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Tag: Value

  • The Valley, the South Bay and beyond: These are L.A.’s newest million-dollar neighborhoods

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    In 2021, during the peak of the pandemic housing market that saw L.A. home prices skyrocket, The Times compiled a list of the newest neighborhoods to join the proverbial “million-dollar club,” where the typical single-family home value is above $1 million.

    Five years later, plenty more have made the cut.

    Whereas the previous group featured trendy L.A. neighborhoods (Echo Park, Highland Park), South L.A. enclaves (Crenshaw, Leimert Park) and slices of the San Fernando Valley (Porter Ranch, Woodland Hills), the latest batch is a bit more outlying.

    Now, million-dollar homes are flung farther north into the Valley, farther south into the South Bay, and farther east into the foothills of the Verdugo and San Gabriel mountains.

    Home values across the region haven’t spiked in the same way they did during the pandemic. Instead, they steadily rose month after month, turning once-semi-affordable communities into seven-figure spots, according to Zillow’s Home Value Index.

    The data suggest single-family homes across the outskirts of L.A. County are more valuable than you might think.

    Here are 12 of the newest million-dollar neighborhoods around L.A., in alphabetical order.

    Adams Hill (Glendale)

    2021 value: $983,515
    2025 value: $1.12 million

    Once tied to the now-defunct city of Tropico, Adams Hill was annexed to Glendale in 1918. The hilly neighborhood is tucked on the southeast tip of the city near Glassell Park and Atwater Village and features a vibrant mix of 1920s bungalows and Spanish Colonial-style retreats. Smaller homes can be found in the $800,000 range, but anything with a view fetches well over $1 million. There are also plenty of buildable lots, if you’re feeling ambitious.

    Chatsworth

    2021 value: $925,501
    2025 value: $1.02 million

    Once a hot spot for western film sets, Chatsworth now serves as a suburban retreat for those seeking space, with relatively low population density compared with other San Fernando Valley neighborhoods. There’s a variety of price points here: new construction on the west side sells for millions, but manufactured homes on leased lots are listed for less than $200,000. The plethora of tract houses built from the ‘50s to the ‘70s go for around $1 million.

    El Dorado South / El Dorado Park / Los Altos

    2021 value: $906,912
    2025 value: $1.04 million

    The million-dollar typical home has made its way to the working and middle class flats of east Long Beach, where a trio of neighborhoods eclipsed the mark in 2023 and 2024. The three enclaves circle El Dorado Regional Park, the city’s largest park, and feature classic California ranches that typically sell for $800,000 to $1.2 million.

    Granada Hills

    2021 value: $894,428
    2025 value: $1.02 million

    Another suburban staple of the San Fernando Valley, Granada Hills became a million-dollar neighborhood in 2024. The deals are found on the south side, where four-and five-bedroom homes still list in the $900,000 range. The luxury properties are tucked on the north end, including the historic Balboa Highlands tract — a pristine collection of 108 Midcentury gems designed by Joseph Eichler. Those typically sell for $1.7 million or more.

    Historic Quarter (Agoura Hills)

    2021 value: $974,384
    2025 value: $1.1 million

    Million-dollar homes are nothing new for Agoura Hills, the slow-growth bedroom community between L.A. and Thousand Oaks, but the city’s Historic Quarter section hit the mark in 2022. It’s been tough to find a home for less than $1 million ever since. The neighborhood, a small sliver at the city’s southeast corner, features sizable 1980s houses that fetch anywhere from $1 million to $2 million.

    Mid-Central (Pasadena)

    2021 value: $993,704
    2025 value: $1.11 million

    Seven-figure typical home values are slowly creeping east in Pasadena, and the Mid-Central neighborhood hit the million mark in 2022. Homes here don’t quite command the prices of neighborhoods to the west, such as Oak Knoll or Madison Heights, but smaller bungalows typically start at $700,000, while bidding wars for century-old Craftsmans or well-preserved Tudors drive prices to $1.5 million or more.

    Montrose-Verdugo City

    2021 value: $990,002
    2025 value: $1.09 million

    Technically in Glendale, Montrose-Verdugo City sits just south of La-Crescenta Montrose, the scenic community set beneath the Angeles National Forest. There’s a small-town feel here, with a walkable district and charming homes looking up at the mountains. Fixer-uppers sell in the $900,000 range, but most homes these days go for $1.1 million or more.

    Northeast Torrance / Old Torrance

    2021 value: $906,287
    2025 value: $1.01 million

    A pair of east Torrance neighborhoods joined their western counterparts in the million-dollar club in recent years: Old Torrance in 2022 and Northeast Torrance in 2024. There’s plenty of variety here: Small project properties still sell in the $600,000 range, while larger remodels or well-kept Craftsmans can go for as much as $1.7 million.

    Northridge

    2021 value: $970,785
    2025 value: $1.1 million

    This San Fernando Valley neighborhood houses Cal State Northridge, so rentals make up the majority of the market here, but there’s always a healthy mix of homes up for sale, too. The larger 4,000-square-foot houses on the north end of Northridge typically command at least $1.4 million, while the smaller two- and three-bedroom homes scattered throughout the rest of the area fall in the $800,000 to $900,000 range.

    Riverside Rancho (Glendale)

    2021 value: $951,705
    2025 value: $1.08 million

    A hidden equestrian haven next to Griffith Park, Riverside Rancho has homes surrounded by riding trails and other horse amenities. Small ranches can occasionally be found for less than $1 million, but the handful of equestrian properties complete with stables and barns go for $2 million or more.

    Valley Glen

    2021 value: $952,921
    2025 value: $1.03 million

    The Valley Glen neighborhood broke off from Van Nuys and North Hollywood in 1998, and since then, its home values have outpaced both. While values linger in the $800,000 range in Van Nuys to the west and North Hollywood to the east, Valley Glen became a million-dollar neighborhood in 2023. These days, the majority of its single-family homes sell for over $1 million, but smaller ranches can be found for cheaper.

    West Hills

    2021 value: $951,441
    2025 value: $1.04 million

    Another million-dollar suburb of the San Fernando Valley, West Hills is pricier than eastern neighbors like Canoga Park and Winnetka, but much cheaper than the affluent communities to the south such as Hidden Hills and Calabasas. You won’t find many condos or apartment buildings here; the single-family homes range from $700,000 up to $1.5 million or so, while the Simi Hills and El Escorpion Peak offer a natural escape from the suburban sprawl.

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    Jack Flemming

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  • Contributor: I’m a young Latino voter. Neither party has figured us out

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    On Tuesday, I voted for the first time. Not for a president, not in a midterm, but in the California special election to counter Texas Republicans’ gerrymandering efforts. What makes this dynamic particularly fascinating is that both parties are betting on the same demographic — Latino voters.

    For years, pundits assumed Latinos were a lock for Democrats. President Obama’s 44-point lead with these voters in 2012 cemented the narrative: “Shifting demographics” (shorthand for more nonwhite voters) would doom Republicans.

    But 2016, and especially the 2024 elections, shattered that idea. A year ago, Trump lost the Latino vote by just 3 points, down from 25 in 2020, according to Pew. Trump carried 14 of the 18 Texas counties within 20 miles of the border, a majority-Latino region. The shift was so significant that Texas Republicans, under Trump’s direction, are redrawing congressional districts to suppress Democratic representation, betting big that Republican gains made with Latinos can clinch the midterms in November 2026.

    To counter Republican gerrymanders in Texas, Gov. Gavin Newsom and California Democrats pushed their own redistricting plans, hoping to send more Democrats to the House. They too are banking on Latino support — but that’s not a sure bet.

    Imperial County offers a cautionary tale. This border district is 86% Latino, among the poorest in California, and has long been politically overlooked. It was considered reliably blue for decades; since 1994, it had backed every Democratic presidential candidate until 2024, when Trump narrowly won the district.

    Determined to understand the recent shift, during summer break I traveled in Imperial County, interviewing local officials in El Centro, Calexico and other towns. Their insights revealed that the 2024 results weren’t just about immigration or ideology; they were about leadership, values and, above all, economics.

    “It was crazy. It was a surprise,” Imperial County Registrar of Voters Linsey Dale told me. She pointed out that the assembly seat that represents much of Imperial County and part of Riverside County flipped to Republican.

    Several interviewees cited voters’ frustration with President Biden’s age and Kamala Harris’ lack of visibility. In a climate of nostalgia politics, many Latino voters apparently longed for what they saw as the relative stability of the pre-pandemic Trump years.

    Older Latinos, in particular, were attracted to the GOP’s rhetoric around family and tradition. But when asked about the top driver of votes, the deputy county executive officer, Rebecca Terrazas-Baxter, told me: “It wasn’t immigration. It was the economic hardship and inflation.”

    Republicans winning over voters on issues such as cost of living, particularly coming out of pandemic-era recession, makes sense, but I am skeptical of the notion that Latino voters are fully realigning themselves into a slate of conservative positions.

    Imperial voters consistently back progressive economic policies at the ballot box and hold a favorable view of local government programs that deliver tangible help such as homebuyer assistance, housing rehabilitation and expanded healthcare access. In the past, even when they have supported Democratic presidential candidates, they have voted for conservative ballot measures and Republican candidates down the ticket. Imperial voters backed Obama by a wide margin but also supported California’s Proposition 8, banning same-sex marriage. This mix of progressive economics and conservative values is why Republican political consultant Mike Madrid describes Latino partisanship as a “weak anchor.”

    The same fluidity explains why many Latinos who rallied behind Sen. Bernie Sanders in 2020 later voted for Trump in 2024. Both men ran as populists, promising to challenge the establishment and deliver economic revival. For Latinos, it wasn’t about left or right; it was about surviving.

    The lesson for both parties in California, Texas and everywhere is that no matter how lines are drawn, no district should be considered “safe” without serious engagement.

    It should go without saying, Latino voters are not a monolith. They split tickets and vote pragmatically based on lived economic realities. Latinos are the youngest and fastest-growing demographic in the U.S., with a median age of 30. Twenty-five percent of Gen Z Americans are Latino, myself among them. We are the most consequential swing voters of the next generation.

    As I assume many other young Latino voters do, I approached my first time at the ballot box with ambivalence. I’ve long awaited my turn to participate in the American democratic process, but I could never have expected that my first time would be to stop a plot to undermine it. And yet, I feel hope.

    The 2024 election made it clear to both parties that Latinos are not to be taken for granted. Latino voters are American democracy’s wild card — young, dynamic and fiercely pragmatic. They embody what democracy should be: fluid, responsive and rooted in lived experience. They don’t swear loyalty to red or blue; they back whoever they think will deliver. The fastest-growing voting bloc in America is up for grabs.

    Francesca Moreno is a high school senior at Marlborough School in Los Angeles, researching Latino voting behavior under the guidance of political strategist Mike Madrid.

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    Francesca Moreno

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  • ‘Jimmy Kimmel Live!’ suspended after host’s Charlie Kirk comments

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    “Jimmy Kimmel Live!” has been suspended indefinitely by ABC, following his comments about Charlie Kirk’s death.According to an ABC network spokesperson, they are pulling the show indefinitely and plan to air “Celebrity Family Feud” for the next two nights in its place, with future programming to be determined.Nexstar was first to announce that it would no longer air Kimmel’s late-night show on its 23 ABC affiliates across the country. There was no immediate comment from Kimmel, whose contract is up in May 2026.In his monologue on Tuesday, Kimmel said that “we hit some new lows over the weekend with the MAGA gang desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it.” Federal Communications Commission chair Brendan Carr appeared on a podcast Wednesday, where he suggested that local affiliates should pull Kimmel from the air.Later in the day, Carr posted on X, saying, “I want to thank Nexstar for doing the right thing. Local broadcasters have an obligation to serve the public interest. While this may be an unprecedented decision, it is important for broadcasters to push back on Disney programming that they determine falls short of community values. I hope that other broadcasters follow Nexstar’s lead.” Trump celebrated ABC’s move on the social media site Truth Social, writing: “Congratulations to ABC for finally having the courage to do what had to be done.”He also targeted two other late-night hosts, Jimmy Fallon and Seth Meyers, and said they should be canceled too, calling them “two total losers.” In July, after CBS canceled “The Late Show With Stephen Colbert,” Trump wrote on his social media platform: “I absolutely love that Colbert got fired. His talent was even less than his ratings. I hear Jimmy Kimmel is next. Has even less talent than Colbert!” Like Colbert, Kimmel has been consistently been critical of Trump and many of his policies.Kimmel’s show pulled as audience waited for tapingAn audience was lined up outside the theater where “Jimmy Kimmel Live!” tapes when they were told Wednesday’s show was canceled.“We were just about to walk in — interestingly enough, they waited to pull the plug on this right as the studio audience was about to walk in,” Tommy Williams, a would-be audience member from Jacksonville, Florida, told The Associated Press outside the theater. “They didn’t tell us what had happened. They just said that the show was canceled.”Williams said he was worried someone had been injured — until he saw that ABC had announced nearly at the same time online that the preemption was indefinite. Williams hadn’t been aware of Kimmel’s comments on Kirk, but sought them out after the announcement.

    “Jimmy Kimmel Live!” has been suspended indefinitely by ABC, following his comments about Charlie Kirk’s death.

    According to an ABC network spokesperson, they are pulling the show indefinitely and plan to air “Celebrity Family Feud” for the next two nights in its place, with future programming to be determined.

    Nexstar was first to announce that it would no longer air Kimmel’s late-night show on its 23 ABC affiliates across the country.

    There was no immediate comment from Kimmel, whose contract is up in May 2026.

    In his monologue on Tuesday, Kimmel said that “we hit some new lows over the weekend with the MAGA gang desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it.”

    Federal Communications Commission chair Brendan Carr appeared on a podcast Wednesday, where he suggested that local affiliates should pull Kimmel from the air.

    Later in the day, Carr posted on X, saying, “I want to thank Nexstar for doing the right thing. Local broadcasters have an obligation to serve the public interest. While this may be an unprecedented decision, it is important for broadcasters to push back on Disney programming that they determine falls short of community values. I hope that other broadcasters follow Nexstar’s lead.”

    Trump celebrated ABC’s move on the social media site Truth Social, writing: “Congratulations to ABC for finally having the courage to do what had to be done.”

    He also targeted two other late-night hosts, Jimmy Fallon and Seth Meyers, and said they should be canceled too, calling them “two total losers.” In July, after CBS canceled “The Late Show With Stephen Colbert,” Trump wrote on his social media platform: “I absolutely love that Colbert got fired. His talent was even less than his ratings. I hear Jimmy Kimmel is next. Has even less talent than Colbert!” Like Colbert, Kimmel has been consistently been critical of Trump and many of his policies.

    Kimmel’s show pulled as audience waited for taping

    An audience was lined up outside the theater where “Jimmy Kimmel Live!” tapes when they were told Wednesday’s show was canceled.

    “We were just about to walk in — interestingly enough, they waited to pull the plug on this right as the studio audience was about to walk in,” Tommy Williams, a would-be audience member from Jacksonville, Florida, told The Associated Press outside the theater. “They didn’t tell us what had happened. They just said that the show was canceled.”

    Williams said he was worried someone had been injured — until he saw that ABC had announced nearly at the same time online that the preemption was indefinite. Williams hadn’t been aware of Kimmel’s comments on Kirk, but sought them out after the announcement.

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  • ‘Jimmy Kimmel Live!’ suspended after host’s Charlie Kirk comments

    [ad_1]

    “Jimmy Kimmel Live!” has been suspended indefinitely by ABC, following his comments about Charlie Kirk’s death.According to an ABC network spokesperson, they are pulling the show indefinitely and plan to air “Celebrity Family Feud” for the next two nights in its place, with future programming to be determined.Nexstar was first to announce that it would no longer air Kimmel’s late-night show on its 23 ABC affiliates across the country. There was no immediate comment from Kimmel, whose contract is up in May 2026.In his monologue on Tuesday, Kimmel said that “we hit some new lows over the weekend with the MAGA gang desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it.” Federal Communications Commission chair Brendan Carr appeared on a podcast Wednesday, where he suggested that local affiliates should pull Kimmel from the air.Later in the day, Carr posted on X, saying, “I want to thank Nexstar for doing the right thing. Local broadcasters have an obligation to serve the public interest. While this may be an unprecedented decision, it is important for broadcasters to push back on Disney programming that they determine falls short of community values. I hope that other broadcasters follow Nexstar’s lead.” Trump celebrated ABC’s move on the social media site Truth Social, writing: “Congratulations to ABC for finally having the courage to do what had to be done.”He also targeted two other late-night hosts, Jimmy Fallon and Seth Meyers, and said they should be canceled too, calling them “two total losers.” In July, after CBS canceled “The Late Show With Stephen Colbert,” Trump wrote on his social media platform: “I absolutely love that Colbert got fired. His talent was even less than his ratings. I hear Jimmy Kimmel is next. Has even less talent than Colbert!” Like Colbert, Kimmel has been consistently been critical of Trump and many of his policies.Kimmel’s show pulled as audience waited for tapingAn audience was lined up outside the theater where “Jimmy Kimmel Live!” tapes when they were told Wednesday’s show was canceled.“We were just about to walk in — interestingly enough, they waited to pull the plug on this right as the studio audience was about to walk in,” Tommy Williams, a would-be audience member from Jacksonville, Florida, told The Associated Press outside the theater. “They didn’t tell us what had happened. They just said that the show was canceled.”Williams said he was worried someone had been injured — until he saw that ABC had announced nearly at the same time online that the preemption was indefinite. Williams hadn’t been aware of Kimmel’s comments on Kirk, but sought them out after the announcement.

    “Jimmy Kimmel Live!” has been suspended indefinitely by ABC, following his comments about Charlie Kirk’s death.

    According to an ABC network spokesperson, they are pulling the show indefinitely and plan to air “Celebrity Family Feud” for the next two nights in its place, with future programming to be determined.

    Nexstar was first to announce that it would no longer air Kimmel’s late-night show on its 23 ABC affiliates across the country.

    There was no immediate comment from Kimmel, whose contract is up in May 2026.

    In his monologue on Tuesday, Kimmel said that “we hit some new lows over the weekend with the MAGA gang desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it.”

    Federal Communications Commission chair Brendan Carr appeared on a podcast Wednesday, where he suggested that local affiliates should pull Kimmel from the air.

    Later in the day, Carr posted on X, saying, “I want to thank Nexstar for doing the right thing. Local broadcasters have an obligation to serve the public interest. While this may be an unprecedented decision, it is important for broadcasters to push back on Disney programming that they determine falls short of community values. I hope that other broadcasters follow Nexstar’s lead.”

    Trump celebrated ABC’s move on the social media site Truth Social, writing: “Congratulations to ABC for finally having the courage to do what had to be done.”

    He also targeted two other late-night hosts, Jimmy Fallon and Seth Meyers, and said they should be canceled too, calling them “two total losers.” In July, after CBS canceled “The Late Show With Stephen Colbert,” Trump wrote on his social media platform: “I absolutely love that Colbert got fired. His talent was even less than his ratings. I hear Jimmy Kimmel is next. Has even less talent than Colbert!” Like Colbert, Kimmel has been consistently been critical of Trump and many of his policies.

    Kimmel’s show pulled as audience waited for taping

    An audience was lined up outside the theater where “Jimmy Kimmel Live!” tapes when they were told Wednesday’s show was canceled.

    “We were just about to walk in — interestingly enough, they waited to pull the plug on this right as the studio audience was about to walk in,” Tommy Williams, a would-be audience member from Jacksonville, Florida, told The Associated Press outside the theater. “They didn’t tell us what had happened. They just said that the show was canceled.”

    Williams said he was worried someone had been injured — until he saw that ABC had announced nearly at the same time online that the preemption was indefinite. Williams hadn’t been aware of Kimmel’s comments on Kirk, but sought them out after the announcement.

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  • California conservatives mourn Charlie Kirk

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    Community vigils in California continued through the weekend to memorialize Charlie Kirk, the conservative activist who was killed by rifle fire during a Utah rally Wednesday.

    In San Francisco’s Noe Valley Park, some 80 people attended a Saturday afternoon memorial hosted by the county Republican Party. The San Francisco Standard reported the event included prayers, eulogies and placards promoting dialogue. At at one point, police officers watched from a distance.

    In Ventura County, the local Republican committee is planning a “Light in the Darkness” vigil on Monday night in Moorpark. The event, scheduled to begin at 6:30 p.m., is at Walnut Grove at Tierra Rejada Farms.

    Kirk, founder of the conservative youth organization Turning Point, was shot and killed while giving an address at a Utah university.

    The 31-year-old was popular among conservative groups on college campuses but controversial for his often deliberately provocative attacks against diversity programs and racial, ethnic and sexual minority groups.

    He had called the Civil Rights Act a mistake and recently tweeted that “Islam is not compatible with western civilization.”

    After his death, subsequent social media discourse in some sectors has become so divisive that some Utah officials called for people to log off and “go out and do good in your community.”

    Despite the environment online, politicians and advocacy groups from across the political spectrum denounced the killing.

    California Gov. Gavin Newsom said he “admired [Kirk’s] passion and commitment to debate” and called his murder “sick and reprehensible.”

    A leading Muslim American civil rights organization said “the values that led us to oppose many of Mr. Kirk’s stances are the same values that lead us to condemn his murder and reaffirm that political violence is not the answer to even the most hateful rhetoric.”

    Among the vigils held or scheduled for Kirk locally were ones in Van Nuys, Beverly Hills, Rancho Palos Verdes and Huntington Beach. In addition, the Los Angeles Republican Party promoted an online event for Sunday, “Dignity Over Violence.” It is hosted by the political depolarization nonprofit Braver Angels.

    In Moorpark, organizers were expecting hundreds to attend the Monday vigil at Walnut Grove at Tierra Rejada Farms.

    Richard Lucas III, chair of the Ventura County Republican Party, which is putting on the event, said Kirk plainly spoke the truth on issues, including the 2nd Amendment and when life starts, in the process making himself “near and dear to so many people.”

    He said he expects the vigil to include prayers, the pledge of allegiance and lots of tears.

    “Pray for peace, pray for love,” Lucas said. “We know political parties don’t always see eye to eye, but any result of violence is unequivocally unacceptable, especially political violence.”

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    Andrew Khouri, Paige St. John

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  • My Profitable Company Is Worthless to Investors — Here’s Why That Works in My Favor | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Over the past few months, I’ve received a surprising number of emails and even phone calls from private equity firms asking if I’d consider selling my business.

    “Gene,” they all say, “we’ve followed your growth in the technology space and believe we can help you unlock value while preserving your legacy and team. Would you be open to a 20-minute call to discuss mutual opportunities?”

    It’s flattering, sure. And it makes sense. According to Harvard’s Corporate Governance site, private equity exits jumped from $754 billion in 2023 to $902 billion in 2024 — about a 20% increase. Other reports show deal value rising by 50% in the first half of 2024 alone, with strategic acquisitions leading the way.

    Private equity is everywhere — scooping up contractors, manufacturers, distributors and yes, even tech companies like mine.

    Why? Because many business owners are aging out. The average small business owner in the U.S. is over 55, according to the Small Business Administration — and that was back in 2020. So a wave of exits is underway, and investors are eager to buy businesses with strong financials, recurring revenue and growth potential.

    But my business? I don’t think I’m sellable. Not because I wouldn’t entertain an offer — but because once a buyer looks under the hood, they’ll realize the uncomfortable truth: My company has no real value.

    Related: Want to Maximize the Sale Price of Your Business? Start with These 5 Value Drivers

    The balance sheet no one wants

    Let’s start with the basics. My business has no hard assets. No buildings, no equipment, no physical property. Just a bit of cash and accounts receivable.

    Sure, we also have very few liabilities. In fact, most of our “payables” are actually prepaid client deposits — blocks of time that customers purchase in advance. It’s a great way to boost cash flow and reduce risk, but it creates a liability a buyer would need to honor. Not exactly attractive.

    No contracts, no guarantees

    We don’t lock clients into long-term contracts. We’ve never sold maintenance agreements or recurring support plans. Our clients use us when they need us — and leave when they don’t.

    There’s no proprietary process or secret sauce. What we do isn’t complicated. In fact, anyone could learn it online. Our clients hire us not because we’re unique, but because they don’t have the bandwidth to do it themselves.

    So if a private equity firm were to evaluate my company, they’d quickly realize there’s no predictable revenue stream to base a valuation on. No recurring income. No clear multiple to apply. We go project to project, client to client.

    That might work for me. But it doesn’t work for them.

    A team that disappears when I do

    I do have employees. But most of the work is handled by independent contractors. That comes with its own risk — from worker classification issues to a lack of long-term commitment.

    Our setup has always been virtual. We’ve been remote since 2005. No office. No shared culture. No in-person meetings. Everyone works independently, and I check in as needed. It works for us — but it doesn’t scream “scalable organization.”

    The reality? This business doesn’t run without me. I do the selling. I do the marketing. I oversee projects, handle accounting, manage admin and lead the day-to-day. If I were hit by a bus tomorrow, this business would fold within 30 days — with contractors and staff likely splintering off to do their own thing.

    No IP, no exclusivity, no moat

    We implement CRM platforms. It’s a crowded, competitive space. The very vendors we represent are often our biggest competitors. There’s no barrier to entry. Competitors appear regularly — usually cheaper, often younger and sometimes better.

    We don’t have any intellectual property, documented systems or defined processes. Every project is different, and it rarely makes sense to create templates or workflows that won’t apply next time.

    So there’s nothing here to “buy.” No assets. No exclusivity. No edge.

    So, what do I have?

    I have a business that works for me.

    For more than 25 years, it’s paid the bills, put my kids through college and built a retirement plan for my wife and me. It’s also supported dozens of employees and contractors along the way. That’s something I’m proud of.

    My model has always been simple: do the work, bill for it, generate cash, save what you can. Rinse and repeat. And for me, it’s worked beautifully.

    But let’s be honest: this model doesn’t build transferable value. There’s no goodwill. No buyer-ready systems. No brand equity. No enterprise value. Just a highly functional, one-person-driven operation that disappears without me.

    Related: Starting a New Business? Here’s How to Leverage Transferable Skills From Your Prior Careers and Drive Success

    If your business looks like mine

    Don’t be discouraged. But do be realistic.

    You may be generating cash — and that’s great. You may be living well — even better. But unless you’ve intentionally built for scale, structure and succession, your business may not be worth much to anyone else.

    And that’s okay — as long as that’s the plan.

    For me, it is.

    Over the past few months, I’ve received a surprising number of emails and even phone calls from private equity firms asking if I’d consider selling my business.

    “Gene,” they all say, “we’ve followed your growth in the technology space and believe we can help you unlock value while preserving your legacy and team. Would you be open to a 20-minute call to discuss mutual opportunities?”

    It’s flattering, sure. And it makes sense. According to Harvard’s Corporate Governance site, private equity exits jumped from $754 billion in 2023 to $902 billion in 2024 — about a 20% increase. Other reports show deal value rising by 50% in the first half of 2024 alone, with strategic acquisitions leading the way.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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    Gene Marks

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  • Bunker Hill tower One California Plaza goes into receivership

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    A financially troubled skyscraper in downtown Los Angeles has gone into receivership as office landlords there struggle to keep their buildings leased.

    One California Plaza — the gleaming 42-story tower on Bunker Hill that was one of the most prestigious addresses in the city when it opened in the 1980s — has dropped 74% in value from its market peak.

    Earlier this year, the owners defaulted on their $300-million debt, set to mature in November, and faced foreclosure.

    At the request of lenders, a judge appointed Trigild, a receivership service, to take control of the 1 million-square-foot property, the Real Deal reported.

    One California Plaza is appraised at $121.2 million, down from $459 million in 2013, according to a Morningstar Credit report, real estate data provider CoStar said.

    Net cash flow at the property trailed expectations by 37% last year, and the building is now 62% leased after the departure of major tenants, including law firm Skadden, Arps, Slate, Meagher & Flom, which is set to relocate to Century City.

    Ownership of the property at 300 S. Grand Ave. includes Los Angeles landlord Rising Realty Partners, which declined to comment on the receivership. Co-owner DigitalBridge, a Boca Raton, Fla., investment company, did not respond in time for publication.

    In recent years, the downtown office market has shifted against landlords as many tenants have reduced their office footprints in response to the COVID-19 pandemic, when it became more common for employees to work remotely.

    Elevated interest rates recently have weighed on prices by making it difficult for building owners to refinance debt, pushing them into quick sales or foreclosures.

    Some downtown L.A. office tenants have expressed concern that the streets feel less safe than they did before the pandemic and have left for other local office centers, including in Century City.

    Downtown L.A. has 54 office buildings that are at immediate risk of devaluation and could result in nearly $70 billion in lost value over the next 10 years, creating a potential loss of $353 million in property tax revenue, according to a recent report by BAE Urban Economics.

    The report suggested converting some of them to housing because they potentially could have more value as apartments or condominiums, which could help mitigate expected tax losses.

    Converting just 10 big office buildings to housing would boost their combined assessed property value over a decade by $12 billion, adding $46 million in tax revenue and creating more than 3,800 residential units, the report said.

    The Gas Company Tower on Bunker Hill sold for around $200 million to Los Angeles County last year, down 68% from a $632-million valuation just four years ago, according to CoStar. The 777 Tower at 777 S. Figueroa St. was sold last year for $120 million, a 70% drop from its 2013 sale. EY Plaza at 725 S. Figueroa St., once valued at $446 million, is now worth about $150 million, a 66% decline.

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    Roger Vincent

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  • Nvidia’s stock market value tops $3.3 trillion – MoneySense

    Nvidia’s stock market value tops $3.3 trillion – MoneySense

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    Nvidia has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue more than tripled in the latest quarter from the same period a year earlier.

    The company’s journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here’s a look:

    $3.334 Trillion

    Nvidia’s total market value as of the close Tuesday. It edged past Microsoft ($3.317 trillion). Apple is the third most-valuable company ($3.286 trillion). One year ago, the company had just crossed the $1 trillion threshold.

    $113 billion

    The one-day increase in Nvidia’s market value on Tuesday.

    $135.58

    Nvidia’s closing stock price Tuesday. Two weeks ago the stock traded at more than $1,200, but the company completed a 10-for-1 stock split after trading closed on June 7. That gave each investor nine additional shares for every share they already owned. Companies with a high stock price often conduct stock splits to make the stock more affordable for investors.

    $119.9 billion

    Analysts’ estimate for Nvidia’s revenue for the fiscal year that ends in January 2025. That would be about double its revenue for fiscal 2024 and more than four times its receipts the year before that.

    53.4%

    Nvidia’s estimated net margin, or the percentage of revenue that gets turned into profit. Looked at another way, about 53 cents of every $1 in revenue Nvidia took in last year went to its bottom line. By comparison, Apple’s net margin was 26.3% in its most recent quarter and Microsoft’s was 36.4%. Both those companies have significantly higher revenue than Nvidia, however.

    32%

    How much of the S&P 500’s gain for the year through May came only from Nvidia.

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    The Canadian Press

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  • $10,000 reward offered after gold nugget reported stolen in Long Beach

    $10,000 reward offered after gold nugget reported stolen in Long Beach

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    A massive gold nugget was reported stolen Thursday from the Long Beach Convention Center, spurring an offer of a $10,000 reward.

    Bob Campbell, the owner of a coin shop in Salt Lake City, said he brought the gold nugget to the Long Beach Expo — a show that gathers sellers of coins and other collectibles — to sell for more than $80,000. He said its value exceeds its sheer content in gold, as an “original 49er nugget” believed to date back to the Gold Rush.

    “They will lose money if they melt it. It has collector value,” Campbell said. The roughly 27-ounce nugget was about the size of a goose egg, he added, and specimens of that size are “exceedingly rare.”

    Video captured by another coin dealer at the event shows someone appearing to press on the display case, then pocket something. Campbell faulted a defect in the case that allowed the thief to wiggle his hand inside.

    Long Beach police said they are investing the theft, which was reported before noon Thursday. Campbell is also passing out fliers with a photo of the gold nugget and the alleged thief and personally offering a $10,000 reward hinging on the arrest and conviction of the perpetrator.

    “We’re hoping that this information gets out” and maybe “one of his friends will rat him out,” Campbell said.

    He urged anyone with information to call his Utah shop at (801) 467-8636 or to contact the Long Beach Police Department regarding case number 24-28245.

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    Emily Alpert Reyes

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  • How to Provide More Value to Your Customers And Scale Your Company | Entrepreneur

    How to Provide More Value to Your Customers And Scale Your Company | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Business-minded entrepreneurs are focused on one path to success: establishing a business and achieving sustainable growth. While the direction is clear and the mission is straightforward, the path is full of challenges and missteps — but more importantly, there are opportunities.

    More often than not, the path to sustainable growth requires creativity. For example, a fitness studio that sells class passes and memberships will eventually hit a revenue plateau. This happens when growth stabilizes and income from the core service hits a predictable cadence. While there are still opportunities to sell more classes and memberships, the reality is that other revenue streams — specifically, value-add products and services – are what will truly help scale the business.

    What are value-added products and services?

    Value-add products and services enhance the customer experience, address pain points and demonstrate the company’s commitment to providing exceptional value. These “perks” offer customer benefits that go beyond the business’s core products or services.

    Offering value-added products and services to your existing customer base can create more loyal customers, which in turn can lead to increased revenue, improved customer retention, and a reinforced brand reputation.

    Related: 3 Easy Ways of Getting Value Addition Right During Entrepreneurship

    Here are three value-add products and services that can help your business scale:

    1. Digital cards

    Digital cards are virtual business cards stored in a digital wallet. They can be shared electronically via QR code scans, email, social media or messaging apps.

    Digital cards provide a convenient, digitized way to share your company’s contact information, keep customers updated in real-time, and offer exclusive deals, offers, or other perks. In essence, they help increase a brand’s visibility by always being a few taps away. The cars can also improve customer engagement and enhance the customer experience by providing special discounts or notifications exclusive to those who have the digital card.

    Some platforms can help you create and manage a digital card, and most are affordable and turnkey. The predicted ROI of the investment is tied to awareness and engagement, which, when activated with an accompanying strategy, will boost sales and revenue.

    To launch a digital card initiative, research digital care platforms and identify the providers that offer solutions aligned with your business goals, needs, and budget.

    2. Extended warranties and service plans

    While not always looked at as value-add, extended warranties and service plans provide coverage beyond a standard manufacturer’s warranty. These warranties and plans offer peace of mind to customers and can increase their confidence in your products or services.

    The additional perks and sense of security can increase customer satisfaction. If your company has the capacity and can help resolve customer issues quickly and effectively, these benefits can reduce customer churn, increase customer lifetime value, and enhance the company’s reputation and dedication to quality and satisfaction.

    The investment associated with extended warranties and service plans will vary depending on the product or service and the length of coverage. To determine the viability of this option, create a cost-benefit analysis, which will help determine if this value-added option will be beneficial and worth the investment.

    If you plan to add extended warranties or service plans to your business, evaluate the demand to ensure your customers will appreciate them. Then, find a reputable partner who can help ensure the new offerings are legally sound, competitive, and will meet your customers’ needs.

    Related: If You Want Your Clients to Truly Value You, You Need to Be Their Trusted Advisor. Here’s How.

    3. Loyalty programs

    Loyalty programs are most often focused on rewarding customers for their continued patronage. The programs encourage repeat business and foster brand loyalty by recognizing and rewarding customers based on their behaviors (and the rewarded behaviors can go beyond just the purchase history).

    Whether the loyalty program is perks-based or offers rewards points associated with discounts and coupons, loyalty programs ultimately incentivize customers to keep coming back. They enhance and trigger engagement and offer opportunities for feedback. In addition, loyalty programs launched with the right intentions and an effective structure can provide valuable first-party customer data that will help you understand your customers’ preferences and lead to a higher degree of personalization and targeted offerings.

    To implement a loyalty program, identify the “loyal” audience (demographics, behaviors, etc.) and program goals, and map out the program structure. Then, do some research and contact loyalty program providers that offer a platform and tech stack that complements your existing infrastructure.

    Leverage value-add products and services to scale

    To scale a business, you don’t have to reinvent the wheel. You can add value and create additional revenue streams by staying true to your business and developing complementary products or services that align with what you offer and what customers want. Adding these digital offerings can make it simpler to scale by boosting profitability and accelerating business growth.

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    Louis Lombardi

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  • How to navigate market risk from interest rates, the economy and politics in 2024

    How to navigate market risk from interest rates, the economy and politics in 2024

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    As the U.S. Federal Reserve’s three-year reign in the headlines potentially comes to an end, an analysis of this year’s market themes can offer valuable insights for predicting trends and ensuring attractive returns in 2024.

    Beyond the central bank’s actions, pivotal factors shaping the investment landscape this year include fiscal policies, election outcomes, interest rates and earnings prospects.

    Throughout 2023, a prominent theme emerged: that equities are influenced by factors beyond monetary policy. That trend is likely to persist. 

    A decline in interest rates could significantly increase the relative valuations of equities while simultaneously reducing interest expenses, potentially transforming market dynamics. Contrary to consensus estimates, 2023 brought a more robust earnings rebound, leaving analysts optimistic about 2024.

    The 2024 U.S. presidential election, meanwhile, introduces a new element of uncertainty with the potential to cast a shadow over the market during much of the coming year. 

    Choppy trading, modest earnings growth

    Anticipating a choppy first half of the year due to sluggish economic growth, we see a better opportunity for cyclicals and small-cap stocks to rebound in the latter part of the year. As uncertainty around the election and recession fears dissipate, a broad rally that includes previously ignored cyclicals and small-caps should help propel the S&P 500
    SPX
    higher. 

    Broader macroeconomic conditions support mid-single-digit growth in earnings per share throughout 2024. Factors such as moderate economic expansion, controlled inflation and stable interest rates are expected to provide a conducive environment for companies, enabling them to sustain and potentially improve their earnings performance. We estimate EPS growth of 6.5%. This projected growth aligns with the broader market sentiment indicating a steady upward trajectory in earnings for the upcoming year, fostering investor confidence and supporting valuation expectations across various sectors.

    “ If the economy has not been in recession at the time of the first rate cut but enters one within a year, the Dow enters a bear market.”

    When it comes to U.S. stock-market performance around rate cuts, the phase of the economic cycle matters. When there has been no recession, lower rates have juiced the markets, with the Dow Jones Industrial Average
    DJIA
    rallying by an average of 23.8% one year later.

    If the economy has not been in recession at the time of the first cut but enters one within a year, the Dow has entered a bear market every time, declining by an average of 4.9% one year later. Our base case is a soft landing, but history shows how critical avoiding recession is for the bull market as the Fed prepares to ease policy.   

    Big on small-caps

    This past year has posed a hurdle for small-cap stocks due to the absence of a driving force. These stocks typically perform better as the economy emerges from a recession. While they are currently undervalued, their earnings growth has been notably lacking. If concerns about a recession diminish, a normal yield curve could serve as a potential catalyst for small-cap stocks.

    Growth vs. value

    The ongoing outperformance of megacap growth stocks that we saw in 2023 might hinge on their ability to sustain superior earnings growth, validating their current valuations. Defensive sectors in the value category, meanwhile, are notably oversold and might exhibit strong performance, particularly toward the latter part of the first quarter. Should concerns about a recession dissipate, cyclical sectors within the value category could outperform, particularly if broader market conditions turn favorable in the latter half of the year.

    Handling uncertainty

    The Fed’s enduring influence regarding the prospect of a soft landing in 2024 remains a pivotal point in the market’s focus. Considering the themes of the past year and the multifaceted influences on equities beyond monetary policy, investors are advised to navigate through uncertainties stemming from unintended fiscal shifts, upcoming elections and the impact of fluctuating interest rates. While a potentially choppy start to the year is anticipated, it could create opportunities for cyclical and small-cap stocks later in the year.

    Ed Clissold is chief of U.S. strategies at Ned Davis Research.

    Also read: Mortgage rates dip after Fed meeting. Freddie Mac expects rates to decline more.

    More: After the Fed’s comments, grab these CD rates while you still can

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  • Thousands of California homeowners can cut their property tax bill. Here’s how

    Thousands of California homeowners can cut their property tax bill. Here’s how

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    With property tax bills as high as they are in Southern California, you’d think that homeowners would sign up for every break they could get.

    You would be wrong.

    Since 1974, the state of California has offered to reduce the assessed value of any owner-occupied home by $7,000. That, in turn, reduces the home’s annual tax bill. You just have to apply once, and the “homeowners exemption” will be applied automatically to your assessment until you move out or sell.

    According to Los Angeles County Assessor Jeff Prang, however, nearly one-third of county homeowners do not sign up for the exemption. That translates to $30 million in extra tax payments by roughly 435,000 households.

    Granted, that’s not a huge amount of money per household; with property tax rates generally set at 1% of assessed value, the $7,000 exemption saves $70 per year. But after a few years, that would be enough for a bigger TV set in your living room.

    And signing up for the exemption is especially important for homeowners hoping to take advantage of 2020’s Proposition 19, Prang’s office said in a press release Wednesday. The ballot measure allows people to transfer their homes to one or more of their children without it being reassessed for property tax purposes, potentially shielding their offspring from an enormous increase in taxes. But to qualify for this benefit, the recipient of the house must apply for a homeowner’s exemption or disabled veteran’s exemption within one year of the transfer.

    If you lived in your current abode as of Jan. 1 but haven’t claimed a homeowners exemption, you have until Feb. 15 to apply to receive the full $7,000 reduction. After that, the reduction will be prorated, Prang’s office said.

    To claim the exemption, download a form from https://assessor.lacounty.gov/homeowners/homeowner-exemption. Then fill it out with information about yourself, any co-owner and your property, and return it to the assessor’s office.

    Forms are available in English and Spanish. For more information, visit the assessor’s website or call (213) 974-3211.

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    Jon Healey

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  • California offers affordable loans again to first-time home buyers, with a catch

    California offers affordable loans again to first-time home buyers, with a catch

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    When the California Housing Finance Agency offered no-interest, no-monthly-payment loans in the spring to help lower-income residents come up with a down-payment and fees to buy their first home, the entire budget of nearly $300 million was gobbled up in only 11 days.

    Lawmakers then steered an additional $225 million into the program during the state budget negotiations last year, and CalHFA is aiming to award those funds this spring. But there won’t be a mad dash for cash this time — instead of handing out the loans on a first-come, first-served basis, the state will choose qualified applicants by lottery.

    The program has also tightened its requirements, requiring applicants not just to be non-homeowners, but also to have parents who are not currently homeowners. The point is to focus the program more tightly on Californians most in need of the state’s help.

    About 2,100 of the loans were granted before the money ran out in April, said Eric Johnson, a CalHFA spokesperson. Since then, home sales have cooled in California as interest rates climbed above 7%.

    Limited to covering the down payment and closing costs on a first home, the California Dream for All Shared Appreciation Loans max out at $150,000 or 20% of the home’s purchase price, whichever is smaller. They’re treated as second mortgages, but require no payments of any kind until the home is refinanced, resold or its first mortgage is paid off, at which point the state loan must be repaid in full.

    What makes the loans unusual — and attractive — is that they don’t accrue interest. Instead, their value rises over time with the value of the home. When a Dream for All loan comes due, the borrower repays the principle plus a percentage of the increase in the home’s value that matches the percentage of the purchase price covered by the loan. If the home doesn’t increase in value, nothing is added to the Dream for All loan.

    For example, if the Dream for All loan covered 18% of the purchase price and the borrower sells the home for $100,000 more than they paid for it, the borrower would have to repay the Dream for All loan plus 18% of $100,000, or $18,000. Borrowers with incomes of 80% or less of the county’s median income get an additional break, paying a smaller percentage of the increase in value.

    Aspiring homeowners can’t apply for the loans just yet, but they can work with participating lenders on the paperwork required to obtain one. The program will start accepting applications online in April, Johnson said.

    Who can obtain a Dream for All loan?

    To meet the definition of a first-time, first-generation homeowner, the borrower must not have held a stake in a house in the United States in the last seven years. Also, their parents may not currently hold a stake in a home. If the parents are deceased, they may not have owned a home at the time of their death. The program is also open to any Californian “who has at any time been placed in foster care or institutional care,” CalHFA says in the program manual.

    If there is more than one buyer involved, at least one must be a current California resident, and at least one must be a first-generation home buyer. Borrowers must also be U.S. citizens or noncitizens authorized to be in the country, and they must make the home they buy their main residence within 60 days after purchasing it.

    The annual income limit for qualified borrowers is 120% of the area median income, which varies from county to county. For example, it’s $155,000 for borrowers in Los Angeles County, $202,000 in Orange County and $195,000 in Ventura County.

    How do you apply?

    The first step, Johnson said, is to work with a lender that’s participating in the program to obtain a prequalification letter. The lender’s role is to make sure that you’re qualified for the Dream for All program, not necessarily for a loan. Yet before issuing a letter, the lender will check your credit report and debt-to-income ratio to determine how large of a loan you could potentially afford, so your financial health will be a factor.

    You can find a list of lenders participating in the Dream for All program at the CalHFA website.

    The state will open an online portal in the first week of April for applicants to submit their prequalification letters, Johnson said. One reason to give the public a few months to prepare before applications can be filed, he said, was to allow people time to improve their credit scores or take other steps needed to obtain a prequalification letter.

    How will applicants be chosen?

    CalHFA will accept prequalification letters for about a month, Johnson said, and they’ll all be treated equally regardless of when they arrive during that period. After reviewing the letters to make sure the applicants are qualified, the agency will hold a lottery to select which borrowers will receive vouchers for the Dream for All loans.

    The total budget for the program is enough for about 1,670 loans of $150,000. Johnson said many borrowers will take out smaller amounts, so the program expects to support 1,700 and 2,000 loans.

    What happens after you receive a voucher?

    Getting approved for a Dream for All loan doesn’t mean that you’ll be able to buy a house. You’ll still have to find one for sale that you can afford, persuade the owner to choose your bid, and then qualify for the mortgage loan from a bank, credit union or other lender.

    With a voucher in hand, however, you’ll be able to make a substantial down payment, which translates to lower monthly mortgage payments.

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    Jon Healey

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  • 'Smidcap' companies are becoming a big deal. Here's a look at some of the best.

    'Smidcap' companies are becoming a big deal. Here's a look at some of the best.

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    The stocks of long-neglected small companies are finally showing signs of life as the market rally broadens. But these tiny companies still remain vastly undervalued. So, they are one of the best buys in the stock market right now.

    Small- and medium-cap companies, or smidcaps, have not been this cheap since the Great Financial Crisis 15 years ago. “Smidcaps relative to large caps look very attractive,” says says portfolio manager Aram Green, at the ClearBridge Select Fund LBFIX, which specializes in this space.  “Over the long term you will be rewarded.” 

    Green is worth listening to because he is one of the better fund managers in the smidcap arena. ClearBridge Select beats both its midcap growth category and Morningstar U.S. midcap growth index over the past five- and 10 years, says Morningstar Direct. This is no easy feat, in a mutual fund world where so many funds lag their benchmarks. 

    The timing for smidcap outperformance seems about right, since these stocks do well coming out of recessions. Technically, we have not recently had a recession. But there was an economic slowdown in the first half of the year, and the U.S. did have an earnings recession earlier this year. So that may count. 

    To get smidcap exposure, consider the funds of outperforming managers like Green, and if you want to throw in some individual stocks, Green is a great guide on how to find the best names in this space. 

    I recently caught up with him to see what we can learn about analyzing smidcaps. Below are four tactics that contribute to his fund’s outperformance, with nine company examples to consider.  

    1. Look for an entrepreneurial mindset: Green’s background gives him an edge in investing. He’s an entrepreneur who co-founded a software company called iCollege in 1997. It was bought out by BlackBoard in 2001. He knows how to understand innovative trends, identify a good idea, secure capital and quickly ramp up a business. This experience gives him a “private market mindset” that helps him pick stocks to this day. 

    “Founder-run companies regularly outperform.”

    Green looks for managers with an entrepreneurial mindset. You can glean this from company calls and filings, but it helps a lot to meet management — something most individual investors cannot do. But Green offers a shortcut, one which I regularly use, as well. Look for companies that are run by founders. This will give you exposure to managers with entrepreneurial spirit. 

    Here, Green cites the marketing software company HubSpot
    HUBS,
    +0.79%    ,
    a 1.9% fund position as of the end of the third quarter. It was founded by Massachusetts Institute of Technology college buddies Brian Halligan and Dharmesh Shah. They’re on the company’s board, and Shah is chief technology officer. 

    Academic studies confirm founder-run companies regularly outperform. My guess is this is because many founders never lose the entrepreneurial spirit, no matter how easy it would be to quit and sip Mai Tai’s on a beach after making a bundle.  

    In the private market, Green cites Databricks, a data management and analytics company with an AI angle. This competitor of Snowflake
    SNOW,
    -0.92%
    is likely to go public in 2024. If you feel like an outsider because you lack access to private market investing, note that Green says he typically buys more exposure to private companies on the initial public offering (IPO), and then in the market.  “We like to spend time with them when they are private so we can pounce when they are public,” Green says.

    2. Look for organic growth: When companies make acquisitions their stocks often decline, and for good reason. Managers make mistakes in acquisitions because they overestimate “synergies.” Or they get wrapped up in ego-enhancing empire building. 

    “We favor entrepreneurial management teams that do not make a lot of acquisitions to grow, but use their resources to develop new products to keep extending the runway,” says Green. 

    Here, he cites ServiceNow
    NOW,
    +2.62%    ,
    which has grown by “extending the runway” with new offerings developed internally. It started off supporting information technology service desks, and has expanded into operations management of servers and security, onboarding employees, data analytics, and software that powers 911 emergency call systems. Green obviously thinks there is a lot more upside to come, given that this is an overweight position, at 4.6% of the portfolio (the fund’s biggest holding).

    Green also puts the “Amazon.com of Latin America” MercadoLibre
    MELI,
    +0.17%
    in this category, because it continues to expand geographically and in areas such as logistics and payment systems. “They have really morphed into a fintech company,” Green says. He puts HubSpot and the marketing software company Klaviyo
    KVYO,
    -5.73%
    in this category, too. 

    3. Look for differentiated business models: Green likes companies with offerings that are special and different. That means they’ll take market share, and face minimal competition. They’ll also enjoy pricing power. “This leads to high margins. You don’t have someone beating you up on price,” he says. 

    Green cites the decking company Trex
    TREX,
    +0.10%    ,
    which offers composite decking and railing made from recycled materials. This gives it an eco-friendly allure. Compared to wood, composite material lasts longer and requires less maintenance. It costs more up front but less over the long term. Says Green: “The alternative decking market has taken about 20% of the market and that can get to 50%.”

    Of course, entrepreneurs notice success, and try to imitate it. That’s a risk here. But Trex has an edge in its understanding of how to make the composite material. It has a strong brand. And it is building relationships with big-box retailers Home Depot and Lowe’s. These qualities may keep competitors at bay. 

    4. Put some ballast in your portfolio: Green likes to keep the fund’s portfolio balanced by sector, size, and business dynamic. So the portfolio includes the food distributor Performance Food Group
    PFGC,
    -1.69%    .
    The company is posting mid-single digit sale growth, expanding market share and paying down debt. Energy drinks company Monster
    MNST,
    -0.85%
    also offers ballast. Monster’s popular product line up helps the company to take share and enjoy pricing power, Green says.

    It’s admittedly unusual to see a food companies in a portfolio loaded with high-growth tech innovators. But for Green, it’s all part of the game plan. “Rapid growth, disrupting businesses are not going to work year in year out. There are times they fall out of favor, like 2022. So, having that balance is important because it keeps you invested in the equity market.” 

    In other words, keeping some ballast means you’re less likely to get shaken out by sharp declines in high-growth and high-beta tech innovators when trouble strikes the market.

    Michael Brush is a columnist for MarketWatch. At the time of publication, he owned AMZN, TSLA and MELI. Brush has suggested AMZN, TSLA, NOW, MELI, HD and LOW in his stock newsletter, Brush Up on Stocks. Follow him on X @mbrushstocks

    More: Nvidia, Disney and Tesla are among 2023’s buzziest stocks. Can they continue to sizzle in 2024?

    Also read: Presidential election years like 2024 are usually winners for U.S. stocks

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  • Florida company targeted California homeowners with predatory scheme, state attorney general alleges

    Florida company targeted California homeowners with predatory scheme, state attorney general alleges

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    The California attorney general has sued a Florida-based real estate firm, alleging it ran a predatory scheme that limited homeowners’ ability to sell and left them vulnerable to owing thousands of dollars.

    The company, MV Realty, has been sued over similar allegations by multiple states. In September, the firm filed for bankruptcy.

    In its lawsuit announced Thursday, the California attorney general’s office alleged MV Realty targeted financially vulnerable California homeowners with deceptive marketing, promising them $300 to $5,000 as long as they gave MV Realty the “opportunity” to be their real estate agent if they sold their house.

    In reality, MV Realty’s Homeowner Benefit Agreement was far more complicated and the company trained its representatives to give misleading responses to consumer questions and to try to provide the full agreement only at the time of signing, which limited the ability of homeowners to review confusing fine print, the lawsuit alleged.

    “MV Realty is a financial predator,” Atty. Gen. Rob Bonta said in a statement. “Through its one-sided agreements, the company lined its own pockets at the expense of vulnerable homeowners in California, holding their most valuable assets hostage.”

    MV Realty did not immediately return requests for comment by email and phone.

    According to the attorney general, the MV Realty agreement mandated homeowners use the brokerage if they sell their home in the next 40 years — far longer than typical exclusive listing agreements that last several months, the lawsuit says.

    When a homeowner sells within the four decades, the lawsuit says, MV Realty gets six months to list the property, per the agreement. If the company completes the sale, the homeowner is required to pay MV Realty the greater of 3% of the sales price or 3% of the home’s value at the time the owner signed the benefit agreement, authorities said.

    If MV Realty can’t sell the home within six months, the agreement says homeowners get 60 days to try to sell the home on their own or with another brokerage and must do so at the same price and terms MV Realty offered, according to the lawsuit.

    If homeowners can sell, they owe MV Realty nothing. But if they cannot — which authorities said is likely — homeowners must use MV Realty to sell or pay a fee of 3% of the home’s value to terminate the 40-year agreement, according to the lawsuit. On an average home in L.A. County today, that would be over $25,000.

    That termination fee is typically more than 10 times the upfront fee the homeowner received from MV Realty, the lawsuit says.

    In its lawsuit, the attorney general alleged that the agreement reduces the incentive for MV Realty to provide quality service and that the company violated California law in several ways, including unlicensed activity and improper disclosures.

    According to the attorney general, since early 2022 at least 1,443 California homeowners signed the company’s Homeowner Benefit Agreement. The company “supposedly stopped” signing up California homeowners by November 2022 but still enforces existing agreements, as well as liens that limit the homeowner’s ability to refinance, the lawsuit alleges.

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    Andrew Khouri

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  • Hoping to build an ADU? New grants can help low-income Californians get started

    Hoping to build an ADU? New grants can help low-income Californians get started

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    State officials have revived a popular grant program to help lower-income California homeowners build accessory dwelling units by covering some of the upfront costs. But funding is limited, so demand for aid may soon outstrip the supply of dollars.

    The California Housing Finance Agency’s ADU Grant Program offers up to $40,000 to qualified homeowners to cover pre-construction costs of an ADU, including planning and permit fees for the structure. The program exhausted its initial $100 million months ago, causing the agency to stop taking applications; now, $25 million more is available for homeowners seeking help.

    Obtaining a grant is not as simple as filling out a form online, however. For starters, applicants have to meet the program’s new income limits. Household income must be less than 80% of the area median income, which translates in Los Angeles County to $84,160. That’s down from 150% of the area median income in the initial round of grants.

    Applicants also need to work through a state-approved lender or “special financing participant” because the grants aren’t paid to homeowners — they’re paid to lenders. The CalHFA website lists 18 participating lenders as well as 10 governmental or nonprofit agencies, including Neighborhood Housing Services of Los Angeles County, which specializes in affordable housing.

    Typically, homeowners must obtain a construction loan for an ADU from a participating lender before seeking an ADU grant. The loan will cover the costs that the grants will reimburse, including architectural designs, permits, soil tests, impact fees, property surveys, energy reports and utility hookups, the agency says. These expenses can make up a sizable portion of the cost of a new ADU, especially one built by converting a garage or other existing structure.

    If you haven’t started work on an ADU yet, let alone obtained a loan, you can still get in line for a state grant. Neighborhood Housing Services, which provides construction loans for ADUs, says it will try to reserve a potential grant for anyone who emails it two pieces of information: a current mortgage statement and one month’s worth of pay stubs or other proof of income. The information, which should be sent to admin@nhslacounty.org, should also include the person’s legal name, address and Social Security number.

    A homeowner who meets the income limits but can build an ADU without a loan can still apply for a grant through NHSLA. But the agency’s construction team would have to manage the project and the grant funds, said Iris Cruz of Neighborhood Housing Services.

    Grant applicants will have to sign and submit an affidavit to CalHFA attesting to several things about themselves and their plans, including that they are a U.S. citizen or legal resident; they own and have their primary residence on the property where the ADU is being built; they will use the ADU for permanent housing or long-term rentals; and the ADU will conform to local building and zoning codes. If any of those statements prove to be false, the applicant could face a prison term and a fine of up to $10,000.

    The lender, meanwhile, will have to attest that the grant applicant meets the program’s income limits.

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    Jon Healey

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  • 4 Tips To Get A Great Broker’s Opinion Of Value

    4 Tips To Get A Great Broker’s Opinion Of Value

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    If you’re selling a residential or commercial property, getting a top-notch broker’s opinion of value can work in your favor. You’ll want to work with someone who is aware of what has sold in the past in the market, along with the current environment. It will be helpful if the broker has access to additional insight and data, which will make them stand out from others in the region, and ultimately increase your chances of a successful transaction.

    Use these guidelines to get a great broker’s opinion of value.

    1. Find Someone Who Uses the Right Sales Comps

    A broker who is aware of comparable properties in the area will be able to add a layer of context for an opinion of value. It’s important that your broker focus on the right sales comps and data. They should be calculating the price per square foot of similar assets, which will make it easier to see how a property might perform in the market. For multifamily properties, the price per unit typically provides further insight. Your broker should be checking the cap rate and type of tenancy, along with a review of the conditions of the property. They might even speak with the broker involved in past comparable transactions to learn why a property sold for a certain price.

    2. Look for a Broker Who Knows Current Sales

    While sales comps provide insight that can be applied toward an opinion of value, they also tend to serve as a rearview mirror. They reflect what happened in the market several months or more in the past. The data they provide could be a year old and might not accurately portray recent trends.

    For this reason, it’s essential for both residential and commercial brokers to have a grasp of current sales. In fluctuating markets with rising interest rates, the more recent the data, the better. If your broker knows what was signed in the past week, they’ll be able to apply those details to the property you’re currently preparing to sell.

    3. Get a Broker Who Understands the Marketplace

    In addition to macro trends, a great broker will be aware of the pulse of the submarket. This could include looking at job data to see if employment rates are increasing, how population demographics are changing, and what amenities residents are interested in.

    Knowledge of the potential of a place can help to add depth to an opinion of value. For commercial properties, details on an income approach could be added to the estimate. The information might list what you, as an investor, could look for in a property that is delivered vacant. For instance, is there a premium? Would someone pay to use it? If there are opportunities for development, this could be outlined as well. Taxes will need to be addressed too.

    4. Work with a Broker Who Has a Solid Track Record

    After breaking into a market, each sale can help to establish a broker’s credibility. A long list of successful transactions and referrals will add relevance to an opinion of value. As I mentioned in an earlier article, I offer to show others my entire sales list and let them contact any owner from it.

    Getting an in-depth and accurate broker’s value of opinion can help you differentiate yourself from other sellers in the space. It gives you the chance to leverage data about current market conditions, along with additional insight that can be used later in the deal. Of course, there’s more to the equation when selling than a broker’s opinion of value, and we’ll cover these additional topics in future articles. The best brokers will have a tangible marketing plan for the property, be able to show the place in the best light and be ready to be involved in the negotiation process.

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    James Nelson, Contributor

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

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

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    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.

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    Jarrett Preston

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  • 5 Intangible Metrics That Drive Business Success | Entrepreneur

    5 Intangible Metrics That Drive Business Success | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the world of business, success is often measured by concrete metrics such as revenue, profit margins and market share. While these indicators certainly hold importance, there exists another dimension that can greatly influence the trajectory of an enterprise. It is the realm of intangibles, those elusive qualities that can make or break a company. Consider five such intangibles — enthusiasm, inspiration, creativity, connectivity and value — and how they hold the key to unlocking unparalleled business success.

    Enthusiasm: Fueling the fire within

    Enthusiasm is the driving force that propels entrepreneurs and their teams forward. It is the spark that ignites passion, fuels perseverance and cultivates an unwavering belief in one’s vision. When leaders exude enthusiasm, it becomes contagious, permeating throughout the organization. An enthusiastic workforce is one that goes above and beyond, consistently delivering exceptional results and surpassing expectations. It creates a positive work culture, attracts top talent and fosters customer loyalty.

    The energy and excitement that stem from genuine enthusiasm are invaluable assets that can steer a business toward unprecedented heights. Moreover, people who are enthusiastic about what they do and who they work with and for are likely to stay with their job, decreasing turnover and greatly helping the continuity and bottom line of a company.

    Related: The Basics of Business Success

    Inspiration: Fostering vision and purpose

    Inspiration lies at the heart of every successful venture. It is the driving force behind groundbreaking innovations, transformative ideas and visionary leadership. Inspired individuals possess a deep-rooted sense of purpose, which guides their decision-making and propels them to overcome obstacles. By fostering an environment that nurtures inspiration, businesses can tap into the boundless potential of their teams.

    Inspirational leaders cultivate a shared vision, instill confidence and encourage creativity, empowering their employees to think outside the box and embrace bold ideas. A workforce inspired by a compelling purpose becomes a formidable force, capable of achieving greatness. Great businesses can and should encourage their employees to reach beyond their daily responsibilities and share ideas and suggestions. If you limit the roles and contributions of employees, you are stifling one of your greatest assets.

    Creativity: Forging new frontiers

    Creativity is the wellspring from which innovation flows. It is the ability to think differently, to break free from established norms and to pioneer new paths. In today’s rapidly evolving business landscape, creativity is no longer a luxury; it is a necessity. Organizations that encourage and celebrate creativity create a culture of continuous improvement and adaptability. By harnessing the power of diverse perspectives and fostering an atmosphere that encourages risk-taking, businesses can unlock the untapped potential within their teams.

    Creative problem-solving, product innovation and disruptive thinking become the norm, setting a company apart from its competitors and opening doors to uncharted possibilities. Business can and should encourage creative thinking at every level. They should create opportunities and pathways for anyone to share ideas and become more vested in the success of a company.

    Related: 5 Ways to Inspire Creativity and Innovation in Your Employees

    Connectivity: The borderless advantage

    In an increasingly interconnected world, connectivity is a strategic advantage that cannot be underestimated. Building strong relationships and fostering meaningful connections is the cornerstone of business success. Networking with industry peers, engaging with customers and collaborating with partners creates a web of support and opportunity. By cultivating a robust network, businesses gain access to invaluable resources, knowledge and expertise. In the digital age, connectivity extends beyond traditional boundaries, with social media and online platforms providing avenues to connect with a global audience.

    The power of connectivity lies in its ability to amplify reach, accelerate growth and forge strategic alliances that fuel progress. Connectivity can and should start with the interworking of your business. Every employee should know and appreciate the roles and responsibilities of the people with whom they work. They should have the opportunity to engage with one another. This type of connectivity fosters appreciation, trust and support — all critical intangibles.

    Value: The currency of success

    Value creation lies at the core of every successful business endeavor. It certainly includes the ability to provide products, services or solutions that meet the needs and desires of customers. Beyond mere transactions, value is about building long-term relationships, delivering exceptional experiences and exceeding expectations. When businesses consistently deliver value, they cultivate customer loyalty, generate positive word-of-mouth and foster a sustainable competitive advantage.

    Value can manifest in various forms, whether it be quality, convenience, affordability or exceptional service. By focusing on creating value, businesses build a solid foundation for enduring success. However, value begins internally. When employees feel valued, they work harder and are more productive. When employees feel like what they do contributes value to the company and others, they feel more vested, a sense of pride and a sense of purpose. Though value is a bit intangible, it is quantifiable.

    The intangibles of enthusiasm, inspiration, creativity, connectivity and value will not show up on a balance sheet. They will not be reported on at a shareholders’ meeting. And they are, at best, glossed over in business school. But nearly every area of a company’s business success (or failures) can be traced back to one or more of these vital components.

    Related: 4 Ways to Make Value Creation Core to Your Business

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    John Peitzman

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  • Entice Customers to Make Additional and Larger Purchases Using These Two Tactics | Entrepreneur

    Entice Customers to Make Additional and Larger Purchases Using These Two Tactics | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If the subscription methodology utilized by many software companies has served a larger purpose, it is that companies will benefit financially by focusing beyond just one-and-done purchases. Instead, they want repeat purchases from engaged customers. To entice customers to make more purchases, marketers may choose from two approaches — the cross-sell or the upsell. Both of these tactics are viable and convince shoppers to purchase something they hadn’t planned to buy when they first interacted with your brand. But because they’re fundamentally different approaches, they’re best deployed with a few considerations in mind.

    Understanding two different animals

    Upselling is where a company promises an upgraded or higher-value product version to a customer. It attempts to move the buyer from something relatively basic to a bit more advanced. A classic upsell is McDonald’s asking if customers would like to supersize their meals. But other upsells might include moving a customer to a higher tier in a subscription plan, showcasing a featured product, or offering a discount or free shipping if the customer spends a set amount.

    Cross-selling promotes additional products that supplement what the customer has already purchased or is looking to buy. The classic cross-sell at restaurants is to ask if the customer wants to add fries to their order. On a company’s website, if a customer has given permission to offer personalized recommendations, they should see articles with products that align with whatever they just bought. So if they bought an investment that focuses on energy companies, they might be open to learning more about another investment that focuses on water or utility companies. Many companies do excellent cross-selling by showing buyers what other customers frequently purchase together, or by offering product or service bundles.

    Related: Customer Service Is the New Upsell

    The perception of value

    If upselling and cross-selling can both generate an additional or larger sale, how do you know which one to use with a customer? It’s all about their perception of value, rather than your own. If they would see something more advanced as valuable, you upsell. If they would see something supplemental as valuable, you cross-sell. This concept challenges many professionals who let their own preferences, biases or excitement around their innovations drive what they market.

    So then how do you know what the customer thinks is valuable? You go back to your data. Look at the history of what they’ve bought and try to anticipate future needs based on that information. Previous sales open the door to talking with them about purchasing an additional or enhanced product. With the information about what they’ve already done on hand, you can educate them on better uses of the product, advise them on new ones, and even validate their purchase decision with case studies that demonstrate the value of that choice.

    You have many good options for applying your customer data in post-purchase communication. You can have a sales representative contact a customer after the sale to see if they’d like to upgrade or purchase anything else. Another website-based option many companies use is to show customers other products they might be interested in once they’ve made their purchase. Even if you don’t have a website, you can track what a customer searches for on a landing page. Whatever they enter can direct you to make an offer within an email, call or personalized exit/confirmation page.

    Related: How Up-selling and Cross-Selling Can Increase Your Revenues with Minimal Efforts

    Personalization makes a difference, but permission counts

    Personalization works wonders with upselling and cross-selling because each buyer’s interests and purchase history give you insight into what other products they may find valuable. It helps ensure that your recommendations are relevant and useful.

    The key is to remember that personalization requires permission. Without permission, you run the risk of violating privacy regulations. Even if you stay within the legal boundaries, customers can perceive it as unnerving if you know information that they didn’t volunteer. Opt-in is vital. It ensures that when you look at their history or other information to produce a new offer, the upsell or cross-sell seems like a logical progression in the interaction they’re having with you.

    In both upselling and cross-selling processes, be transparent

    Getting permission and buy-in by nature requires transparency between you and your customer. Be clear and honest not just about how their additional purchases can add value for them, but also about the ways in which you use their data.

    On the back end, transparency also means pulling in multiple data sources so you can see the big picture around the information you have. Those sources might include which pages the client has viewed on your website, which emails they’ve opened, what landing pages they’ve visited, etc. It’s important to track interactions on both the sales and marketing sides to get the most complete picture of how your customers interact with your brand. Once you can see everything they’ve done with you, you’ll have a core sense of the best way to provide value to them.

    Related: Cross-selling Strategies and Data-driven Analytics the Key to Driving Business Growth in the Financial Sector

    Effective upselling and cross-selling create new opportunities

    Despite their differences, upselling and cross-selling can help to maintain a strong connection between you and your customers. The trick to choosing the best approach is determining what they will perceive as adding the most value. To make that determination, customer history is your best friend — so long as you’ve gotten permission to use this data. But if you’re transparent about what you’re doing and consider multiple data sources for the big picture, it becomes easier to figure out when and what to offer. Once you’ve mastered cross-selling and upselling, and when to use each approach, the potential within your sales is limitless.

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    David Partain

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