Bartering is a tried and true (and ancient) business practice. It is still commonly used in many countries in every day business interactions. For whatever reason, it is not as common in the U.S. but this doesn’t mean it should be forgotten altogether!

If your small business is still afloat but you find yourself short on cash, give bartering and honest look. There are many barter exchanges which you can join and here’s how it works:

Step 1: Research the barter exchanges. Like I said there are a lot out there so do some research and pick the one you think will best suit you based on other members and how much you want to pay to join. You can find lists of these exchanges at nate.org , irta.com or itex.com .

Step 2: Join your chosen exchange. There are a wide variety of membership fees out there. Some have a one time fee of $800 for new members while others charge a much lower monthly fee in the $10 to $30 range. In addition to the fees, there can also commissions involved which, if you are a low-margin business, would make bartering a money losing venture. Run the numbers and find out.

Step 3: Barter away! You will receive "barter cash" for your and work you do/goods you offer which will be good only within the exchange you join.

Keep in mind these important factors (compiled by BusinessWeek.com ) when getting involved in a barter exchange:

Joining an exchange does entail costs, including fees and commissions. If you run a very low-margin business, those commissions may make bartering a money-losing proposition. Every business will want to limit its barter business to 5% to 15% of total revenue so that cash flow remains at healthy levels, says Ron Whitney, executive director of the International Reciprocal Trade Assn. (IRTA), a Rochester (N.Y.) nonprofit that promotes barter. And if you are bartering one-on-one, be careful. Misunderstandings can arise if you don’t have a formal contract. Then there is the IRS: Barter deals have to be treated like regular cash sales in federal and state filings. If a business owner uses barter services for personal reasons, the cost of the item is considered compensation on your income.

If anyone has tried this, I’d love to hear how well you think it works?

Bartering can be very beneficial for companies that are just starting out and have limited capital. It is also helpful during slow times, which all businesses experience occasionally. For example, you may need a great logo for your business, and in return you would be willing to write copy for a logo maker’s website. This is just a small example of how bartering can be done. You can barter products, business items, services and much more.

One effective way to barter is to utilize the many bartering websites and organizations which match people who are looking for different services or goods. These are helpful because the search for a bartering partner can be difficult and time-consuming. Bartering websites show you what prospective bartering partners need and what they have to barter. From there, you can attempt to make a deal with companies that are offering something of interest to you.

There are different bartering sites online which you might utilize to get what you need for your business. Different bartering sites are set up different ways. Usually, you post what you’re looking for, then you post the things that you have to trade for it. When someone contacts you in order to make a deal, you are able to view their item descriptions, pictures and other relevant information. This can help you make a decision as to whether or not to make a deal with them.

Some bartering sites are free to use, such as U-exchange . While it’s free to post your barter requests, you would simply pay the shipping costs. Other sites, such as BarterYourServices.com , charge a small fee to join and post.

Not only is bartering helpful when you want to reserve the cash flow you have and still obtain the products or services you need, but it’s also great for building up a customer or client base. Even though bartering partners are not "paying" for your products or services in hard currency now, they may become a loyal customer in the future or refer other customers to you. This can be exactly what a struggling start-up needs. Bartering can also be useful for seasonal businesses that only make the bulk of their profit during a certain time of year. It makes it easier to obtain the things you need to ensure the success of your company.