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. 

Connect The Dots When Lean Times Are Ahead

As I suspected months ago, the early signs of lean times are showing. The economy is slowing down – just read the national indicators for trade and industry, global news, and online patterns of behaviors.

What do you do when times are hard? Make hay while the sun shines. Strike while the iron is hot. Sharpen your saw.

System thinking teaches us to think in details as well as in big picture. The ability to chunk up, and chunk down helps us connect some of dots behind us, as well as ahead of us. Steve Jobs said in 2005 that he could connect the dots behind us, however we can lay down some of these dots ahead of us. The world is scattered with dots, some of these are obvious and others elusive. We need to learn how to lay a path to our future using some of these dots. These dots include our reference points such as our milestones, experiences, capabilities and relationships.

If the Six Degrees of Separation is a theory to be considered, time for us to reduce this deficit with active connectivity. Give yourself a kick on your butt. Nudge others around you out of their stasis. Waiting is a deathtrap waiting to be sprung. Activate whatever you fear the most. Scare yourself into admission instead of submission. Time to stop denying, and start doing.

Being broad-minded and open-minded is part of our education. Stop being one-sided and bias through your profession and organisation. Information flows on many levels and platforms, so we need to source, track, use, and evaluate it. Too much information can confuse, so we need to sort it and ourselves out.

What endurance sports have taught us are the values of patience, determination and persistence. Also, it is about preparation for a purpose, and executing a plan to perfection. These things help us connect the dots to our dreams, goals and aspirations. Becoming lean is part of the process of becoming fit and attaining athletic excellence. Fattening up before a race can help us retain our strength and power. Being lean can help us move faster, and even accelerate.

Leadership Lessons: Study patterns around you. Make mental connections. Seize opportunities to connect with others, although respectfully. Stop selling to your family and friends. It can still be business as usual, if you apply uncommon sense. Perhaps moving salmon-style, we can reverse the flow of the inevitable. Buck the trend by doing different things. Denounce the naysayers who have no track record of progress or achievement. Marry theory with practice and a sense of pragmatism. Keep lean, stay lean and be strong.