Positive thinking and creative action will help business suggests Bartercard chief

Stay positive and think of the opportunities, that's the message for business from the head of Bartercard Australia in response to the current economic pessimism. Trevor Dietz, managing director of the financial services franchise, said the negative outlook risks becoming a self-fulfilling prophecy.

“There is no denying we are in tough economic times but Bartercard is here to say that it is not all doom and gloom and that business should be looking for positives and opportunities at this time,” Dietz said. He believes the experience of Bartercard Australia, which launched in the middle of the 1990s recession is proof that you can buck the prevailing negative trend.

"Bartercard went from being a highly innovative idea to a very successful international business,” he said. Bartercard Australia now has almost 50 franchises and more than 23,000 members nationally and in the face of the credit crunch and global financial concerns is actively expanding its business. It is looking to add 10 new franchises and boost staff numbers at its franchises by 150 in the next 12 months with a national advertising campaign for just started.

An indication of the current strength of barter exchange is the transaction of more than 4,800 individual trades with a value of almost $2 million Bartercard Trade Dollars in just one day in Melbourne recently. “These examples highlight the need for businesses to think outside the square to find innovative methods to try and grease the wheels of a stalled economy,” Dietz said. “When customers don’t arrive, how do businesses survive? They need to focus on finding other creative ways to get through tough times instead of just trying to ride them out. Barter is one of the major tools that can assist businesses to survive bleak times."

Angus Plummer, of Perth Bartercard member Kennerlys accountancy and audit firm, said the barter exchange system allowed members to transact business with each other using barter dollars – retaining cashflow for essential items where only cash is accepted. “With business lending by banks tightening, certain business expenses, such as marketing, are considered expendable and are among the first areas to feel the squeeze of belt-tightening,” he said. “However, cutting back on marketing is counterproductive as it diminishes a business’ presence and this affects its ability to pick up new business – it’s a vicious circle. In these times my clients need to seek better ways of marketing their businesses and Bartercard helps you cut down on marketing costs because of the number and range of affiliated businesses members have direct access to as potential customers."

This article appears courtesy of 5 Minute Franchising Newsletter