Reducing cash expenses
Welcome back to our story following the success of Gabriele Saccardo, from La Scala restaurant. To recap, 15 years ago La Scala encountered cashflow dry up but through the use of Bartercard, Gabriele was able to keep his doors open to grow into a thriving business.
This week, the owner, Gabriele, explains how he utilises Bartercard in the day-to-day running of his business to reduce his cash expenses.
“Last week I talked to you about how Bartercard was able to give me an interest free line of credit and how Bartercard effectively promotes my business to keep the income flowing. This week I will explain how I use Bartercard to save cash within my restaurant.
Bartercard is a clever networking system that has an electronic currency known as a trade dollar. The trade dollar is very valuable to business owners as it is additional income that you earn on-top-of your current cash income. Your cash income covers all of your fixed costs such as rent, electricity and staff wages leaving you to use trade dollars to pay for other expenses within your business, that you would normally pay cash for.
I receive an extra 15% of additional income every month through Bartercard which I then use to reduce the day-to-day expenses within my restaurant.
I buy wine that I sell within the restaurant using trade dollars. I currently utilise about 4 different suppliers from around the country plus I purchase beer, spirits and coffee. I have regular suppliers of chicken, red meat, fresh fruit and vegetables. Over the past five months, I would have spent over $6,000 trade dollars on fruit and vegetables and $4,000 on chicken. That’s a great cash saving for my business.
Keeping our menu boards, signage and light boxes clean and fresh is another area where I spend my trade dollars and I also use trade dollars to train my staff. I recently had a Barista trainer come in to up-skill my current and new staff, so I am now confident that we are offering an exceptional standard to the customers.
By using trade dollars instead of cash to pay for these expenses, I have more cash left in the bank at the end of each month and better financial security for my business.
I have a few of stories I’d like to share with you and these are gold...
I knew a seafood supplier that was relocating. The move was going to cost him a lot of money and he needed to cut down his costs. To help him out, I used my Bartercard trade dollars to buy a new cool room and a hot and cold display for approximately $30,000. The Bartercard member I purchased the equipment from completed the installation and then gave me the bill. I was then in a situation where I had $30,000 worth of seafood supplies for the next three years.
I also had a friend who opened up a new shop and he needed a bit of a hand with set up costs. I gave him a Bartercard “staff card” and put $10,000 credit on it to help him get established. I was then able to access his goods to the value of $10,000 that I could use in my business.
The most recent cash saving I made, was with a linen supplier. He was not a Bartercard member but I was able to gain $50,000 worth of linen supplies by paying for the repair of one of his machines, doing signage on his work vehicles and shop. I also paid for a new air conditioner and installation using my Bartercard trade dollars. This will cover my linen costs for the next 9 months!
These examples demonstrate the power and usage of Bartercard. To me, Bartercard is all about saving cash. I constantly look where I can save cash within the restaurant and because of Bartercard I don’t have to sacrifice anything.
In my next story I look forward to explaining how I use Bartercard to advertise and attract more cash business.
In the meantime, visit www.interestfreeforbusiness.com.au.
Until the end of October, Bartercard is offering all business owners a $10,000 interest free line of credit, unsecure. This is unheard of in business and if you read my story last week, you will know that the interest free line of credit saved my business.
