Being a member of Jim’s TradeNet works for all businesses. Everyone can benefit from being a member of Jim’s Tradenet – no matter what products or services you provide – no matter what industry you are in.
I am a member of Jim’s TradeNet and I provide Consulting services on Trade. I genuinely think most businesses can benefit from being a member of Jim’s TradeNet. I’ve been thinking recently about how a Not for Profit Organisation could benefit from Trade Exchange membership. I’ve outlined some of my thoughts below.
There’s a simple mathematical formula that shows how an organisations can benefit from being a member of a trade exchange.
The traditional business model equation for profit is as follows
Cash Sales – (Cost of Goods Sold + Expenses) = Profit
So, by selling your business you generate cash revenue. From your revenue you subtract the costs of developing your products/services and any other business expenses that you have. The cash that is left over becomes your profit.
If you add a trade component, so if you add in trade dollars received as a member of Jim’s TradeNet, to your business this equation changes slightly
(Cash Sales+ Trade Sales) – (Cost of Goods Sold + Expenses) = Profit
The revenue gained from being a member of a Trade Exchange is used to offset business expenses. This leaves more cash in the bank and hence more profits. More cash in the bank is vital for a not for profit. Let me expand.
Being a member of Jim’s TradeNet allows you to:
Get new donors – Okay, so you certainly don’t want to replace all of your cash donations with Trade Dollar Donations, but there may be some people who cannot make a cash donation who would be willing to make a donation of trade dollars. These donations become increased revenue for your organisation.
Reduce Overheads – No matter how “lean” your organisation is, you will have some overheads and these overheads cost money. If you can use trade dollars to reduce your expenses and overheads then this leaves you more cash in the bank to fulfil your core reason for existence.
Here are some areas where you could reduce your overheads – Accounting, Advertising, Computers/IT Support, Graphic Design, Legal Services, Marketing, Office Supplies, Printing, Stationery and Web Design – these are just some examples.
Paradoxically we are currently living in a situation where economic sentiment seems low but there are also an increasing number of Not for Profit Organisations clamouring for our donation dollars.
This can cause dramas for an NFP as there are less dollars and more people competing. There are also potentially less grant dollars available. For that reason, a Not for Profit can help secure their future by being a Jim’s TradeNet member
If you are involved with a Not for Profit and would like further information, please don’t hesitate to get in touch.