Lean Startups & Bartering Relationships (Part2)

In a continuing series on business startups and entrepreneurial ventures, we discuss the relevance of Relationships.

B) Bartering Your Way To Results

Bartering may seem like 'old school', yet it is one of the backbones of business success. The 'Law of Exchange' is as old as trading, sales, and reciprocity. 

One of the considerations of bartering is that it can be informal, and kept 'off the books'. Because, it is an 'exchange' of service-for-service, or product-for-product, or service-for-product, or product-for-service, you can be flexible with how you calculate your 'costs'. You can barter your editing services for a new business website for advice on accounting and submitting tax forms. You can barter a workshop on business writing for a participant's spot in a business seminar. You can trade your coaching services as a personal-trainer for accommodation in a residential-apartment overseas (when you are on vacation or a business trip). Write an feature article for a website, and in turn enjoy shared readership.  

Tied in to this process of bartering, is the Law of Reciprocity (as observed by Robert Cialdini, Ph.D.). You can reap massive benefits by leveraging on professional and personal relationships (more on this later). This may also pave the way for co-branding, partnering, co-sponsorship, and alliances.

Leadership Lessons: Bartering is about exchanging, and not taking advantage of anyone. You can trade products, services, and even opportunities to maximise progress of your business and vocation. Consider how you barter sensibly and with sensitivity. Sometimes, paying for the service or product is much 'cleaner' and without attachments and encumbrances.

Lean Startups & Bartering Relationships (Part1)

Being self-employed, and a 'free agent' for the last 15 years, I have been asked questions pertaining to start-ups and sustainability. Here are my thoughts distilled over the years for those who are thinking seriously about taking that quantum leap of faith into self-employment. 

To start your own company, and launch it, you can start lean and still be mean. Key considerations are:

A) Have 12 Months of Salary

In case things do not work according to plan, you have a year's worth of savings to tide over your overheads. These include purchase of capital expenses (notebook, work-station, peripherals), operating costs (rental, staff salary, software,licenses, taxes), business expenses (transportation, travel, accommodation) and developmental costs (education, seminars, courses, books, DVDs, EBooks). Do your 'books' according to a simple plan of Input/Output, or Cost/Income. Learn about basic Accounting, if you will, as it is important to be compliant with taxation laws and enjoy prevailing tax reliefs and start-up benefits.

Now, this window of 12 months gives you an 'out', in case things do not pan out for reasons. You still have a sense of relevance and 'recency', as you have not been too long 'out in the cold'.

Leadership Lessons: Plan to succeed. Success comes with planning and working your plan. A 12-month bank of salary gives you an assurance that you can manage your current lifestyle or alter it. What endurance sports can teach us are values of patience, optimism, determination, persistence, and purpose. I used 'The Art of The Start' by Guy Kawasaki as a working manual, and it has useful orientations for business start-ups and entrepreneurial approaches. 

Entrepreneurs As Marathoners

If art imitates life, then, does life imitate art?

Many active sportspeople, especially those in endurance sports, seem to also be highly-driven people in their professions and vocations. They demonstrate qualities and values that are mirrors of national and professional athletes.

A business project may be viewed and treated as a race. When developing the business, the entrepreneur or businessperson plans and executes the plan, with timing and precision. Little is left to chance, if one is to ascertain success. Values engaged include endurance, persistence, determination, innovation, passion, diligence and discernment. These values help sustain your business, for they support your motivation, providing the energy to reach your goals.

Be in business for the long run. Be a marathoner. Keep going.

Starting Your Business

You can also establish yourself as a leader by starting your own business. Leadership is about leading, and taking the lead for your dreams and aspirations. Entrepreneurs are leaders because they take the first plunge into a relative unknown, not a complete unknown (as this would be deemed ‘blindness’).

Here are my 10 tips thoughts on starting a small business, or Work at Home (WAH) business:

1)    Seek business coaches or mentors.

2)    Learn, unlearn and relearn.

3)    Define your business then refine your business.

4)    Mind/Mine your own business. Really.

5)    Give, share and be generous. The returns can be oddly rewarding.

6)    Stay busy. Business is ‘busy-ness’.

7)    Focus on your core competencies and your forte.

8)    Be clear, confident and committed.

9)    Support a cause as part of your business.

10) If you are not enjoying it, change your emphasis, or quit.

To incorporate online-based business methodology, I recommend reading these established business leaders. I will post more of my experiences if you find this useful.

Go forth – and build! Your customers will come.