t would be far from an exaggeration to state that COVID-19 has completely upended the business landscape throughout the world. This is without even mentioning the incredible toll it has taken on families, frontline workers and vulnerable populations.
The economic toll – businesses empty or shuttered, employees furloughed, bottom lines and markets reaching new lows – along with the physical and emotional impact, will be felt for years if not decades.
Rather than competing with each other, we are now seeing business owners coming together in formal and informal ways, developing networks and supporting each other in identifying creative solutions to weather the pandemic. As business owners, we are greater than the sum of our parts, and in order to keep things moving forward we need to start talking and find synergies wherever they may exist.
t would be far from an exaggeration to state that COVID-19 has completely upended the business landscape throughout the world. This is without even mentioning the incredible toll it has taken on families, frontline workers and vulnerable populations.
The economic toll – businesses empty or shuttered, employees furloughed, bottom lines and markets reaching new lows – along with the physical and emotional impact, will be felt for years if not decades.
Rather than competing with each other, we are now seeing business owners coming together in formal and informal ways, developing networks and supporting each other in identifying creative solutions to weather the pandemic. As business owners, we are greater than the sum of our parts, and in order to keep things moving forward we need to start talking and find synergies wherever they may exist.
When the pandemic accelerated in early 2020, I and a few Seattle-area small business owners began wondering what we could do. This conversation evolved into a Facebook group for small business owners, Business Saving Business, which as I write has nearly 2,300 members and has been the common ground for regional business owners in Washington State to discuss and share resources and inspiration each day.
It’s been truly inspiring to watch business owners from all walks of life join together to share ideas, solve problems of all sizes and sometimes even forge new business relationships.
While the larger catalyzing events are quite different, this “all-hands-on-deck” mentality brings to mind ways the business community banded together after the tragic events of 9/11. That was when I decided to create a community called BizX, which encourages small business owners to connect with each other and ultimately preserve their cash flow to keep their individual businesses moving forward in the face of economic uncertainty.
The crucial ingredient in BizX’s ongoing success, along with the success and survival of so many of the businesses who have taken advantage of this always-growing community, is bartering.
Prior to the COVID-19 pandemic, approximately one-third of the global economy was non-cash. Now, bartering, the trade system of choice in the Middle Ages, has returned with a modern twist. Social networks now feature posts from friends and neighbors looking to swap staples such as eggs, toilet paper and hand sanitizer.
BizX began as a small business and still retains those roots today, but it’s the other small businesses using our platform successfully that are really inspiring. BizX is a community of more than 7,000 businesses that can free up their cashflow by trading what they have to get what they need – a modern day, digital barter exchange.
In most one-to-one transactions, both parties have to have exactly what the other party needs or wants. With BizX, one party can exchange excess capacity of their product or services in return for BizX dollars, which they can then use to purchase any other products or services available on the BizX platform.
For example, restaurants can drive new customers through their doors or complete necessary renovations; media companies can leverage available advertising space to offset other costs; and landlords and tenants can manage complex real estate deals and negotiate around rent burden in uncertain economic times.
Though it has been a business practice for centuries, the concept of bartering as a smart way for businesses to stay afloat and preserve their cash flow has drawn renewed attention in the months since COVID-19 began wreaking havoc on the U.S. economy:
- Inc. covered how businesses are turning to “zero-cash deals,” including Oakland, California-based property-management company Commonwealth Management, which has offered tenants the option of paying up to half of their monthly rent in barter through BizX.
- As an example of how the country’s roughly 200 “cash-free trade systems are seeing an influx in participants” since March, Bloomberg highlighted the Seattle-based Heavy Restaurant Group, which recently bought 56 cases of Malbec wine for $15,000 worth of barter credits.
- Seattle’s Q-13 TV network recently aired a segment focused on Moctezuma’s, a Mexican restaurant in Tacoma, Washington, and how it is using BizX to complete its new ceiling design as well as pay electricians and masons.
BizX is a community of businesses that free up cash flow by trading what they have to get what they need – a modern-day, digital barter exchange. The platform helps businesses connect and forge new and potentially long-lasting relationships where they can support one another, particularly during times of crisis.
It’s been inspiring to see so many businesses connect in unique ways through this platform for mutual good: dental offices and printers, cafes and construction firms, real estate companies and hotels. But these types of relationships don’t necessarily need to be forged through BizX; as noted earlier, bartering has been a prominent part of the world’s business landscape for centuries.
There are other creative paths you can take to help your business survive during times of uncertainty – and maybe even thrive – in addition to bartering. Consider joining local industry associations – groups like your local chambers of commerce, economic development councils and other organizations within your city or county where you can forge new connections and brainstorm with others.
It’s important to zoom out and look at your situation on a broad level as well. While it’s easy to get caught up in the doom and gloom of the ongoing pandemic, there will be a light at the end of the tunnel, and business owners should be looking three steps ahead and developing their reopening plans right now.
The worst has already arrived for many business owners, so there will be more opportunities than setbacks moving forward. Weave these opportunities into your rebound plan, because when businesses open back up, there will be an enormous amount of pent-up demand. What can you do now to ensure you and your product or service will be top-of-mind for your customers?
Cash is tight and capacity is abundant, so I urge you to think creatively with your team and fellow business owners so you can come together and leverage your collective capacity. In the toughest of times, these actions have saved businesses that went on to do some extraordinary things. During this difficult period, I’m confident that you can do the same.
Bob Bagga is an entrepreneur, financial technology innovator and barter exchange pioneer based in the Seattle area. He is the co-founder, CEO and president of BizX, a network of businesses that trade with each other without spending any cash. Prior to founding BizX, Bagga launched the Barter Business Exchange (BBE), and also served as the COO of UBarter.
Bob Bagga is an entrepreneur, financial technology innovator and barter exchange pioneer based in the Seattle area. He is the co-founder, CEO and president of BizX, a network of businesses that trade with each other without spending any cash. Prior to founding BizX, Bagga launched the Barter Business Exchange (BBE), and also served as the COO of UBarter.