Alton Main Street recently hosted a networking event for creative entrepreneurs in the area. The event providing an exhilarating look into the hearts and minds of our community on the topics of growth and revitalization in our area. While connecting with local entrepreneurs, self-employed artisans, and part-time small business warriors the theme of financial hurdles was prevalent throughout the evening. Growth, it was stated, was often slowed or stalled due to lack of capital. While banks, crowd funding, and donor/investor support were offered as solutions, even if those solutions are able to be obtained often they take a large investment of time before funds become available. This post will show you the basics of how you can build your business and add to your brand using low or no-capital wealth you already have.
Our definition of ‘wealth’ often misleads us into believing we only deal in numbers relating to monetary gains and losses. However, when we start to think of ‘wealth’ as any soluble resource, you will find that your wealth and the wealth of your venture is more than the sum of your debts and assets in the bank. Your wealth includes your skills, your knowledge, your goods, your time, and your character. Our personal economies are rich in raw material- and the moment we set out to use these materials, turning them into financial capital or other goods, services, or skills- we become entrepreneurs with deep roots in our community economy.
You- as an artist or small business owner- have at your disposal, right now, a dynamic “account” of non-capital based wealth you can use to augment your business. With a little ingenuity, you may find yourself using your raw resources well enough that your business will grow organically without the capital fertilization of that bank loan.
Step One: What do you want?
Think beyond financial capital to your actual end-goal. Typically, you’d be using extra cash to accentuate your business in some way. This could be hiring a designer to create a solid branding image, creating or revamping a website, upgrading your equipment, making a change to your product packaging, or hiring a someone to help lighten your workload.
After making a list of the areas you’d like to expand or improve upon in your business, you’ll have a direction to work towards in your exchange of wealth.
Step Two: What do you have?
Non-financial assets. Do you own or rent a space? If that space isn’t used 24/7, a little out-of-the-box thinking might reveal opportunities to exchange your non-use times to other entrepreneurs and artisans. Space might include not just the inside of your establishment but your parking lot, lawn, or patio. Do you provide a service? That service can be exchanged for other services you might not otherwise be able to afford. Make a list that includes physical assets (space, waste supplies, materials), intellectual assets (industry know-how, event or cross branding ideas), and skills (physical labor or your services). Now you have a clear vision of what you can offer.
Step Three: Create Wealth.
Having a list on paper or in the back of your head will make it easier to find opportunities in your day-to-day business transactions to create wealth. Remember that your clients or customers are just as valuable in the creation of the community economy as other artisans or small business owners. When ‘wealth’ is exchanged locally, every avenue creates a stronger community microeconomy.
Here is an illustration of a multi-level wealth exchange that has been taking place at The Milton Schoolhouse in the last few months***:
As for our involvement, you can see that we’ve exchanged space (in the form of the community garden facilitated by our awesome neighbor Clifford Clark and student Dana Wynn) and about 10-20 gallons of waste coffee grounds from Maeva’s. In the short term, neither of these will produce any capital for either The Milton Schoolhouse or Maeva’s but neither of these resources are costing us any capital either. By trading coffee grounds to Senior Services Plus, we’re investing in the production of worms and compost our neighbors will need for the community garden in our back lot. The better the community garden is, the more produce it will be able to provide for our neighborhood and for Maeva’s Coffee to sell, fresh and delicious, in the form of our seasonally crafted quiche. Working with Senior Services Plus and our neighbors on the community garden strengthens the bond between us and the folks they are able to reach; thus allowing us to introduce more potential coffee lovers to our little schoolhouse coffee shop.
Raw non-capital wealth, when exchanged, creates trust and support among existing neighborhood businesses, artisans, and residents. Strong community bonds encourage the creation of new ventures and the expansion of current participants, growing our community’s micro-economy without financial debt.
Momentum is building in Alton for the creation of good venues of exchange- Farmer’s Markets, Garage Sales, the Holiday Bazaar at the local high school… Challenge yourself to think beyond “shopping local” and into “exchanging local”. Money may be a part of creating wealth, but it doesn't have to 100% of the transaction. Goods, space, skills, and services can all be turned into financial capital as well as other goods, skills, etc. that will enrich your venture.
This coming Tuesday, Maeva’s Coffee will be hosting Market! Market!, an experimental community market. This event will be an uncurated exchange of wealth. If you’re an artist, crafter, lover of antiques, gardener, stuff seller, vintage lover, or have a service to exchange, you are welcome to join us on Tuesday 17th. For $10, we will set out a table and give you our space and wifi to sell your art, wares, produce, services, or stuff. Or, simply join us by walking around and exchanging your money, skills, or services with your friends and neighbors.
***Please remember that most barter is taxable and should be reported in your financials. Make sure you check the state and city laws in your area to determine whether the exchanges you make in your business practices are subject to taxation. Plus, in bartering with nonprofits, your exchange can often be written off as a donation to offset profit- bonus! Talk to your accountant or legal advisor for more information regarding your specific arrangements.