Unlike many entrepreneurs, Jill Lublin never hesitated to borrow the money she needed to start her public relations agency or keep it growing. Since founding Promising Promotion in Novato, CA in 1990, she's tapped into her credit cards for an undisclosed amount, taken out three short-term bank loans, and received a $20,000 line of credit. She's also secured access to an overdraft account that giver her up to $5,000 worth of protection.

Lublin always believed that investing in herself would pay off for her, and it has. Besides serving clients ranging from software companies to entertainment industry types, she is now the best-selling author (with Jay Conrad Levinson and Rick Frishman) of Guerilla Publicity (Adams Media Corp.). She's also host of a weekly, nationally syndicated radio talk show called "Do the Dream," where she interviews "captains of industries, celebrities, and everyday people" who explain how they made their dreams come true. Past guests have included Deepak Chopra and Don Miguel Ruiz, author of "The Four Agreements."

Though Lublin hasn't been timid about borrowing money it took to build her company to this point, she's never done so frivolously, however. To avoid taking on debt she couldn't manage, she's depended heavily on the simplest cost-saving strategy there is: bartering. "It's in my blood," she says.

Lublin started swapping services with other entrepreneurs from the moment she opened her doors. When it came to setting up her phone systemÉthe lifeline for any publicistÉshe traded an hour of public relations advice for the installation work, saving about $300. Later, when she needed advice to deal with a problem with an independent contractor she employs, she traded her PR services for time with an attorney that would have cost her about $1,500. And in exchange for design work in her website that might easily have cost her $1,500, Lublin recently supplied PlanetLink, a Novato based design firm with client leads that have turned into many thousands of dollars for the company. "Lublin is so well connected, I saw there was a greater potential benefit doing it this way than just getting paid," says Steve Lillo, PlanetLink's owner, who otherwise barters rarely. When such straightforward trades haven't been an option, Lublin hasn't hesitated to propose creative alternatives. For instance, soon after going into business, she hired a graphic designer to produce a logo for her. She was able to persuade the designer to offer a lower price by passing along several referrals to businesses that were looking for similar services. And when she needed a quick release from an office lease, she approached the broker and made an offer: If the landlord would lower the commission by half, she would use her network of contacts to help bring in a new tenant on her own.

Doing this much bartering requires a wide network of contacts, of course, and Lublin has made an organized effort to build hers over the years. She is active in the National Speakers Association, the National Association of Women Business Owners, and a host of community groups, including two local chambers of commerce. She's also made it a point to avoid misunderstandings that might jeopardize these relationships by putting bartering deals in writing. "What you're bartering for and for how much needs to be made very clear up front," says Lublin. Otherwise, you may find yourself bartering for the legal counsel you'll need when you wind up in court.

It's also important to make sure you're aware of tax laws that apply to bartering, she notes. The IRS says that you must include in your income the fair market value of property or services you receive through bartering, at the time received. Typically, you must report this income on Schedule C or Schedule C-EZ. Because there are some gray areas in bartering, any small business owner expecting to generate significant income this way should consult with a tax accountant. There's no sense trading services to save money if you're only going to pay penalties to Uncle Sam Later.