Good question! And one that can come up regularly when you are just starting out in business and cash-flow is tight. It often seems the perfect solution to overcome a tight budget and get what you need or want without actually paying for it in hard cash.

But does barter work?

With goods it's fairly straightforward, there is a tangible exchange of goods at an agreed value. But when it comes to exchanging your goods or business service for another service, such as marketing, PR, graphic design, massage and so on, there are lots or traps and pitfalls to be aware of. These tips and questions will help you decide whether or not the barter option is one to consider.

Is the person offering the exchange, someone you would consider going to?

I was once offered a beautiful crystal in exchange for a coaching session. I love crystals, but unfortunately they don't pay the rent, so the exchange was not what I needed as a barter at the time.

Is the personal offering the exchange someone you would consider going to for this service if it was not a barter?

If it's not, you may be dissatisfied with your end of the barter and end up going somewhere else where you have to pay for it anyway.

Is the time/$ value of the service being exchanged pretty equal, or will one of you end up putting in far more time and effort than the other?

Unless discussed up front this can lead to resentment.

When you are offering a service as a barter, make sure the person really wants that service, understands what it is and what commitment may be required of them to take it up.

If they are half-hearted, it may not work and you and they will end up feeling frustrated and cheated.

Be clear about what the barter does and does not include.

For instance there may be time and materials involved. Is the barter time only, or does it cover all expenses.

Put your barter agreement in writing including a dollar value and time limit for each of you to honour the exchange.

This is essential if the barter is not simultaneous and your goods or service is being provided first!

Wendy Buckingham is a writer, speaker, coach and author of Ready Set Goal.

Her information website on coaching is dedicated to providing credible, independent resources on becoming a coach or adding life or business coaching to a skills portfolio.

To get to know Wendy better and to see what she offers, visit All About Becoming A Life Coach and her blog Becoming a Professional Coach for some great coaching and goal setting tips.