Creating Deals in Difficult Times

So I'm riding the train home yesterday with a very beautiful young lady, but this post isn't about her.

While reading The New York Times, I came across an article by R. Perez-Pena which reported how the Times raised $225 million, to pad it's bank account, by selling part of its state-of-the-art headquarters building in New York City. At the same time the Times will lease (pay rent) back the property for a period of ten years then have the option to repurchase it at a set price of $250M.

The deal itself isn't uncommon in the world of real estate investment trusts, however it was artfully executed and should benefit both parties over the long term, but more importantly is what this means to your business as we ride out this recession.

As a business owner, be it a full fledge enterprise with employees, W-2s, benefits, and sick days, or a one-person conglomerate, in these times you might want to consider alternative deals to keep your operation going. If you are just thinking about starting your business, also consider how you are going to fund it over the long term.

The Times is not much different from your local bodega or your own company. They provide a product and services which people pay for. However, the time that lapses between receipt of payment and the actual providing of goods varies greatly, so in order to keep the lights on, businesses often borrow from banks, shareholders, or against their assets in the hopes of having a windfall that will allow them to catch up and possible get ahead.

It's like making the minimum payment on credit card bills then using your tax return to pay them off.

Back to your business. As you go about trying to figure out how to grow your business, gain new customers, or sell more product, keep in mind that you might have to do some creative dealing to get ahead.

As a friend of mine mention recently, you might have to consider bartering your services or goods, in exchange for what you need to move your business forward and generate income.

Outside of visiting a loan shark or theft, one of your ongoing goals as a business owner is to raise capital and stay stocked. Doing so is easier when you have a tangible product, but even if you're a creator of content (blogger), your main job is building your brand and having people fund your ambitions.

So go out there in these difficult times and create deals today that will allow you and your believers to proper tomorrow.

-whatdabusinessis.com