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Tag: Money & Finance

  • Social Security Payments to Increase By 2.5%: What It Means | Entrepreneur

    Social Security Payments to Increase By 2.5%: What It Means | Entrepreneur

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    The average Social Security payment is increasing by $48 per month next year.

    The Social Security Administration announced the 2.5% cost-of-living adjustment (COLA) for 2025 on Thursday, marking the smallest increase since 2021. The average COLA was 2.6% across the past decade, with the 2024 change at 3.2%, according to the administration.

    The close to 68 million Social Security beneficiaries and almost 7.5 million people receiving Supplemental Security Income payments will see their checks increase by 2.5% on January 1, 2025, and December 31, 2024, respectively.

    The increase is based on inflation across July, August, and September. The consumer price index for July showed that inflation reached a three-year low at 2.9%. August’s inflation rate was even lower, at 2.5%, and September’s was 2.4%. Based on lower inflation numbers, the Federal Reserve cut the federal funds rate, which impacts everything from mortgage rates to credit card interest rates, for the first time in four years in September.

    Related: A Fed Rate Cut Finally Happened For the First Time in 4 Years. Here’s How the Decision Will Affect Your Wallet.

    How is the COLA calculated?

    The COLA takes the average inflation among urban wage earners and clerical workers from July to September and calculates the difference between this year’s average inflation and last year’s to arrive at a percentage.

    Is there another way to calculate?

    Some groups don’t approve of calculating the COLA as it is right now. The Senior Citizens League (TSCL) advocates basing the calculation on the CPI-E, which measures inflation for Americans ages 62 and up, instead of the CPI-W, which measures inflation among urban wage earners and clerical workers.

    “This year represents another lost opportunity to grant seniors the financial relief they deserve by changing the COLA calculation from the CPI-W to the CPI-E, which would better reflect seniors’ changing expenses,” TSCL executive director Shannon Benton stated in a press release.

    Is the COLA enough?

    TSCL estimated that the average Social Security check will increase by $48 from $1,920 to $1,968. That may not be enough, says AARP CEO Jo Ann Jenkins.

    “Even with this adjustment, we know many older Americans who rely on Social Security may find it hard to pay their bills,” Jenkins stated in a press release. “Social Security is the primary source of income for 40% of older Americans.”

    Related: Are You Actually on Track to Retire Well? A Financial Expert Reveals the Critical Milestones to Hit at Every Age — Plus 3 Common Oversights.

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    Sherin Shibu

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  • Introvert Warren Buffett Reveals Secret to Public Speaking | Entrepreneur

    Introvert Warren Buffett Reveals Secret to Public Speaking | Entrepreneur

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    Most people (56.8%) around the world identify as introverts, according to a 2020 study from The Myers-Briggs Company. Those with an introverted personality are often reflective and self-aware, prefer to write rather than speak and feel tired after being in a crowd.

    Naturally, many introverts aren’t big fans of public speaking. Addressing an audience might be an inevitable part of professional life, but the average introvert probably isn’t clamoring to get in front of a group.

    Related: I Work With Warren Buffett. He’s Probably the Smartest Person in the World — Here’s the Best Advice He’s Given Me.

    Even the most successful business leaders in the world aren’t immune to stage fright.

    Warren Buffett, the 94-year-old billionaire chairman and CEO of conglomerate holding company Berkshire Hathaway, considers himself an introvert. In his biography The Snowball: Warren Buffett and the Business of Life by Alice Schroeder, he admits that speaking in front of a crowd used to make him physically ill.

    Image Credit: Chip Somodevilla | Getty Images. Warren Buffett.

    “I was terrified of public speaking,” Buffett says. “You can’t believe what I was like if I had to give a talk. I was so terrified that I just couldn’t do it. I would throw up. In fact, I arranged my life so that I never had to get up in front of anybody.”

    Related: In Leadership, Introversion Is Underrated — and Warren Buffett and Bill Gates Share How They Use It to Their Advantage.

    After Buffett graduated from Columbia Business School, where he studied under investor Benjamin Graham, he returned to Omaha, Nebraska. There, he saw an advertisement for a public speaking course using the Dale Carnegie method.

    Buffett was familiar with Carnegie’s 1936 self-help book How to Win Friends & Influence People, and he’d even signed up for a Carnegie public speaking class in New York — before he backed out and stopped payment on the $100 check.

    Buffett decided to give the course another chance in Omaha.

    “I took a hundred bucks in cash and gave it to Wally Keenan, the instructor, and said, ‘Take it before I change my mind,’” he recalls in The Snowball.

    Related: 5 Mega-Successful Entrepreneurs Who Are Introverts

    In Keenan’s class at Omaha’s Rome Hotel, Buffett discovered the key to conquering his public speaking fears.

    “The way it works is that you learn to get out of yourself,” Buffett explains. “I mean, why should you be able to talk alone with somebody five minutes before and then freeze in front of a group? So they teach you the psychological tricks to overcome this. Some of it is just practice — just doing it and practicing.”

    Practicing under the same conditions in which you’ll speak or otherwise perform can help promote success in high-pressure situations, Sian Beilock, cognitive scientist and current president of Dartmouth College, told Entrepreneur in 2022.

    Related: Steve Jobs’ Public Speaking Power Moves Remain Just as Relevant Today, 13 Years After His Final Keynote at the Apple Developers Conference

    Additionally, it can help to take a step back as the event draws near, according to Beilock. Then, during the high-stakes moment, she suggests interpreting physiological responses positively; for example, consider sweaty palms or a racing heart signs of excitement rather than anxiety.

    “And it worked,” Buffett says of the psychological techniques he learned in his public speaking class many decades ago. “That’s the most important degree that I have.”

    Buffett‘s certification of completion for the Carnegie course, dated January 1952, hangs above the sofa in his office, according to Schroeder’s account.

    Related: I Spent a Day Living Like Billionaire Warren Buffett. Here’s What Happened.

    Now, Buffett stands in front of an audience of 40,000 at Berkshire Hathaway’s annual shareholder meeting, where attendees line up hours before the event to listen to the Oracle of Omaha speak.

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    Amanda Breen

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  • Why You Should Consider Commercial Real Estate as Your Next Investment | Entrepreneur

    Why You Should Consider Commercial Real Estate as Your Next Investment | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Real estate is one of the biggest industries in today’s world. From buying property as an investment to buying your own home, real estate impacts every person’s life in one way or another. Although it’s a beast of an industry, you do not necessarily have to work in real estate to invest in it. In fact, many people buy properties simply to make a passive income with no intention of making it their full-time job.

    Here are some reasons why commercial real estate could be a great investment for you.

    Related: Tap Into the Wealth Potential of Commercial Real Estate With These 5 Tips

    Passive income

    By investing in a property, you are going to be able to make a passive income — a check you don’t have to actively work for. Depending on the property you buy, you can rent out the space to tenants and get paid each month that they occupy the building. In turn, the income can be recycled to pay for the property and its expenses or be used to invest in other properties without having to touch other funds. This is great because this is monthly income that you do not have to actively work for.

    Tax advantages

    By investing in real estate, there are many deductions and breaks that can actually help when it comes to paying your taxes. Also, any money you make on the sale of the property will be seen as capital gains and not an income, therefore lowering the amount of taxes you would have to pay on that money.

    Cash flow

    As you rent out the property and the tenants pay their rent, you will create a steady cash flow for yourself and increase your own income. As the mortgage gets paid, this will also help build your equity, which can help you invest in more properties and build up overall wealth.

    Diversification

    When investing money, it is always good to invest in different types of assets to ensure you have stable and reliable returns. Commercial real estate can diversify a portfolio — and in case of a market crash, properties remain unaffected, whereas stocks and bonds plummet. It’s also a tangible asset that you can touch and feel, unlike other forms of investments. Tangible assets can help minimize the total risk in investments and help you build a profitable portfolio.

    Related: 6 Key Questions You Should Always Ask Before Investing in a Commercial Real-Estate Property

    Leverage

    Most times, buying a piece of real estate requires an initial cash investment. That investment can gain a very high return that can completely cover the debts of the property. For example, if you pay a down payment of 20% and the other 80% is debt, the property only needs to appreciate 20% for the invested equity to be 100%. However, this comes with the risk that if the property does not become profitable, it may have to go into foreclosure if the monthly payments cannot be made.

    Appreciation

    Real estate investments offer a lot of potential growth and appreciation that you may not have in more classic avenues of investing. For example, an investor can choose to buy and develop a property in an area they believe is up-and-coming. In that case, as the popularity of the neighborhood increases, the value of their property significantly rises and can lead to great capital appreciation.

    Inflation hedge

    As the economy grows and inflation rises and falls, commercial real estate doesn’t feel the long-term impacts. Luckily, rents can be adjusted accordingly to the inflation rate and offset the impact. This results in strong rent growth and appreciation for your property, despite any worsening conditions in the economy. With other investments like stocks and bonds, inflation almost always has a negative impact.

    On the flip side…

    Commercial real estate, like any investment, has downsides as well.

    For starters, it’s a time commitment. Investors need to put time into managing and taking care of the property and its tenants. All of the building concerns and problems fall into the lap of the owner, so that aspect needs to be taken into consideration.

    This leads to another downside — managing and taking care of the building usually requires outside help, like property management companies. These companies are not cheap and can be costly. However, this is really the only way to properly run the building and avoid running into issues.

    This leads to the need for cash. Unlike residential real estate, commercial properties need a lot more capital for the initial investment and then cash that needs to be put into the property to maintain it. This makes commercial real estate investing unappealing since there are a lot of costs to carry the property, and it can take time for the revenue to outweigh the costs.

    Related: 5 Proven Steps to Become a Real Estate Millionaire, According to an Investor

    At the end of the day, every investment comes with risks. No investment is guaranteed. However, some may be a little bit more secure than others. Commercial real estate is a great idea if you’re someone looking to diversify your portfolio and find another way to increase your wealth. Although it may be daunting, and the initial investments can be scary, the returns can be very high and worth it!

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    Erica Dushey Sarway

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  • How to Teach Kids About Money and Set Them Up for Success | Entrepreneur

    How to Teach Kids About Money and Set Them Up for Success | Entrepreneur

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    Although 83% of U.S. adults said parents are the most responsible for teaching their children about money, 31% of American parents never speak to their kids about the topic, according to a survey from CNBC and Acorns.

    Last week, the subject came up on Northwestern Mutual’s A Better Way to Money podcast, which featured social media star and owner of Stur Drinks Kat Stickler and Northwestern Mutual vice president and chief portfolio manager Matt Stucky.

    “I love and respect my parents, but we didn’t really talk about money ever — I never saw them talk about money,” Stickler told Stucky during the conversation. “It was taboo. It wasn’t brought up once.”

    Related: Members of Every Generation Have Side Hustles — But They Don’t Spend Their Earnings the Same Way. Here’s the Breakdown.

    According to Stucky, parents can instill strong money management skills like any other good habit.

    “It just takes a lot of repetition — things like saving, investing,” Stucky said. “I’m not going to teach my 4-year-old about investing, but just the idea of if I save a dollar, that means I can spend it down the road on something that I really want. That takes a while to sink in.”

    Money might not have been a regular topic of discussion while Stickler was growing up, but the entrepreneur says her mother did show her the value of a dollar in other ways: repurposing old jeans into shorts or empty butter tubs into containers for school lunch.

    In addition to talking to their kids about money, parents can lead by example when it comes to smart financial decisions.

    “There are new risks that are now in the equation of being a parent,” Stucky said. “Things like, What if something happens to me; what if I can’t work anymore? How does that impact my child’s financial life?“

    Navigating those uncertainties means planning for big-ticket items, according to Stucky. Stickler, who has a young daughter, said she’s already taken some key steps to secure her future: setting up a will complete with a month-by-month timeline and establishing funds for healthcare and school — and even one for clothes and toys.

    Related: What Your Parents Never Taught You About Money

    According to Stucky, parents should leverage today’s circumstances for tomorrow’s success.

    Stucky recommends setting up a 529, to which you can contribute funds for education, and a Roth IRA for your child.

    “[With a Roth IRA], you are able to contribute on their behalf up to the child’s earned income amount or the current contribution limits of $7,000, and the dollars come out tax-free after age 59 ½ or if they need to use it for a qualifying life event,” Stucky explains. “It’s a way to set up your children for their retirement, as well as support generational wealth.”

    Parents might also consider a Uniform Transfer to Minors Account (UTMA), which has no limit on the amount that goes in and allows them to retain control until their kids reach 18-21, depending on where they live, Stucky says.

    Related: Shark Tank’s ‘Mr. Wonderful’ on Teaching Kids About Money: ‘Put Their Noses In It, Like You’re Training a Puppy’

    Finally, Stucky recommends the “often overlooked option” of permanent life insurance for your child.

    “The policy will pay a death benefit someday so long as the required premiums are paid,” he explains. “In addition, policies accumulate cash value, which your child could access during their lifetime.”

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    Amanda Breen

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  • Her T-Shirt Side Hustle Led to a DM From Levi’s and $400M | Entrepreneur

    Her T-Shirt Side Hustle Led to a DM From Levi’s and $400M | Entrepreneur

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    This Side Hustle Spotlight Q&A features Michelle Wahler, co-founder and former CEO of activewear brand Beyond Yoga. Wahler launched Beyond Yoga with Jodi Guber Brufsky in 2006. Years later, Levi’s reached out to Wahler via LinkedIn direct message, ultimately acquiring the company for $400 million in 2021. Under Wahler’s leadership, Beyond Yoga achieved 19% year-over-year growth and surpassed $115 million in revenue in 2023. Responses have been edited for length and clarity.

    Image Credit: Greyson Tarantino. Michelle Wahler.

    What was your day job or primary occupation when you started your side hustle?
    After graduating from the University of Florida with a degree in graphic design, I moved to New York to work in publishing, originally at People magazine and later Harper’s Bazaar. It was during that time that I started drawing illustrations of my friends, which I would put on T-shirts to give as birthday presents.

    Related: The Side Hustle She Worked on in a Local Starbucks ‘Went From Nothing to $1 Million.’ Now It Will Make Over $30 Million This Year.

    This hobby of mine ultimately turned into a company I called Unsweetened, with clothing and accessories featuring illustrations of women — in what I viewed as an “un-sugar-coated” version of them.

    Where did you find the inspiration for your side hustle?
    [At my magazine jobs], I got a firsthand look at the photoshopping that goes on in the industry. Both jobs were incredible experiences, but they shed light on the unrealistic expectations the media was putting into the market and minds of their consumers. My entire life, I have watched incredible, smart, beautiful women not see themselves as they are and try to conform to a singular idea of beauty. While this frustration was brewing, I struggled to make ends meet, working long hours for little pay but gaining loads of invaluable experience! At the time, my best friend and roommate’s birthday was coming up, and since I didn’t have the means to buy her something great, I decided to make her a birthday present — I sketched her and put the illustration on a T-shirt.

    All my friends loved it, so for the next year, everyone got one of these unique drawings of themselves on a T-shirt. These illustrations celebrated them for who they were — curves, careers and fun! I called it the “unsweetened” version of themselves, and before I knew it, I started selling them. It felt so fulfilling to be doing something that I loved while simultaneously promoting body positivity and self-confidence from within.

    Related: They Started a Home-Based Side Hustle Earning Up to $20,000 a Month — and It’s Still Growing: ‘Will Never Get Old’

    What were some of the first steps you took to get your side hustle off the ground?
    At People, I had a cubicle right in front of the publisher — a high-traffic cube! — and I put all my sketches on the wall. People started asking me to make them for them for their friends, and the next thing I knew, I was buying a T-shirt press, getting a wholesale license, purchasing T-shirts and printing and packing them in my shared apartment after my roommate went to bed.

    The T-shirts were a hit, and I started spending all my free time working on Unsweetened. I sold the shirts at holiday bazaars and craft shows and eventually got a booth at the New York City Gift Show and the Los Angeles Gift Show. Ultimately, I left New York City with the intention of making a full run of Unsweetened on the West Coast; however, things quickly changed upon my arrival.

    What led you to decide to transform the side hustle into full-time business Beyond Yoga?
    I moved to California and was very quickly introduced to Jodi [Guber Brufsky], who would become my future business partner. I instantly fell in love with the mission of Beyond Yoga, put Unsweetened on hold and went full steam ahead building Beyond Yoga — a brand that would eventually permanently change industry standards and expectations. These days, size inclusivity is a given for a new brand starting out, but this was just not the case 20 years ago when we started building Beyond Yoga. It’s really something that we pioneered, and I’m proud to be a big part of that movement.

    Related: This 26-Year-Old Dental Student Spent $25 to Start a Side Hustle That Can Earn $500 for Just a Few Hours of Work: ‘There Is Nothing More Satisfying’

    Image Credit: Courtesy of Beyond Yoga

    The idea of creating a line of clothing that celebrates women of all shapes and sizes was very exciting to me. After meeting Jodi, I shared some of my ideas for the business and the product. From that point on, I spent the next 18.5 years building Beyond Yoga from an idea to a global brand, employing hundreds of people (directly and indirectly), driving over half a billion in revenue, and running a profitable business without taking on any additional funding.

    What were some of the biggest challenges you faced while building Beyond Yoga, and how did you navigate them?
    Early on while building Beyond Yoga, everything was a challenge! Getting into stores and securing trusted wholesale partners, learning the ins and outs of the business, teaching myself everything on the fly and building the team from the ground up. It was a lot of work, but it was so rewarding and a time in my career where I learned many valuable lessons and skills.

    Some of the biggest challenges I faced included understanding fabric shrinkage and how to apply it to a pattern, figuring out the ERP, teaching myself merchandising and forecasting, hiring and firing, learning how to delegate — the list goes on and on.

    Related: This Couple’s Weekend Side Hustle Began With a $50 Facebook Marketplace Purchase — Now It Earns Millions of Dollars a Year: ‘You Don’t Need Money to Start’

    It was a long journey, and in the early days, we were a very lean and green team. We did absolutely everything ourselves, and there was a lot of learning to be done. Things started shifting about five years into the business, which is also around the time of one of my most impactful hires: our COO/CFO. Having him on board helped give me more comfort around investing in our team and leveling up by bringing on more experienced professionals.

    Image Credit: Courtesy of Beyond Yoga

    What was the experience of growing the company like over the years? What were some highlights?
    Growing Beyond Yoga into the company it is today was no small feat, but it’s something I’m so incredibly proud of. Even though we began investing more aggressively over the years, we always ran the business for growth, investing every penny back into the business. Once we reached around $20 million, we thought it might be time to take on investors. After learning a few valuable lessons, we took ourselves off the market and decided to focus on profits and controlling our destiny.

    A noteworthy milestone was when I discovered Space Dye, which became the backbone fabric of the company. It was a game changer — so soft, yet durable with the perfect stretch and recovery. It quickly became a fan favorite and is still a huge part of the Beyond Yoga collections today. I love that an exploratory fabric meeting in 2013 led to so much growth and became a pillar for the brand. My love of fabrics gave way to a style revolution that transformed the activewear landscape that still continues to be emulated today.

    Another highlight during my career was becoming a mom, when I learned to balance work, love, family and friends. It was also where Beyond the Bump was born. Becoming a mom and seeing my friends and peers go through this transition helped inspire the creation of our Beyond the Bump line. After being so disappointed in the lack of comfortable clothes for women during and after pregnancy, the only way I was going to find options I liked was if I designed them myself, so I did. This ended up becoming one of our most successful brand extensions and a great way to introduce new customers to Beyond Yoga.

    Related: She Started a ‘Fun’ Side Hustle — Then It Earned $100,000 and Became a Multimillion-Dollar Business: ‘Beyond What I Could Ever Have Expected’

    When and how did the Levi’s acquisition come about? Why was that a “full circle moment”?
    When Levi’s reached out, we were not looking to sell at that point, and honestly, I don’t think we would have sold to anyone else. I was flattered! Levi’s is an iconic brand, and after learning about its values and principles over profits mentality, I was excited to explore this opportunity.

    The more we looked into this, the more it felt like the right fit to ensure our company had a legacy that lasted beyond myself and the team. Negotiating a deal of this caliber and scale was something I’d never done before, so naturally, it was exciting. It was easily one of the biggest challenges of my career but also one of my greatest accomplishments. It was a unique experience, and I am grateful to have had the opportunity to learn this side of the business.

    Image Credit: Courtesy of Beyond Yoga

    Throughout the entire process, from starting my own business to negotiating the terms of one of the industry’s biggest female-led athleisure sales to date, I stayed true to myself, our shareholders and the company I poured my heart into over the years, which I wouldn’t trade for anything.

    Related: This Former Model Used Her Personal Savings to Start a Thrifty Side Hustle — Then Taylor Swift Became a Repeat Patron: ‘People Really Responded’

    What’s your advice for others hoping to start successful side hustles or full-time businesses of their own?
    My biggest piece of advice is to make sure you’re doing it for the right reasons. Do it because you’re passionate, do it because you want to create and give it your all, do it because you think you’ve solved a problem that will benefit people, or because you’ve created a better version of something that already exists.

    Once you’ve figured out what you’re going to do, get started. Don’t wait for the perfect moment — it won’t come! Sometimes, you just need to jump right in.

    This Women Entrepreneur® article is part of our ongoing series highlighting the stories, challenges and triumphs of running a business as a woman.

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    Amanda Breen

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  • Chase Bank ‘Glitch,’ Social Media Trend Just Plain ‘Fraud’ | Entrepreneur

    Chase Bank ‘Glitch,’ Social Media Trend Just Plain ‘Fraud’ | Entrepreneur

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    A “new” TikTok trend claiming people could get free money from Chase Bank ATMs is nothing more than old-fashioned check fraud, the company says.

    The trend involved depositing a check for a high amount and taking out most of the money before the check bounced. On Thursday, a post about the scam on X was viewed over 7.5 million times — and the trend eventually snowballed into lines forming at Chase Banks in New York.

    A Chase spokesperson confirmed on Tuesday that the bank knows about the situation and has addressed it. Chase has now fixed the error, locked accounts that took advantage of it, and leveled negative balances with the label “DR DUE TO ATM/DEP ERROR.”

    Related: Jamie Dimon Says a Mild Recession Is Still on the Table: ‘There’s a Lot of Uncertainty Out There’

    “Regardless of what you see online, depositing a fraudulent check and withdrawing the funds from your account is fraud, plain and simple,” the spokesperson stated.

    Check fraud has increased by 385% since the pandemic.

    While TikTok and other social media may have played a negative part in the Chase glitch trend by spreading the word, TikTok has been the site of less fraudulent personal finance trends — like the “pay off my debt” trend, which saw viewers uniting and watching each other’s videos to help each other pay off debt.

    “We have to remember that financial stability is usually a long game,” Jake Burgett, the physician assistant student behind the trend, told Entrepreneur in June. “Social media gives the illusion of a quick financial fix, and I am glad I got to put that theory into motion… But remember not to sacrifice more than you are able to along the way.”

    Related: ‘Pay Off My Debt’ TikToker Explains How Much Money He Made from His Viral Video and the Inspiration for the Trend

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    Sherin Shibu

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  • Klarna CEO Aims to Cut Half of Workforce, Give AI the Work | Entrepreneur

    Klarna CEO Aims to Cut Half of Workforce, Give AI the Work | Entrepreneur

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    Nearly half of the employees currently working at “buy now, pay later” startup Klarna could be replaced by AI in the next few years.

    Klarna CEO Sebastian Siemiatkowski told The Financial Times last week that the company aims to almost halve its workforce within the next few years, from 3,800 people to 2,000. Instead of layoffs, the company will continue its hiring freeze that started in September and not hire replacements for people who leave the company.

    “By simply not hiring, which we haven’t done since September … the company is kind of becoming smaller and smaller,” Siemiatkowski stated. He pointed out that the average revenue per Klarna employee had increased by 73% year-over-year.

    The remaining employees will have AI to help with tasks, Siemiatkowski said.

    Related: There Are New Rules for ‘Buy Now, Pay Later’ Programs — Here’s What to Know

    “Not only can we do more with less, but we can do much more with less,” he told the Financial Times.

    Klarna’s employees numbered 5,000 one year ago, but departing employees and the AI-induced hiring freeze have cut the company down to its current size.

    Sebastian Siemiatkowski. Photo by David M. Benett/Dave Benett/Getty Images for Klarna

    Klarna claimed in February that its AI assistant did work equivalent to 700 full-time, human customer service agents. The AI assistant brought down customer inquiries to two minutes, compared to the previous 11-minute average conversation needed with human agents.

    Related: Klarna Says Its AI Assistant Does the Work of 700 People. The Company Laid Off the Same Number of Employees 2 Years Ago.

    Siemiatkowski wrote in a now-deleted post on X in May that Klarna’s in-house marketing team was half the size it was last year, but was producing more with AI and spent $6 million less.

    Klarna’s second-quarter earnings report for 2024 showed its third consecutive quarter of growth in the U.S., with revenue and operating income up 17% and 21% year-over-year respectively.

    Klarna is reportedly exploring a U.S. IPO at a valuation of $20 billion.

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    Sherin Shibu

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  • What Is Considered Rich? $2.5 Million Minimum, Americans Say | Entrepreneur

    What Is Considered Rich? $2.5 Million Minimum, Americans Say | Entrepreneur

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    The average American thinks being rich means a $2.5 million net worth.

    A Wednesday survey from Charles Schwab tracked the bar for wealth by generation, from Gen Z to Boomers. Each group gave a different number as the threshold to be rich; the older the group, the larger the magic number for wealth.

    Gen Z (which Charles Schwab defined as born from 1997 to 2002) thinks it takes $1.2 million to be wealthy, while millennials (1981 to 1996) put the number at $2.2 million, Gen X (1965 to 1980) at $2.7 million, and boomers (1948 to 1964) at $2.8 million.

    Related: Here’s How Much It Costs to Live in America’s 10 Most Expensive Cities

    The new $2.5 million average is $300,000 higher than the $2.2 million average survey participants gave last year. The higher number could reflect rising inflation and economic fears.

    “The notion of wealth combines both numbers and emotions,” Charles Schwab managing director of financial planning Rob Williams told Bloomberg. “The jump from $2.2 million to $2.5 million demonstrates both sides — the cost of living is rising, as are, it’s likely, most Americans’ more emotion-fueled views of what it takes to be wealthy.”

    Wealth aside, the survey also looked at the average net worth Americans think it takes to be “financially comfortable.”

    Related: A Single Gold Bar Is Worth $1 Million for the First Time in History

    Once again, the numbers were divided among younger and older generations. Gen Z’s financial comfort number was $406,000 while millennials pinpointed it at $725,000, Gen X at $873,000, and Boomers at $780,000.

    The average net worth to be financially comfortable is $778,000, which is down from the $1 million average recorded last year.

    The survey was based on responses from 1,200 Americans aged 21 to 75 and was conducted in March.

    Related: In These U.S. Cities, Earning a $150,000 Salary Is Considered ‘Lower Middle Class,’ According to a New Report

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    Sherin Shibu

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  • What To Do When Your Job Won’t Pay You More | Entrepreneur

    What To Do When Your Job Won’t Pay You More | Entrepreneur

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    Feeling underpaid and undervalued at work? Gabrielle Judge, the creator of the Lazy Girl Jobs movement, is here to fix that. She’ll share her best strategies for accelerating your earnings and getting the raise or promotion you deserve.

    Register now for our upcoming livestream to gain insights on topics including:

    • How to maximize your time and money in the workplace

    • Leveraging pay transparency to get more money

    • What to do if you feel undervalued and underpaid

    • Strategies for getting a raise through job hopping

    About the Speaker:

    Gabrielle, as the visionary CEO and content creator behind Anti Work Girlboss, leads a social revolution reshaping the future workplace landscape. Her pioneering concept of the “lazy girl job” has captivated millions monthly, offering both relatable content and career inspiration. Her areas of expertise extend across work-life balance, branding for Gen Z employees, and forward-thinking perspectives on the future of work. Esteemed platforms like NPR, BBC, and TEDx have recognized her innovative contributions, inviting her to speak on her insights. Gabrielle’s groundbreaking ideas have also been spotlighted in over 10,000 global publications, including the Wall Street Journal, Bloomberg, Al Jazeera, and 60 Minutes Australia, underscoring her influential role in redefining career norms.

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    Entrepreneur Staff

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  • Dr. Bronner’s CEO Salary Cap Based on Lowest Employee Wage | Entrepreneur

    Dr. Bronner’s CEO Salary Cap Based on Lowest Employee Wage | Entrepreneur

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    Dr. Bronner’s estimates that a bottle of its soap is sold every two seconds — but the 150-year-old, family-owned business stands for more than just the products it puts on the shelves.

    A social media post from Dr. Bronner’s last week revealed an internal aspect of its business: the soapmaker limits the salary of its highest-paid executives to five times the lowest-paid, fully vested employee. (Fully vested means someone who is full-time and has been with the company for at least five years.)

    “An ethical company should pay a fair salary and good benefits and enable people to make ends meet on the wages they receive,” CEO David Bronner said, adding, “We’re really trying to set an example of just being reasonable.”

    Dr. Bronner’s 2023 earnings report details that the company generated over $170 million in revenue in 2022, with 86.7% of its sales conducted in the U.S. The soapmaker had 311 total U.S. employees and about 73% of its managers were promoted from within.

    Dr. Bronner’s starting pay for regular, non-temporary employees in 2022 was $24.85 per hour while temporary employee wages started at $21.30 an hour, per the report.

    If a full-time employee stayed at the 2022 starting pay for five years, on a forty-hour workweek schedule, they would make $47,712 per year.

    That would cap pay at the top of Dr. Bronner’s at $238,560, per Entrepreneur‘s calculations.

    Related: Here’s Why Most CEOs Don’t Take Pay Cuts to Avoid Layoffs

    The midpoint salary of a CEO last year was around $1.3 million — over five times the estimated salary of Dr. Bronner’s top-paid employee — according to a June study from the Associated Press.

    The study tracked CEO pay at S&P 500 companies and found that in half of the firms, “it would take the worker at the middle of the company’s pay scale almost 200 years to make what their CEO did.”

    The midpoint pay package for CEOs, factoring in salary, bonuses, and stock awards, was $16.3 million overall.

    Related: These CEOs Have the Biggest Pay Packages in the U.S., According to a New Report

    In addition to a salary cap, Dr. Bronner’s covers childcare up to $7,500 per family, offers a healthcare plan with no out-of-pocket costs, and provides employees with an organic, vegan meal every day.

    Anything the company has left over goes to charitable organizations and other causes. Bronner said in the Instagram video that he lives an “awesome” life and feels “enriched” by the joyful atmosphere in the office.

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    Sherin Shibu

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  • How to Claim Money in Disney’s $9.5M ‘Dream Key’ Settlement | Entrepreneur

    How to Claim Money in Disney’s $9.5M ‘Dream Key’ Settlement | Entrepreneur

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    If you bought a Disney Dream Key pass from August 25 to October 25, 2021, you could receive part of a $9.5 million settlement.

    Disney has settled a class action lawsuit filed in November 2021 in California district court over how it marketed its $1,400 Dream Key pass, a program that allows customers to pay a flat rate to go to Disneyland and California Adventures theme parks whenever they want throughout the year.

    The settlement website shows that payments to qualified class members were sent either by check or through a digital payment on June 14.

    Related: Parents With Young Children Are Taking on ‘Disney-Related’ Debt for Trips to Theme Parks, According to a New Report

    Unless a class member excludes themselves from the settlement payout, they give up any right to sue Disney over the same claims in the lawsuit.

    Disneyland. Photo by Barry King/WireImage

    According to the plaintiff, Jenale Nielsen, Disney advertised the Dream Key Pass as a way to enter Disneyland without any restrictions. When she bought the pass and tried to make a reservation, however, she found that Disney had blocked out many days, including all weekends in November 2021.

    “Given that Disney had advertised and promised that there would be no ‘blockouts’ for Dream Key holders, Ms. Nielsen was surprised,” the filing stated.

    Nielsen looked at Disney’s website and found that it still had passes available for sale on the days it had barred Dream Pass holders, so the blocks weren’t caused by tickets being sold out.

    Related: A Fifth Walt Disney World Theme Park Could Be Coming Soon — Here’s What We Know

    The filing called the Dream Key a “second class ticket” to Disney’s parks and said that Nielsen “was deceived by and relied upon” Disney’s “false and deceptive advertising.”

    Locked Disneyland during the pandemic. Photo by Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images

    Disney denied all of Nielsen’s claims as well as any wrongdoing or liability.

    Nielsen received $5,000 as part of the settlement and 100,000 others affected will receive around $67.41 from Disney.

    Related: Disney World Concession Prices Have Gone Up 60% Over the Past Decade — Including Two Fan Favorite Sweet Treats That Have Skyrocketed in Price

    For reference, a standard Disneyland theme park ticket starts at $96 to $194 per day.

    Disney has now made changes to its Magic Key Pass advertising. The Dream Key is no longer available to purchase. In its place, the highest tier is now the Inspire Key, priced at $1,649 and labeled as subject to “applicable pass blockout dates.”

    The Magic Key calendar at the time of writing had availability open for almost all days in July, August, and September for Inspire Key holders.

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    Sherin Shibu

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  • 3 Non-Financial Factors That Could Impact Your Business’ Value | Entrepreneur

    3 Non-Financial Factors That Could Impact Your Business’ Value | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Determining a business’ value is not all about adding up revenue and subtracting expenses. While an important piece, these hard numbers are only half the equation for computing what a company is worth. To come up with the true value, we also look at factors like the level of owner involvement, company goals and growth opportunities. When we use the complete equation, we get a comprehensive picture of a business and can better understand the story of its past, present and future.

    Calculations may vary depending on the company, but in a healthy one, there is about a 50/50 split between the quantitative (financial) and qualitative (non-financial) sides of performance. If the business isn’t profitable, it’s more important to focus on the quantitative side and fix the numbers first. Many owners don’t want to hear that, but if they’re not hitting their numbers, it may mean the business is not working. They must fix the quantitative issues before moving to the qualitative side.

    Related: What Is a Balance Sheet and Why Does Your Business Need One?

    For healthy companies that want to maximize their value, the qualitative indicators can be bundled into three main categories.

    Evaluating quality

    1. The owner’s goals

    We’ve found significant research showing that if an owner has defined goals and plans for the future that are in line with market expectations for their company’s value, they’re going to have a much stronger exit. What is the owner’s defined goal for exiting the business — to get the most money, to take care of their employees and to ensure a legacy? You must then get to the “why” behind the goals and devise a plan of action. It almost doesn’t matter what the answers to the questions are; having achievable goals and a strategy for reaching them can increase the company’s value because it keeps the owner focused on improving the other areas of the business.

    2. The owner’s role

    The extent of the owner’s involvement is a critical indicator, but perhaps not for the reason you think. The more involved the owner is in day-to-day operations, the more central they are to the business, the less the business will be worth down the road. If the owner is the linchpin that holds everything together, what will happen to the company when they leave? Evaluating operations is more about the system and the structure of the team. Look at the organizational chart and who’s on it – are they good employees or bad employees? Examine the company’s processes and procedures and how new team members are trained and onboarded. The owner sets the vision, but it’s the team that increases company value by carrying out the vision.

    3. Growth opportunities

    Nobody wants to buy a business and keep it exactly as it is. They want to see potential for growth in the future, especially the potential for return on their investment as a buyer. Whether it’s a simple price increase or new locations, whoever buys the business is going to ask about growth opportunities. Indicators like product or service diversification in both the company and the industry it’s in give a good sense of whether the company is moving forward or standing still (and at risk of going backward). The more potential you can show, the more upside there will be for the next owner — adding up to greater value.

    Related: 8 Factors That Determine the Financial Health of a Business

    Cycle of success

    When the qualitative side of the equation is working, it all ties together. The owner knows the goals, which are aligned with where the company is going, and is leading the organization but working themselves out of the day-to-day operations; the business grows and creates more growth opportunities for the next owner. Paired with profitable numbers, it’s a cycle that builds a high-quality business.

    For the best owners, it takes a minimum of three to five years to get that cycle working for you and have reliable indicators of your value. Making it part of a 10-year strategy is even better.

    At Exit Factor, we have 62 different qualitative indicators that we use for determining company worth. We don’t use them all, or even close to that, for every business; it’s usually a matter of tweaking three to five of the 62 indicators. Figure out which of those 62 are essential for your company, and you’ll have a truly forward-looking strategy for profitable growth.

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    Jessica Fialkovich

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  • How to Profitably Integrate Eco-Friendly Practices into Your Business | Entrepreneur

    How to Profitably Integrate Eco-Friendly Practices into Your Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Today, consumers are increasingly prioritizing doing business with companies that can clearly demonstrate a commitment to improving the world around them. These drivers can range from supporting important social issues to providing eco-friendly products. In fact, over 40% of consumers admit that they are more likely to purchase products or services from businesses that embrace sustainability. For this reason, it should come as no surprise that nearly 100% of all S&P 500 companies have environmental and sustainability goals.

    Within the small business community, there is a misconception that ESG (environmental, social, and governance) initiatives are something only large corporations can afford to implement. This couldn’t be further from the truth. For small businesses and entrepreneurs, sustainability efforts can actually improve operational efficiency, increase customer demand and boost profitability. Here are six easy ways small businesses can capture the financial benefits of sustainability.

    Related: How to Harness the Power of Sustainability in Small Business to Drive Profits and Capital

    1. Implement energy-efficient solutions

    Many businesses require a lot of energy to operate, especially if they have a manufacturing center. One of the easiest and most effective ways to embrace sustainability is by implementing solutions that reduce the amount of energy consumed by the business. These actions include upgrading to LED lights, installing smart thermostats, replacing fossil fuel vehicles with EVs and changing out appliances for energy-efficient models.

    In addition to reducing energy consumption, businesses can also embrace clean energy generation by installing solar panels or purchasing renewable energy credits to help offset the use of fossil fuels. Ultimately, lower energy costs can directly reduce your operating expenses increasing your profit margins. Also, promoting your commitment to renewable energy is a powerful marketing tool to help attract environmentally conscious consumers and enhance your brand reputation.

    2. Develop eco-friendly products

    Consumers are becoming increasingly aware of the toll that consumerism plays on the world’s natural resources. Cheap, disposable products like single-use plastic and fast fashion are quickly losing their appeal. Durable products, especially those made from recycled or sustainable materials, are currently in high demand.

    Depending on the materials used, businesses can save money on raw materials by building eco-friendly products. Even better, some products could transition to entirely digital formats requiring no physical resources. For example, a small publishing company could move to eBooks rather than physical print. Another benefit is that consumers will often pay a premium for products that are sustainably produced.

    3. Embrace circular economy principles

    The circular economy is an economic system that is based on the reuse and recycling of products and materials. Designing products that use recycled materials is just scratching the surface. Additional circular economic practices include take-back schemes, refurbishment programs and refill systems. For example, a technology company can incentivize customers to return old devices for refurbishment, which reduces waste while encouraging repeat purchases. These old devices can then be resold at a discount on second-hand markets, creating a new source of revenue.

    Related: How the Circular Economy of Consumer Electronics Can Change Sustainability

    4. Promote remote work and flexible schedules

    Labor is often one of the highest operating costs for small businesses. Many companies are embracing and promoting opportunities for their team to work remotely or switch to flexible, hybrid schedules. From an environmental standpoint, this can help reduce the company’s overall carbon footprint by eliminating or minimizing greenhouse gas emissions from commuting.

    From a business perspective, offering remote work can support employee well-being and productivity. It can also help the company save money on office space and salaries by allowing them to recruit employees from regions that have a lower cost of living.

    5. Leverage lean manufacturing

    Another effective strategy to cut costs and reduce resource consumption is by embracing lean manufacturing processes. By streamlining production processes and minimizing waste, businesses can improve their manufacturing timeframes and lower production costs. The savings associated with improved efficiency can then be applied to widening your profit margins or allowing you to offer better pricing compared to your competitors.

    6. Use local suppliers

    Consumers are tired of the same old, mass-produced products. Sourcing materials and products from local suppliers can provide the perfect balance between customer demands and sustainability. By working with local suppliers, small businesses can lower their carbon footprint by reducing transportation emissions and save on shipping costs while stimulating the local economy.

    Related: I Use These 7 Methods to Make My Business More Eco-Friendly — Maybe You Can Use Them, Too.

    Integrating eco-friendly practices into your business isn’t just the right thing to do for the planet. It can also lead to significant financial benefits. By embracing sustainability, companies can deliver the services and products that consumers want while setting themselves up for long-term success.

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    Nicholas Leighton

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  • Recent Graduate’s ‘Simple’ Side Hustle Earns Nearly $60,000 | Entrepreneur

    Recent Graduate’s ‘Simple’ Side Hustle Earns Nearly $60,000 | Entrepreneur

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    This Side Hustle Spotlight Q&A features Angelina Licari, a 23-year-old recent college graduate based in Dallas, Texas. Licari has been earning consistent income as a seller on Poshmark, a social commerce marketplace featuring new and secondhand clothing and other products.

    Image Credit: Courtesy of Poshmark. Angelina Licari.

    When did you start your side hustle, and where did you find the inspiration for it?
    I originally began my Poshmark side hustle in 2016 as a high schooler saving for college. I remember looking up “best side hustles for high schoolers” and finding Poshmark. I thought it could be a fun way to make money by selling clothing I didn’t wear anymore. I continued selling on Poshmark in college and had the opportunity to become a Campus Representative, which involved introducing other students to the platform. After a few months of navigating post-grad life and trying to decide what was next for me, I decided to take a mental hiatus and give myself some time to process and plan. But I still had bills to pay and couldn’t move forward with no income. I remember contemplating what to do when an “aha” moment hit: Poshmark, of course! I decided to start back up in August 2022.

    Related: These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It’s a ‘Full Hustle’ Earning Over $20 Million a Year: ‘Jump in With Both Feet’

    What were some of the first steps you took to get your side hustle off the ground?
    In the beginning of my post-grad Poshmark journey, I was just selling items from my personal closet that I no longer wore. I created an Instagram account for my business and followed other sellers, and that’s where I started learning more and more about the opportunity to turn a seemingly simple side hustle selling my clothing into something much bigger. In September 2022, Poshmark announced the beta launch of Poshmark Live Shows, and I immediately applied. I was approved to host Poshmark Live Shows, where I could engage with an audience and show items in real time, and I thought it was worth giving a try. After a few shows, I was hooked. I saw the potential in building my own business and never looked back.

    What were some of the biggest challenges you faced while building your side hustle, and how did you navigate them?
    After a few consistent shows, I realized that if I truly wanted to build my own business, I had a lot of groundwork to lay. I quickly became a high-volume seller and only had so much of my own clothing to sell. I needed to expand my inventory to provide my audience with items that they were seeking. Around this time, I started sourcing more inventory from other secondhand clothing retailers. I’ve gone through numerous growing pains over the course of my side hustle journey, including sourcing and coming home only to notice stains and/or holes on items that ended up being unsellable, optimizing my time as a high-volume selling team of one and lowering my cost of goods across the board.

    Related: These College Friends Started a ‘Fun’ Side Hustle That Landed Them on ‘Shark Tank’— Now the Idea Is Helping Dozens Make Extra Cash: ‘Start Saying Yes’

    How long did it take you to see consistent monthly revenue? How much did the side hustle earn?
    Thankfully, I was able to achieve fairly consistent monthly revenue pretty quickly, but it wasn’t truly until January of this year that I felt I found a consistent strategy that worked best for me. I decided to take my Poshmark side hustle full-time, and I have had nearly $60,000 in sales with a lot of upward momentum month over month.

    What does growth and revenue look like now?
    So far in 2024, my revenue is double what it was at this point in 2023. Q1 of 2024 produced over 90% growth over Q1 in 2023.

    What do you enjoy most about working on this side hustle?
    I love the creative freedom that my Poshmark side hustle has allowed me to have. Working in the secondhand clothing industry gives me the opportunity to curate specific inventory based on what my audience loves and current trends while keeping it affordable and sustainable.

    Related: Her College Side Hustle Led to an Immediately Profitable Product That Sells for Up to $450 — and She Didn’t Even Consider Herself ‘a Business Person’

    What’s your advice for others hoping to start successful side hustles of their own?
    When debating which side hustle is right for you or if you should follow that random creative idea you had, why not go for it? There are endless opportunities to create anything you want, even if it seems out of reach. My biggest advice to anyone hoping to start a successful side hustle is to stay true to you. Follow your heart, trust your gut and have fun with it. Allow yourself the space to feel the pains of growth, but don’t let them discourage you from getting up and trying again.

    This article is part of our ongoing Young Entrepreneur® series highlighting the stories, challenges and triumphs of being a young business owner.

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    Amanda Breen

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  • How to Navigate the Choppy Waters of Startup Valuation | Entrepreneur

    How to Navigate the Choppy Waters of Startup Valuation | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Entrepreneurs often have a deep, personal investment in their businesses, having dedicated years of hard work to bring their ideas to life. However, this emotional attachment can cloud their judgment and make it difficult to objectively assess their venture’s worth. They might find themselves attempting to translate personal effort, time and sacrifice into financial value, which can be problematic in the current environment.

    Though Series A investment activities have been stable as of late, there’s been an uptick in down rounds. According to PitchBook and J.P. Morgan, down rounds grew from 8% in 2022 to 20% in 2023. That means less money is coming in than normal, which means more venture-backed startups are on the hunt for capital.

    Complicating matters further is the valuation process itself. Many new businesses mistakenly set their value based on competitors, using similarity of goods or services to estimate worth. This type of comparison overlooks differentiators, such as operational, financial or execution risks. Failing to consider milestones that you’ve yet to achieve can lead to the misconception that all is equal.

    It’s important to remember that a competitor’s current valuation is the result of their unique journey, and yours will be something entirely different. The challenge is separating personal bias from objective assessment, as you’ll need a clear-eyed view of what your business offers to arrive at an accurate and realistic valuation.

    Related: What Every Founder Needs to Know About the Valuation Gap Between Entrepreneurs and Investors

    Preparing for a funding round

    Merely launching a great business doesn’t automatically mean it’s ripe for investment. The fundamental economic principle behind raising capital is that the injection of outside funds should fuel growth and increase the value of the business, creating the potential for investors to see a return on investment. It’s not like investors invest out of the kindness of their hearts (at least, most don’t). They want to see a clear pathway to profitability. The question then remains: How exactly do you prepare for those inevitable funding rounds? Here are some suggestions to get you started:

    1. Demonstrate the “why”

    Rarely, if ever, will it be enough to simply offer a piece of the business to potential investors. When angling for funding, it’s important to articulate the precise benefits of backing your venture. This is especially important in light of the 30% drop in startup funding in 2023, according to Reuters. You should be able to answer at least these questions: Why should anyone invest in your business? What’s the economic rationale for the investment? How will an investor make money?

    Whether it’s an ambitious tech innovation or a noble cause, go beyond the vision or mission of your company and present a plan that clearly shows how you intend to use the capital to achieve specific milestones. That means focusing on practical financial outcomes, which increases the chances that potential investors see a pathway to profitability. They also get a better understanding of the mechanisms in place for monitoring progress and achieving an exit. This clarity in the potential for financial return is what can make the difference in securing much-needed funding versus never getting a meeting.

    2. Understand the story behind the numbers

    In the context of venture capital and private equity, a compelling pitch will only get you so far. Rather, securing funding is more about what the concrete numbers reveal about the profitability of your venture. Profit margin, for one, offers insights into your company’s financial health and potential for growth. The same can be said for customer lifetime value, cost structure and revenue.

    For example, when my firm evaluates a business, understanding the cost of capital in the current market is crucial — even more so if we encounter a startup with an unclear equity distribution or no significant personal financial contribution. The issue arises when such a company claims that it’s worth a substantial amount, say $1 billion, without a defensible rationale. In other words, always provide tangible evidence that the hard work put into building the business translates into something of real value.

    Related: How to Get Funding: The Dos and Don’ts of Raising Capital From Investors

    3. Be mindful of investment terms

    One aspect that entrepreneurs often overlook is the concept of “toxic minority control,” which refers to the disproportionate influence or power held by minority shareholders. Should some disruptive investor buy up enough shares to secure a place on the board, it could potentially lead to adverse outcomes for the venture and other investors. You need to be mindful of this when raising capital, as the terms of investment can have far-reaching implications beyond the immediate influx of funds.

    Take Alphabet Inc., for example. Even though Larry Page and Sergey Brin own just 5.7% and 5.5% of the company, respectively, the two Google co-founders each own Class B shares, or “super-voting” shares, providing them with 10 times the control — or 51% of the votes, collectively. Meta and Walmart are other examples of companies with founders (or the heirs of founders) who still control the business even after the initial public offering.

    4. Never underestimate (or overestimate) market trends

    Though this should go without saying, where the market is headed can significantly influence your startup’s valuation. You need only look to last year for an example of that, with generative AI and AI-related startups raising nearly $50 billion in venture capital, per reporting from Crunchbase. However, don’t make the mistake of benchmarking yourself against corporations listed on the stock exchange.

    While market trends certainly make one startup more attractive than another, being in the same industry doesn’t equate to having the same value. Consider the nuances of your company’s stage, market position and operational history in relation to those operating in the same space. PitchBook and Y Combinator are both great resources, as they regularly publish statistics on the average valuations of amounts raised for different funding rounds. Understand where your company truly stands in terms of where the market is headed, as well as your market reach and status, to arrive at a realistic valuation of your venture.

    Related: 6 Parameters That Determine Company Valuation

    Entrepreneurs often begin with an idea and believe that its mere conception is equivalent to its potential realized. They look at the end goal, which can lead to unrealistic valuations. What truly matters, at least in the eyes of investors, is the ability to execute on that idea, which comes down to the numbers. Get clear on your standing, and then let that guide your discussions with potential investors.

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    Jordan Gillissie

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  • 43-Year-Old’s Remote Side Hustle Earns Nearly $3,000 a Month | Entrepreneur

    43-Year-Old’s Remote Side Hustle Earns Nearly $3,000 a Month | Entrepreneur

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    This Side Hustle Spotlight Q&A features Sam Ziegler, a 43-year-old drummer based out of New York who has a side hustle providing support on Geeker, which offers on-demand help from IT and software experts.

    Image Credit: Courtesy of Sam Ziegler

    When did you start your side hustle, and where did you find the inspiration for it?

    My passion is music, but the gigs, and therefore the income, are not always consistent, so relying on it as a full-time career is not realistic. I started with Geeker in July 2023. I have many years of IT experience and was hoping something like Geeker existed, a remote side hustle where I could apply my skill set to help people solve their computer problems. I was conducting some research on Google and discovered Geeker. My inspiration is my family and the opportunity to help people. Knowing that you make someone else’s life easier by solving computer issues is a very fulfilling feeling.

    What were some of the first steps you took to get started with the side hustle?

    I filled out the registration form to become a Geeker, answered a few technical questions they used to measure and qualify my expertise and then had a Zoom interview. After the interview, I was approved as a Geeker.

    Related: I Made Over $400,000 From a Side Hustle on Top of My 6-Figure Salary Last Year. I Love Diversified Income — and This Game-Changing Money-Saver.

    What were some of the biggest challenges you faced during your side hustle journey, and how did you navigate them?

    I am now 43 and have been playing music for 28 years. I went to vocational school for computer repair in 1999 and took a job with IDT. While there, I became skilled in telecom and got certified in Cisco networking technology. Around that time, I was splitting time between the Newark office and the IDT offices in Manhattan. Then September 11 happened, and the towers fell close to the building I was commuting to, and I thought, Life is too short. I left IDT to pursue music full-time. I have been playing weddings, bar and bat mitzvahs and concerts and recording music ever since.

    Along the way, I have kept my tech skills fresh by taking jobs here and there, but oftentimes, they didn’t have the flexibility I needed to keep doing my passion — music-related work. This past summer, I was looking for work as the summer season of busy music gigs was slowing, and I was trying to cobble together something that enabled me to use my tech skills where and when I wanted. I have a family now and had considered driving for Uber and Lyft to bring in some income, but I had some safety concerns and wanted to work from home. I came across Geeker, and it was exactly what I was looking for. I earn between $70-$90 an hour and work as much and as little as I need to, all from the comfort of home. I also get to help people, which I love.

    Related: At 23, She Started a Side Hustle for ‘Quick Money.’ Now the Business Brings in More Than $1 Million a Month — and Boasts Celebrity Fans.

    How long did it take you to see consistent monthly revenue? How much does the side hustle bring in on a monthly basis now?

    It varies every month because of the nature of what I do, but I average roughly $2,700 a month for about 28 hours of work. In the months that I have more time, I log in to Geeker to take on more, but on the average month, I only work about an hour each day.

    What’s your favorite part about working on the platform?

    Helping people from different parts of the world no matter where they are. The money component is just a small benefit I receive from doing something good for someone else. To me, money is a bonus and is secondary to the main reason I use Geeker for my side hustle.

    Related: The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

    What’s your advice for others hoping to be successful on Geeker or with any side hustle?

    If you have the time, patience, passion to help people and a basic knowledge of how to fix computer problems, you can be on the right path to succeed on Geeker. “Success is about the journey, not the destination” is a life lesson I integrate into everything I do.

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    Amanda Breen

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  • Make Money Doing What You Love — How to Monetize Your Passion | Entrepreneur

    Make Money Doing What You Love — How to Monetize Your Passion | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In a world where the pursuit of passion has become synonymous with living a fulfilling life, many find themselves at a crossroads, unsure of what truly ignites their inner fire. Finding your passion isn’t just about discovering a hobby or a career path; it’s about uncovering what makes you feel alive, gives your life purpose and aligns with your authentic self.

    This journey of discovery can be transformative, leading not only to personal fulfillment but also to potential career satisfaction and happiness. Here’s how you can embark on this journey and find your passion in life.

    Related: 5 Leaders Share 5 Ways to Find Your Passion

    Discovering your true passion

    Reflect on what you love:

    Start by reflecting on activities, topics or causes that you love or have always been drawn to. Think about the times you’ve felt most alive or lost track of time because you were so engrossed in an activity. These moments can offer clues to your passions. Don’t limit yourself to conventional ideas of what a passion should be. Your passion could be anything from painting to solving complex mathematical problems.

    Explore new interests:

    Exploration is key to uncovering your passion. Try new activities, enroll in different classes, read books outside your usual interests, and step outside your comfort zone. This process of exploration can help you discover hidden talents or interests you never knew you had. Remember, it’s okay to try something and decide it’s not for you; each experience brings you closer to finding what truly excites you.

    Identify your values:

    Your passion is often closely tied to your core values and what you find meaningful in life. Identifying these values can help you pinpoint areas that are likely to hold your passion. For example, if you value helping others, you might find passion in teaching, counseling or volunteering. Make a list of your top values, and consider activities that align with them.

    Seek feedback:

    Sometimes, others can see our strengths and interests more clearly than we can. Ask friends, family and colleagues what they think you’re good at or what they could see you doing. Their observations can provide valuable insights and help you see patterns or interests you might have overlooked.

    Look for patterns:

    Reflect on your past experiences, and look for patterns in the activities you’ve enjoyed or excelled at. These patterns can be indicators of your passion. For example, if you’ve always enjoyed organizing events and bringing people together, your passion might lie in community building or event planning.

    Embrace the journey:

    Finding your passion is a journey, not a destination. It requires patience, curiosity and an open mind. Be willing to experiment, fail and learn from your experiences. Each step on this journey is an opportunity for growth and self-discovery.

    Consider professional help:

    If you’re struggling to find your passion, consider seeking the help of a career counselor or life coach. These professionals can offer guidance, tools and strategies to help you identify your interests, values and potential career paths.

    Combine your skills and interests:

    Your passion might not be a single activity or field. Many people find their passion at the intersection of various interests and skills. Think about how you can combine different aspects of your interests and skills to create a unique niche or career path for yourself.

    Set realistic goals:

    Once you have an idea of what your passion might be, set small, achievable goals to pursue it further. Whether it’s taking a course, starting a side project or dedicating time each week to practice, these goals can help you make steady progress towards integrating your passion into your life.

    Stay flexible:

    Your passion can evolve over time, and what excites you today might change in the future. Stay open to this evolution and be willing to adapt. The key is to remain true to yourself and pursue what makes you feel fulfilled at any given time.

    Finding your passion is a deeply personal and rewarding journey that can enhance your sense of purpose and joy in life. By exploring your interests, values and experiences, you can uncover what truly makes you tick and find ways to incorporate that passion into your daily life.

    Remember, the pursuit of passion is not a one-size-fits-all path but a unique adventure that is yours to explore. Embrace the journey with an open heart and mind, and let your passion lead you to a more fulfilling and meaningful life.

    Related: How to Realistically Make Money From Your Passion

    Unlocking wealth: 10 tips on monetizing your passion

    In today’s dynamic world, pursuing your passion is no longer just a lofty dream; it’s a viable path to financial success. With the advent of the digital age, opportunities to monetize what you love doing have multiplied, enabling many to turn their hobbies into profitable ventures. Here are ten strategic tips to help you navigate the journey of making money from your passion.

    1. Identify your niche

    The first step in monetizing your passion is to clearly identify your niche. A niche is a specific segment of a market that you can serve better than others. The more specific your niche, the less competition you will face, and the more likely you are to stand out to a dedicated customer base. For instance, instead of just “cooking,” you could specialize in “gluten-free baking for busy parents.” This specificity can make your offering more attractive.

    2. Build a strong brand

    Your brand is not just your logo or your website; it’s the total experience customers have with your business. It includes your story, your values and the emotions people associate with your work. Building a strong, authentic brand around your passion can create a loyal community of customers and advocates. Share your journey, challenges and successes to connect with your audience on a personal level.

    3. Create a business plan

    Even the most passionate pursuits need a solid business plan. Your plan should outline your business model, market analysis, financial projections and marketing strategies. It doesn’t have to be overly complicated, but it should give you a clear roadmap of how you intend to make money from your passion. This step can also help you identify potential challenges and opportunities for growth.

    4. Leverage social media

    Social media is a powerful tool for reaching and engaging with your target audience. Platforms like Instagram, YouTube and Pinterest are particularly effective for visual and creative fields, while LinkedIn and X can be great for more professional and service-oriented passions. Share valuable content that showcases your expertise, tells your story and builds your community.

    5. Diversify your income streams

    Relying on a single income stream can be risky, especially in the early stages of your business. Look for ways to diversify your income. This could mean selling products, offering services, creating online courses or even affiliate marketing. For example, if you’re passionate about photography, you could sell prints, offer photography workshops and create a photography course.

    6. Offer exceptional value

    To stand out in a crowded market, you need to offer exceptional value to your customers. This could be through the quality of your products, the uniqueness of your services or the depth of your knowledge. Always aim to exceed expectations and provide something that people can’t get anywhere else.

    7. Network and collaborate

    Networking and collaboration can open up new opportunities to monetize your passion. Attend industry events, join online communities, and connect with other professionals in your field. Collaborations can also help you reach a wider audience, whether it’s through guest blogging, social media takeovers or co-creating products.

    8. Learn and adapt

    The path to monetizing your passion is rarely a straight line. Be prepared to learn from your experiences, listen to feedback and adapt your strategies as needed. Stay updated with the latest trends in your industry, and don’t be afraid to pivot your business model if necessary.

    9. Focus on quality customer service

    Excellent customer service can differentiate your business and turn customers into repeat buyers and brand advocates. Be responsive, solve problems quickly, and always strive to provide a positive experience. Personal touches, such as handwritten thank-you notes or personalized recommendations, can make a big difference.

    10. Stay passionate and persistent

    Finally, the most important tip is to stay passionate and persistent. Turning your passion into a profitable venture requires hard work, dedication and resilience. There will be challenges and setbacks, but it’s your passion that will keep you going. Remember why you started, and don’t lose sight of your love for what you do.

    Related: How to Turn Your Passion Into Your Dream Job

    Monetizing your passion is not just about making money; it’s about creating a fulfilling life where work doesn’t feel like work. By following these ten tips, you can take practical steps toward turning your passion into a sustainable income source. Remember, the journey of monetizing your passion is as rewarding as the destination. Embrace the process, learn from every experience, and celebrate your progress. Do not chase the money. Instead, chase your passion and the side effect will be money in your bank account because it only appears as the direct result of an energy exchange. Here’s to turning your passion into your paycheck!

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    Billy Carson

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  • 8 Simple Ways to Keep Your Finances in Check This Year | Entrepreneur

    8 Simple Ways to Keep Your Finances in Check This Year | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    New Year’s is a time when people set unrealistic goals, ones that mostly have to do with dieting or fitness. But if you’re practical, a great way to start the year is by setting realistic goals that you can actually maintain.

    A great place to start is with your finances. Although financial resolutions may sound hard, they are easier than you think. Here are some tips and tricks to keep your banking and money in check this year.

    Related: 5 Personal-Finance Habits of Wealthy Entrepreneurs

    1. Credit score is #1

    Your credit score is your financial reputation, and this is the year to work on building it up. No matter what your score is, there is always room for improvement. So much goes into a credit score, including timeliness, usage, limit, inquiries, etc. So, focus more on minimizing your debts rather than on opening new accounts and spending up to your limit without paying back. By slowly adjusting your credit habits, you will start to see a positive change in your score.

    2. On-time payments

    This year is all about making your credit card or other loan payments on time. More often than not, people do not understand how important on-time payments are and what they can mean for their credit score. A huge part of credit is timeliness, and it becomes a large factor in raising or lowering your credit. Paying on time does not have to be a huge task either! Automatic payments can be your best friend. They make sure that your accounts are paid without having to think or do much.

    3. Organize and budget your spending

    Unlike last year, you should start writing down and accounting for every dollar in and out of your accounts. While this may sound redundant and boring, writing out the numbers can help you see where all your money is going. This will allow you to categorize your spending and see exactly where you can cut costs and budget. By keeping track, you won’t recklessly spend and will be aware of what is always coming in and out of your accounts.

    4. Save! Save! Save! …. in a savings account

    Everyone loves to discuss their savings and how they are always putting money away for the future. This does not have to be intimidating. After breaking down your spending, you’ll be able to easily see how much you can save. This amount does not have to be an extreme or high number, it can be something small that will build up over time. If you put $20 each week, you’ll have over $1,000 saved by the end of the year. With that, you can open a high-yield savings account that will earn you interest on the money you keep in the savings. This will not only help you save but also give you a return on saving.

    Related: How To Save Money: 10 Tips to Build Your Savings

    5. Think about investing

    If Covid taught us anything, it’s that investing in different things can help you in the long run. While you don’t need to be an expert in the stock market or a crypto specialist, looking into different ways you can invest your money and diversify your portfolio may help build up your finances. But beware, investing is not a guarantee — make sure to not put your entire savings and trust into the markets.

    6. Fewer inquiries in 2024

    Many people believe that the more credit cards they have, the better their financial situation will be. Well, that is not technically the truth. While having several lines of credit may be nice and useful, every time a credit card company makes an inquiry on your profile, they report it to the credit bureau. In turn, this can negatively impact your score by bringing it down. This year, we want to improve your score, not lower it! So, stop shopping for more cards and focus on using the card(s) you currently have.

    7. Improve your knowledge

    Start making yourself familiar with the world of finance. You should not have to depend on someone else to give you advice on the best ways to save or spend your money. Find time to read more about credit cards, banking, investing, etc. Although it may seem boring, it can actually be very interesting to learn more about what you can do with your money to set yourself up for success. Make this year about becoming financially independent and confident in your financial decisions.

    Related: Improve Your Money Skills in 8 Minutes a Day

    8. Side hustles are all the rage

    If you have learned anything from 2023, it’s that side hustles are the new normal. People everywhere have been finding new ways to bring in a new stream of income passively or actively. This can help you give yourself a little more breathing room if money is a little tight, or it can be a great way to contribute to a savings account. There are plenty of websites and articles with examples of different hustles that you can start doing to build up your income.

    By doing all of this, or even just one, you can drastically change your financial position in 2024. Whether it’s improving your spending habits or saving more money, any of these tips can help bring you closer to financial freedom and success this year. Small adjustments can result in the biggest changes.

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    Erica Dushey Sarway

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  • How These Founders Bought Out Their Major Investor and Reclaimed Control | Entrepreneur

    How These Founders Bought Out Their Major Investor and Reclaimed Control | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When founders raise money, the goals of their company change. They must now build toward a big exit, so their investors get a return on their investment.

    But what if a founder wants to do things differently? Can they ever regain control?

    That’s what the cofounders of premium wellness brand Rhone recently did, engineering a deal to buy out their largest investor. As word got around in the startup community, many founders reached out to ask how they pulled it off — because those founders, too, would like to regain some control they’ve lost in the name of growth.

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    Nicole Gull McElroy

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  • This Critical Mistake Is Slowing Down Your Operations — But There’s 1 Simple Tool You Can Use to Change That. | Entrepreneur

    This Critical Mistake Is Slowing Down Your Operations — But There’s 1 Simple Tool You Can Use to Change That. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Picture this: you’re a business leader at the helm of a thriving company. Your days are packed with making critical decisions, steering your team toward success and ensuring customer satisfaction. Amidst this, the last thing you want is for your purchase-to-pay (P2P) process to become a bottleneck — slowing down operations, frustrating your team and potentially harming vendor relationships. A convoluted P2P process can not only waste valuable time but also lead to errors and financial losses — a risk no entrepreneur can afford.

    Now, picture a simpler, more efficient purchase-to-pay system. One where invoice processing, supplier management and payment processing are seamlessly integrated. Imagine the ease with which your team could operate, the time saved that could be better spent on strategic initiatives, and the reduction in errors that could translate to significant cost savings.

    This is not just about operational efficiency; it’s about creating a competitive edge in an increasingly demanding business environment.

    Understanding what makes for a good P2P process is crucial. A good P2P process can mean the difference between a financial year spent firefighting operational inefficiencies and one where you can focus on growth and innovation. In a world where business agility is paramount, can you afford to overlook the importance of a streamlined purchase-to-pay process?

    Related: 3 Secrets to Streamlining Your Accounts Payable Process

    In my 23 years working with financial systems, one of the evergreen truths I’ve witnessed again and again is the fact that simplicity in processes benefits everyone. Simplicity is borne out of clarity of vision, and it begets quality of output.

    When implementing P2P automation, integrating numerous specialized tools — like one software for invoice processing, another for supplier management and another for payment processing — can lead to a disjointed and inefficient system. Instead of a streamlined process, businesses often find themselves navigating a complex web of incompatible platforms, leading to more confusion and inefficiency. Here are just a few reasons why simplicity is the key to a truly successful Accounts Payable process from every perspective.

    1. From a user experience perspective: The user experience — both on the internal side of a process and on the customer side — is central to the successful use of any kind of software. Streamlining software design often enhances its usefulness for the people who use it daily. A platform should be intuitive to navigate, as this allows it to be accessible to a broader range of people, which in turn enhances user satisfaction, customer retention and engagement. Conversely, juggling multiple apps to fill in the gaps puts more pressure on users to quickly learn an increasing number of interfaces, which is inefficient from both a time and cost perspective.

    2. From a safety and accessibility perspective: When it comes to invoicing and similar processes, sometimes the fewer hands required, the better. Ease of use is paramount in maintaining an operative system that is safe and secure. When users have a clear sense of how to use a given software, processes are more straightforward and self-directed, which can lessen the incidence of human error and oversight.

    3. From an adaptability perspective: Excellent software takes complex integrations and API connections and creates simple, seamless integrations for the end user. Remaining flexible and responsive to the new tools, frameworks and solutions offered by technological innovation is crucial to remaining relevant as a software provider.

    4. From a cost perspective: When a company relies on multiple software architectures with numerous interdependencies to run processes, the cost of maintaining and supporting these systems is often considerable. Unpretentious and succinct software is typically less expensive to implement, test and maintain (and often achieves the desired results with fewer bugs as well) due to only having to pay for one comprehensive solution vs multiple specialized ones. Problems are easier to identify and attend to, saving organizations precious time and creative energy without sacrificing the essential process backbone.

    Why do we create new software tools and solutions in the first place?

    When selecting a P2P or AP automation solution, it’s important to keep some distinctions in mind. There are three major categories on offer that companies must consider.

    • Generalist solutions: These are versatile and can handle a broad range of accounting tasks. However, they may lack deep specialization in any one area. An example of a generalist solution is a well-established ERP (Enterprise Resource Planning) software application like SAP or Oracle. These systems integrate various business processes but may not offer the depth of features found in more specialized tools.
    • Hyper-specialized solutions: These solutions offer a high level of expertise in a specific area of the P2P or AP process. For example, PayPal or Stripe could be considered hyper-specialized solutions focusing on online payments. These platforms provide advanced features and capabilities specifically for handling online transactions, but they might not address other aspects of the P2P or AP process.
    • All-in-one Solutions: These solutions provide comprehensive coverage of the entire P2P or AP process, combining generalist breadth with specialist depth, and offering end-to-end capabilities from procurement and invoice management to payments and analytics. These solutions are designed to manage the entire process seamlessly, offering a high level of expertise across all stages.

    Related: 8 Tips for Setting Up a Killer Invoicing System That Always Gets You Paid

    Finding the right balance between expertise and end-to-end scope to secure ROI and TCO – and a solution that optimizes user experience as well – is the key to accounts payable automation success. Truly brilliant solutions bring order and efficiency into areas of complexity and confusion thanks to their razor-sharp, “simple” elegance.

    When it comes to the accounts payable process, the best way to improve people’s experience is to make the process as comprehensive and intuitive as possible. Business owners usually have enough on their minds as is, and they don’t need a thousand and one options to choose from when it comes to running the essential elements of their businesses.

    It turns out you don’t need countless tools to create something outstanding that satisfies everyone; you just need the right ones added at the right time. The more streamlined the AP automation process, the better the outcome.

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    Francois Lacas

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