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Tag: Money & Finance

  • 5 Smart Marketing Strategies to Thrive Under Investor Scrutiny | Entrepreneur

    5 Smart Marketing Strategies to Thrive Under Investor Scrutiny | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As the most important audience for many companies, it’s important that investors are enthusiastic about the company’s marketing activities. Given that different investors have varying levels of marketing acumen and beliefs about effective marketing, your marketing team must customize how it collaborates with investors on an individualized basis.

    That said, there are several tactics that are frequently effective in ensuring investor confidence in your marketing program.

    Related: 5 Tips for Customizing Your Pitch for Every Investor

    Research your markets and build marketing around the results

    An intelligent marketing program begins with market intelligence. To demonstrate to investors the strategies and execution your marketing team has put together will provide optimal results, quantitative and qualitative research creates a strong foundation.

    In addition to formal market research, the marketing team should also talk informally with target customers, technology and distribution partners, media, industry analysts and market influencers to build and continuously update its understanding of dynamics such as new activities, trends and potential new competitors.

    Involve your investors in marketing

    Investors often have significant followings of their own on social media and are often regarded as thought leaders and industry experts in the venture capital and tech communities. These links can often provide significant benefits to your company as you look to enter new markets, attract talent, ink partnerships and pursue similar goals. An easy way to involve investors and tap into their networks is to include them in the company’s social media program to explore cross-promotion, especially on LinkedIn.

    One approach that can be effective is to ask investors to post on their social channels when the company announces or closes a funding round, senior executive appointment, product or related announcement. We often draft the posts for investors in advance to minimize their time commitment and to ensure the posting takes place.

    Many investors, especially VC and PE firms, have created marketing programs to highlight the companies in which they have invested. Your marketing team should aggressively pursue these opportunities as they both serve as free publicity and deepen your ties to the investor.

    Related: Ask These 3 Questions to Determine Where to Spend Your Marketing Dollars

    Study competitors and identify best practices

    To demonstrate to investors that your marketing team is exploring all avenues to support the company’s growth, it should periodically undertake a thorough analysis of competitors’ marketing activities as well as general best practices. This review should include digging in to learn as many details as possible about competitors’ products, future product strategy, market expansion plans, et al — all by ethical means, of course.

    The team should also study marketing approaches at companies in other industries and consider applying relevant activities to your company. Companies in certain industries, such as food and beverage products, tend to be very sophisticated marketers since they have fierce competition and are trying to influence consumers who are often fickle. Marketers in a wide range of industries can learn valuable lessons from their peers at consumer product companies and then report back findings to their investors.

    Measure ROI of all marketing activities

    Setting key performance indicators (KPIs) and managing metrics on an ongoing basis provides a quantitative way to show investors both the effectiveness and the ROI of the marketing program. Of course, some marketing elements, such as advertising and digital marketing, are much easier to quantify than activities like media relations.

    But even for activities that are less measurable in terms of driving lead generation and sales, marketers should get creative and develop some type of metrics. For example, while it’s nearly impossible to prove that media coverage has driven sales, it is possible to tie media coverage to increases in website and social media activity and demonstrate a correlation.

    Related: 10 Things You Must Do Before Connecting With Investors

    Tie marketing to lead generation and not just brand awareness

    Many investors think of marketing as more of a function to build brand awareness than to generate leads and sales — but it does both. The level of contribution to business development depends on the product or service being sold. If a consumer is planning to buy a printer for their home, seeing an online ad with a discount coupon or reading a positive review in reputable media can very possibly generate that sale. If a CIO is researching intrusion detection software for their cybersecurity stack to protect her company’s critical data assets, marketing may attract her interest and encourage her to contact the company, but it’s definitely not going to end in a sale.

    As with so many activities within a business, demonstrating the effectiveness of your marketing program to investors will be much easier if your marketing team plans ahead, gets the foundational research in place, measures their results and anticipates questions investors are likely to ask. Anticipating and addressing investor queries will facilitate working with them when difficult marketing situations arise.

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    Tim Johnson

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  • 5 Tips to Successfully Manage Business Loans and Funding | Entrepreneur

    5 Tips to Successfully Manage Business Loans and Funding | Entrepreneur

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    Maintaining the financial wellness of any business significantly depends on effective debt management. Ensuring timely repayment of your business loan is crucial to preserving a good credit track record and sidestepping unneeded interest charges or penalties. Below are some strategies to assist you in proficiently handling and settling your business loan:

    Create a Budget

    Success for most small businesses hinges on the implementation of a strategic budget. Just as inadequate budgeting habits can result in debt and financial difficulties in your personal life, neglecting to establish a budget for your small business can similarly give rise to many fiscal problems.

    A sound business budget considers all projected business expenses, both fixed and variable, and measures them against anticipated revenue. This method enables a business to assess its financial position at any time. A meticulously crafted budget can provide a business with the ability to set achievable objectives and foster the drive required to attain them.

    Keeping Your Loan Amount Secure

    It’s beneficial to segregate your online personal loans into a different account, particularly if it’s earmarked for operational costs. Draw from it solely when it’s genuinely necessary, and act as though it doesn’t exist when it isn’t required. This method can deter you from squandering your loan money, thereby ensuring your loan remains in a favorable position while concurrently aiding your business.

    Related: 4 Scenarios When It Makes Good Sense to Take on Business Debt

    Examining Your Rental Agreement

    In the beginning, it’s common for small businesses to rely on rented workspaces. You might have primarily considered your lease in terms of the amount of space and the monthly payments. However, it’s possible that you’re occupying more space than necessary.

    It could be beneficial to discuss downsizing or shifting to a smaller unit with your landlord to decrease your monthly rent. Don’t avoid bargaining; landlords usually don’t prefer their properties to remain unoccupied and might agree to a lower rental fee.

    Regular Documentation of Cash Flows

    Keep track of your business’s cash flow regularly. This should include detailed records of funds borrowed, loan invoices, and monthly profits and expenses. With diligent bookkeeping, you can analyze your budget and decide where cuts or additions must be made for optimal fund allocation.

    Moreover, this practice helps prevent the risk of bad credit or late payment penalties. It enables you to monitor the remaining loan balance, the loan’s term, and the amount that needs to be set aside each month for installment payments.

    Staying Current With Your Payments

    It may seem obvious, but this separates the successful financing of your business for growth and falling into a debt you can’t manage. In times of financial hardship, find ways to minimize expenses and prioritize monthly repayments.

    Smart and concise payment systems are also an effective way to guarantee timely repayments. Be aware that late or missed payments can lead to additional charges rapidly becoming unmanageable if not monitored closely.

    Endnote

    Those are a few guidelines on handling business finances that come from loans. If you’re adept at managing business finances, a capital loan can be a viable option to accelerate your business activities. Securing a business capital loan with the lowest possible interest rate and trustworthy credibility is crucial.

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    Kimberly Zhang

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  • Guide to Choosing a Credit Card Processor for a Small Business | Entrepreneur

    Guide to Choosing a Credit Card Processor for a Small Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When it comes to spending money, cash is no longer king for most shoppers. The majority of consumers prefer using a debit or credit card to make their purchases. This means that being able to accept these forms of payment is critical for businesses today.

    This guide will walk you through how to choose the best credit card processor from the many options available on the market, including information on costs, processor types, and what factors you should consider.

    What is credit card processing?

    When a customer makes a purchase with a debit or credit card, the processor acts as the go-between for the customer’s bank account and the merchant’s bank account. Although the process takes only a few moments, it involves a complex sequence of steps for the credit card processor, the customer and merchant’s respective banks, and the credit card network. The credit card processor’s role includes security verification, routing the transaction and acting as a clearinghouse for funds.

    Who needs credit card processing?

    Given that the majority of consumer purchases are made with debit and credit cards (and an ever-shrinking percentage made with cash), the vast majority of small businesses must provide a way for customers to pay with cards. Most credit card processors provide several methods for accepting payments. Consider these examples of credit card usage in action:

    • A brick-and-mortar convenience store must use a full-service register to accept credit card payments via swipe, chip, or tap.
    • Restaurant servers can use a handheld point-of-sale (POS) terminal to instantly accept card payments right at the customer’s table.
    • E-commerce stores need the ability to accept credit card information via an online form and checkout technology.
    • A restaurant that takes orders over the phone needs a virtual terminal to enter credit card payment details manually.
    • Small-business owners at venues, such as craft markets or trade shows, can use a card reader paired with a mobile device to accept payments while on the go.

    How much does credit card processing cost?

    It’s important to understand the differences in pricing between credit card processing and other types of business services. The majority of credit card processors employ either interchange-plus pricing or flat-rate processing or a combination of both.

    Interchange-plus pricing is when the credit card processor takes a small percentage of each sale, along with a modest fixed fee. The transaction percentage can vary, ranging from approximately 0.29% to more than 3.5%. The fixed fee may be as minimal as a few cents or escalate to 25 cents or more. For some businesses, this fee structure is advantageous because there are no upfront costs. However, it may be less workable for low-margin businesses.

    Meanwhile, flat-rate pricing entails paying a fixed monthly subscription fee for unlimited credit card transactions. While this model eliminates concerns about the credit card processor cutting into revenue, it may pose a financial challenge for fledgling businesses due to high monthly fees. Flat-rate prices typically range from $59 to $199 monthly and are often accompanied by high fixed fees on a per-transaction basis.

    Additionally, some credit card processors impose incidental and recurring charges, such as Payment Card Industry (PCI) compliance fees, payment gateway fees, network fees, monthly minimum fees and statement fees. Business owners are strongly advised to review the terms of service carefully before committing to any processor.

    Furthermore, it’s important to note that specialized POS hardware is required to accept credit cards through swipe, tap or chip methods. While some credit card processors offer free hardware, this path usually involves entering into a contractual agreement. Note also that certain processors provide proprietary POS equipment for purchase while others rely on third-party vendors for their equipment.

    What are the benefits of credit card processing?

    The main benefit of accepting credit cards is the massive positive effect on sales. The majority of purchases are made with cards and consumers are increasingly going cashless. For businesses that operate primarily online, the ability to accept credit cards is an absolute necessity. Besides the obvious, credit card processing offers many other benefits:

    • Increased safety: Many businesses have done away with cash payments entirely and only accept payments by card. This helps protect customers and employees by removing the incentive for criminals to target the business during a robbery.
    • More efficiency: A busy small business, such as a restaurant, can process more sales without worrying about cash payments and making change.
    • Better data management: Most credit card processors include software that collects and organizes your transaction data. You can gain insight into your business by generating digestible reports and summaries of your sales data.
    • Streamlined accounting: Some credit card processors integrate directly with popular accounting software programs, such as QuickBooks and Xero, allowing you to import data easily.
    • Take payments anywhere: With credit card processing, you can accept payments remotely via emailed links, quick response (QR) codes, hosted web pages, and more.

    What are the different types of credit card processing equipment?

    To accept credit cards, you will need a device or program for inputting credit card information at the POS. Both physical devices and digital solutions are available:

    • Mobile reader: These devices pair with a smartphone so that you can accept payments while on the go.
    • Handheld terminal: Often used in restaurants, handheld terminals are self-contained devices that often print receipts.
    • Register: These fixed POS devices are found at the checkout or behind a restaurant counter. Typically, these are the most expensive options for business owners but they also pack the most features.
    • Virtual terminal: With a virtual terminal, you can enter credit card information manually into a credit card processing app.
    • Online checkout: E-commerce customers use checkout forms to enter credit card information for online purchases.

    What are the key features to look for in credit card processing?

    Whatever processor you choose should have a few key features. Card acceptance, security, hardware options, and basic POS tools are a few features that you should look for during your search.

    Accepts all brands.

    Make sure that the credit card processor works with all major card brands, including Discover and American Express. This ensures that you don’t lose out on sales and frustrate customers.

    PCI compliance.

    The credit card processor should comply fully with the PCI Data Security Standard, which will help you maintain PCI compliance.

    EMV compliance.

    EMV-compliant card readers reduce your vulnerability to fraud and help shield your business from liability in the event of a security breach.

    Hardware options.

    Confirm that the credit card processor’s software works with the type of equipment that you will need to accept payments.

    POS tools.

    Most credit card processors include basic POS software. If you don’t plan to purchase a separate POS system, then you should look carefully at which features are included as part of the processor’s software.

    What factors should you consider when choosing a credit card processor?

    In addition to the criteria above, when choosing a credit card processor you should consider several other important factors, such as pricing, ease of use, third-party integrations, customer service and features, such as a mobile app.

    Pricing.

    Estimate how much your business generates in monthly revenue and use that figure to evaluate which pricing model makes the most financial sense. Whether you choose a processor that follows the interchange-plus pricing model or a flat-rate model will depend on your profit margins and sales volume.

    Ease of use.

    The best credit card processors sport sleek, modern user interfaces (UIs) that are easy to learn and navigate. If you accept payments in person, make sure that the POS hardware is user-friendly. The best equipment is plug-and-play and ready to accept credit cards immediately. On the e-commerce side, ensure that the processor’s software is compatible with your existing technology stack for easy integration.

    Third-party integrations.

    Some credit card processing software programs integrate with accounting, POS, human resources and other business productivity software. Make a list of apps that you use for your business and check for compatibility. A few processors also feature open application programming interfaces so that you can build custom solutions.

    Customer service.

    Credit card processors vary widely in terms of customer service. While some stand out on user review sites for providing top-notch technical support, others score poorly. The standouts in customer service often provide 24/7 phone support and a dedicated account manager. Other options include live chat and email support. If being able to reach the company at any time is important to you, make sure that the customer support options reflect that.

    Additional features.

    Many credit card processors specialize in servicing a particular type of business. Some focus on providing tools for retailers or restaurants while others are more geared toward e-commerce businesses. Business owners who like to work on the go should ensure that the processor provides a dedicated mobile app. When reading about a credit card processor’s features, think about what your business needs.

    What are the top credit card processor vendors?

    Clover

    Clover provides a variety of pricing plans for different business types, particularly restaurants, retailers and appointment-based businesses. The company is best known for its range of POS hardware, including mobile readers, handheld terminals, and registers. Clover’s POS software integrates with more than 500 third-party apps.

    Merchant One

    Merchant One customizes plans for individual business needs and offers highly rated customer service. With a low monthly subscription fee of $6.95 and integration with more than 175 online shopping carts, it provides cost-effective solutions.

    ProMerchant

    ProMerchant offers fair deals for businesses that would otherwise struggle to secure credit card processing services. The company stands out with excellent customer support, including a dedicated account representative. ProMerchant’s willingness to work with any business type, including those with low credit scores, makes it an excellent choice for high-risk businesses.

    Stax

    Stax offers a subscription-based model without taking a percentage of revenue, which makes it particularly well-suited for high-volume businesses. With compatibility across various POS hardware options and a mobile app for on-the-go transactions, Stax also provides a great deal of flexibility.

    Payment Depot

    Payment Depot’s membership-based model is perfect for a business that wants to avoid high processing rates. With prices ranging from $59 to $99 a month, Payment Depot doesn’t take a cut of your business’s sales. The company collaborates with SwipeSimple for its software needs and is compatible with many third-party POS device makers.

    Chase

    As one of the nation’s largest banks, Chase leverages its massive treasure trove of credit card data to provide insights for business owners. With Chase, you can better target customers with data on demographics, purchase habits, and more. Chase also includes fast payouts, synchronization with financial services and Health Insurance Portability and Accountability Act-compliant payment solutions for healthcare businesses.

    Helcim

    Helcim’s all-inclusive platform includes an intuitive UI, diverse payment options and no contracts or monthly fees. It integrates with third-party devices, allowing flexibility as businesses expand.

    PayPal

    The PayPal brand name is widely recognized and trusted, offering plug-and-play solutions for online transactions. With various ways for customers to send money and integration with popular business apps, PayPal greatly simplifies online payment processes.

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    Jason Fell

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  • A Graduate Student's Side Hustle Now Earns $110,000 Per Year | Entrepreneur

    A Graduate Student's Side Hustle Now Earns $110,000 Per Year | Entrepreneur

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    This Side Hustle Spotlight Q&A features Carter Osborne, who started tutoring students in need of help with college application essays in 2017. Today, Osborne’s business brings in about $110,000 per year — more than his full-time job as a director at a global PR firm.

    Image Credit: Courtesy of Carter Osborne

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

    Tuition was my original motivation. I started graduate school in 2017, and my tutoring business was originally meant to be a temporary, small-scale operation to take the edge off tuition.

    I was inspired by two people who ran their own tutoring practices at the time, both of whom advised me during the weeks after I launched. One was a test prep tutor in New York who helped me understand the logistics behind starting my own business. The other was a Seattle-based college consultant who had previously supported me during my application process to Stanford. I only met with her once, but she had such a profound impact on my college search that I was inspired to reconnect, emulate her work and start tutoring college essays.

    Related: The Sweet Side Hustle She Started ‘On a Whim’ Turned Into a $20,000-a-Month Income Stream: ‘It’s Simple, It’s Affordable and It’s Fun’

    What were some of the first steps you took to get your side hustle off the ground?

    Mentorship was key. I reached out to local college consultants and asked for informational meetings, both to understand their business models and to pitch myself as a potential resource. It worked — one of them recommended several clients from her waitlist to help me get started, and another hired me as a part-time writing coach. These were small steps by my standards today, but at the time, they were just what I needed to get off the ground.

    From there, client referrals became the core of my growth. I had three clients in my first year, 14 clients in my second year, 23 clients in my third year and so on. This year, I worked with over 50 clients and referred several families to other tutors after reaching capacity. It was a nice full-circle experience — I owe my start to referrals from established tutors, and this year, I got to provide those referrals to others.

    Related: This Former Teacher Started a Side Hustle That Made More Than $22,000 in One Month: ‘I Have Never Been More Fulfilled’

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

    I quickly discovered that there are hundreds of qualified tutors in urban hubs like Seattle, including many who work in my core business of college applications. This created a major challenge: How could I build a unique service that stands out from everyone else’s?

    There turned out to be two answers. First, I pivoted away from academic tutoring and test prep and focused entirely on the niche market of college essays. It was a calculated risk — the market for college essays is relatively small, but that’s exactly what made it easier to differentiate myself as a specialist.

    Second, I turned my competitors into partners. College admissions consultants typically advise on the full application process, but many don’t enjoy working on essays. As an essay specialist, I pitched this as an opportunity to consultants in the Seattle area — they could onboard new clients, outsource the essay portion to me, and then continue working with their clients on all other aspects of the application. The result was a win for everyone: College consults got to offload work they didn’t like, students got specialized essay support, and I got a bump in business from people who otherwise would have been my competition.

    Related: This Arizona Teacher Started a Side Hustle That Immediately Earned More Than Her Full-Time Job: ‘Much Better Than $40,000’

    How long did it take you to begin seeing consistent monthly revenue? Did revenue ever surpass that of your full-time income, and if so, when?

    I began seeing monthly revenue right away. It started small: a few thousand dollars in my first year and about $10,000 in my second year. However, by my fourth year, I earned over $113,000, which exceeded my full-time income as a director at a public relations firm.

    You’ve turned your side hustle into a successful business. How much average monthly or annual revenue does it bring in now?

    In 2023, my business generated roughly $115,000 in revenue. Almost all of this comes during the six-month stretch from June to December when college applications are at their peak. I take time off from tutoring from January to May, which allows me to reset and think critically about ways to improve my service for the next application cycle.

    What’s your advice for other side-hustlers who hope to turn their ventures into successful businesses?

    First, develop something unique about your product or service. How can you make your work stand out from the competition? This might mean pursuing a niche market within your field (like college essays within the field of tutoring) or building a variation on your product. It doesn’t need to be revolutionary — I’m always surprised by customer enthusiasm for products that are marginally different from the mainstream.

    Second, stay patient as you grow. There are plenty of stories about side hustles that struck it rich in year one, but for most of us, success takes time. If you have a multi-year time horizon and the persistence to keep at it, your investment will be much more likely to pay off.

    Related: 3 Secrets to Starting a High-Income Side Hustle in 2024, According to People Whose Gigs Make More Than $20,000 a Month

    Finally, remember that there are no prerequisites to starting a successful side hustle. I am hardly the stereotype of a business owner: I studied public policy in college and never dreamed of starting a business. There’s no such thing as a “type” of person who becomes a successful business owner, so go pursue your ideas and see what happens.

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    Amanda Breen

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  • Andy Cohen Lost 'a Lot of Money' in Sophisticated Bank Scam | Entrepreneur

    Andy Cohen Lost 'a Lot of Money' in Sophisticated Bank Scam | Entrepreneur

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    These days, scams are more sophisticated than ever — and Andy Cohen just experienced it firsthand.

    On a recent episode of his Daddy Diaries podcast, the 55-year-old Radio Andy host opened up about recently being the victim of a scam, which began with an email from what appeared to be his bank’s fraud alert system.

    Related: Rising AI Threat Sounds Like Your Loved One on the Phone — But It’s Not Really Them

    It wasn’t completely unexpected, as Cohen had recently misplaced a debit card.

    “I did lose a card, and I put in for it, and I got an email saying, ‘There might be fraud on your account,’” Cohen said on the podcast. “And I was like, ‘Oh, this is attached to the card I lost.’”

    Cohen logged into his bank account, but his alarm bells went off when he was prompted to enter his Apple ID and password. The host “bailed,” but it was too late — he believes that logging into his bank account on the site gave the scammers full access.

    @breakingtherules_pod Andy gets took for thousands on a bank wire fraud scam! #fyp #foryou #breakingtherulespodcast #bravo #andycphen #daddydiaries #wwhl #scam #bankfraud ♬ original sound – Breaking the Rules Pod

    “I leave the dentist, I get a call, and it shows up as the bank’s name, and they’re like ‘it’s fraud alert,’” Cohen says. “They were naming credits and charges I had made because they clearly had access to my account.”

    The scammers‘ number appeared legitimate thanks to caller ID hacking. Still, Cohen admits he should have asked to call them back or pay an in-person visit to the bank to sort things out. But he stayed on the line with the fraudster for over an hour, even entering numbers into his phone that set up call and message forwarding.

    As a result, when Cohen got off the line and dialed his actual fraud alert, “all of [his]calls were being forwarded to the scammer” — and so were all of the bank’s. “I go to the bank the next day, and these people wired out of two accounts a lot of money,” Cohen says.

    Related: A Scammer Tried to Come For My Small Business — and Yours Could Be Next. Here’s How to Protect Yourself

    Now, Cohen suggests anyone in a similar situation head directly to their bank branch to avoid the potential fraud — and take an extra close look at email addresses to make sure they’re genuine.

    Consumers reported losing $8.8 billion to fraud in 2022, an increase of more than 30% year over year — and imposter scams were the most common, according to the Federal Trade Commission.

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    Amanda Breen

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  • 9 Financial Mistakes to Avoid in 2024 | Entrepreneur

    9 Financial Mistakes to Avoid in 2024 | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Welcome to the new year — the starting gate of our next 365-day race. Here we are, toes on the line with that new year’s unbridled optimism. We all have that voice saying, “This year, it’s going to be different.” But let’s pause for a second — will it really? Without a solid game plan, you’re just sprinting off blindfolded.

    Today, let’s break down nine things you absolutely should not do as you kick off your new year. And no, we’re not talking about the usual suspects like hitting the gym or giving your living room a facelift. Let’s pivot to something less flashy, yet crucial — your finances.

    Here’s the deal: To genuinely pull ahead this year, you need to dust off those neglected, cobweb-covered corners of your financial house. The ones you’ve conveniently ignored or barely glanced at. Those are the game changers. Let’s dive in.

    Related: This Crucial Mindset Will Help You Conquer Your Personal Finances

    1. Not having insurance

    It’s like going into a storm without an umbrella. No insurance? You’re asking for trouble. A single mishap could lead to a financial deluge. The solution is simple: Get insured. Health, car, home — cover your bases. It’s not just sensible; it’s essential.

    If this seems like a mammoth task, hire it out. Get a broker to analyze what’s best for your situation. It might cost a dollar more, but it’ll save you thousands if you never got insurance to begin with.

    Bonus points: Get your family on board for the new year, too. This will not only be a lifesaver for you and them (quite literally) but might also get you all some discounted deals as well.

    2. Not having an emergency fund

    Imagine your car breaks down or you face a sudden medical bill. Without an emergency fund, you’re flirting with debt disaster. The game plan here is straightforward: Build that fund. Aim for a cushion that can cover three to six months of expenses. It’s your financial shock absorber.

    Don’t know where to start? Consider opening a bank account that automatically deducts $50 from your incoming pay. And if this seems difficult, call up your bank and get them to set it up. The key here is to set it and forget it (until you need it).

    3. Not planning for taxes

    Taxes can be a ticking time bomb if ignored. Waiting until the last minute invites stress, mistakes and penalties. The wise approach is to tackle your taxes all year round. Keep track of your expenses and deductions. It’s about turning a headache into a manageable task.

    Let’s break it down easily. Your best game plan here is to get in touch with a reputable tax professional who can sketch out the fine details for you. Get the professionals to make you a plan, and just follow it through. Again, it might cost more upfront, but it will save you enormously when tax time comes around.

    4. Paying only the minimum on credit cards

    It’s a trap! Minimum payments keep you in a perpetual debt cycle. The accruing interest turns what was once a molehill into a mountain. Break free by paying off more than the minimum. Better yet, clear the whole balance monthly. It’s the smart way to keep interest costs in check.

    Tackle it like your emergency fund — automatically allocate money out of your incoming pay. This way, when you look at your balance, you’re looking at what you can use with peace of mind.

    Related: Got 15 Minutes? Improve your Financial Health With These Quick Tips.

    5. Not having financial goals

    Sailing without a destination leads nowhere. Without financial goals, saving and investing becomes aimless. Set clear, achievable objectives. Whether it’s a down payment for a house, a dream vacation or a comfortable retirement, having a target gives your financial efforts direction and purpose.

    If you’re unsure of what this might look like, start by saying what you don’t want. That might be debt, stress, being financially constrained — you name it. Then turn this into a goal for yourself to avoid this year, and you’ve got a good place to start.

    6. Not checking your credit score

    Your credit score is the gateway to your financial opportunities. Ignoring it can lead to nasty surprises at the worst times (like loan rejection). Regular checks are a must. It’s about being proactive and addressing issues before they become problems.

    Make it easy for yourself. Get your accountant to do this for you. Here’s another bonus — set this up as one of your previous financial goals for this year. Chat with your accountant about what you can do to get that score up. Then set it in action.

    7. Not investing

    Letting your money idle in a low-interest savings account is a missed opportunity. Inflation can erode your savings’ value over time. Investing offers the potential for huge returns. Research, understand your risk tolerance, and start putting your money to work.

    For anyone who hasn’t attempted investing before, join an investing group. You’ll get great insights into opportunities, you’ll get educated and maybe find some great networks, too.

    8. No budget

    Operating without a budget is like driving with your eyes closed — you don’t know where you’re going until you crash. A budget is your financial roadmap. It helps you track income, control spending and ensure you’re steering towards your financial goals.

    The best source of information to help you build your budget is you. Look back over your bank statements. See where your money went last year. And aim realistically. Cutting back $50 per week on unnecessary expenses is a win in itself.

    Related: 3 Tips for Stress-Free Money Management

    9. Ignoring debts

    This is a one-way ticket to financial stress. Unchecked debts grow, interest compounds, and before you know it, you’re in over your head. The solution? Face them head-on. Create a repayment plan prioritizing high-interest debts, and stick to it. It’s about reclaiming control.

    Book an appointment with your accountant as soon as they’re open in January. Get real about the looming clouds over your financial freedom, and let them make a plan for you to follow. Remember: If it’s too hard, hire it out.

    So, let’s raise a toast to the new year — not just to what it brings, but to what we’ll avoid to make it truly spectacular. Here’s to making smart choices, to being financially fearless, and to a year where the only downfalls are the ones we expertly dodge together. Wishing you and your family a prosperous (and financially abundant) year ahead. Happy financial planning!

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    Mikey Lucas

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  • How Small Businesses Can Still Create Jobs Despite Inflation and Rising Interest Rates | Entrepreneur

    How Small Businesses Can Still Create Jobs Despite Inflation and Rising Interest Rates | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    I’ve been fortunate to work with small businesses for more than a decade and have seen firsthand the impact they have on those around them — from the people they employ, the communities they serve and how they fuel our overall economy. One such small business (and, disclaimer, a QuickBooks customer) is High Five Events in Austin, Texas. High Five Events started with one small event and has since built a team that puts on large, key events like the Austin Marathon that brings the community together.

    I’m not alone in recognizing the importance of small businesses. In a 2022 survey of 8,000 Americans, 73% said small businesses make their community a better place to live. This isn’t surprising when small businesses make up 98% of all U.S. businesses, and more than a third (36%) of all workers in America are employed by small businesses.

    And while small businesses continue to be formed rapidly, they’re creating fewer jobs than before. Despite the number of new business applications skyrocketing, surpassing 5 million in 2022 compared to 2.1 million in 2005, the number of new businesses with employees during this same time period fell from 10% to roughly 8%.

    Why? I believe one of the primary reasons we’re seeing this shift is due to the unique strains entrepreneurs face when it comes to accessing financing, with record inflation and high interest rates creating an even more challenging environment.

    Related: Here’s the Secret to Growing Your Small Business, According to Execs at UPS, Airbnb, Mastercard, and Other Big Brands

    New findings in the Intuit QuickBooks Small Business Index Annual Report ultimately show that these macroeconomic issues and business growth are intrinsically linked.

    We typically look at inflation through the lens of the consumer, but its impact on small businesses shouldn’t be overlooked. Small business growth and stability are early indicators of the economy’s health, and right now, small businesses identify rising costs as the number one challenge they face. With small businesses’ cash reserves 20% lower today than before the pandemic, and credit card debt 15% higher than before the pandemic, businesses have less cash on hand and more debt accumulating, hindering their ability to create jobs and hire workers.

    In addition to inflation, business owners are contending with an increasingly difficult financing landscape. Small businesses are currently twice as likely to use their own savings to fund their business as they are to use loans from banks or other commercial lenders, with more than half (58%) of U.S. small business owners surveyed indicating they have self-funded their business — often by working other jobs.

    How entrepreneurs are adapting

    For business owners to navigate these headwinds and achieve growth — from both a revenue and workforce perspective — it’s essential they take advantage of the many resources and tools available to them.

    It’s critical to be smart and savvy when it comes to business banking. New data shows that finding the right banking partner can mean being able to access capital or not, as small businesses that worked with well-financed banks before 2022 interest rate hikes got more funding than those working with less well-financed banks. Understanding this, it’s important to be informed and ask a few basic questions when looking for the right bank.

    For example, is the bank FDIC insured? Does it offer a competitive annual percentage yield? Are there fees or a minimum balance required? Can the bank support other business operations — from payroll to credit card processing, automated bill pay or instant payments? You’ll want to get clarity around all these questions before making a decision.

    Businesses also need to tap into the power of digital tools. According to our recent Annual Report, more than half (55%) of small businesses that manage eight or more areas of operations with digital technology report revenue growth. However, this drops to 31% among those who use digital tools for up to two areas only. And high adoption of digital technology isn’t just supporting revenue — it’s supporting employment, too. Twenty percent of high adopters report workforce growth, but fewer than 1 in 10 low adopters report the same. Many digital tools are also increasingly leveraging AI to drive efficiencies, automate operational work, inform decision-making and reduce human error, which can have incredible benefits for small businesses.

    Related: I’ve Served Small Businesses for More Than 10 Years — Here Are 3 Investments to Consider That Will Help You Succeed

    Finally, working with an accounting professional can be an incredible resource in helping businesses navigate the current macroeconomic environment. Our report found that more than 80% of small businesses agree that their accounting professionals have helped them reduce the impact of inflation on the business. From keeping up-to-date and accurate records updated on everything from income to expenses and deductions, hiring an accountant and outsourcing bookkeeping can save small businesses time and money: on average, small businesses estimate having an accountant saves them $39,000 each month.

    As we face a year ahead where economic challenges may persist, it’s imperative that we foster an environment that is conducive to economic growth and small business resilience.

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    Rich Rao

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  • American, JetBlue Among Carriers Rewarding Spend Over Miles | Entrepreneur

    American, JetBlue Among Carriers Rewarding Spend Over Miles | Entrepreneur

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    The once-fervent annual practice known as the mileage run, where travel enthusiasts strategically fly to accrue airline miles for elite status before the year’s end, might not be around much longer.

    For years, those mileage runs allowed air travelers to secure elite status for the next year and unlock practical benefits such as seat upgrades, lounge access and priority services. But now that’s changing.

    As 2023 draws to a close, many major airlines have shifted their loyalty programs to value dollars spent over distance flown, effectively altering the landscape of travel hacking, The Wall Street Journal reported.

    Related: Business Travelers: Is Loyalty Dead?

    American and JetBlue exclusively reward customer spending, per the outlet. And while United and Southwest still record the number of flights a customer takes, both primarily consider dollars spent for rewards.

    At United, the fastest way to earn elite status is to buy more expensive tickets — and use the airline’s credit cards, NerdWallet reported.

    Delta Air Lines, once a holdout in the shift, faced backlash after it amended its SkyMiles program earlier this year, but then walked the decision back.

    Related: ‘This Is a Terrible Day’: Delta, American Express Limiting Access to Sky Clubs, Customers Lament ‘Brutal’ and ‘Outrageous’ Changes

    “No question, we probably went too far in doing that,” Delta CEO Ed Bastian said at an event at the Rotary Club of Atlanta in September. “Our team wanted to rip the bandaid off and didn’t want to have to keep going through this every year with changes and nickel-and-diming and whatnot, but I think we moved too fast.”

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    Amanda Breen

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  • The CFO Agenda: Strategies and Ideas to Prepare You to Make the Best Decisions in 2024 | Entrepreneur

    The CFO Agenda: Strategies and Ideas to Prepare You to Make the Best Decisions in 2024 | Entrepreneur

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    There’s one trend that is definitely continuing in 2024—the growing importance of the role of the CFO. Chief Financial Officers in organizations of all types will continue to have more responsibility than ever before, having to balance traditional accounting and financial planning/analysis tasks with more cross-functional strategies and responsibilities.

    The most successful CFOs understand that gaining actionable insights is key to providing the best leadership for their teams and business units.

    That’s why Oracle NetSuite and Entrepreneur are presenting the free webinar, The CFO Agenda: Strategies and Ideas to Prepare You to Make the Best Decisions in 2024. The webinar will help those in financial leadership roles think critically about the year ahead and also provide you with the actions you can take to benefit your team most.

    Moderated by AI-Researcher and Entrepreneur author Dr. Jill Schiefelbein, this webinar will feature expert insights from Megan O’Brien, NetSuite’s Business & Finance Editor, and Ian McCue, Senior Content Marketing Manager at NetSuite, as they unveil the top areas that CFOs should be addressing and examining moving forward into 2024.

    During this conversation, where attendees are encouraged to ask questions, we’ll cover:

    • Technologies worth your time: Knowing the tools at your disposal and how to leverage AI in the mix
    • Emerging regulations: Understanding how these will impact your organization and what to do to think beyond the parameters
    • Automating the fundamentals: Learning how to critically examine your processes and more strategically leverage your time
    • Empowering your teams: Gaining insights on how getting your data in order can amplify the skill set that your employees bring to the table

    Join us for The CFO Agenda: Strategies and Ideas to Prepare You to Make the Best Decisions in 2024 webinar taking place live on Tuesday, January 30 at 12 p.m. ET | 9 a.m. PT.

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    Entrepreneur Events

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  • Use This Framework to Transform Your Sales Team and Drive Steady Growth | Entrepreneur

    Use This Framework to Transform Your Sales Team and Drive Steady Growth | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Predictable revenue is the number one goal for sales leaders. It is the ability to consistently generate a steady stream of revenue, month after month, without relying on unpredictable spikes or one-time deals. Why is this more important than ever? According to Ebsta, sales cycles were 32% longer, and 25% more stakeholders were involved in the process this year. In Q4 of 2022, a mere 29% of salespeople made quota, down 14% YoY. Selling is fundamentally getting harder, and businesses must re-evaluate their strategy if they want to drive consistent growth.

    As an agency, we’re using the predictable revenue framework as a foundation for client success. Here’s how it can transform your sales team, as well as some strategies and tips for mastering it.

    Related: The 4-Step Process for Building a Scalable Sales Machine

    What is predictable revenue?

    Predictable revenue is a sales strategy that creates a consistent and repeatable sales process. It is about building a system that generates a steady revenue stream rather than relying on sporadic deals or one-off sales.

    The concept of predictable revenue was popularized by Aaron Ross, who used it to help Salesforce.com grow from $5 million to $100 million in annual recurring revenue. In his book of the same name, Ross outlines the critical components of predictable revenue and how it can be implemented in any organization.

    The two types of revenue:

    According to Ross, there are two types of revenue: predictable and unpredictable. Unpredictable revenue results from intermittent deals, one-time sales or relying on a few key clients. This type of revenue is not sustainable and can lead to a rollercoaster of highs and lows.

    On the other hand, predictable revenue results from a consistent and repeatable sales process. It is the bedrock of a successful business and allows for steady growth and scalability.

    The predictable revenue framework

    The predictable revenue framework comprises four key components: specialization, lead generation, qualification and closing. Let’s look closely at each of these components and how they contribute to predictable revenue.

    Specialization:

    Specialization is the process of dividing your sales team into specialized roles. This allows each team member to focus on their strengths and responsibilities, increasing efficiency and productivity.

    The two main roles in the specialization process are the sales development representative (SDR) and the account executive (AE). The SDR generates and qualifies leads, while the AE is responsible for closing deals.

    By dividing these roles, you can create a more efficient and effective sales process. The SDR can focus on generating a high volume of leads, while the AE can focus on closing deals and building relationships with qualified leads.

    Lead generation:

    Lead generation is the process of identifying and attracting potential customers. This can be done through various methods, such as cold calling, email marketing, social media and content marketing.

    A targeted and consistent approach is key to successful lead generation. This means identifying your ideal customer profile (ICP) and tailoring your lead generation efforts to reach them.

    Qualification:

    Qualification is determining whether a lead is a good fit for your product or service. This is where the SDR plays a crucial role. They are responsible for qualifying leads and passing them on to the AE for further nurturing and closing.

    Qualification involves asking the right questions and understanding the needs and pain points of the potential customer. This ensures that the AE only spends time on leads with a high chance of converting into paying customers.

    Closing:

    Closing is the final step in the predictable revenue framework. This is where the AE takes over and works to close the deal. By this point, the lead has been qualified and nurtured, making the closing process more efficient and effective.

    The key to successful closing is building relationships and understanding the customer’s needs. This allows the AE to tailor their approach and address any objections or concerns the potential customer may have.

    Related: The No. 1 Reason You’re Not Experiencing Consistent Revenue in Your Business

    Tips for mastering predictable revenue

    Now that we have covered the key components of the predictable revenue framework, let’s dive into some tips for mastering it.

    Implement a scalable sales process:

    A scalable sales process is essential for achieving predictable revenue. This means having a process that can be replicated and scaled by your sales reps as your business grows.

    To create this, you need to have a clear understanding of your target market, ICP and the steps involved in your sales process. This allows you to identify areas for improvement and make adjustments as needed.

    Focus on lead quality, not quantity:

    While it may be tempting to focus on generating a high volume of leads, the key to predictable revenue is to focus on lead quality. This means targeting leads that are more likely to convert into paying customers, which means understanding who your target audience is, where they are and what they need at each stage of the buying journey. This will result in a higher conversion rate and a more efficient sales process.

    Leverage technology:

    Technology plays a crucial role in achieving predictable revenue. There are various tools and software available that can help streamline your sales process and improve efficiency.

    At the bare minimum, a customer relationship management (CRM) system can help you track and manage leads, while a sales enablement platform can provide your team with the resources and tools they need to be successful.

    Continuously train and coach your sales team:

    Training and coaching are essential for mastering predictable revenue. This involves providing ongoing training and communication that covers messaging, objection handling and competitor insights.

    By doing this, you can ensure your team is equipped with the knowledge and skills they need to win.

    By implementing the predictable revenue framework and following these tips, you can transform your sales team and achieve consistent growth month after month.

    Whether you are a small startup or a large enterprise, mastering predictable revenue can help you reach your sales goals and drive the success of your business. So, take the time to implement these strategies and see the results for yourself.

    Related: 10 Ways to Maximize Your Sales Team’s Performance

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    Paul Sullivan

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  • How Does Personal Credit with Fintech Work? | Entrepreneur

    How Does Personal Credit with Fintech Work? | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    This story originally appeared on Under30CEO.com

    The fintech sector has transformed the personal credit business, making unsecured personal loans more accessible and feasible for a broader spectrum of customers. Through the internet, marketplace lending, and continuous online access, the fintech movement has turned unsecured personal loans into a progressively viable solution for low-and moderate-income (LMI) borrowers. As a result, these borrowers now have a wider range of cost-effective options to choose from when seeking credit, enabling them to improve their financial circumstances and build a stronger credit history.

    The Fintech Revolution in Personal Credit

    The innovative technologies employed by fintech companies have streamlined loan application processes, reduced approval times, and provided a more transparent lending experience that caters to the unique financial needs of LMI borrowers. This expansion has directly impacted the banking sector, as demonstrated by LendingClub and SoFi’s acquisition of banks.

    Related: Differentiate or Die Trying: What’s Next For the Alternative Lending Market

    Unsecured Personal Loan Industry: Growing Concerns and Rising Demand

    Concerns about the unsecured personal loan industry have grown as US consumer credit card debt exceeds $1 trillion. As a result, regulators are paying closer attention to lending practices, and financial institutions are scrutinizing borrowers more rigorously. Simultaneously, consumers are seeking alternative lending options, driving growth in the fintech sector and propelling digital lending platforms to the forefront.

    Challenges and Obstacles: Addressing the Market’s Escalating Issues

    With increasing demand for these loans among LMI customers, the market faces escalating issues like rising costs, stricter standards, and growing delinquency rates. As a result, financial institutions and policymakers need to work together to address these obstacles and create solutions that protect both consumers and the industry. By fostering an environment of responsible lending practices and effective regulations, there is an opportunity to make these loans more accessible and beneficial for LMI communities.

    Navigating the Complex Financial Landscape: Cooperation and Communication

    As borrowers seek help in managing their financial affairs, both consumers and lenders must work their way through an ever-more complicated and uncertain landscape. Navigating this intricate financial terrain requires increased communication and cooperation between borrowers and lenders to ensure mutually beneficial outcomes. It is essential for both parties to stay informed about changing regulations, market conditions, and available resources in order to make well-informed decisions and maintain stability.

    Conclusion: The Future of Unsecured Personal Loans in the Fintech Era

    The fintech sector’s impact on the unsecured personal loan industry has, undoubtedly, been transformative for LMI borrowers, providing them with more accessible and cost-effective options. However, as the market evolves and policymakers implement stricter regulations, the industry must continue to innovate and adapt to its ever-changing environment. Through collaboration, communication, and responsible lending practices, the unsecured personal loan industry can continue to serve the needs of LMI borrowers while maintaining financial stability.

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    NATHAN ROSS

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  • Top 3 Mistakes to Avoid When Flipping Houses | Entrepreneur

    Top 3 Mistakes to Avoid When Flipping Houses | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    House flipping has grown in popularity over the past few years. The optimism of high profit margins and no need for tenant management or long-term property maintenance has made this method of real estate extremely intriguing for new and veteran investors alike.

    However, finding the right property to flip, house flipping costs and other hassles associated with this process can make it seem much less appealing. Below are the top three “don’ts” when flipping a property. Be aware of these common mistakes, and steer clear of them to make your house-flipping endeavor profitable and stress-free.

    Related: Looking to Invest in Real Estate? Learn How to Fix and Flip Homes With Guidance From These Investors

    1. Overestimating your abilities

    One of the most common mistakes investors make when beginning their house-flipping journey is overestimating their abilities. Confidence is key to success in your business goals, but it’s important to weigh that confidence with a realistic idea of what you can and cannot do.

    Construction/renovation abilities:

    Flipping a home usually requires substantial renovations and repairs. Since flipped properties were usually distressed prior to their flip, the process of flipping can entail major structural changes or repairs to complex systems like electrical or plumbing. While many investors have the ability to complete smaller-scale repairs or renovations, it’s best to leave the complicated tasks to the professionals.

    Not only can completing these repairs be dangerous to your health and safety, but they can also lead to costly mistakes and a final product that could disappoint buyers.

    Time management:

    Time management is a valuable skill in many industries, but it’s especially helpful when flipping a property. You should be able to accurately estimate the time needed for the flip, including the average time for each renovation, and which projects can be worked on simultaneously.

    If you have trouble with time management, your flip could be delayed, which could lead to increased holding costs and overall loss of profit opportunities.

    Real estate market knowledge:

    Knowledge of the market your project is in is crucial for a high profit margin. You should be informed on market trends, popular buyer preferences and surrounding property values before deciding which renovations to prioritize and how you should price your renovation while in the selling process.

    Money management and negotiation:

    Being able to effectively monitor and budget your finances is one of the key skills required in real estate investment. Especially when you’re flipping a home, you need to be able to plan where each dollar is going to ensure you aren’t creating a money pit. Keep track of your expenses, and be sure to store any financial records you obtain for tax purposes.

    Negotiation is another side of money management. Lacking negotiation skills can lead to you overpaying for the property or contractors to conduct your repairs. Having great negotiation abilities will help you land deals with suppliers or contractors and make your profit margin larger.

    2. Overdoing the renovations

    Another common pitfall that house-flipping investors fall into is getting too excited with the promise of your flip and overdoing the renovations.

    Reduced ROI:

    Your Return on Investment, or ROI, can be diminished when you over-improve your property. Renovations are meant to increase the property’s value, so when you indulge in unnecessary and extravagant upgrades, buyers may not be willing to pay more for those features if they don’t see them as valuable.

    Neighborhood incompatibility:

    It’s important to have in-depth market knowledge of the area surrounding your property. Specific neighborhoods tend to have a “price ceiling,” or a relative maximum amount that buyers are willing to spend on a home in that area. If you overdo the improvements on a property within a neighborhood with a lower price ceiling, you may not be able to find many interested buyers.

    Risk of overcapitalization:

    Overcapitalization is when you spend more money renovating the property than the property is appraised for at the end. This is obviously something you want to do your best to avoid.

    Related: Want to Make Money Flipping Houses? Here’s Your Step-By-Step Guide.

    3: Underestimating the cost

    The third issue investors run into when partaking in a house flip is realizing that they’ve underestimated just how much it will cost.

    Carrying costs:

    Carrying costs are the expenses that take place during the flip. For example, property taxes, utilities, loan interest and insurance all count as carrying costs. The longer you take to complete your flip, the more carrying costs you have.

    Renovation costs:

    Renovating the property is the most significant expense in your house-flipping endeavor. You will need to purchase materials, necessary permits and contractors/labor to complete the renovations properly. It’s important that you get quotes from multiple reputable contractors before settling on one to ensure you get the best possible deal, saving more money for possible unforeseen renovation issues.

    Financing costs:

    If you are borrowing money to finance and renovate your flip, you will incur various fees like loan fees and interest payments. If you are taking out a loan with unfavorable terms or high interest rates, consult a financial professional to see if this investment is the best choice for your business goals.

    Marketing/selling costs:

    When you’re done flipping your property, you will need to invest time and money into marketing and selling. Marketing is critical for attracting potential buyers.

    Selling costs can include real estate agent commissions and closing costs. Be sure to budget for these expenses in your original financing plan.

    Hidden expenses:

    House flipping is known for its tendency to blindside hopeful investors with devastating, expensive and unforeseen repairs. Electrical problems, structural damage and plumbing issues can pop up and the most inconvenient times and derail the entire process.

    It’s important that you budget for a contingency fund that can cover any disappointing surprises such as those listed above. Leave plenty of space in that budget after taking care of your foreseeable expenses.

    When it comes to property acquisition, renovation costs and the hassle of marketing and selling your property, some may decide house flipping isn’t for them. However, with a savvy business mindset and a realistic budget, this method of real estate investment can be a great boost for your portfolio.

    Related: How to Find Funding to Start a House Flipping Business

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    Dave Spooner

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  • Free Webinar | December 11: Top 10 Year-End Tax Strategies To Save Yourself Thousands | Entrepreneur

    Free Webinar | December 11: Top 10 Year-End Tax Strategies To Save Yourself Thousands | Entrepreneur

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    Ready to save thousands on your year-end tax strategy? Join our exclusive webinar, “Top 10 Year-End Tax Strategies To Save Yourself Thousands” featuring renowned experts Mark J. Kohler, CPA, and Mat Sorensen.

    Here’s what you’ll learn:

    • A foolproof write-off strategy for buying new auto or equipment by year-end and a foolproof write-off strategy

    • How to maximize IRA and 401(k) contributions for the highest tax benefit

    • Common deductions like home office and travel to save big

    • Knowing when to transition from LLC (sole prop) to S-Corporation tax status by year-end

    • How to close out old entities by year-end to avoid new FinCEN registration in 2024

    • Deciding the best time to set up your LLC or entity—before year-end or on Jan 1, 2024

    Don’t miss this golden opportunity to master year-end tax planning and unlock thousands in savings for your small business! Secure your spot now and let our experts guide you toward financial success.

    About the Speakers:

    Entrepreneur Press author Mark J. Kohler, CPA, attorney, co-host of the Podcast “Main Street Business”, and a senior partner at both the law firm KKOS Lawyers and the accounting firm K&E CPAs. Kohler is also the author of “The Tax and Legal Playbook, 2nd Edition”, and “The Business Owner’s Guide to Financial Freedom”.

    Mat Sorensen is an attorney, CEO, author, and podcast host. He is the CEO of Directed IRA & Directed Trust Company, a leading company in the self-directed IRA and 401k industry and a partner in the business and tax law firm of KKOS Lawyers. He is the author of “The Self-Directed IRA Handbook”.

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    Entrepreneur Staff

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  • How to Avoid Online Scams on Black Friday and Cyber Monday | Entrepreneur

    How to Avoid Online Scams on Black Friday and Cyber Monday | Entrepreneur

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    As Thanksgiving approaches, so do Black Friday and Cyber Monday.

    Last year, the National Retail Federation reported nearly 180 million unique shoppers over the five-day period between Thanksgiving Day and Cyber Monday, which exceeded estimates by more than 21 million. According to NRF’s data, 104.9 million of those shoppers visited stores and 127.8 million made their purchases online (some shopped both in-store and online).

    Of course, “Cyber Week” brings in major revenue: The 2021 sales stretch drove nearly $40 billion in online spending, per Adobe.

    But the onslaught of online deals doesn’t just draw eager shoppers — it also gives cybercriminals a prime opportunity to trick people out of their money.

    “Cyber Monday and Black Friday open the door for adversaries to make offers,” AJ Nash, vice president of intelligence at ZeroFox, says. “Maybe if it were a Wednesday in July, you’d go, Man, that seems too good to be true. But come Cyber Monday, you go, Oh, maybe it’s a doorbuster. Maybe somebody really is giving away this amazing thing for almost nothing.”

    Nash spent nearly two decades in the intelligence community, describing himself as a “traditional intel guy,” before he was recruited for a cyber-focused contract, then to the private sector.

    Entrepreneur sat down with Nash to discuss how cyber scams have become more sophisticated over the years and how you can protect yourself from even the craftiest cybercriminals.

    Related: Cyber Fraudsters Reap $2.3 Billion Through Email Wire-Transfer Scams

    “Technologies have made it easier to do a better job of impersonating.”

    Phishing, the process by which an attacker sends a fraudulent message to get someone to share sensitive information or to introduce malware, is one of the oldest tricks in the cybercrime book.

    But the “spray and pray approach,” where cyber criminals attempt to maximize the volume of their scam to get the biggest returns, has gotten an update over the years, Nash says.

    “Technologies have made it easier to do a better job of impersonating,” he explains. “It costs very little to buy a domain that looks very close to the real one. It’s a misspelling, or they use a lowercase ‘L’ to replace a capital ‘I.’ There’s a lot of different ways to set that up.”

    From bogus websites to texting schemes, cyber scammers are skilled in weaving webs that appear legitimate. A link sent through SMS might lead back to an authentic-looking site, for example.

    “The longer you go down those paths, if adversaries link things together and layer them, the more trust it creates,” Nash says. “If you believed the first thing, then everything else is going to reinforce that as a potential victim.”

    And the schemes themselves also run the gamut, though non-delivery scams, where shoppers are duped into purchasing something that never arrives, and gift card hoaxes, where people are tricked into paying with virtually untraceable gift cards or buying them, remain some of the most common.

    Another rich arena for scammers? Social media.

    “Social media is a huge opportunity,” Nash says, “setting up social media accounts and luring people in, especially if you’re dealing with social media platforms that aren’t doing a particularly good job of regulating what is a valid account versus what isn’t.”

    And if you do fall for a fraudulent post, all it takes is one click for disaster to ensue. Hit that link promising the deal of a lifetime to the first 500 customers, and you risk having your personal information stolen or your device compromised.

    Related: How to Avoid Getting Scammed by Influencers With Fake Followings

    How to avoid online scams on Black Friday and Cyber Monday

    So, how can you stay safe while shopping for some of the best (legitimate) deals of the year?

    First, never forget that if a bargain sounds too good to be true, it probably is, Nash says.

    Once you suspect you might be a target, do your own investigation. For example, if you receive an amazing offer with a link attached, don’t click it.

    Instead, take a good look at that web address, Nash suggests, searching for any alterations to an authentic retailer’s URL — whether it’s one of those misspellings or capitalization swaps. Copying the address into a word document and switching up the font can make it easier to spot discrepancies.

    You should also pay close attention to the message itself. Improper English and grammatical errors are red flags, Nash says.

    Another simple tactic? Type the deal into your browser to see if it comes up anywhere else.

    “If you start Googling it and you’re somehow the only person that seems to know where this thing is, there’s a good chance it doesn’t exist,” Nash explains. “You’re not that special. None of us are.”

    It’s also good practice to avoid giving out sensitive information as much as possible, even when websites seem legitimate. Consider using a separate credit card for online orders; some financial institutions even offer virtual credit cards. Both options can prevent cybercriminals from moving “laterally through the rest of your finances,” Nash says.

    Related: 11 Ways to Protect Your Business From Cyber Criminals

    Along the same lines, it’s important to make sure you’re using different usernames and passwords for all of your accounts.

    “If they trick you into the website and you give away your information, [for a] lot of folks, that means you give away everything because you didn’t just give away that one Visa or MasterCard,” Nash says. “It turns out that’s the only password and username used for everything. More than ever, this is the time of year to remember to randomize passwords and use password management and two-factor authentication.”

    If you do make a purchase and have doubts after the fact, it might not be too late to protect yourself. Start by seeing if you received a confirmation email with tracking information — if you didn’t, it’s a bad sign.

    “I had this happen to me, maybe 10 years ago,” Nash says. “I got a laptop — it was a little too good to be true, but not crazy good. And I got a tracking number that didn’t match up; the post office couldn’t figure it out, et cetera. Well, lo and behold, that laptop never made it to my house.”

    But depending on your payment method and the insurance terms associated (which you should check before you shop), you might be able to recoup that money, Nash notes.

    Keep these strategies in mind for a successful and safe Cyber Week this year.

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    Amanda Breen

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  • Black Friday Sale | The Best Business Books Are 50% Off | Entrepreneur

    Black Friday Sale | The Best Business Books Are 50% Off | Entrepreneur

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    Our Entrepreneur Bookstore Black Friday Sale is happening now for a limited time! Get anything in our bookstore for 50% off – you will find books for as low as $4.99. There isn’t a better deal anywhere else.

    Use code BFSALE23 at checkout to save big on Books that will help you:

    • Launch Your Dream Business
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  • The Beginner’s Guide to Flipping Houses for Profit | Entrepreneur

    The Beginner’s Guide to Flipping Houses for Profit | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Flipping properties does not have to be complicated. This term refers to properties that are purchased then renovated — or “flipped” — for a profit.

    Follow the key tips outlined in the guide below to help you navigate this process and find a quality property to flip and sell.

    Related: This Company Aims to Revamp the House-Flipping Process For Both Buyers and Sellers

    Finding the right property

    To begin, you have to find the right property to flip.

    Establish your criteria:

    The first step to finding the right property to flip is to come up with a list of criteria based on what is important to you as an investor.

    Do you prefer single-family homes, multi-unit properties or condominiums? Based on your budget, how much can you spend on acquiring the property, and what kinds of renovations do you want to carry out?

    Having this list will help you determine what criteria are most important to you and will help to narrow down your search.

    Understand the market:

    Once you’ve decided on what kind of property you want to invest in, investigate potential neighborhoods and markets that work best for you and your investing goals. A property’s location has a substantial impact on what people are willing to pay for it. Neighborhoods that signal potential for a large return on investment often have good school districts, a strong job market or other signs of growth.

    Doing your research on the local real estate market is crucial for figuring out which properties are worth flipping. A market’s supply and demand, average time spent on the market and price trends are important to pay attention to, since these criteria usually will signal whether your property will be successful in that market.

    Distressed properties:

    Distressed properties like foreclosures, short sales or properties in need of substantial repairs are great for house flippers. You can acquire these properties at a lower rate than normal and spend more on high-value renovations that will give you a higher return on investment. However, be sure to inspect the property and have an idea of how much you will have to spend on the flip itself.

    Online listings, auctions and off-market opportunities:

    Online platforms, property auctions and off-market opportunities are great ways to find hidden gems in the market. Online platforms include Zillow, Realtor.com or Redfin. These platforms will provide details on the property and have photos, descriptions and relevant prices. They also have filters that can help you narrow down your search based on location, price and other factors.

    Auctions will usually feature properties that are being urgently sold and are distressed. Attend a few auctions as an observer before actively participating, since the process can be somewhat overwhelming without prior preparation.

    Off-market opportunities come from property owners who are willing to sell directly to you if a quality offer comes through. Use mail or local newspapers to get the attention of homeowners who are considering selling their home. Although this approach requires more effort than other methods, it leads to potentially better deals, and you do not have to deal with as much competition.

    Related: How to Make Money Flipping Houses

    How to flip properties

    Now that you’ve found a potential fixer-upper, you have to navigate the logistics of acquiring and repairing the space.

    Acquisition and ownership:

    If you are going to flip a property, you have to account for taxes, insurance, title fees and additional acquisition expenses beyond just the asking price. The “70% rule” states that buyers should avoid properties that cost over 70% of the after-repair value (ARV), the estimated value of the property after you flip it, subtracting repair expenses.

    Here is a link to a 70% rule calculator if you would like to use your own property and estimate your figures.

    Establishing a budget:

    Setting a budget is crucial for any home buyer, but it’s especially important when you are planning on flipping the home. Staying on budget ensures that you can turn a profit on the investment while retaining your personal funds.

    Most people will aim to make a 10% to 20% profit for each property. Research the average market prices to see what you can reasonably sell your flip for.

    Also, it’s smart to invest the money upfront to conduct a full inspection. These inspections typically are around $500 or more, and they will help you understand what kinds of repairs you will need to conduct before you can sell the property. Inspecting the property will help you understand exactly how much work this flip will require and whether it’s a reasonable undertaking for you.

    Repairs:

    Now that you’ve acquired your property, it’s time to repair and renovate it. Hire a contractor (unless you are one yourself), and start by looking for affordable improvements that can be made to increase value without transforming the entire space. You could repaint instead of replacing the cabinetry, change out old doorknobs and sink hardware, upgrade to energy-efficient appliances or install composite countertops instead of splurging on granite or marble.

    Kitchens and bathrooms are typically the most vital spaces to renovate in the home. Also, if you find that you need to replace the flooring in your property, explore hardwood. Buyers are often willing to pay more for properties that have hardwood in them.

    Related: 10 Lessons this Entrepreneur Learned from Flipping $100 Million in Real Estate

    Marketing your property

    Now that you’ve conducted all necessary repairs and renovations, you must market your property effectively so you can get a quick sale.

    Make sure that you use high-quality photography and staging since pictures and videos of your property will outperform written descriptions. Investing in a quality photographer is worth it. Also, staging your home with modern and attractive furniture will help potential buyers see themselves in that home.

    Leveraging listing platforms using Zillow, Realtor.com and a local Multiple Listing Service platform can help buyers learn more about your property. Highlight renovations and high-value features of your home within the listing to call attention to its best assets.

    Finally, be sure to host open houses to give buyers the opportunity to see your home in person. Also, when you see these buyers in person, it can foster an opportunity to connect with them and increase your chances of a sale. Virtual tours can help buyers explore the property interactively from the comfort of their own home. This is convenient for people shopping remotely and planning on relocating to your area.

    Hopefully, after absorbing the important information in the guide above, you feel more qualified to flip a property.

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    Dave Spooner

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  • To Maximize Your Profits This Black Friday, You Need to Collect More Than Your Customers Dollars | Entrepreneur

    To Maximize Your Profits This Black Friday, You Need to Collect More Than Your Customers Dollars | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Black Friday — the day after Thanksgiving — is the biggest shopping day of the year and the start of the holiday season, which, for many retailers, can contribute as much as 30% of their annual sales. So it’s a big day. But if you think Black Friday is just about the holiday season, you’re wrong.

    Of course, the day is important for the holidays. Black Friday was the biggest day for in-store shopping in the U.S. in 2022, reaching 72.9 million consumers, up almost 15% year over year. But it’s just as important for after the holidays. That’s because Black Friday isn’t just about sales. It’s really about data.

    My smartest clients know this. And they make it a priority to leverage Black Friday as a way to collect as much information as they can from everyone entering their store. Why? Because the data they collect will help drive sales long after the holidays have ended.

    Retailers of all sizes face a significant drop-off in sales after the holidays, and it’s always a struggle to generate demand. But it doesn’t have to be that way. The data you collect from your Black Friday traffic can boost your sales in those slow winter months. So, how to do this? You need a reason for the customer to stay engaged.

    For starters, collect an email at checkout. Asking for a “like” or a positive online review is great, but you’re not collecting data that way. Asking for an email is a way for you to control the engagement. It’s true that sometimes some won’t want to share, and that’s fine, too, because people have to opt in if you’re going to market to them online. So encourage them. Say that you’ll add them to your special “VIP Customer Club,” which will make them eligible to receive future discounts and special promotions. Some retailers ask if a customer would like a receipt emailed, and that’s another good way to collect that information.

    Another strategy is to push your visitors to your website. Hopefully, you’re selling your products not just in your store but also via an ecommerce platform. If you don’t, you really should because my most successful clients sell products through multiple channels. On Black Friday, offer a special promotion for customers who choose to purchase products online or special products that are only offered online. When someone buys from you online, you’re collecting their data, and you can give them the option to have their email added to your VIP club at checkout. At the very least, you’ll be collecting physical shipping/ordering data that can be used for future postcard mailings.

    Consider a raffle. It’s simple and old school, but it’s an effective way to collect an email address or physical mailing address. Have them drop a business card or fill out a form to get a product or service for free and, of course, ask on that form for permission to add to your VIP Club. Your cost of giving away free stuff is minimal compared to the benefit of using that data for future marketing.

    Many of my retail clients do events. These are the businesses that generally offer experiences or lifestyle products, and they enjoy doing in-store events to further educate their community. The pandemic taught us that doing these events online can also work. Schedule an event for January or February and promote it in your store. People would need to sign up for this event, so have an online or physical way to do this in order to capture their information.

    Partner with others. All of the above activities can be replicated by friends of yours on the Main Street. By offering co-promotions with some of them, you can pool your resources and share your data. This way, you can potentially double the amount of information you’re collecting on Black Friday.

    Finally, use a loyalty program. The suggestions I’ve made above would incur minimal cost. But if you want to step things up – and pay more — you can subscribe to retail loyalty platforms like Clutch, Recharge, Smile.io and others. These platforms — which are mainly designed for mobile use — allow your customers to accumulate points, get access to gift cards, belong to a recurring program, join certain membership tiers and take advantage of VIP “exclusive” offerings. They provide real-time data analysis of program usage, can be customized, and also integrate with other software.

    These are all great ways to collect the data you need. But the most important thing is what to do with the data once you have it. And for this, you need a good customer relationship management (CRM) program.

    A CRM is merely a database that will store whatever information you obtain about anyone who’s walked into your store. Some loyalty platforms and most point-of-sale systems either offer this capability or can be integrated with a standalone CRM system, and there are many platforms available at an affordable price. You will use this database to build demographics and sales history about your customers.

    When a CRM system is used the right way, no customer — or prospective customer — falls through the cracks. Using the data you’ve collected on Black Friday and throughout the holiday season, they should be receiving regular (opt-in) emails or postcards from you about product offerings, events or other activities at your store. You can leverage the data to target specific customers based on what they’ve purchased from you. You can use the data to create lookalike campaigns on both Facebook and Google, where you can target online ads directly to them. As you build this database, you’ll build a community of customers that you can go back to year after year.

    And that’s the most important thing about Black Friday. It’s not just one day of sales. It’s also a day to collect data for future sales. If you approach it that way, you’ll see a revenue increase that can extend far beyond the holiday season.

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    Gene Marks

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  • Master Your Retirement: Financial Strategies for Success | Entrepreneur

    Master Your Retirement: Financial Strategies for Success | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    This story originally appeared on Under30CEO.com

    As you move towards retirement, it is crucial to strategize and get ready for your financial needs once you’ve retired. To guarantee you can sustain your preferred way of life without exhausting your savings, ponder over these three essential questions: Firstly, take a moment to examine your anticipated expenses in retirement, including housing, utilities, food, healthcare, and leisure activities. By creating a detailed budget based on these costs, you can better understand how much income will be needed to maintain your desired lifestyle during retirement.

    Understanding Retirement Expenses

    1. What amount of income will I truly require?
    To successfully prepare for retirement, devote time to reassessing your living expenses, factoring in retirement costs like travel, medical care, home upgrades, and potential assistance for relatives. Keep in mind that due to inflation, this figure is likely to increase over time, especially with respect to health care costs.

    2. Create a detailed and realistic budget.
    To determine the amount of income you will need in retirement, it is crucial to create a comprehensive budget that covers all your potential expenses. Be sure to include items such as utilities, groceries, insurance, taxes, and personal expenses, as well as allocate some funds for leisure activities and unexpected costs that may arise in the future.

    3. Factor in multiple sources of retirement income.
    When calculating your necessary retirement income, remember to consider various income sources, such as Social Security benefits, pension plans, investment returns, and possible part-time work. By diversifying your financial resources, you can better ensure financial stability and minimize reliance on any single income source during your retirement years.

    Sources of Retirement Income

    An essential aspect of retirement planning involves arranging for dependable revenue streams, such as Social Security, pension schemes, and mandatory retirement plan minimum distributions (RMDs) to address your basic necessities. To enhance your income, look into more adaptable sources like stock dividends, interest from bonds or CDs, and part-time employment.

    Related: You Must Understand This Crucial Retirement Benefit If You Want Your Money to Withstand Inflation — Whether You’re 25 or 75

    Additionally, consider exploring passive income opportunities, such as real estate investments or peer-to-peer lending platforms, which can provide a steady cash flow without significant time commitment. It is vital to diversify your income sources to minimize risks and ensure greater financial stability during your retirement years.

    Annuities can also provide extra cash flow; speak with a financial consultant to identify the most appropriate annuity for your requirements. There are various types of annuities available, such as immediate, deferred, fixed, and variable, each with its own benefits and risks. A financial consultant can help you evaluate these options based on your financial goals, risk tolerance, and retirement timeline, ensuring that you make an informed decision best suited to your needs.

    Asset Protection and Management

    Preparing for unforeseen situations, such as illness or death, is critical to avoid causing stress to your family and financial difficulties. One effective way to safeguard and manage your assets is by creating a comprehensive estate plan that includes essential legal documents like a will, trust, power of attorney, and healthcare directive. This ensures that your wishes are followed, assets are distributed according to your preferences, and your loved ones are taken care of in case of any unexpected events.

    Healthcare Coverage in Retirement

    Assess your Medicare insurance choices and think about acquiring additional coverage, like Medigap or Medicare Advantage bundled plans, to ensure you’re ready for future medical expenses. As you evaluate your options, it’s crucial to compare the coverage, benefits, and costs of each plan, taking into consideration your current and anticipated healthcare needs. Moreover, understanding the enrollment process and deadlines can help you avoid potential penalties and ensure a smooth transition to a comprehensive healthcare insurance plan that suits your requirements.

    It is crucial to begin exploring your insurance options early since different plans have specific enrollment periods. Understanding the various insurance plans available and their respective coverage will help you make an informed decision based on your personal needs and budget. Assessing your options in advance also ensures that you have ample time to gather all necessary documents and complete the enrollment process without missing deadlines.

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    Under30CEO Staff

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  • Google Aims to Make Holiday Shopping Easier With Chrome | Entrepreneur

    Google Aims to Make Holiday Shopping Easier With Chrome | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    This story originally appeared on Readwrite.com

    Google announced a series of new shopping-focused search features and updates to its Chrome browser aimed at helping holiday gift-givers find the best deals.

    The new features tap into Google’s Shopping Graph, a dataset of product information scraped from retailers across the web.

    Related: Why Can’t We Resist Black Friday and Cyber Monday? A Behavioral Economist Explains The Psychological Forces That Make Sales Irresistible.

    A new “Shop Deals” destination on Google Search aggregates discounted items across ten shopping categories like electronics, apparel, and toys. Shoppers can scroll through carousels of deals from major retailers categorized by product type.

    “You can scroll through carousels of deals by category, which takes into account what you usually like to shop for when you’re signed into Google, and see popular stores that have deals on what you’re looking for,” Google wrote in a statement.

    Chrome’s New Tab page may now show recent deals on items users have browsed

    An icon in Chrome’s address bar indicates available coupon codes on e-commerce sites. Google also added its Shopping Insights price tracking feature to Chrome’s desktop version.

    Shopping Insights shows typical price ranges for a product over the past 90 days to help shoppers determine if they’re getting a good deal. A new Shopping Bell in Chrome for Android can alert users about price drops on recently viewed items.

    According to a Google survey, 80% of shoppers are worried about finding the best gift price. Features like Shopping Insights aim to provide more transparency around pricing.

    But the convenience may come at the cost of steering shoppers away from merchants’ own sites. Google’s aggregated deals point users to the lowest available prices across retailers.

    Merchants retain some control over which deals appear through settings in Google’s Merchant Center. Building customer loyalty through trust and service remains imperative.

    The shopping features expand Google’s reach in product search and commerce, areas where rival Amazon also offers extensive price tracking resources and discounts.

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    Radek Zielinski

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  • How to Find Great Stocks for Day Trading | Entrepreneur

    How to Find Great Stocks for Day Trading | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If you don’t have a thorough understanding of what professional day traders actually do, then you most likely think day traders are kids with more money than brains.

    The composite image of day traders is not flattering when it’s composed of things like this:

    • Someone took his life savings to invest in a meme stock to “teach Wall Street a lesson” — and lost it all.
    • The guy who brags that he trades on his phone while stopped at a red light.
    • Gamers with a can of RedBull in one hand and a mouse in the other and get their trading tips from Reddit threads.

    I’m here to tell you that there exists a type of day trader who is highly disciplined and thoroughly trained. These people are more like the “quants” that Wall Street firms hire to make sense of vast amounts of data. Far from being a gambler, this type of day trader is a hunter of volatility and a manager of risk.

    Among professional day traders, there are different investing styles to match different risk tolerances. Therefore, I’ll give you my take on five characteristics that make up a strong stock from a day trading point of view.

    Related: How I Turned $583 into $10 Million by Day Trading

    1. A stock that’s moving now

    Imagine someone who graduated from business school and maybe even got an advanced degree in accounting. Oh, and this person also interned at Goldman. They are great at deciphering income statements and balance sheets.

    Now, let’s imagine they’ve identified an “under the radar” stock that exhibits powerful signals for being significantly undervalued.

    As a day trader, I have little interest in this stock. Why? Because it currently is not moving out of its narrow daily band. It’s not good enough for a stock to be “significantly undervalued” or “poised to move.” I don’t want to wait around hoping that a stock moves. As a hunter of volatility, I am only interested in stocks that are moving right now.

    You may think that this approach does not maximize potential profits. After all, the stock has already moved by the time I’m looking at it. It’s true that by waiting until a stock moves, I’m foregoing some profit. But I’ve traded that profit for something far more valuable — the certainty that the stock is one of the biggest movers right now. I’d rather have actual movement versus the theoretical potential of movement.

    Related: Learn How to Earn Passive Income Through Day Trading and Investments

    2. FOMO

    I try my best not to trade with the fear of missing out (FOMO). I instead recognize FOMO as a powerful, primal force on many traders, and I use that knowledge when I take my trades.

    Long-term investors may be satisfied with stocks that grow by single digits in a year. Yet, on any given day, some stocks can move up 50% in minutes. Sometimes, the moves can be in the triple digits.

    When day traders see a stock that has made such a move, they know that someone, somewhere, just did very well with a short-term trade. These stocks have a powerful mental effect on traders. I look for stocks where FOMO has become a strong signal. The attention these stocks receive may allow me to make some short-term trades.

    This means rather than falling victim to FOMO, I capitalize on FOMO that exists in the market.

    3. Stocks that are the subject of greed and regret

    Yesterday’s epic mover activates the greed glands of many traders the next morning. They say to themselves: “I can’t believe I missed that whole runup!” And they swear that today will be different.

    Not only can that emotion mean that yesterday’s hot stocks still retain some heat, but they can infect other stocks in their wake. It’s as though the pent-up desire to participate in yesterday’s headliners is casting about to find the next big mover.

    It also can happen out of the blue: When one stock is unusually strong, several others often start to pick up for no apparent reason — other than what I call “sympathy momentum.” I’m on the lookout for this behavior.

    Related: 4 Passive Income Investment Strategies That’ll Free Your Time and Peace of Mind

    4. An imbalance between supply and demand

    The term “float” refers to how many shares of a stock are available to trade on any given day. It’s not uncommon for a handful of stocks to have a few million shares of float. If they become the hot stocks of the day, those stocks can trade in the hundreds of millions of shares.

    Just think about what that means: how many times does a stock with a 5-million-share float need to change hands when it trades 350 million shares in a day? As a “hunter of volatility,” I pay particular attention to such stocks.

    5. Former-runner status

    Day traders have good memories for high flyers. It’s like brand recognition or an afterglow for the stock that was the subject of so much attention in the last trading session. I keep an eye on these former runners because if they take off again, it can happen especially fast.

    In summary

    Notice how these five stock characteristics have nothing to do with earnings estimates, revenue forecasts, management shake-ups, and other common Wall Street assessments of a stock’s likelihood to move. Even so, they have everything to do with what’s in the minds of other traders as they hover over the buy and sell buttons on their keyboards.

    Profiting from short-term fluctuations in price is what day trading is all about. Day traders must be masters of technical analysis and experts at assessing the current emotions among traders. After all, it’s not just the stock chart that is important; it’s how traders feel about a stock that will ultimately drive its price action. If you understand and act on these common forces at work during any given trading session, you have the potential to come home with something to show for your hunting trip.

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    Ross Cameron

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