ReportWire

Tag: Money & Finance

  • Don’t Waste Your Money — Here Are 5 Proven Tips for First-Time Investors to Build Wealth | Entrepreneur

    Don’t Waste Your Money — Here Are 5 Proven Tips for First-Time Investors to Build Wealth | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    It’s estimated that 42% of Americans don’t own stocks. There are plenty of potential reasons why so many people choose not to invest, from fear of losses and not feeling like they have enough money to start investing to simply being unsure of how to start.

    However, first-time investors can get started even with a small amount of money, and with sound investments, they can earn much more than they would from the interest generated by a savings account.

    Still, there’s always risk with any investment — there’s never a guarantee that you’ll get big returns. However, by following some key practices, you can reduce your risk of losses and avoid wasting your money.

    Related: Why Entrepreneurs Shouldn’t Invest in Stocks

    1. Establish an investing plan

    Every first-time investor should start by developing a basic investing plan. This doesn’t have to be so detailed as to list each stock you’ll invest in. Instead, it should set your parameters and goals that will help guide your investing strategy.

    For example, your investing plan should consider how much money you can afford to invest each month — most financial experts recommend a goal of 15% of your pretax income. You should also lay out your overall risk tolerance — including how much money you can afford to lose through your investments.

    Above all else, your investing plan should have a goal. A clear goal will help you determine how much and how long you’ll need to invest.

    2. Invest for the long-term

    One of the most frequently repeated pieces of advice every first-time investor should adhere to is to focus on the long-term rather than trying to achieve short-term gains. Stocks tend to be very volatile in the short term, with prices rising and falling rapidly. Far too many newbie investors fall into the trap of trying to constantly buy low and sell high, but this can easily lead to making impulsive decisions that waste money.

    Instead, it is better to view investments as a form of long-term financial growth. Buying and holding stock enables investors to benefit from long-term growth, which is usually far more consequential than short-term ups and downs. Rather than trying to time the market based on speculation or emotions, a focus on the long-term keeps you on track with your goals.

    Related: How to Live With Purpose and Stay Focused On Long-Term Goals

    3. Carefully vet your financial advisor

    Many first-time (and experienced) investors choose to work with a financial advisor to help them manage their money. A quality advisor can provide advice tailored to your goals and risk tolerance to put you on track for successful investing. But as with any other field, not all advisors are created equal.

    As a report from AdvisorCheck reveals, 12.74% of actively practicing financial advisors have a disclosure on their record for incidents such as bankruptcies, client complaints or a criminal record. Information on what disclosures are on an advisor’s record can be found online, but this isn’t something they are likely to broadcast on their own public-facing profiles.

    By researching whether an advisor has a disclosure (and what that disclosure means), as well as comparing advisors’ services, fees, assets under management and client ratios, investors can ensure they’re working with someone they can trust rather than just selecting the first advisor they meet with.

    4. Diversify in stocks you understand

    Diversifying your investment portfolio is key to mitigating risk. Investing in an individual stock — even if it is currently performing well — is extremely risky. No one can predict the market’s future with 100% certainty, and if the company you invested in goes bankrupt or suffers another major setback, you would stand to lose a lot. Investing in multiple companies across a variety of industries helps reduce the overall risk associated with your investment.

    As part of this, you should also make sure that you understand what you’re investing in. Cryptocurrency saw a flurry of investments in 2021, even though a lot of investors didn’t understand what it was for or how it worked. Then, in 2022, FTX and several other major cryptocurrency companies collapsed. Cryptocurrencies experienced a significant loss in market cap, causing many people to lose money.

    By investing in things you understand, you can better assess if they will provide a stable source of returns or if they are a risky investment.

    Related: 3 Major Advantages of Investing In Startups

    5. Be consistent

    Contribute to your investment accounts often. Even if you can only put aside a small amount at a time, regular investments will give you more opportunity for growth through compounding returns. The earlier you can put your money to work, the more time it has to grow.

    You can streamline this process by setting up automatic deposits from your checking or savings accounts into your investment account. You can even choose which stocks or mutual funds you want the automatic deposit to go to. This way, you won’t have to worry about forgetting to make consistent contributions, timing the market or other short-term worries that could keep you from achieving long-term gains.

    Invest with confidence

    The S&P 500 has delivered an average rate of return of 10% per year — well above what you can get from a savings account. First-time investors who avoid common mistakes and are wise with how they allocate their funds can start growing their wealth, even if they have relatively little to invest. The sooner you start, the more you stand to gain.

    [ad_2]

    Lucas Miller

    Source link

  • 10 Ways to Transform Your Leadership Team into a Sales Machine | Entrepreneur

    10 Ways to Transform Your Leadership Team into a Sales Machine | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    It’s no secret that the success of any organization heavily relies on its sales prowess. As the lifeblood of a company, sales drive revenue, boost growth and implement sustainability, and any progressive leader knows that investing in an in-house sales machine is not just an option; it’s a necessity.

    At the forefront of this critical function is your leadership team — the ones who call the shots and make big swings. They are the architects of your sales strategy, the motivators of your salesforce and the navigators of a constantly changing marketplace. To transform your leadership team into a sales machine, you need a multifaceted approach that combines their strategic vision with the right technological tools. It’s about leveraging data, optimizing communication, enhancing skills and automating routine tasks.

    This article explores the 10 essential steps to empower your leadership team and elevate them into a sales machine capable of propelling your organization to new heights.

    Related: 7 Bulletproof Strategies to Increase Sales and Make More Money

    1. Data-driven decision-making: Invest in analytics tools

    Data should be the main player in your organization’s decision-making processes. This means that all guesswork and instinct-based actions should give way to data-driven insights. The digital age has provided us with an unprecedented abundance of data, and organizations that harness the power of this information gain a substantial competitive advantage.

    Investing in Customer Relationship Management (CRM) software like Salesforce empowers your leadership team to make data-driven decisions that increase the efficiency and effectiveness of your sales efforts.

    2. Effective communication: Implement collaboration platforms

    Solid communication yields effective collaboration. Sales success hinges on a bulletproof communication structure within your leadership team. Invest in collaboration platforms like Slack to facilitate seamless communication, document sharing and project management.

    These tools break down communication barriers, enabling your leadership team to work together cohesively, share critical information and make decisions swiftly.

    3. Sales training and development: Enroll in e-learning solutions

    Sales teams require ongoing training and development to stay competitive. In the rapidly evolving world of sales, where customer expectations, market dynamics and technology continually shift, the importance of continuous learning cannot be overstated.

    Implement e-learning solutions such as LinkedIn Learning or Udemy, which offer a vast library of courses on sales techniques, customer engagement and leadership skills. By continuously upskilling your leadership team, you ensure they are equipped to adapt to the evolving sales landscape.

    4. Invest in sales AI assistants

    AI sales assistants are the next frontier in the ongoing transformation of your leadership team into a sales machine. In a rapidly evolving sales environment, where speed, precision and personalization are paramount, AI-powered tools are becoming indispensable.

    Tools like WINN.AI prove to be integral in optimizing sales processes, streamlining sales funnels and automating CRM updating. Essentially, this is a tool that acts as your extra pair of hands that does all the work while you focus on keeping the ball rolling with your prospect.

    5. Utilize marketing automation tools

    Every organization knows that sales and marketing go hand in hand like bread and butter. A well-oiled sales machine starts with a consistent flow of leads. Marketing automation tools like HubSpot can help your leadership team streamline lead-generation efforts.

    These tools enable the automation of email marketing, content distribution and lead scoring, ensuring that your sales team receives high-quality leads that are more likely to convert.

    Related: Five Innovative Ways To Implement Automated Marketing For Improved Sales

    6. Leverage CRM software

    Efficient customer relationship management is the cornerstone of a successful sales operation. Your leadership team holds the responsibility of building and nurturing these relationships, and the tools and strategies they employ can determine the depth and longevity of these connections.

    In an era where customers expect personalization and value, having a robust CRM system in place is non-negotiable. It empowers your leadership team to understand your customers on a profound level, predict their needs and deliver solutions that not only meet but exceed their expectations.

    7. Performance metrics and KPIs: Implement business intelligence tools

    Measuring performance is crucial for enhancing your sales machine. Business Intelligence (BI) tools like Tableau or Power BI can help your leadership team create custom dashboards and reports that track key performance indicators (KPIs).

    By monitoring these metrics, you gain insights into the effectiveness of your sales strategies, allowing for timely adjustments and improvements.

    8. Invest in sales enablement platforms

    From improved sales efficiency and enhanced productivity to overall operational consistency, sales enablement platforms empower your leadership team with the content, tools and resources they need to engage customers and close deals effectively.

    Platforms like Seismic help sales teams centralize content management, making it easier for your team to access the right materials at the right time, improving their efficiency and customer interactions.

    9. Implement strategic planning and forecasting

    Strategic planning and forecasting are critical for sales success. In the dynamic world of sales, where the landscape can change rapidly, your leadership team needs to have a roadmap that guides their actions and decisions.

    By implementing strategic planning and forecasting tools, your leadership team gains the ability to steer your organization toward its objectives, navigate obstacles and capitalize on opportunities.

    Related: How To Create A High-Performing Strategic Plan

    10. Build a Winning Sales Culture

    Ultimately, it’s all about building a winning sales culture that’s intangible but yields tangible results. Your leadership team plays a pivotal role in shaping this culture. While the right tools and strategies are essential in achieving this transformation, the values and mindset within your organization are equally important — if not more.

    Leaders should set the tone by demonstrating dedication, integrity and a customer-centric approach. At the end of the day, it’s all about leading by example to create a domino effect throughout your organization.

    Transforming your leadership team into a revenue-generating sales machine requires both technology and people. Yes, tools and strategies are vital, as they provide the framework and capabilities needed for success — but it’s the people who execute and breathe life into these resources. Your leadership team is the driving force behind the machine, the engine that powers it and the compass that sets its course.

    [ad_2]

    Omri Hurwitz

    Source link

  • 6 Steps to Becoming a Recession-Proof CEO | Entrepreneur

    6 Steps to Becoming a Recession-Proof CEO | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    The future economic forecast is looking unpredictable. You might be thinking, “What’s new?” The fact of the matter is that there is always uncertainty. 2008 caught millions of people off-guard in a matter of days. It isn’t about pulling back away from this uncertainty, though. It’s about heading towards it with armor on — your business’s economic armor — the kit you probably knew you needed but might not yet have.

    Your business’s armor is essential to its success. Sure, you can go through a few years without it, but you’re just counting on sheer luck here to get through. And just like you cover yourself from head to toe before you go into battle, your business needs to be covered back to front as well. If you haven’t experienced a downturn in business from economic collapse, you might have not ever really considered this. So, what does a recession-proof CEO look like? Let’s build your armor together.

    Related: How to Recession-Proof Your Business

    1. Your helmet: The financial deep dive

    Starting off, let’s get your head covered. Walking around without knowing your finances is like heading into battle without a helmet.

    Your financial books aren’t just for your accountants. They’re your reality check. Block out those critical three to five hours as the year draws to a close. Scrutinize every nook and cranny of your expenses. Which subscriptions are merely sapping resources without yielding returns? If multinational giants are meticulously trimming their operational fat, there’s a cue for you.

    How to put your helmet on: This isn’t about shrinking your team size; it’s about eliminating redundancy. Optimization is the key. Analyze your subscriptions, third-party services, and extra expenses. I can guarantee there is an area right now that you can tighten up.

    2. Your sword: The sacred 10% profit mantra

    Next, you want to build your sword — something you have with you that you can use when in battle to fight back with.

    Make the 10% profit mantra a non-negotiable. Every dollar that comes in, immediately set aside 10% as profit. Establishing a separate “Profit” account is a game-changer. This discipline reshapes your financial perspective. It makes you solve your financial needs using your 90% by getting creative and cutting the fat (step 1). But it also means you have a financial nest to use whenever you need it most. And this is your greatest weapon.

    How to build your sword: Make a new business account called “Profit.” Have your accountant (or yourself if you handle your company’s finances) set aside 10% of the business income into this account on a designated basis (weekly/fortnightly). Watch it grow.

    3. Your breastplate: Bolstering your reserves

    Where could you be hit the hardest, you would want a lot of buffer to take the punch. This is where your financial breastplate comes in.

    Revision your reserves. We’ve entered an era where the unexpected is the new norm. Those three-month reserves? They’re baseline. Challenge yourself. Can you push it to six months? Or why stop there? Aim for a year. By stashing away this nest egg and perhaps even parking it in high-yield savings accounts (some dole out a sweet 4-5%!), you’re not just cushioning your business but preparing it to soar post-crisis.

    How to build your breastplate: Use your financial review (step 1) to see where you can add more from where you have removed unnecessary costs. Get critical. Ask your financial advisors for help here, they can probably see where you can cut in order to start gaining.

    Related: Creating the 3-Bucket Cash Reserve System

    4. Your shield: Minds over money

    Your shield is your buffer, which will be able to take any hit. How do you create a solid business buffer? You strengthen your people and company.

    You’ve tightened the purse strings. Excellent. But now, let’s allocate those savings wisely. Begin internally. Your team, their skills, their growth — these are intangible assets. Consider launching a leadership book club. How about monthly self-development workshops? The essence is to foster a culture of continuous learning. When you invest in their growth, the dividends they pay back in productivity and innovation are exponential.

    How to build your shield: Send out a survey to your company on what they would like to see done for personal and professional development. Start there.

    5. Your chainmail: The contrarian marketing strategy

    Your armor is almost complete. Ready to get out and fight? Your chainmail will strengthen you.

    In stormy economic weather, many companies instinctively pull down the shutters, drastically slashing their marketing budgets. I advocate the opposite. Instead of retracting, expand. While competitors dial back from 100% to 20%, I say we amplify our efforts, pushing it to 130%. Do what others are not doing — this is where you will see truly unique results.

    How to build your chainmail: While buying patterns may change during downturns, buying itself doesn’t cease. Ensure your brand remains front and center, ready to cater to this discerning audience.

    Related: How to Lead Effectively in Uncertain Times

    6. Your plate armor: Embrace agility and innovation

    Your final piece to your suit of armor is your plates. And what do plates do? Protect your whole body. Let’s see how to protect the body of your business.

    Innovation is key. Economic downturns often signal a broader shift. The market dynamics are evolving. Traditional models might be upended. It’s the CEOs who keep their fingers on the pulse and who are willing to pivot, adapt and innovate that emerge not just unscathed but thriving.

    How to build your plate armor: It’s leveraging new technologies, exploring untapped markets or simply reimagining a product. Remember: Agility isn’t just an advantage; it’s a necessity. Keep new. Keep fresh. And keep innovating your business. Don’t get complacent just because it has worked alright so far. Get stronger, and get better.

    Facing a recession is as much a test of your mettle as a leader as it is of your business’s robustness. It’s a clarion call to think deeper, act smarter and lead with a vision. With the battle armor we have built for your business together, you can think, act and lead AHEAD of time. You have now taken back your control in the face of uncertainty. You’re bulletproof. Economic downturn? Ha! More like “Bring it on, world!” You’ve got this.

    [ad_2]

    Mikey Lucas

    Source link

  • 7 Ways to Scale Your Small Business and Achieve Long-Term Growth | Entrepreneur

    7 Ways to Scale Your Small Business and Achieve Long-Term Growth | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    As we approach the last quarter of 2023, businesses start assessing their performances, and many consider scaling and expanding their operations. With rapid changes in technology, consumer behavior and market dynamics, it’s crucial that businesses constantly adopt innovative strategies to remain competitive and achieve sustainable growth within their industries.

    So, businesses looking to bring themselves to the next level in this coming year have a few different strategies they can use to achieve long-term growth.

    Related: How to Scale Your Small Business in 8 Steps

    1. Embrace digital evolution

    In today’s fast-paced business landscape, embracing technology is not an option but a necessity. Small businesses can use it to their advantage to help streamline operations, enhance customer service experiences and even reach new markets. User-friendly ecommerce platforms, efficient inventory management systems and cloud-based drives are different examples of ways to help improve productivity and scalability.

    Also, businesses can use data-driven decision-making technology to help collect and analyze customer data. This can help provide insight into their customers’ preferences and behaviors to tailor marketing strategies, optimize product offerings and provide personalized customer experiences, ultimately driving growth through each quarter.

    2. Expand online presence

    In a post-pandemic world, the importance of a strong online presence cannot be emphasized enough. Consumers are increasingly turning to the internet to discover, research and purchase products and services. Focusing on optimizing your website for search engines (SEO) can vastly improve visibility and drive organic traffic.

    Social media platforms remain a huge player in reaching broader audiences. Developing a robust social media strategy that engages customers, encourages sharing and builds brand loyalty is essential to any business. By being consistent and posting relevant content, small businesses can easily connect with their target audience and build a loyal customer base.

    3. Diversify revenue streams

    Overreliance on a single product or service can become a significant risk to small businesses. If a business can diversify its revenue streams with new offerings, it can help build the business up and give room for scaling. This offering can be a complementary product line or a service that aligns with your core product. This not only provides added value to existing customers but also opens up new markets and revenue opportunities.

    Additionally, strategic partnerships or collaborations with other businesses in the industry are super helpful. These alliances lead to shared resources, increased visibility and access to new customer bases, which ultimately drives growth without a substantial capital investment that not many small businesses have.

    4. Focus on customer engagement and retention

    Acquiring new customers is an essential element for growth, but retaining existing customers is equally vital. Small businesses should try to prioritize customer engagement and retention strategies. By implementing loyalty programs, offering personalized recommendations and providing exceptional customer support, businesses can create a positive customer experience that will keep them loyal.

    With that, businesses should regularly seek honest feedback from customers and use it to make improvements to their products or services. Happy customers are more likely to become brand advocates and refer new business, further fueling growth efforts.

    Related: 3 Crucial Strategies for Sustaining Growth in a Competitive Market

    5. Invest in employee development

    Your team is the backbone of your business, and their growth and development directly impact your company’s success. Investing in training and development programs to build your employees’ skills will empower them to take on new responsibilities as the business expands. A skilled and motivated workforce is essential for maintaining the quality of the products or services as the business scales.

    Additionally, fostering a positive workplace culture can lead to higher employee satisfaction and retention rates. When your employees feel valued and aligned with your company’s mission, they become more motivated to contribute to the business’s success.

    6. Secure financing wisely

    Scaling a small business often requires some sort of capital investment for expansion, marketing and infrastructure development. Securing this type of financing can be challenging, especially for newer businesses. However, there are many different financing options businesses can explore, including traditional bank loans, Small Business Administration (SBA) loans, working capital loans, accounts receivable loans and so much more.

    Before a business even starts seeking financing, they need to ensure they have a well-defined business plan and financial projection that can show the potential for profitability and growth. Also, it’s crucial to assess the terms and conditions of each financing option, considering the impact on your business’s financial health and long-term sustainability.

    7. Monitor and adapt to market trends

    The business landscape is ever-evolving, and staying attuned to market trends is essential for small businesses. Monitoring industry developments and keeping an eye on emerging technologies can help businesses adapt strategies accordingly. This allows them to grow as well as be open to pivoting their business model if market conditions change or new opportunities arise.

    Regular competitive analyses can also help businesses understand their competitors’ strengths and weaknesses. In turn, this helps identify gaps in the market that the business can fill and helps refine products, services and marketing strategies.

    Related: 15 Ways to Scale Your Business and Make More Money

    Scaling a small business today requires a combination of innovative thinking, strategic planning and adaptability. Embracing technology, expanding your online presence, diversifying your offerings, focusing on customer engagement, investing in employee development, securing financing wisely and monitoring market trends are all essential strategies for success.

    These components can help small businesses thrive in today’s competitive business landscape. By continually assessing and adjusting their approaches, businesses can position themselves for sustainable growth and long-term success.

    [ad_2]

    Erica Dushey Sarway

    Source link

  • Why Clients Feel Overcharged by Marketing Agencies and How to Fix It | Entrepreneur

    Why Clients Feel Overcharged by Marketing Agencies and How to Fix It | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    “I’ve just wrapped up a meeting with our marketing agency, and I must admit, I was taken aback by their charges given the somewhat underwhelming results we’ve seen,” a sentiment shared in a social media group for marketing professionals, echoed by others. It’s a refrain I encounter frequently. As the owner of a marketing and public relations agency, I often hear stories from new or potential clients recounting how their previous agencies fell short in delivering results that justified the cost. Therefore, it’s no surprise that a 2023 global report highlighted businesses’ reluctance to invest in marketing.

    I can’t blame business leaders or marketing professionals for approaching agency partnerships with caution. Having previously held a senior marketing role in-house, I understand firsthand the pressure of reporting to the C-suite or board. It involves the delicate balance of budget allocation and making decisions that guarantee marketing generates more revenue than it costs — a challenging position to be in. This underscores the importance of marketing and public relations agencies not only comprehending but also empowering their clients to reach their goals, entering board meetings armed with compelling results and feeling like rockstars.

    Related: 5 Things to Look For When Hiring a Marketing Agency

    The challenge in achieving a scope of work that both the client and company leadership deem worthwhile often stems from ambiguity. In today’s digital age, ambiguity should be avoidable, right? With tools like GA4 and various software programs for tracking metrics and attribution, results are at our fingertips in real-time. ROI, a buzzword agencies love to tout, is on everyone’s wish list. However, ROI, sophisticated metrics and the agency’s interpretation of results or deliverables are just that — an interpretation — and may not align with the client’s true expectations or what they find meaningful for their investment.

    To combat ambiguity and ensure that the agency-client relationship delivers results that bolster the company’s performance, financials and stability (in other words, success), the following best practices lay a solid foundation, promoting transparency, setting clear expectations and, most importantly, ensuring both the client and agency are on the same page regarding what success entails.

    1. Set the right budget expectations

    Clients have the prerogative to set the budget, but it falls on the marketing or PR agency to provide counsel on whether it aligns with the desired goals. Results and budget often correlate, especially in digital marketing’s context. Integrating marketing tactics like social media, SEO, Google Ads and email marketing can yield better results than pursuing them individually. This synergy should be communicated effectively to clients who may have ambitious goals but limited budgets.

    2. Pinpoint and agree on goals and metrics

    SMART goals, while often met with a sigh, and as overused as the concept of “smart, measurable, achievable, relatable and time-bound” might be, SMART goals work and are essential to the relationship. The agency and client must collaboratively define the goals, metrics and timeframes that translate into measurable revenue growth. The client’s input is vital in this process to ensure alignment with their objectives. We describe this to clients as how we’ll agree on what success looks like.

    Related: 4 Tips for Hiring the Right PR Agency

    3. Make clear agency commitments

    Agencies that don’t provide outcome projections are simply lazy or not qualified.

    Agencies should have the confidence to specify the results they can deliver based on their track record, experience and industry benchmarks. Agreements should outline minimum expectations for media placements, lead generation or social media growth, for instance. While many agencies avoid this due to the risk, an agency should be capable and bold enough to stand behind their ability and skill set. Transparency on the specified results is key to avoiding miscommunication.

    4. Conduct ongoing, consistent communication

    Nothing good ever comes from information voids. Regular meetings and frequent results reporting foster trust and eliminate surprises. Transparency extends to addressing issues promptly and suggesting solutions when goals aren’t being met.

    I stress to my team that hiding behind constant email communication can be detrimental to the relationship. Pick up the phone or meet in person on a regular basis. There’s still a lot to be said for face-to-face collaboration.

    Related: Does Your PR Firm See You as a Project or a Partner?

    5. Make a personal investment in outcomes

    Agencies should view their clients’ success as their own. They should provide well-researched, thoughtful recommendations and actively problem-solve to ensure the client’s money is being spent in the most productive way possible. A successful agency serves as a guide, recognizing that the client is the hero of their business’s story.

    Ultimately, the path to success in agency-client relationships hinges on clarity, transparency and a shared commitment to achieving meaningful results.

    Agencies can be successful, but it requires transparent communication, a commitment from the client side and continuous assessment of business outcomes related to the scope of work.

    [ad_2]

    Kelly Fletcher

    Source link

  • His Pickleball Side Hustle Rakes in Up to $5,000 Per Month | Entrepreneur

    His Pickleball Side Hustle Rakes in Up to $5,000 Per Month | Entrepreneur

    [ad_1]

    There are more than 4.8 million “picklers” in the U.S., according to a 2022 report from the Sports & Fitness Industry Association — devotees of the pickleball pastime often described as a combination of tennis, Ping-Pong and badminton.

    It even claims the title of America’s fastest-growing sport, with a 40% jump between 2019 and 2020, per the report. And though all ages are getting in on it, more than half (52%) of players participating eight or more times a year are 55 or older, with nearly a third (32.7%) 65 or older.

    Related: Pickleball Injuries May Cost Americans $400M, Especially Seniors

    [ad_2]

    Amanda Breen

    Source link

  • 5 Tips for Evaluating Your Next Rental Property | Entrepreneur

    5 Tips for Evaluating Your Next Rental Property | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Are you looking to invest in a rental property but aren’t sure what the telltale signs of a good investment are? In this article, I’ll share five tips for how to evaluate whether a property is worth your time and money and what to look for in an investment property.

    From market research and risk analysis to comparing local rentals and calculating your Net Operating Income (NOI), this guide equips you with the knowledge to evaluate your next investment wisely.

    Related: 3 Things to Consider Before Buying an Investment Property

    1. Do thorough market research

    It’s vitally important that you conduct thorough research on your new property before taking action. Real estate investments can be lucrative, but they can also be a money pit without proper planning and preparation. That’s why the first step in how to evaluate an investment is to take the time to figure out exactly what goals and ideas you have for the property.

    You should have an idea as to whether you would like to rent the house out long-term or have a series of short-term renters. Long-term tenants serve as a consistent income stream, and you don’t have to dedicate as much time or effort into finding tenants to fill vacancies as often. However, short-term tenants allow you to raise rent prices between periodic leases, plus you have the opportunity to remove tenants who you’d rather not rent to again, even if you don’t have proper grounds (or funds) for eviction.

    You should also start investigating the market you’d like to invest in. There are many factors that influence how appealing a particular area will be to renters — for instance, an influx of new construction might lessen the demand for your rental, while attractive amenities, restaurants or school systems in the local area could increase the demand for and value of your property.

    It’s also important to realize the potential costs that come with a new rental. Do you want to offer a furnished unit? The cost of furniture and cleaning associated with a furnished unit can add up. You’ll want to consider these costs plus appraisal fees, inspections and other fees that can put a dent in your capital.

    2. Conduct a risk analysis

    Building on the last tip, conducting a risk analysis is a great way to plan for potential risks and be better prepared for hiccups when they happen. The real estate industry is known for being volatile, so to best protect your investment, expect changes in the following factors:

    • Essential service prices, like gas and electricity

    • Local employment rates

    • Property taxes

    • State and local laws

    • Quality of applicants

    • Government real estate policies

    A good way to quantify the level of risk for each factor is to assign each one a score of, for example, one to five — five being the highest level of risk. If a property has a higher risk factor score, be aware that it could potentially lead you to spending more money than you’re comfortable with.

    Related: How to Get the Most Out of Your Rental Property Investments

    3. Use comparable rentals in the area

    An important step in evaluating your new rental property is to see how it stacks up against the other properties in your local market. In doing so, you can keep your expectations on expected cash flow in check.

    Conduct a sales comparison by finding properties that are similar to yours and calculating the price per square foot that they sold for. Be sure to look at properties that have been sold within the last month so that your numbers are as accurate to the state of the current market as possible. When looking for comparable properties, try to find units that have approximately the same number of bedrooms and quality of amenities as yours.

    Additionally, consider whether the location that you’re researching is the right location for the type of renter you’re looking to attract. For instance, if you’re primarily targeting local families for your rental, you’ll want to evaluate whether the school system nearby is high quality. If you’re targeting young professionals, however, you might investigate whether the property is close to public transit. An excellent location can upgrade a mediocre property to an extremely desirable one, so don’t overlook this step when choosing where to invest.

    4. Calculate your NOI

    Your property’s NOI (Net Operating Income) is the total amount of income that it will generate, minus general operating expenses. It is calculated by taking your total rental revenue over a certain period of time and subtracting all regular operating expenses required to maintain the property over that period, such as the cost of repairs, property management fees, insurance, property taxes, etc.

    If you divide your NOI by the original price you paid for that rental property, you get the capitalization rate, which measures how long it will take for you to make back your initial investment. If you have a high cap rate, you have more revenue and a strong overall investment.

    However, it’s important to remember the few factors that could skew your cap rate calculation. When you use cap rate to evaluate a property prior to purchasing it, you’ll need to estimate the potential rental rate and total expected income. That means that you’ll have to find the cap rate after you research what similar properties are charging in your area. Also, if you intend to flip a low-value home, your cap rate will not include the cost of renovations or the fact that you will not be renting the space out and are selling it instead.

    Related: How to Start Investing in Rental Properties — Your Step-by-Step Guide

    5. Consult a professional

    As an investor, you need to understand how a property’s current state will influence what it could be valued at in the future and how much you can profit from it at the time of sale. One of the ways to do this is to hire experts who are experienced in this field to give you an estimate.

    A professional property valuation estimates how much capital you’ll need to maintain a property. Maintenance costs are a significant factor in determining your overall profit from a rental property. A property valuation will take stock of larger assets like the roof, insulation or HVAC system to see what condition they’re in and how much you may have to spend to keep them functioning. You can also request a formal appraisal to have a professional estimate of the true value of the property based on factors like location, demand and lot size.

    The key to a great investment is solid upfront research. Real estate is a great way to be your own boss and possibly achieve streams of passive income — but first, you must dedicate significant time and effort to ensure your venture is a good one. Hopefully, the investment property tips above help you find a quality investment.

    [ad_2]

    Dave Spooner

    Source link

  • The Definition of Value Is Changing — What Entrepreneurs Need to Know | Entrepreneur

    The Definition of Value Is Changing — What Entrepreneurs Need to Know | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Entrepreneurs have long worked hard to build their wealth and create dynasties by creating value in the marketplace and finding unique ways to solve problems. In recent years, however, the way entrepreneurs have been approaching this has shifted. Often, this involved allocating a percentage of their profits into savings accounts to act as a hedge for the well-being of their companies during a market downturn or a need for liquidity to meet payroll. Another method was to generate profits, raise your net worth, take a member draw and make your money work for you by putting it into real estate or stocks.

    However, the world is changing, and along with it, the idea of what is valuable is changing. Entrepreneurs need to understand this updated landscape to capitalize on these changes and continue building their multigenerational dynasties.

    Value has historically been defined by fiscal money, tangible assets (such as art, land and property) and other net worth-building components. However, the collective, modern mentality is changing what the term “value” means in today’s world.

    Related: The Key to Generating Maximum Value in Today’s Fast-Changing, Competitive Business Environment

    What people deem to be important today is shifting rapidly from what it was even 20 years ago. The laptop or digital nomad lifestyles are en vogue, and business owners have started investing earlier in other opportunities such as digital currency, other businesses and more flexible means of creating value.

    This is part of what has led to a shift in wealth distribution, with millennials and Gen Zers taking the lead for spending power, opening the interpretation of what is considered valuable. Younger generations value experience above products or things, and they use their assets to expand and enrich those life experiences.

    For example, if you offer someone in their twenties $100,000 in cash or $100,000 in travel experiences, most of them will choose the travel option.

    As an entrepreneur, it’s vital to know what is considered valuable so you know where to put your time, energy and resources — and what kind of company to start, invest in and be a part of in today’s world. Whereas before, an entrepreneur may have kept a large storehold of cash in a savings account to shore up the business, but with the recent bank collapses, entrepreneurs are now looking for other safe havens to ensure their value — and their company’s value — remains secure and available to them. This is the current state of how value is shifting and what you need to know.

    How values shift

    Value has been changing in the form of delivery since the beginning of time. We used to trade beads and rice, then we valued fiat currency, and now we’ve moved to blockchain and digital currencies.

    As technology continues to quicken the speed of human advancement, the actual things we use to symbolize value will likely keep changing. This is because the way that we value our time, energy and life experience is evolving beyond just survival.

    Old systems of earning value, investing value and accumulating value are breaking down, and that’s leading to a different meaning of what value can be.

    Instead of homes, cars and belongings, people are finding more value in freedom. Freedom of experience. Freedom of time. Freedom of expression. Freedom of opportunity.

    No longer are fiat currencies and tangible assets the go-to; in fact, studies show that the growing trend of other nations to establish alternate trade routes concerns entrepreneurs about the long-term value of the dollar. Entrepreneurs are looking outside the USA to international vehicles, currencies, and other categories to diversify so their wealth and businesses survive. They are looking for assets that retain their value and that they value personally, rather than putting fiat currency in a bank account or counting the number of computers and company equipment in their commercial real estate office as the only options to give the business value.

    The only tried and true methods are not enough; they want to diversify with other asset classes in holdings as a backup. This may include: collecting hard assets like valuable art, gems or collectibles. In a minimalist trending society that values time over everything else, assets need to be mobile so that it’s easier to access the experiences you want to have.

    Related: How to Build an Impressive Investment Portfolio

    How value is perceived

    Because of the pandemic, people are valuing their time as an asset more than previous generations. People are no longer waiting around and assuming that they have time to waste — this is why entrepreneurs are getting younger and starting businesses earlier in life, according to the Centre for Entrepreneurs. Because of the worldwide quarantines from the pandemic, people feel that they need to make the most out of their lives in every way possible. This awakening has led to a significant difference in what people consider valuable and how they want to run a company.

    How value is experienced

    If you want to shore up your business with a hedge against inflation or a market downturn, consider how to increase your portfolio of assets. How someone experiences their assets directly correlates with how they experience their life and the purposes they need them to serve.

    For example, some people love to collect art, hang it on their walls or proudly display it in their galleries. Other collectors have a vault of art that they haven’t entered in the past 20 years, where portraits that have been passed down for the past six generations are simply collecting dust.

    For the vault owner, the $30,000,000 in art they purchased with the business is not working for them. It may or may not be accumulating more wealth for them, they’re not admiring it, and it’s not being used in any meaningful way. So, the vault owner’s collection may not be considered valuable to them because it’s not enriching their life and there’s a cost associated with maintaining it. Not every investor holds the same value for the same assets. It’s a personal decision that goes beyond fiscal interest but also includes mental and emotional well-being considerations.

    However, for the collector who spends time admiring the brushstrokes of the Impressionist paintings in their gallery each week, that person may feel that their art collection expands their creativity and happiness — therefore bringing value to their life.

    Related: How to Use Alternative Assets as a Hedge Against Inflation

    Overall, things are different now

    There is a big difference between materialism and lived experience. Materialism for previous generations was the equivalent of wealth. Their net worth was tied to their belongings, and that was in alignment with their value system as people. However, lived experience is what today’s generations value above everything else. Assets are to be used to elevate life and delight the senses, which is why travel is so highly coveted. The key to assets being considered high-value today is, in part, tied to their ability to be easily mobilized to create more lived experiences, liquidate to convert, transfer or serve other immediate personal or business needs. Therefore, the more flexible and mobile your assets are, the more subjectively valuable they are.

    Because of the current housing market, stock market and other traditional investment opportunities, people are asking different questions about their valuable hard assets.

    Here are some questions to ask to choose the best asset for your diversification needs:

    • Will I still want this in three years?

    • Is this an asset that fits my current lifestyle or the lifestyle that I want?

    • Is this asset something that’s tradeable for something else?

    • How quickly can I divest this if I don’t want it anymore or need cash for a business or personal need?

    • Does this asset expand my time freedom, or does it rob me of the time that I have that I want to invest in other experiences?

    • Does this asset pull from other assets such as money, stocks, or other things?

    • Does this asset continue to accumulate value on its own accord?

    What each entrepreneur, investor or asset holder perceives as valuable will be unique to them. So, when purchasing or acquiring an asset, get clear on what that asset will do for you, how it will retain its value, whether it will cash flow or give you more time or location freedom, how quickly you can liquidate for cash to meet payroll or any other emergency business or personal needs and what its value is in your life. Adding hard tangible assets to your portfolio may ensure your personal net worth remains stable and your company remains secure in the months and years ahead.

    [ad_2]

    Jarrett Preston

    Source link

  • 10 Hot Jobs That Don’t Require College and Can Pay 6+ Figures | Entrepreneur

    10 Hot Jobs That Don’t Require College and Can Pay 6+ Figures | Entrepreneur

    [ad_1]

    Increasingly, Americans are considering alternative paths that don’t involve a college education. Four million fewer students were enrolled in college in 2022 compared to the decade before, NBC News reported.

    As of 2023, borrowers had an average of $37,338 in federal student loan debt, USA Today reported — and the typical college graduate’s starting salary is roughly $58,862, per Bankrate.

    More than four in 10 bachelor’s degree holders under 45 don’t believe that the benefits of their education exceed the costs, according to a survey by the Federal Reserve.

    [ad_2]

    Amanda Breen

    Source link

  • What Are The Safest Investment Options for Earning a Good Return Over Time? | Entrepreneur

    What Are The Safest Investment Options for Earning a Good Return Over Time? | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    A safe investment typically refers to an option that is considered to have a low level of risk compared to other investment opportunities. While there is no completely risk-free investment, a safe investment aims to preserve capital and provide a stable return over time.

    Some of the common characteristics that define a safe investment are as follows.

    • Capital preservation: Safe investments prioritize protecting the initial investment amount. The risk of losing money is minimal or relatively low.
    • Low volatility: Safe investments tend to have relatively stable and predictable returns without significant fluctuations in value. They aim to avoid large and sudden price swings.
    • Liquidity: Safe investments often offer high liquidity, meaning they can be easily bought or sold without causing a significant impact on their value. This allows investors to access their funds quickly if needed.
    • Steady income: Safe investments frequently generate consistent money flow, such as interest payments, dividends or rental income. This income stream adds to the overall stability of the investment.
    • Government-backed or high credit quality: Safe investments may include government bonds or highly rated corporate bonds — which are considered to have low default risk. These investments are backed by the financial strength and stability of governments or reputable organizations.

    [ad_2]

    Baruch Mann (Silvermann)

    Source link

  • I Won the Lottery—Then Scammed By Best Friend, Dumped By Mom | Entrepreneur

    I Won the Lottery—Then Scammed By Best Friend, Dumped By Mom | Entrepreneur

    [ad_1]

    This article originally appeared on Business Insider.

    This is an as-told-to essay based on a conversation with Randy Rush, a Canadian lottery winner who won $37 million in 2015. It has been edited for length and clarity.

    I always had a gut feeling that I would come into a large sum of money one day.

    But when I found out I had won $37 million ($50 million Canadian) in the lottery in Alberta, Canada, on a cold February morning in 2015, it still felt like I was taking off in a spaceship.

    I had popped to the corner store to buy some cat food and just grabbed my lottery tickets on the way out. It was the very last ticket in the stack.

    When you win the lottery in Canada, you get sent the full amount straight to your bank account. You don’t get any advice on what to do with it.

    The moment I saw the money come in, I quit my job as a salesman for a large international company. I diversified and invested in charity projects, real estate, and hedge funds. I learned very early on in life to get the best financial people around me so that’s what I did.

    I also left Alberta straight away.

    I lived in a small town and had some people knocking on the door, demanding money from me, including my neighbor. So I didn’t want to be around to deal with that.

    I hardly slept for two years because of the adrenaline — and all the phone calls.

    Having this kind of money shows what people are really made of. I lost a 43-year friendship over it. My mother demanded half of my winnings and wouldn’t talk to me ever again because I didn’t give it to her. It was a little traumatic at the time, but now I’m over it.

    But worst of all was my experience with my best friend, whom I had known since school.

    His son pitched an investment opportunity, a company that he said would be the next Facebook. It felt like the perfect chance at the time: I wanted to help a friend and diversify my assets.

    But it turned out the company, in which I had invested $3.4 million ($4.6 million Canadian), was surrounded by lies, and the money I put in was gone — taken by my best friend and his wife, who had bought luxury cars and an ocean-side property in California.

    The experience was gutting, especially because it involved someone I had cared about deeply.

    After a month-long battle played out in courts in Alberta and Arizona, everything was resolved in my favor and I ended up getting my money back.

    But still, it took me many years — and writing a book— to get over it. It’s history now and I’ve learned my lesson. I call it the Judas experience.

    Winning the lottery has changed my life for the better, but I think that is because it happened at the right stage of my life.

    However, it did really show me the true colors of the people around me. If there are any cracks in any relationship, money will burst that open.

    I still buy lottery tickets today. They say the chances of winning a second time are extraordinarily high.

    [ad_2]

    Sophia Ankel

    Source link

  • How to Calculate Your Net Worth | Entrepreneur

    How to Calculate Your Net Worth | Entrepreneur

    [ad_1]

    We see the term “net worth” thrown around all of the time when it comes to reporting on celebrities, sports stars, and business leaders. But what is it exactly?

    Entrepreneur’s online encyclopedia defines net worth as the difference between a company’s or person’s total assets and their total liabilities.

    In this guide, we’ll focus on personal net worth. Your personal net worth is a number that is just as important — if not more important — than your income. Experts suggest that you should periodically add up your personal assets and liabilities, just as you do with your business, to determine if you are in a good place or need to adjust your spending. A clear picture of your current situation will allow you to grow your net worth through some combination of decreasing liabilities and increasing assets. We’ll explain the specifics of how to do that later on.

    Try our online net worth calculator

    A huge reason to be thinking about assets is retirement planning. Simply put, the more assets you have, the more comfortable your retirement will be. You may also need a high personal net worth to buy a business, pursue some types of investments, purchase a second home, pay for a child’s college education, or for other purposes.

    Over the course of this guide, you will learn all of the ins and outs of net worth calculation and management to secure and improve your financial future.

    Related: 8 Success Lessons From the Richest Person on the Planet

    Key takeaways

    • Why is net worth important?
    • How to calculate your net worth on your own
    • How to use our online net worth calculator
    • What the median net worth is for different age ranges?
    • How to increase your net worth
    • More resources to manage and grow your personal wealth

    Why is net worth important?

    The equation for your net worth is fairly simple: Assets – liabilities = net worth.

    That means it is the total value of everything you own, minus the debts you have to repay, and your monthly cash flow, which shows your monthly income and spending patterns, writes Nightingale-Conant in The Power of Passive Income.

    As basic as that sounds, we’re often reluctant to check in on our financial health. Many fear that their financial situation is not as good as they hoped, which can be stressful. Others avoid facing their personal finances due to a lack of basic understanding — the terminology or concepts seem daunting.

    But not taking inventory of your finances is a huge mistake, according to money management experts. As Brian Tracy writes in his book Million-Dollar Habits, understanding your net worth is critical to achieving your financial goals. Do you want to become a self-made millionaire? Tracy explains, “The starting point of achieving financial independence and becoming a self-made millionaire is for you to accept complete responsibility for your financial life. Many people never do this. They instead go through their days, and their money, trusting to luck with the idea that somehow, sometime, someone else will come to the rescue. They buy lottery tickets, gamble, and think about making a killing in the stock market. And they worry about money all the time.”

    Related: Your Network Is Your Net Worth: 5 Lessons on Building Stronger Connections

    Tracy continues, “The fact is that serious money is long-term money. Most wealthy people organize their financial lives in such a way that their net worth increases by about 8 to 10 percent per year on the amount of money they have working. They do not look for get-rich-quick schemes or easy money. They are patient, persistent, and farsighted. They discipline themselves to save and accumulate money over many years. They do not speculate, take risks, or look for fast ways to make money quickly and easily. Because of these habitual ways of thinking about their money, each year their wealth grows. Eventually, they pass the million-dollar mark and usually keep on going.”

    How to calculate your net worth

    As we’ve said, to calculate your net worth, you will need to subtract your total liabilities from your total assets. What goes into calculating those total figures? Let’s take a look:

    Included in total assets:

    • Real estate
    • Investments
    • Savings
    • Cash deposits
    • Home equity
    • Car equity or other similar assets

    Included in total liabilities:

    • Mortgages
    • Credit card balances
    • Student loans
    • Car loans
    • Recurring bills
    • Taxes

    Using our online net worth calculator

    To use Entrepreneur’s net worth calculator (find it at the bottom of this article) you will need to gather and enter the following information into the defined fields.

    • Real estate: The current value of your home (if you own it) and any other properties
    • Checking account: The total amount of money you have in your checking account
    • Savings account: The total amount of money you have in your savings account
    • Retirement account: The total amount of money you have in IRAs, 401Ks and mutual funds
    • Autos: Total current market value of your vehicles (cars, trucks, boats)
    • Other assets: Any other accounts, the current market value of other sellable assets
    • Mortgages: The amount of money owed on your mortgage loan(s).
    • Consumer debt: Total credit card balances, unsecured personal loans and payday loans.
    • Personal loans: Any money you’ve borrowed from a bank or other financial institution.
    • Student loans: The total balance on an outstanding student loan or loans.
    • Auto loans: The total balance of your auto loan(s).
    • Other debts: Any other balances you are committed to paying off.

    How does your net worth compare to others?

    Every three years, the Federal Reserve Board issues the Survey of Consumer Finances, which includes information about taxpayers’ incomes, net worth, credit usage and more. The most recent report was released in 2020, pulling together data collected from 2016 to 2019.

    Per the report, in the 2016-2019 time period:

    • Americans’ average net worth rose 2 percent.
    • Families at the top of the income and wealth distributions experienced very little, if any, growth in mean net worth.
    • Families near the bottom of the income and wealth distributions generally continued to experience substantial gains.
    • About 13 percent of families owned a privately held business. Business ownership increases with income, and nearly 40 percent of families in the top decile of the income distribution owned a business.
    • Wealth continued to increase among families with either a high school diploma or some college. But families without a high school diploma saw the largest drops.

    Here’s how that all breaks down by age and average. Some of the averages will seem very high. That’s because affluent families bump up that number significantly. Look at the median net worth, which are the midpoint values in the calculations for a more useful comparison point.

    • Age of head of household: Less than 35
    • Median net worth: $13,900
    • Average net worth: $76,300
    • Age of head of household: 35-44
    • Median net worth: $91,300
    • Average net worth: $436,200
    • Age of head of household: 45-54
    • Median net worth: $168,600
    • Average net worth: $833,200
    • Age of head of household: 55-64
    • Median net worth: $212,500
    • Average net worth: $1,175,900
    • Age of head of household: 65-74
    • Median net worth: $266,400
    • Average net worth: $1,217,700
    • Age of head of household: 75+
    • Median net worth: $254,800
    • Average net worth: $977,600

    How to increase your net worth

    To increase your net worth, you want to decrease your liabilities (debts) while maintaining or increasing your savings. Below are some specific ways to go about that. Yes, some of these suggestions are easier said than done but don’t give up. The prevailing advice from experts is to simply do what you can. Every little bit helps when it comes to building wealth and good financial habits. Remember, this is not a sprint — it’s a marathon that requires discipline and patience. Focus on paying down your debts with the highest interest rates.

    As Nightingale-Conant in The Power of Passive Income, “Credit card debt in particular—can paralyze you financially even if you’re totally up to speed in every other way. You can be motivated, intelligent, creative, and everything else, but if you’re having to service debt every month, you’re not going to have the small initial investment capital you need.”

    Nightingale-Conant continues, “The first step is a bit of honest self-assessment. Many people feel so badly about their consumer debt that they actually don’t know how much they have. They’d rather not think about it, so they just pay the bills every month and put it out of their thoughts. That’s not the way to make credit card debt go away, however. Start by determining exactly how much you owe. Frightening as that may seem, you’ll actually feel better once you have a dollars-and-cents figure to deal with.”

    Increase your retirement savings

    Entrepreneur magazine experts recommend that you contribute as much to your 401(k) plan as possible up to the contribution limit. (In 2023, the max total between you and your employer is $66,000.)

    The ideal retirement contribution percentage varies depending on your age, the cost of living, and your personal finances. For example, it may be a good idea to contribute between 10% and 15% of all your gross income toward retirement. You can contribute this amount toward a 401(k) or a 401(k) combined with an IRA (individual retirement account) in your 20s and 30s. If you are behind in retirement savings in your 40s or 50s, consider contributing more to your 401(k) account. If you’ve already hit your 401(k) plan limit, look into alternatives like IRAs or Roth IRAs.

    Cut back on any unnecessary expenses

    “When you develop the habit of thinking more carefully about your income and savings, you will soon find yourself spending less and less on your day-to-day expenses,” writes Brian Tracy in Million-Dollar Habits. “You will begin paying down your debts and not incurring new ones. You will start delaying or deferring expenditures and finally stop buying those items entirely.”

    Here are some common areas you can cut back on:

    • Unsubscribe from unused content subscriptions
    • Cut back or cancel streaming services
    • Reduce or cancel your cable TV plan
    • Reduce your cell phone plan
    • Cancel unused gym memberships

    Use auto savings to create an emergency savings fund

    Automatic transfers allow you to have a set amount of money transferred into your savings account each month. You can do this through online banking accounts. Most institutions allow you to choose a specific dollar amount or a percentage of each paycheck to transfer into your savings.

    Refinance your mortgage

    Depending on where rates currently are, refinancing to a lower rate can help lower your monthly payment, save money on interest payments and help pay off your mortgage sooner. You can also change the duration of your mortgage. So if you have 20 years left on your mortgage, you can decide to refinance into a 15-year loan which may increase your monthly payments but save on the overall amount you’ll spend in interest payments.

    The following are just a few of the benefits of refinancing your mortgage to help with your savings goals:

    • Lower your interest rate to save on monthly payments.
    • Put any “extra” money from those monthly payments into savings.
    • Shorten the length of your mortgage for a quicker payoff.
    • When rates are attractive, change from an adjustable rate to a fixed-rate mortgage to provide more financial stability.

    Increase your salary

    If you are employed, think about asking for a raise, keeping in mind these tips from Sam McRoberts:

    • Learn your worth by checking online resources dedicated to gathering and providing data about salaries throughout the world, including Glassdoor, Salary, and job-hunting sites like Indeed. Spend a few hours examining what people like you in places like yours make per year.
    • Make sure you ask for more than you think you can get (but not too much more), arm yourself with facts, be prepared to stand your ground and don’t be afraid to face rejection.
    • Think about timing. Don’t ask for a raise immediately after the company gets some bad news, or when you know money is tight, or even when your boss appears to be in a bad mood. Instead, wait until you’ve accomplished something especially significant, or wait until the end of the year, after a glowing performance review.

    Set specific financial goals

    It’s simple psychology: The more clearly you define your financial goals, the more motivated you’ll be to make wise financial choices.

    “The benefit of setting goals is really to help yourself achieve what you want to achieve,” said Elizabeth Koraca, an executive coach and career strategist. “You have to have clarity on what you want and a clear path how to get there.”

    Ask yourself what excites you. Is it owning a home? Putting the kids through college? Starting your own business? Once you know what you want, you’ll have the inspiration you need to stick to those goals.

    Allison Task, a career and life coach uses SMART goal setting to help people. SMART is an acronym for:

    Specific: Goals need to be focused and have exact details.

    Measurable: Have a metric for tracking progress.

    Attainable: Goals need to be realistic.

    Relevant: Your goals should be things you have a genuine passion for.

    Time-bound: Set a timeframe for achieving your goal.

    “By using this framework, you are more likely to achieve the goal, because you will think through the specifics of what needs to happen for you to do it,” Task said.

    Find passive income revenue streams

    Nightingale-Conant, in The Power of Passive Income, encourages entrepreneurs to find online side hustles that they can pursue during off hours. And importantly, based on topics that they have a genuine passion for. “One thing that is really exciting about being an online entrepreneur is that often the paths with the lowest barriers to entry center on topics you are already familiar with. Making money online is exciting. Making money online about a topic you love is even better. That’s when your work doesn’t feel like work. For this reason, listing the hobbies, interests, and topics you’re experienced in is really helpful. When you’re evaluating some of these ideas, already being aware of niches and industries that you have some advanced knowledge of will be helpful to you. There is no interest that doesn’t count.”

    Here are a few areas to think about:

    Hobbies

    • Do you have hobbies about which you are passionate? Perhaps you belly dance or sail, or are really into massively multiplayer online role-playing games like Fortnite.
    • Do you show dogs?
    • Do you run a playgroup for moms?
    • Are you an artist?
    • Do you play any sports?
    • Do you love to travel?
    • Are you an avid photographer?
    • Do you sew?
    • Any area of interest is fair game online.

    Education

    • Do you have a degree or certification in anything?
    • Do you have a psychology degree?
    • Are you a certified doula?
    • Did you get a certification or training program in something else?

    Profession

    • Are you or were you at any time a nurse?
    • Have you worked as a dental hygienist?
    • Did you work in a flower shop and can make wicked flower arrangements?
    • Do you have experience ramping up for online success in event planning?
    • Have you worked in real estate off and on your whole life?

    Everyday life

    • Are you a fashionista?
    • Do you follow the current music scene?
    • Are you interested in politics?
    • Are you a parent?
    • Are you a corporate executive?
    • Are you an extreme couponer?

    These are just a few examples to get your juices flowing. If you have something you are passionate about or interested in, there are tons of other people who are, too.

    Related: How Networking Can Increase Your Business’ Net Worth

    [ad_2]

    Entrepreneur Staff

    Source link

  • How Online Payment Systems Can Take Your Business to the Next Level | Entrepreneur

    How Online Payment Systems Can Take Your Business to the Next Level | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    When we first started Vagaro, companies primarily relied on cash or checks as their main form of payment methods. Credit card technology was still in its early stages of adoption back then, and both customers and businesses were just starting to familiarize themselves with and trust this new form of payment.

    Fast forward to today. Now, preferring cash or check is less popular. The script has flipped — we have a world where instead of saying, “We don’t take credit cards, please pay in cash,” companies are saying, “We don’t take cash, please pay by credit card.”

    There’s a reason for this shift. The integration of online payment systems has unlocked considerable advantages for businesses, all while improving the overall experience for buyers.

    Related: How to Select the Right Payment Gateway and Payment Processor for Your Ecommerce Business

    The key to convenience and expanded sales

    When I created Vagaro, I envisioned a comprehensive, one-stop shop for our customers. To create that seamless customer experience, we were working on incorporating online booking into our solution. But as I spoke with my sister-in-law, a hairdresser and a big source of industry insight for the company when getting started, about my plans, she posed an important question:

    “What about credit card processing?”

    Integrating this feature into the platform made sense, but I knew nothing about how credit card processing worked. And when I started to call around, everybody talked about it in complicated terminology.

    Most people today are in the same boat I was in. They don’t understand how a hairdresser or other independent business, as well as credit card companies like Visa or Mastercard, each claim a portion of a customer’s payment. But they still want the convenience of payment integration.

    From the customer’s perspective, few people are carrying around cash or multiple forms of payment options. In today’s fast-paced world, consumers prefer processing transactions quickly, paying in advance and tracking their spending all in one place.

    Online payment integration makes transactions easier for businesses, too. They can sell more products or services more efficiently, including memberships, packages and gift certificates. They can accept deposits to reduce lost revenue from appointment cancellations and no-shows. And when payments are accepted on the same platform as booking, a company can know the profile of the customer, such as the services they book the most or products they tend to gravitate toward. This directly ties into marketing and upselling opportunities. If a company wants to send a VIP discount, they can do that if they know a customer’s profile and how/where they’re spending.

    Similarly, a company offering a product to a business, in most cases, will need to collect payments — the product should ideally include features to facilitate this process. As the marketplace shifts priorities to offering a smooth and comprehensive customer experience, payment integrations are now considered a necessity, and the trend toward becoming a one-stop shop is gaining momentum.

    Related: The Unspoken Financial Cost of Slow Payment Options

    More tip money, less awkwardness

    Looking strictly at the financial side, there’s a lot of money to be made from payment integration. It goes beyond simply expanding the variety of products sold; credit card transactions tend to yield higher tips, too.

    Imagine getting a haircut. If the customer is forced to pay in cash, that limits the amount they can tip based on how much money they have on them. However, with online payment processing in place, customers are able to tip as generously as they like. And if the business presents tip options — say, 15, 20 and 25 percent — the customer doesn’t have to try and calculate the tip in their head. It’s easier to click on the percentage and send it off without thinking about it.

    Online payment integrations can also remove awkward conversations that often happen around tips. When a hairdresser or other provider shows a tip prompt on the screen, it gives the customer a natural opportunity to tip. The provider doesn’t have to say, “Oh! And don’t forget the tip!” the way they might if the customer paid in cash.

    Additionally, online payment integration can make your solution a lot stickier — a product that generates revenue for its users becomes indispensable. If a company wants to increase dependency on its product and reduce churn, efforts should be focused on offering a solution or service that streamlines increased revenue.

    Related: 6 Hidden Ways That Paying by Check Is Hurting Your Business

    Setting up a payment integration partnership

    When a business wants to partner with another organization for online payment integration, they should prioritize seeking common core elements, just as they would with any partnership: Both companies should have similar philosophies of operation, stages of technology development and understanding of buyer demands.

    But another point to check is the contract length. Businesses should make sure that, for a long-term contract, there is a sliding scale — as the company processes more transactions, the costs should go down. If a sliding scale arrangement isn’t possible, companies should opt for a short-term contract so that as they evolve and their processing volume increases, they can pivot and move to another provider with more favorable terms if needed.

    The real winners are the customers

    Online payment integrations have the power to significantly boost a company’s earnings. However, the ultimate winners are the customers making purchases. With enhanced convenience, they can buy more of what they want or need without worrying about the form of payment or how the transaction process will work.

    The buyer expectation now includes the availability of online payment options, and your competitors likely offer those options already. To stay ahead in the market and meet customer demands, integrate a way for buyers to complete credit card transactions, be a part of the money-making service and continue improving the integration once it’s in place.

    [ad_2]

    Fady

    Source link

  • Don’t Miss This Upcoming Tax Deadline or Expect to Pay These Penalties | Entrepreneur

    Don’t Miss This Upcoming Tax Deadline or Expect to Pay These Penalties | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Millions of taxpayers requested a six-month extension to file their 2022 federal income tax return. If you’re among them and haven’t yet completed your return, it’s time to get serious.

    The extension runs out on October 16. While plenty of good reasons exist to file for the initial extension, you want to avoid missing this deadline. The penalties for not filing by then can get costly, and you need to shift your focus to your 2023 return.

    Here’s how to wrap this project up.

    1. Finalize your documentation

    The biggest underlying reason people seek a tax extension is that they don’t have the documentation they need to file a complete, accurate return. Use these remaining months of your extension to sort through any loose ends and instill proper bookkeeping and recordkeeping systems so that you don’t run into this issue in the future.

    Most business owners and investors are eligible for a long list of tax deductions. Make sure you have the proper documentation for any deductible expenses, such as business purchases, travel, education, training, charitable contributions and your home office. Double-check your documentation to ensure there aren’t any errors or omissions before you complete your return.

    The biggest deduction available to entrepreneurs and investors with real estate holdings is depreciation. Taking this deduction correctly requires substantial documentation through a cost segregation analysis — this determines the schedule for depreciating each component of the asset.

    Land, land improvements, buildings and building fixtures all depreciate at different rates, and a cost segregation analysis will help you accurately calculate the right amount of depreciation. For the 2022 tax year, bonus depreciation was still 100%, making this an even more powerful part of a tax strategy. But these studies take time, so make sure you are on top of this.

    Related: Want Taxes to Be Easy? Work on Them Year Round

    2. Check for possible tax credits

    Tax credits can be even more valuable than tax deductions because they give you a dollar-for-dollar reduction in your tax liability. Yet, many taxpayers don’t take advantage of the credits for which they are eligible, either because they don’t know about them or because they’ve received bad advice about using them. Use your extension to make sure you receive the proper tax credits on your return.

    The IRS offers a lot of information about tax credits on its website, and a tax advisor should be able to guide you through the process. Some of the many tax credits of interest for entrepreneurs and investors for the 2022 tax year include:

    • Installing solar energy systems.
    • Buying certain electric vehicles.
    • Creating jobs in economically distressed communities.
    • Providing certain benefits to employees.
    • Hiring people from groups that have faced significant barriers to employment.
    • Investing in research and development.
    • Making your business accessible to customers with disabilities.

    These are valuable tax credits — take them if they apply to you. Don’t pay more tax than you are required to pay. Invest that money back into your business.

    Related: What Gen Z Side Hustlers Don’t Know About Taxes — But Should

    3. Prepare your return

    While you can use various tax software programs to prepare a return and file your taxes, entrepreneurs and investors benefit greatly from working with a high-quality tax professional. There’s simply too much money at stake and too much complexity to treat your taxes as a do-it-yourself project.

    If you don’t have one already, look for a certified public accountant (CPA) who specializes in tax. As you speak with potential advisors, look for someone who takes a consultative approach. You don’t want to feel like just another transaction. You want a tax advisor who will be a trusted member of your wealth strategy team.

    Related: 6 Steps to Make Tax Season As Painless as Possible

    What happens if you don’t file?

    It gets expensive. Being just a day late can turn into a penalty equal to 26% of the taxes you owed back in April.

    If you’re still not ready to file your taxes by the October 15 deadline, you absolutely should be working with a tax advisor to navigate the situation. Your advisor will help you in two key ways. First, it’s possible you can get an additional extension. These are rare and mainly apply to people living outside of the U.S. or serving in a combat zone, but it’s worth checking. Second, and most importantly, a high-quality tax advisor will help you create a plan to get your taxes back on track.

    Sticking your head in the sand is not a tax strategy, and facing your tax situation doesn’t have to be frustrating or confusing. A good advisor will help you understand the tax law so that you can use it in a way that gives the government what it wants while also legally and permanently reducing the amount that you need to pay.

    The government wants people to invest in seven key categories (business, technology, energy, real estate, insurance, agriculture and retirement), and it offers great tax incentives to people who do so. Your tax advisor should be talking with you regularly about how you can build these investments into your wealth and tax strategy. It will allow you to make way more money while paying far less in taxes.

    [ad_2]

    Tom Wheelwright

    Source link

  • 3 Ways to Raise Capital as a Small Business | Entrepreneur

    3 Ways to Raise Capital as a Small Business | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Raising capital can be a challenge for anyone, but particularly for small businesses. Oftentimes, investors are looking to put their money into something with multinational growth potential rather than something more local. In many cases, you may need to raise smaller amounts, possibly in the thousands of dollars or the tens of thousands. Therefore, to raise money as a small business requires a different approach.

    As a multimillionaire real estate investor and trainer, I often teach my students how to raise capital for their first property deal. Many of my students are new to real estate and are looking to purchase a relatively cheap property in the North of England. This is unlikely to be of interest to a seasoned angel investor, but there are lots of people that this type of investment would suit very well. In many ways, this is a similar situation to raising capital as a small businessperson.

    I have found that there are many ways to raise capital for a small enterprise, whether as a joint venture or in the form of debt. Once you have mastered these skills, you will have a world of opportunity in front of you. But first a note of caution: Each jurisdiction has different rules regarding raising capital, so seek independent legal advice to make sure your chosen approach is compliant.

    Related: 3 Ways to Raise Capital and Take Your Business to the Next Level

    1. Talk to people you know

    When I am training my students, they sometimes tell me that they don’t know anyone rich to approach. The reality is, however, that when raising smaller amounts, you don’t actually need to know anyone rich. Many ordinary people have savings in the bank that are sitting there being eaten away by inflation. These people are often willing to lend that money out for a much higher return than they would get from the bank.

    Of course, they will need to know that their money will be safe. In real estate, this often means the debt will be secured against the property. In other areas of business, it might mean securing the debt against product inventory or by other means. Alternatively, depending on the other party’s risk tolerance, you could consider a joint venture partnership where you share the profits.

    Asking people you know for an investment can put both parties in a difficult position, therefore it is important to phrase your request correctly. Rather than asking directly, simply talk about your project and ask if they know anyone who might be interested in investing. If they want to invest, they will let you know. If they don’t want to invest, they can pass on the deal without any awkwardness. In addition, even if they don’t want to invest, there is always the chance that they know someone who might.

    Related: 5 Innovative Ways for Entrepreneurs to Raise Capital in Today’s Market

    2. Connect at business networking events

    The next way to raise capital is to attend business networking events. Business networking events are a great way to get to know people who are potentially interested in investing in new projects. It is important to remember, however, that all the other business people attending the event are also looking to promote their business. You need to listen and learn about what they are doing and find ways for your project to solve their problems.

    There may be people who are looking to deploy capital either to get a fixed return or on the basis of a joint venture partnership. Of course, these people are highly unlikely to want to invest in your project on the basis of a single meeting at a networking event! Your job is to plant a seed.

    Explain what your business is and mention that one way you expand is to raise capital from business owners who want to put their money to work. Explain that they prefer not to keep their money in the bank where its purchasing power is being eaten away by inflation. Don’t suggest that they invest at this stage. Let them think about what you have said and come to you.

    Related: How Entrepreneurs Can Maximize Networking to Increase Funding

    3. Engage on social media

    Another way to get investors’ attention is to document your journey on social media. People invest with people that they know, like and trust — and social media is a great way to get people to know, like and trust you, so long as you’re authentic.

    If you let others see the human being behind the brand, you will find like-minded people who gravitate toward your personality and vision. These people are more likely to want to invest in your business or project. You don’t need millions of subscribers on YouTube or Instagram either, just a few highly targeted followers who care about your brand.

    When raising money from the public on social media, it is especially important to make sure you are following the law. Speak to a lawyer and understand what is and isn’t allowed in your jurisdiction. However, as long as you follow the applicable rules, social media is a great way to connect with investors.

    It’s time to take action

    It can be hard to raise capital for a small local business if you haven’t learned the right strategies. Ultimately, however, raising capital is possible at any level — if you employ the correct approach. If you know how to find and communicate with your target investors correctly, you can easily raise capital for your small business.

    You have just learned everything from how to correctly approach people you know to how to use social media to your advantage. Now that you have read this article, it is time to take action. Those who take little to no action will continue to find raising capital hard. On the other hand, those who apply the lessons above will find that raising capital for their small enterprise is a lot easier than they thought.

    [ad_2]

    Samuel Leeds

    Source link

  • Bootstrapping vs. Venture Capital — What’s Best for Your Business? | Entrepreneur

    Bootstrapping vs. Venture Capital — What’s Best for Your Business? | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Every person who’s founded a business knows that financing your idea is one of the hardest but most important early steps. In fact, creating a stable financial nest for your new company might be the difference between a company that thrives and one that fizzles out.

    There are two primary methods of financing: looking for venture capital and bootstrapping. Choosing which financing method you go with is a crucial decision that may have long-term impacts on your business.

    So, how should you decide which method to pursue?

    Related: 9 Advantages Of Bootstrapping Your Company

    Bootstrapping

    Bootstrapping is the process of starting a business with no outside funding. This is an achievable way to start your company because you can focus on building your team and product exactly how you want. Further, bootstrapping typically means you’ll reach an initially smaller audience, so you’ll have time to get feedback from early users before launching to a wide audience.

    The advantages of bootstrapping include a bigger focus on customers. Because you don’t have a huge nest egg, pleasing your early customers is your lifeline. So, you’ll focus more on user retention and building long-term customer relationships.

    Disadvantages of this creative financing option include slower growth. Because you’re funding yourself, you’ll have less access to expensive technology that affords fast production processes. Further, you’ll have to rely more on personal savings or debt in order to jumpstart your business.

    Seeking venture capital

    On the other hand, you may opt to seek venture capital. Venture capital is a type of financing through private equity. In other words, investors put money into your business, betting that it will become a successful venture. By going with venture capital, your business will grow faster, resulting in a quick return on investment.

    The benefits of venture capital include less personal risk. You’re not pouring your own money into the business, so you don’t risk losing your own money. Additionally, getting a loan from a credible investor will increase your own credibility.

    However, drawbacks of venture capital include the expectation to grow quickly and the initial reduction of your stakes as an owner of the business.

    Related: 6 Important Factors Venture Capitalists Consider Before Investing

    Choosing the best financing option

    The decision between bootstrapping and looking for venture capital depends largely on the state of growth that you’re in. In fact, many great investors often want to see evidence that you’ve successfully bootstrapped for the first stage of your business.

    But why? Because successful bootstrapping serves as evidence that you’re smart and hardworking — and that you’ve got a good idea.

    However, say your business is in an industry that requires a large amount of upfront research, such as the biomedical or electric car companies. In this case, you’ll need a huge amount of capital, which will likely require raising money from outside investors. But if you can bootstrap the formation of the company and proof of concept, you’ll face less dilution in the venture capital process as the founder. Further, it means you can embrace a lean-and-mean, efficient philosophy toward operations.

    In this case, you prove that you’re efficient when it comes to using capital. It also proves you’re more resourceful than some business owners and entrepreneurs. Further, it shows that you can be innovative out of necessity.

    So, if you’re creating a good product and your business is successful, you’ll begin to gain traction in your industry. Then, there will inevitably come a time when you start to outgrow the resources that are available to you on your balance sheet. As a result, your own bootstrapping funds will cease to be able to fund your business’s growth as aggressively as necessary.

    When this happens, it’s likely best to raise outside capital. In fact, this is often the best way to take advantage of the opportunity you’ve created for yourself. In this case, you should have an easier time finding funding.

    Why seeking growth capital is easier than seeking startup funding

    Historically, it’s easier to find growth capital than it is to seek startup funding. So, because you’ve bootstrapped for a period of time, you’ve given yourself the opportunity to prove the viability of your idea. As a result, seeking venture capital will be easier as you can approach investors with successful results about your company.

    At the end of the day, how you fund your business is up to you. Your own evaluation of the state of your business, the viability of your product and the potential of your business to generate profit should help you determine which avenue is best for you. Bootstrapping and seeking venture capital both have significant benefits and drawbacks. So, you should evaluate where you are in your business when choosing between the two.

    Most likely, the best option is a combination of the two. Consider the stage that your business is in when deciding whether to choose bootstrapping or seeking venture capital in order to guarantee the highest level of success.

    Related: How I Bootstrapped to $100 Million Without Venture Capital Funding

    [ad_2]

    Cyrus Claffey

    Source link

  • Retirees Should Do This to Avoid a Catastrophic Financial Blow | Entrepreneur

    Retirees Should Do This to Avoid a Catastrophic Financial Blow | Entrepreneur

    [ad_1]

    Americans with retirement accounts believe they need an average of $1.8 million socked away to retire, according to a Charles Schwab study reported by CBS News — and about 55% of them say they’re behind on saving, per a recent Bankrate survey.

    For women, that feeling is even more common, with 50% of them saying they’re not on track with retirement savings compared to just 35% of men, a new report from Goldman Sachs revealed.

    What’s more, women are more likely to face challenges that could throw them even further off the savings course — from losing a spouse or partner to becoming a caregiver, according to recent research from financial services firm Edward Jones and aging research provider Age Wave, CNBC reported.

    Related: Retired Couple Shares Side Hustle That Brings in Thousands

    The research found that having a spouse or partner pass away is the most common curveball for both men and women, but women are twice as likely to be widowed.

    Assuming a caregiver role also disproportionately affects women; a majority of them said it was a “life-destroying” event both from a financial and life standpoint, Lena Haas, head of wealth management advice and solutions at Edward Jones, said.

    Women are also more likely to need more retirement savings: 57% of all those ages 65 and older are female, and the average lifespan is about five years longer for women than men in the U.S., according to Harvard Health.

    Related: Top 20 States For Retirees That Are ‘Better’ Than Florida

    The best way to safeguard your finances no matter what happens? Seek out a professional financial advisor and identify important questions that should be asked, considering key details like emergency funds, life insurance and long-term care insurance, Haas told CNBC.

    Be sure to use an employer’s benefits department as a resource too; it can help you find out what’s available to you, Heather Ettinger, chairwoman of Fairport Wealth in Cleveland, Ohio, told the outlet.

    [ad_2]

    Amanda Breen

    Source link

  • 5 Recession-Proof Businesses to Start in a Turbulent Economy | Entrepreneur

    5 Recession-Proof Businesses to Start in a Turbulent Economy | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Economic downturns are no joke. Recession throws a massive cog in the proverbial wheels of several established entrepreneurs as well as new startup owners. A recent study by Startup Genome found that a staggering 74% of startups saw their revenues plummet since the pandemic. Even more grim is how many of these (16%) were forced to lay off 80% of their workforce.

    No wonder, then, that companies are afraid to raise capital, or even start a business at all. Experts are warning about an impending global recession, so companies are apprehensive about scaling, hiring new talent and retaining the ones they have.

    However, not all startups struggle in times of recession and economic downturns. Some startups may, in fact, thrive during economic crises. As someone who has been in the VC industry for over a decade, sold several companies and launched an accelerator that helped over 200 entrepreneurs, I have learned that there is a crucial difference between startups that survive and succeed in a recession and those that struggle and fail. That difference is in the business model itself.

    As the CEO of Builderall, an all-in-one solution supporting over 20,000 small businesses worldwide, I have a bird’s eye view of the best-performing business models. Where other startups flounder, startups in our ecosystem continue to pull in more customers. In fact, we do not experience an economic downturn at all.

    If you are wondering whether to start your business, scale your startup or cut back operations, read on for the five recession-proof businesses I recommend during turbulent times:

    Related: 10 Businesses to Start That Can Weather Any Economy

    1. Service-based businesses

    Any time you provide a skilled service to your customers, whether online or offline, it’s a service-based business. For instance, a bookkeeping/accounting service or a digital marketing agency both provide services that require special knowledge and expertise. These companies are really crushing it today — and for more than one reason:

    • Their startup costs are low. Entrepreneurs can get started with a lower initial investment and fewer subsequent capital infusions.

    • They can operate with a minimal workforce. Companies can go fully remote with the advantage of tapping into low-cost talent markets, or they can go hybrid.

    • Faster turnover and revenue generation. Receiving payments from new clients and generating cash flow happen much more quickly.

    • Recurring payments keep the money flowing in. Service-based companies can benefit from employing subscription or retainer models. This guarantees two things: repeat customers and a continuous revenue stream in exchange for ongoing services.

    Customers are effectively fronting the cost, which reduces the necessity for venture capital or working capital. Then, three years later, they have built up a solid customer base of recurring revenue customers who simply keep paying on a monthly basis, and the money from those payments becomes your operating expenses.

    2. Influencer marketing

    You really can’t go wrong with being an influencer. It won’t be a stretch to say that influencers are ruling the digital world right now. Look at what Khaby Lame, Zach King, Addison Rae and Charli D’Amelio have achieved. During my years in business, I have closely followed the rise of several popular influencers, and I have found two common threads among all of them:

    One, all successful influencers work in a particular space or in a specific niche in which they are experts and know what they are talking about. And two, they are pure content creators, and their content resonates with their audiences, helping them attract more followers.

    Once you amass a substantial following on social media platforms such as Instagram, YouTube or TikTok — that’s when the magic begins. You leverage your online presence to engage with your audience and promote products or services, effectively becoming brand advocates for the companies you work with.

    3. Brand ambassadorship

    Being a brand ambassador is a close off-shoot of the influencer business. A brand ambassador has always been a cornerstone of successful marketing for several companies. Back in the day, when social media wasn’t a thing, only A-list celebrities or professional athletes and musicians would get top dollar for their endorsements.

    Like influencers, brand ambassadors also excel in specific niches. They position themselves as thought leaders or experts, and the association with them brings credibility to the brands they are endorsing. While influencer relationships are typically one-off arrangements, brand ambassadors generally work with the same brand for years and provide a deeper level of exposure and education for their audiences.

    Related: Scared of a Recession? Follow These 5 Tips For a Recession-Proof Business

    4. Online educators

    With upskilling and side hustling turning into major buzzwords, I have seen so many people asking, “What else I could do?” on social media platforms like Reddit and Twitter. Those who get laid off want to increase their skill set and willingly pay hundreds or even thousands for continuing specialized education rather than returning to college or seeking an advanced university degree. This is the major reason why online educators are making a killing by selling their courses online.

    People are learning all sorts of skills on e-learning platforms today. For example:

    How to turn sketches into finished digital artwork

    How to compose music

    How to create effective marketing funnels

    How to write screenplays

    Online educators are just normal people who are good at what they do. Becoming an online educator requires just taking the knowledge that they have, putting it into a course and selling it. They craft an exhaustive course structure and deliver courses that cover an extensive range of subjects, from practical skills to creative arts and everything in between. Platforms with user-friendly e-learning tools are making this easier than ever.

    Marketing, business, entrepreneurship, creative arts, coding and personal development are always popular with learners.

    5. Unique products

    Selling a unique product can be a tough nut to crack. But when a company achieves this feat, it can consider itself practically recession-proof. There are startups in the market that are selling a one-of-a-kind product to a narrow, but interesting, subset of consumers. It could be T-shirts, stickers, plush toys or anything else.

    And with the online platforms available today, it is so simple to launch an online shop, spread awareness and begin building a customer base. Paid ads are something that big companies use as they scale. But when you’re a small company, you can get creative and use Instagram reels and TikToks to drive audiences to your product. Try to create a niche product as opposed to trying to sell basic T-shirts to everybody, which is very difficult. Do something that’s very targeted to a specific niche. For instance, you can come out with a whole line of T-shirts for people who love unicorns.

    Related: 3 Key Strategies That Helped My Business Grow During a Recession

    At Builderall, we have not seen businesses negatively affected by the recession; if anything, it has been a positive catalyst for entrepreneurs. According to this recent survey by Gusto, 56% of individuals launched a business due to concern over inflation. The World Economic Forum reports that women entrepreneurs increased to 47% in 2022 up from 27% in 2019.

    So, while it may seem scary to try to launch or scale a company in today’s economy, with the right business model, now is the perfect time — and the future is bright.

    [ad_2]

    Pedro Sostre

    Source link

  • 7 AI-Based Business Ideas That Could Make You Rich | Entrepreneur

    7 AI-Based Business Ideas That Could Make You Rich | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    In today’s rapidly changing landscape, technology has seeped into nearly every aspect of our lives. One of the most influential technologies of the 21st century is Artificial intelligence (AI). It’s no surprise that AI is revolutionizing various sectors, including healthcare, transportation, entertainment, and more importantly, business.

    So, if you’re an entrepreneur with an eye for disruptive technologies, now is the right time to invest in an AI-based business. Here are seven AI-based business ideas that have the potential to make you rich.

    Related: What Every Entrepreneur Must Know About Artificial Intelligence

    1. Personalized health monitoring

    The healthcare industry is ripe for disruption, and AI has the potential to revolutionize the way we approach well-being and treatment. Imagine a wearable device that not only tracks basic health metrics but also predicts potential medical conditions before they become severe. By employing machine learning algorithms that analyze data on a person’s lifestyle, genetics and current health conditions, you could offer a subscription-based service that provides real-time health insights and early warnings.

    Revenue streams: Subscription fees, partnerships with healthcare providers, data analytics for medical research

    Challenges: Regulatory hurdles, data privacy concerns, high R&D costs

    2. AI-powered talent matching platform

    Recruitment is an expensive and time-consuming process for companies. You could develop an AI-powered platform that analyzes a plethora of factors — skills, experience, cultural fit and even nuances like work habits — to match job seekers with suitable employers. By continually learning from its matches, the AI could significantly increase placement accuracy over time, reducing employee turnover and recruitment costs.

    Revenue streams: Subscription fees from employers, premium features for job seekers, data insights for HR departments

    Challenges: Data accuracy, competition from traditional job boards and networking platforms, legal concerns over discrimination

    3. Customized e-learning experiences

    Traditional e-learning platforms offer a one-size-fits-all approach that doesn’t suit everyone. By leveraging AI algorithms that adapt to a student’s learning style, pace and strengths/weaknesses, you could create a more individualized learning experience. Your platform could serve students looking for K-12 tutoring, professionals seeking continued education or even hobbyists wanting to acquire a new skill.

    Revenue streams: Subscription fees, course purchase fees, partnerships with educational institutions

    Challenges: High-quality content creation, ensuring educational effectiveness, competition from established e-learning platforms.

    4. Sustainable energy management

    Sustainability is not just a buzzword — it’s a necessity. AI can play a critical role in managing energy consumption more efficiently. Whether it’s a smart grid that adapts to usage patterns or a home system that regulates energy consumption without human intervention, AI can offer solutions that are both eco-friendly and cost-effective.

    Revenue streams: Hardware sales, software subscriptions, partnerships with utility companies, government grants for sustainable initiatives

    Challenges: Infrastructure requirements, technological limitations, consumer adoption rates

    Related: The Future Founder’s Guide to Artificial Intelligence

    5. AI-driven content creation

    Content is king in the digital age, but creating quality content consistently is a labor-intensive task. An AI-based platform that can generate high-quality written, audio or visual content could be a game-changer. Such a platform could assist journalists, bloggers, marketers and even filmmakers.

    AI algorithms can not only generate content but can also optimize it for SEO, readability or audience engagement, providing an end-to-end solution for content creation.

    Revenue streams: Subscription fees, pay-per-content, licensing to marketing agencies

    Challenges: Maintaining content quality, handling the complexities of human language and creativity, copyright issues

    6. Smart agriculture

    The global population is growing, and with it, the demand for food. However, resources like land and water are finite. Smart agriculture solutions using AI can optimize yield by analyzing soil quality, weather conditions and crop health, among other variables.

    Imagine drones equipped with AI algorithms that can scan large agricultural fields, providing farmers with detailed reports on what actions to take. Your business could be at the forefront of making agriculture more sustainable and efficient.

    Revenue streams: Software licenses, data analytics, consultancy services

    Challenges: High initial costs, complexity of agriculture, adoption and usability

    7. Automated financial advising

    With more people becoming financially aware, there’s a growing demand for financial advisory services. AI can process huge datasets and generate actionable insights much quicker than a human advisor. An AI-based robo-advisory platform can offer personalized investment strategies, risk assessment and portfolio management, making it easier for people to manage their wealth. The financial sector is ripe for disruption, and an AI-based advisory service could be your ticket to untold riches.

    Revenue streams: Subscription fees, licensing technology, data monetization

    Challenges: Regulatory hurdles, customer trust, data security

    The possibilities are endless when it comes to leveraging AI in business. The key is to identify a problem that AI can solve better or more efficiently than existing solutions. Whether it’s healthcare, marketing, recruitment, finance, supply chain management, customer service or content creation, the potential for AI to revolutionize these fields is immense. Remember, the best time to invest in the future is now, and these seven business ideas are your stepping stones to achieving unparalleled financial success.

    Related: Exploring the Future of Artificial Intelligence — 8 Trends and Predictions for the Next Decade

    [ad_2]

    Ashot Gabrelyanov

    Source link

  • How to Diversify Income Streams for Long-Term Financial Growth | Entrepreneur

    How to Diversify Income Streams for Long-Term Financial Growth | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    The financial landscape is fickle. The age-old adage “Don’t put all your eggs in one basket” has taken on renewed significance, driving individuals and businesses alike to explore the strategy of diversifying income streams as a potent means to achieve lasting financial prosperity.

    For entrepreneurs, diversifying streams of income is crucial. Doing so enhances financial stability, mitigates risks and unlocks the potential for sustained growth. Relying solely on a single source of revenue exposes entrepreneurs to significant vulnerabilities — market fluctuations, changing consumer preferences and unexpected disruptions can all jeopardize your business’s viability. By diversifying income streams, you can reduce their reliance on any one source, spreading risk and ensuring a steadier cash flow even in uncertain times.

    Moreover, this approach fosters adaptability and innovation as you explore new avenues, products or services, potentially tapping into previously untapped markets. With numerous streams of income, entrepreneurs not only fortify their financial foundation but also create a dynamic ecosystem that positions them for resilience and prosperity in the long run.

    [ad_2]

    Jonathan Herrick

    Source link