Barter vs Cash

Barter vs Cash, the clash of the titans? Perhaps, but one reason many businesses give for not bartering is that they need cash for their business to survive. This is true, but if we look at the bigger picture, greater efficiencies and optimisation of resources can be achieved with bartering. Based on economic ideology, running an economy (or business) at less than optimal levels causes wastage. This wastage most of the time is not recoverable. Cash may sometimes seem more coveted than barter, but on the whole, by bartering, businesses end up benefitting much more than solely relying on their cash businesses - which will always be there.

Time Opportunity Cost

Any business that provides services is in a good position to barter. Why is that so? Their business is time based, and time is extremely perishable.

You cannot sell the service that you were offering yesterday. And that is why the old adage "time is money" or "time is more precious than gold". Electricians, plumbers, air-con service contractors can offer their services on full barter. Did you know how many independent electricians, plumbers and air-con service contractors went bust during the tough times of 2001 and 2002?

If only they had bartered their services, established a strong client base, some of these businesses would still be here today. Many business owners want to save their costs. If any business owner says otherwise is in delusion, because this is the one of the ways to increase profitability. If they're not interested in increasing your business's profitability, then they shouldn't even be in business in the first place. Service based businesses have time opportunity cost - which is cost that is intangible that most people tend to forget about it, as it is sometimes not realised cost. But when you look at it from a different perspective, it is time-revenue lost.

tie a yellow ribbon

I have recently heard of a spate of more entrepreneurs canvassing for business under the banner of social entrepreneurship. Having seen the abuses of NKF, other non-profit organisations, I nevertheless retain some scepticism about this. Perhaps I am a little bit more traditional, business should always be business, and social work is more like a charity, but when the charity adopts a more commercial view point, it blurs the line more than just a bit.

Is this good? That a social organisation or charity engage in activities to make it self-sustainable and independent of just charitable funds? A social organisation like Yellow Ribbon Project, is one example of social entrepreneurship. Should we support organisations like these? Yes I think we should - for a good cause most would say. My opinion is that - yes we should too (but do take care not to be taken for a ride). Its people that want to profiteer from this wave of social entrepreneurship that give REAL social entrepreneurs a bad name.

Some social entrepreneurs I know - from Project Senso (these are some of those REAl social entrepreneurs)

my 60secs of Fame

Haven't been posting for a while I guess. weeks before the 24th August, it has been a roller coaster ride of events from organising, coordinating and planning for this event. My chapter's open house - Visitors Day. We had a record turnout of nearly 50 guests (on top of our 21 regular chapter members). We packed the place to the brim. Will be posting these pictures of the event on our chapter website shortly.
Will repost again with the url.