
PHOENIX, AZ — (MARKETWIRE) — 08/25/10 –
When the economy takes a nosedive, few businesses have anywhere to go but down. They struggle to sell their products or services, are forced to eliminate staff and, ultimately, may end up closing their doors forever. But one industry remains a force to be reckoned with, even in the worst economic climate: barter exchanges.
“We’re one of the few businesses that actually thrives during an economic downturn,” says Catherine Cohen, CEO and marketing director for BCL Soft, a company that offers barter exchange management software and specializes in helping new exchanges get established. “And we also lend a helping hand to other businesses that are fighting to survive by saving them cash, increasing their profits and decreasing their cost of doing business.”
Entrepreneurs evaluating potential business opportunities face several options: starting from scratch, purchasing an existing business, becoming a franchisee or joining a multi-level marketing (MLM) business. While the safety of an established franchise may be enticing and the promise of residual income that comes with MLMs seems irresistible, Cohen would argue that barter groups have a leg up on the competition.
“With barter, you’re in business for yourself, but not by yourself,” she says. “The start-up cost is low, you don’t answer to a corporation or franchise, and we give you the tools you need to run a successful barter exchange. You’re not forced to get your friends and family to use some ‘miracle’ product. You are working with existing businesses to help them conserve cash and attract more customers.”
As anyone who’s used a barter exchange knows, the software is the tool that makes all the difference. “Our software, Barter21, is a ready-to-deploy barter and trade application,” says Barry Cohen, COO of BCL Soft. “This cutting-edge trading platform, developed by Luther Monson, our chief technical officer, allows clients to easily run their exchange and increase transactions both within and outside their exchange members. It features on-demand bartering with an online trading floor as well as a real-time directory and search information. This easy-to-navigate solution is all you’ll ever need to run and manage your exchange.”
BCL Soft not only provides the Barter21 exchange platform, but also teaches clients how to use the software, how to train their staff, answers questions around the clock, helps with IRS forms, offers tips to gain membership and provides marketing materials.
For more information, visit www.bclsoft.com
Barry Cohen 623.242.2537 info@bclsoft.com
By Barry
There has been a lot of chatter on the blogs lately about barter exchanges and how they will be replacing the national currency in this downward spiraling economy. We hear phrases like “the collapse of the global economy,” or “the banks are failing and taking your money with them,” or “buy gold, it is the only thing that does not lose value.”
Now I am not an economist, nor do I hold an advanced degree in anything having to do with the financial markets. What I am is a business owner with common sense. And I am here to tell you that barter will NEVER replace the national currency. Barter credits, or as we call them, barter dollars, are meant as a supplement to everyday business. It is a complementary currency that should not be used for more than 10-15% of income. It is a tool, that if used properly, will help grow a business by attracting more cash customers. And by cash, I mean U.S. dollars.
We can take it one step further to show the idiocy of this idea. Let’s say this country went back to a true barter system – chickens for beads, goats for shoes. How far do you think the chiropractor will get when he needs a new computer? Or the auto mechanic when he needs groceries? It just can’t work long term. A national, legal tender currency is needed. And that currency, at least here in the USA, is the dollar.
With a separate, smaller currency, like a barter exchange, there is no real regulation of pricing, how much currency gets into the market, lending, or other issues. It is regulation from a widely recognized entity, such as the government, that keeps things in check. What happens when governments fail to regulate their economy? The reaction from other economies forces a change.
This is how barter exchanges form a micro-economy. Barter exchanges not only have members trading with each other, members of different exchanges can often trade with each other. Intra-exchange trading forces barter exchanges to keep each other in check through this micro-economy.
If bartering through small, independent barter exchanges became the new world economy, wouldn’t a barter exchange then become like our government-issued money? Employees would have to be paid in barter. EVERY business would have to accept barter dollars in order for the system to work.
This all leads to some questions – what is a barter exchange and why join one? And why is now the time to start a barter exchange in your area?
Simple. A barter exchange is a (usually) small group of local area businesses that want to trade goods and services with each other. The function of the exchange is to serve as a third-party record keeper and issuer of its own currency. A currency that compliments the more popular, accepted everywhere, government currency.
Businesses barter. They trade their haircuts for massages and they trade tax preparation for legal advice and everything in between. This sort of one-to-one trading can only go so far. Barter exchanges help businesses bring in new business – in the form of business owners who are also consumers. When business is slow, a company in a barter exchange can look to the other members of the exchange to sell their product or service to. When cash is low, a member of a barter exchange can use their barter dollars to buy the goods and services they need. Barter allows a business to conserve cash.
Why is now the best time to start a barter exchange? Because businesses in your area need your help. They need a barter exchange to get the the products and services they need without cash. Businesses need to gain more exposure in the community, something accomplished through a barter exchange.
BCL Soft created the Barter21 platform to make it easy for barter exchange owners, brokers, and members to trade. Barter21 software is simple to use, intuitive and secure. It keeps track of all the barter transactions, has a real time member directory, a click-and-buy Trading Floor, and provides accurate information to members and exchange owners.
With Barter21, barter happens.
By Barry
Many people are losing their jobs these days. Some will go through the help wanted section every day looking for that perfect new job. Or any job for that matter. Others will take matters into their own hands. They have the entrepreneurial spirit and want to start their own business.
Does that sound like you? Sure, you’ve been approached by every MLM out there. You can sell these lotions, or that telephone, or those vitamins. And for the ladies, you can sell jewelry. But is that really owning your own company, or is that just a glorified door-to-door salesman?
So what would be a good business to start? That all depends on your skills, talents, and drive. If you are a tradesman, maybe you want to start a company doing what you know best. Perhaps you are in IT. You can start a computer consulting or maintenance firm. But if you like to meet people, are intrigued by other businesses, are somewhat organized (please don’t judge me by the mess on my desk), and don’t mind selling a service you can believe in, then a barter exchange is for you.
There are 2 options for owning your own barter exchange:
- Sign on with a franchise. You own your business, but the franchise will typically own your customers and make the rules. They take care of all the billing and can charge you anywhere from 25% to 40% of your earnings for that privilege.
- Open your own independent barter exchange. You are responsible only to yourself and your members. Aside from your regular business expenses, you keep what you earn.
Can you guess which one I would recommend? Of course being independent is the way to go. And there are many options for software that will help you run your company. Signing on with a network of independent exchanges gives you the same national exposure as a franchise at a fraction of the cost (as long as you’ve chosen the right network).
I invite you to look at Barter21 (http://www.bclsoft.com) as your choice for both the software to run your barter exchange, and the network in which you can interact with other independent barter exchanges. Barter21 is the next generation of barter exchange management software that the industry has been waiting for. Some of the features offered include:
- Simple batch processing of all fees collected via credit card and EFT (e-Check)
- Transactions are posted on a single, easy to follow screen
- Real time account information
- True backups off all your data whenever you want it
- Online Trading Floor for instant purchases
- Broker-Managed accounts
- Commissions calculated for brokers and sales people
- Community driven development
- New features added weekly
BCL Soft is committed to serving the barter industry with the most advanced software available today. For more information, go to http://www.bclsoft.com.
