Category Archives for Uncategorized
The Best Ways to Manage Properties Successfully
The following is a guest post. Enjoy!
In this post, we’ll discuss something that would definitely make all the real estate and property managers chary and curious. Here are some influential and effective suggestions for people who are looking for the well tried-and-true ways and practices of an experienced property and real estate manager, who has the knowledge of how to manage and operate a booming property business that can bring a fortune for them and avoid pointless mistakes, financial losses, and wasting of time. These suggestions are very significant, and hence, it is important to invest time in learning and understanding these secrets.
As a property or real estate owner or manager, it’s not at all easy to become satisfied and rely on our success. A single mistake can cost a lot in this profession. So, it is advisable for the real estate managers to stay vigilent. It is good idea to associate with the local associations that comprises of a list of commercial and residential properties, like multi family residential homes and apartment housing areas. Do attend the monthly meetings to learn new methods, to acknowledge latest property trends and to meet well-known and experienced property dealers or managers. This might help you in getting leads for your new client!
The best way to manage the property business is to embody yourself as your company. This can be the most efficient tip, which can help the property managers to enhance their ultimate results. Aims and fresh suggestions blended with inimitable experience and background are the main features that can open the doors of success and bring the expert excellence within you. The process of becoming a successful and efficient property manager includes aspects like never failing to take care of your employees, because a committed staff serves as the best resource for earning reputation and glory. Work hard to enhance your knowledge and proficiency as you are the very first employee of your company.
You not only work for the company but you are the face of your company, so you need to sharpen your talents and skills in order to build trust and confidence amongst your potential clients. Life of a real estate manager is not easy, as he or she needs proper time to eat, rest and exercise in order to keep their body and wits fit. Ensure that your personal relations might not affect your property related decisions, this can cost you a lot in future. With these suggestions, you might not become a perfect property manager, but you will definitely witness that you are better than what you were before.
The key to achieve a flourishing career in the property and real estate sector is to celebrate and enjoy the big as well as small success and gains, and bounce back and learn from the failures. Always keep your level of enthusiasm high and at the same time, always maintain that curiosity, which powers your determination to search for more beneficial methods to achieve more success and transform yourself into a perfect property manager in future!
How about you all? Have you ever served as a landlord? If so, what tips can you share that facilitated your success?
Share your experiences by commenting below!
***Photo courtesy of http://www.flickr.com/photos/kenlund/6052193940/sizes/
Real Estate Agents vs Selling Your Home DIY – Which is Better Suited For You?
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post by Alex Sebuliba. Enjoy!
In an increasingly independent world, the general public has access to a vast amount of resources that decades ago would not have been imaginable. From cloud computing to remote working, we are also now able to undertake fairly large scale tasks on our own without professional help. The vast resource of information that is the internet has made sure that help is at hand wherever we turn.
This is also the case when you decide to move / buy a new home.
For years now, people have been able to search for their dream property online, but have always had to include real estate agents every step of the way.
This isn’t the case anymore, and it’s been proven that an increasing number of people are now turning to a DIY approach when it comes to buying and selling. However, does this really save you time and money? This blog post investigates…..
Example A – The DIY Home Seller
So, you’ve searched for your dream property and want to sell your existing home – which happens to be in Nottingham, for example.
There are a variety of sites you can use for this, but the first step is to contact a company which provides the tools and services required for selling your home as a personal project. For a fee, they’ll send you a ‘for sale’ sign and then advertise your property on major sites which dominate the market such as Rightmove and Zoopla. It does still cost money, but it’s estimated that depending on the property you’re trying to sell, you could save up to £6,000 doing it this way.
After researching house prices and resale values in Nottingham, you would then get to work obtaining certificates, documents and evidence for potential buyers. There’s one small problem however…
What if your property doesn’t sell?
The house has been on the market for a while, and so far, you’ve managed to save money by not letting any estate agents in Nottingham in to the selling process. But, you’ve only had a small amount of interest, and the time you have to take out of your day to work on the sale of the home is becoming prohibitive. Not only may this become a frustrating process, but you also have to bear in mind that if you have signed up for independent sale in relation to any advertising company, you will still be charged a fee around £500. OK so it’s still a lot cheaper than using agents, around about £5000 cheaper than using agents, but what if you can’t manage to sell and eventually revert to using an estate agent after time?
Not only does that defeat the initial purpose of independent selling but it also means that you would have paid your independent advertisement fee of £500 on top of the cost of using an estate agent as well as wasting the time investment.
What do the traditional agencies have going for them?
Firstly, the estate agents in Nottingham, or the estate agents in Leicester, Birmingham, Bristol, London or wherever they are, will have a deep understanding and knowledge of the local area. They’ll be well versed on the in’s and outs of the property market and will be able to give personal advice based on your specific needs.
Secondly, practice makes perfect when it comes to price negotiating. It’s a skill many people think they possess, but in reality, it’s better to leave it to the professionals who know how to drive a hard bargain and get a price that is deserved.
Thirdly, and finally, all estate agents in Nottingham or wherever they may be are part of the financial ombudsman scheme – which provides people with safety and confidence in the knowledge that financial compensation is available if things go awry.
In this article, we’ve looked at some of the points and issues surrounding the DIY vs. Estate Agents debate. There is no denying it has become increasingly popular to go down the route of doing it yourself, however, you must bear in mind that even in today’s world, real estate agents have the professionalism and expertise to provide a competitive edge to your sales process.
How about you all? Have you used real estate agents or the DIY approach in the past to sell or buy a house? Why did you choose one over the other?
Share your experiences by commenting below!
Photo – http://farm5.staticflickr.com/4008/4590480945_4050b966bf_z.jpg
How Do You Find The Right Professional Indemnity Insurance For Your Needs?
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post. Enjoy!
Setting up and running a business is a complex task that requires much planning and dedication. And precisely because so much effort is involved, it only makes sense that professionals and business people would want to protect the source of their livelihood. This is where professional indemnity insurance comes into play.
But, as it happens with other types of insurance, it is often difficult to make a decision when it comes to choosing a suitable insurance provider. In this post, we list the best tips to help professionals find the right professional indemnity insurance cover.
Professional indemnity insurance: who is it for?
Purchasing professional indemnity insurance should be considered by any professional who wants to be protected against compensation claims. Clients can sue a professional if they suffer injury or financial loss as a result of inaccurate advice, errors, omissions, and faulty goods or services. Therefore, it is common for solicitors, medical professionals, architects, accountants, consultants, freelancers, pharmacists, translators, therapists, and psychologists to be covered by professional indemnity insurance.
It must also be noted that some professionals are required by law to have professional indemnity insurance before they can take on clients. In the United Kingdom, financial advisors, accountants, surveyors, architects, engineers, and IT consultants must be covered by professional indemnity insurance. In other professions, the relevant trade associations might require members to be insured.
To sum up, it is a good idea to have some level of professional indemnity cover, even in professions where this type of insurance is not mandatory. This can protect business owners and their companies and give them additional peace of mind.
Top tips to find the right professional indemnity insurance policy
Some of the things to keep in mind when comparing professional indemnity insurance providers include:
– Requirements made by professional bodies or by law
In some professions where professional indemnity insurance is mandatory, the relevant professional body has already set out exactly how much indemnity insurance members should have. This is the case of accountants, who are required to have a policy that is worth at least 2.5 times their gross income, based on the previous year’s figures.
– The level of cover
Companies may offer protection against loss of client data, damage or misplacement of documents, negligence, unintentional breach of intellectual property rights, and unintentional misuse of confidential information, libel, slander, and defamation. However, not all policies cover all of these instances, so it pays off to spend some time making sure that insurers offer the adequate level of protection for every business.
-The policy limitations
When it comes to insurance, limitations or exemptions are almost as important as the level of cover. For example, professionals working in fields like construction or environmental consultancy must remember that this type of insurance does not cover professionals against pollution or environmental claims. In many cases, work that has been carried out abroad or by sub-contractors is not covered either.
Another thing to look out for is whether legal expenses cover is included in the policy or not, and if so, to which level. We all know that legal services come at a high price, and more so in certain types of compensation claims.
– The policy type
Professional indemnity insurance policies come in two forms. In the event of a claim being made, each and every claim policies (also known as any one claim policies) will pay the agreed amount for every claim that is made. On the other hand, aggregate policies consider all claims being made during the period in which the policy is in force as one single claim. In this case, once the maximum amount agreed has been paid out, future claims will not be covered.
Last but not least, it is useful to look for a policy that is specific to each trade, rather than a “generic” one. This will ensure that professionals can carry out their job with complete peace of mind, knowing that their insurers are aware of the specific risks involved and able to cover them to satisfactory levels.
How about you all? Do you carry business insurance for your ventures?
Share your experiences by commenting below!
Photo credit – http://upload.wikimedia.org/wikipedia/commons/thumb/a/ae/Protect_earth.png/681px-Protect_earth.png
4 Golden Rules for Getting a Car Loan
The following is a guest post. Enjoy!
Be realistic about your credit situation
Go and shop around
Don’t be forced into adding extras to your credit
Beware the conman
How about you all? What rules do you follow to make sure you get a good-quality car loan?
Share your experiences by commenting below!
***Photo courtesy of http://www.flickr.com/photos/uggboy/4098274795/sizes/l/in/photostream/
Introducing The 2nd Annual Tour de Personal Finance Competition – Submit Your Best Posts Today!
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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I simply love the Tour de France.
There is truly something magical about watching this particular 3 week cycling race unfold in July each summer. In the race, the riders cover nearly 2,000 miles, including stages through the majestic Alpine Mountain range and the sunflower and vineyard fields of Southern France. As an avid cycling fan and past Category 2 road cycling racer (I raced once-upon-a-time from 2001-2005), July is a truly a glorious time of year.
For the 2nd year in a row in July 2012, MyPersonalFinanceJourney.com will be hosting the Tour de Personal Finance. The Tour de Personal Finance is a month-long Tour de France-themed personal finance-blogging competition. In 2011 (the first year for the event), thanks to AWESOME participation by the PF blogger community, the Tour was a great success. This year, I’d love to have you participate once again!
WHAT IS THE GOAL OF THE TOUR DE PERSONAL FINANCE?
HOW THE TOUR DE PERSONAL FINANCE WORKs
- Personal finance bloggers will submit their best, highest quality post from the past year (only one post) to me via email (see below for details of how to submit a post) before July 1st.
- The posts will then be paired off using a random number generator.
- The paired posts will “compete” against each other each day in a stage (what they call each day of racing in the Tour de France), which will be posted on My Personal Finance Journey.
- Readers will comment on the post to vote for which post they think is better. The post with the most votes each day will be declared the STAGE WINNER.
- The stage winners will move on to the next round, where they will square off against other stage winners. Again, the best post each day will be voted for by the readers.
- The blog author will be allowed to vote for him/herself. Others will most likely do it, so you should too! But, no gaming of the system will be allowed. Entrants will, however, be allowed to ask their friends to vote for them, promote the contest on their site, etc.
- At the end of the month, the final winner of the competition will be crowned the Maillot Jaune (or the yellow jersey, which is given to the overall winner of the Tour de France each year). Ties will be broken by me.
WINNERS’ JERSEYS
- Yellow Jersey – Winner of overall competition. Article voted “best” by readers. See “Changes in This Year’s Event” section below for details on the prize for the winner.
- White Jersey – Goes to highest placing, new blog (judged by how far they get in the competition and how long they have been blogging).
- Green Jersey – Goes to the blog whose article wins a single stage “the fastest.” In other words, the Green Jersey goes to the blog who wins a single stage by the biggest margin against their competitor.
- Polka-Dot Jersey – Goes to the best blog article entered which details information on “climbing” out of the debt “mountain”.
HOW TO ENTER
- Name and URL of blog.
- URL and title of your best article from last 12 months.
- A concise 2-5 sentence description of the post (this will be posted on each stage’s announcement, so really SELL why post should win!).
- The month and year in which you started blogging (will be used to determine White Jersey winner).
Some Information About Last Year’s Event
Some exciting new changes for this year’s Tour
- Last year, there were 48 different personal finance blogs/articles that participated. For the 2012 event, I am targeting to have 64 different blogs/articles competing.
- I will be reserving the reader portion of my 10% monthly blog income give back event for both June and July as prize money to the Yellow Jersey winner (~$100). The Yellow Jersey winner will also select a charity of their choice to receive the charity portion of the 10% monthly blog income give back (~$100).
- Lastly, in the 2012 event, I have actively been seeking out platinum, gold, silver, and bronze sponsorships from various contacts in the PF realm. I plan to donate half (50%) of all sponsorship proceeds to a charity selected by the overall competition winner (Yellow Jersey).
- I’ve gotten a couple sponsors interested already, but if you have a close relationship with any contacts that would be interested in teaming up to sponsor this event, please email me and I can send you the sponsorship/media kit I’ve put together.
- As an incentive for connecting the event with sponsors, I’ll give you 25% of any sponsorship that is realized as a result of your referral.
***Photo courtesy of http://www.flickr.com/photos/cradlehall/5949767523/sizes/l/in/photostream/
Welcome Good Financial Cents Readers!
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Welcome Good Financial Cents readers! Thanks so much for stopping by my site by way of the my guest post today over at Jeff’s blog listed below. I’m very happy to have you here! 🙂
Can A Random Number Generator Beat the Market and 70% of Investment Professionals?
If you’re stopping by my site for the first time, I just wanted to give a little guide towards what I offer here, since information overload can occur quickly and time is our most valuable asset.
To introduce myself, my name is Jacob. I started this site back in January of 2010, and since then, have poured my heart and soul in to the site to produce a product I am proud of and I think adds value to the world. You can read a little more on my background and even see a picture of me on the “About” or “First-Time Visitor” pages to find out more about us.
WHAT I WRITE ABOUT HERE AT MY PERSONAL FINANCE JOURNEY
In short, I like to offer actionable personal finance advice with the goal of achieving long-term success.
Specifically, I really enjoy writing about the following areas (I’ve also listed several posts related to each topic in case you’re interested in reading more):
- Long term investing and asset allocation strategy analysis
- Vanguard vs. Fidelity – Which Funds Are Better?
- What To Do With Your 401k Savings When Leaving Your Employer
- The Permanent Portfolio by Harry Browne – Component Returns Correlation Analysis and My Future Plans
- Valuation Informed Index Investing vs. Passive Investing – Which is Better?
- Deciding how to prioritize new funds as they come in to various spending requirement areas
- Account Prioritization Hierarchy – Which Monetary Needs Come First?
- How Do Mortgage Payments Fit in to the Account Hierarchy?
- How to develop a lifestyle of frugality and live according to your life dreams and life values
ARTICLES SIMILAR TO MY GUEST POST TODAY AT Good Financial Cents
Additionally, if you liked the theme/topic (investing strategy analysis) of the guest post I wrote for Good Financial Cents today and are interested in similar posts I’ve written in the past, you might want to check out the ones below:
- Valuation Informed Index Investing vs. Passive Investing – Which is Better?
- Performance Analysis of the American Growth Mutual Fund
- Was the Lost Decade Really Lost for Investors?
- Dollar Cost Averaging vs. Dollar Value Averaging – Which Makes You More Money in the Long Run?
WAYS TO STAY IN TOUCH WITH NEW CONTENT
- If you would like to receive free updates on articles by email, then sign up here.
- Or, you can subscribe to the RSS feed.
- Also, follow/like our pages on Twitter or Facebook.
10% MONTHLY BLOG INCOME GIVEAWAY
Also, each month, I give away 10% of any income I make from this site, with 5% going to blog readers and the other 5% going to a charity selected by the grand prize winner. You can read about all of the details by clicking here.
So far, we’ve given away:
- Current total given to charity = $400
- Current total given to blog readers = $450
The June 2012 give back will be rolled up/included in the prizes on offer for the winners of the 2012 Tour de Personal Finance, which will take place in July on My Personal Finance Journey. Stay tuned for more details!
Thanks for visiting! Keep on learning!
***Photo courtesy of http://www.flickr.com/photos/rameshng/5930493923/sizes/l/in/photostream/
Ten Ways to Keep Energy Costs Down in Winter
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post. Enjoy!
During the summer months, our energy bills (non-natural gas at least) are obviously a great deal lower than in winter. This, arguably, makes the summer perfect for preparing your home to make it as energy efficient as possible, which will in turn help you keep a handle on your energy bills when the temperature does drop later in the year.
Here are some simple, yet effective ways that you can keep the cost of utilities down:
1. Check Your Insulation
Old or poorly laid insulation in your walls and roof could be costing you a significant sum of money each year. Hire a contractor to check the condition of your cavity wall insulation or contact your local authorities to see if they employ a dedicated team they can send to advise you.
2. Turn Lights and Appliances Off
A huge proportion of the energy we produce is wasted on television sets, stereos, and computers being left on standby. By simply turning these appliances off when you are finished using them and remembering to switch off lights when you leave the room, you could shave a considerable amount from your electricity bills.
3. Invest in Green Energy
Solar panels are a great way of cutting down on electricity costs and providing an extra income stream. While purchasing and installing solar panels is not cheap, thanks to feed-in tariffs, you could start selling energy back to the suppliers immediately and within a few years, have recouped your investment. Stick with this form of renewable energy long enough and you could find that electricity bills become a thing of the past.
4. Consider the Age of Your Boiler and Heating System
Older models will simply not run as efficiently as newer ones. If your heating system and boiler have been in use for more than twenty years, chances are its energy efficiency is low. A new system may be expensive to install but combi-boilers take up less room and run on less power, meaning the savings soon outweigh the costs.
5. Clean
Simple acts like cleaning the condenser coil on your refrigerator can improve the energy efficiency of the appliance. It is usually located under the door; perfectly situated for sucking up dust and grease. Got a filter attached to your heating system? Clean that regularly too to make sure your boiler will not breakdown due to blockages or dirt in the system.
6. Turn the Thermostat Down
Not that you should have your heating on during the summer anyway. Just turning your heating controls down a notch or two ready for winter and heading for your sweater drawer, rather than the thermostat, when you’re feeling a little chilly can have a noticeable effect on your bills when winter does roll around.
7. Close Curtains in the Evening
More than simply used to close out the world and provide a snug, relaxing environment to unwind in the evening, your curtains or blinds actually help keep heat in. If your radiators are under the windows, make sure your curtains don’t channel the heat to them.
8. Be Aware of Timings
Energy demand increases in the morning and then again in the evening but energy suppliers typically only offer discounted rates in the evening, when demand is at its highest. If you run your dishwasher while you are at work during the day, try setting it to run exclusively overnight for a set period of time (at least a month) then compare your next bill with a previous one. You could find that adjusting the time that you undertake certain energy-dependant tasks could also benefit your pocket.
9. Find and Fix Drafts
The caulking gun could be your best friend if your windows are old and rattily. Attaching draft-excluders to the bottom of doors could also help prevent heat from escaping. If you feel a breeze in your home, block it: it is costing you money.
10. Use a Comparison Site
Don’t just stick with the same energy provider because it’s convenient. Instead, actively seek out a cheaper deal. If there is a cheaper supplier out there, price comparison websites are a great way to find them. By entering your address, you can learn which providers offer services to your local area and how much the monthly, quarterly, or annual cost would be. What could be simpler?
Take these tips on board and you could find that this winter has little impact on the contents of your wallet.
How about you all? What techniques do you use to keep your energy costs down during the cold season? Do you know a specific amount that you save by using these strategies?
Share your experiences by commenting below!
***Photo courtesy of http://www.flickr.com/photos/tolomea/6028106937/sizes/l/in/photostream/
How We Saved Big Bucks on Our Home Remodeling Project (And You Can Too!)
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post by fellow Yakezie participant, Kyle Taylor. Kyle is the editor of The Penny Hoarder, a daily blog with hundreds of weird and wacky tips on how to make/save extra money. Enjoy the post and make sure to stop by Kyle’s site for more posts like this! – Jacob
Craigslist is Your Best Friend
Blowout and Going-Out-Of-Business Deals
If you find a Deal, Purchase Extra!
Share your experiences by commenting below!
***Photo courtesy of http://www.flickr.com/photos/nomadic_lass/5955527527/sizes/l/in/photostream/
7 Business Startup Lessons
The following is a guest post by Darrow Kirkpatrick, a software engineer, author, and investor who achieved financial independence and retired early at age 50. Darrow now writes regularly on saving, investing, and retiring sooner at Can I Retire Yet?
7 Business Startup Lessons
Starting your own new business, or getting in on the ground floor of one, is a proven path to building wealth. Why? Because owning a business eliminates the middlemen between you and profits, gives you numerous tax deductions and credits, and allows you to leverage other people’s time and money.
But, owning a business, though a proven and potentially fast track to wealth, is far from risk free. According to the U.S. Small Business Administration, over 50% of small businesses will fail in their first five years! But, what if you could learn from somebody else’s mistakes to substantially reduce your own startup risk? Well, you can begin right now….
I started or participated in 5 different small businesses over my 25-year career in software engineering, and I learned from a lot of mistakes! But, ultimately, I was successful: I became financially independent and retired early. Now, I do whatever I want each day, without worrying about a paycheck.
I’d like to share with you here some of my business startup lessons learned, so you can fast-track your own success. I hope you can learn from my mistakes, so you don’t have to repeat them:
1. Make sure there’s a market. Do everything possible at the start of your business to ensure there is a market for what you are selling, whether it be information, services, or widgets. This is why competition is generally a good thing. It assures you that customers exist. If your concept is totally new, or substantially different from the competition, then put some effort into quick, cheap tests to prove your idea has appeal. One of the best ways to test is to offer a small, streamlined, or prototype version for cheap or free. Sites like eBay, Craigslist, and Fiverr.com make this easy. Keep testing different ideas until you find the one that people will spend a few dollars on, or at least trade for their email address.
2. Focus on customers, not technology. It’s fun and exciting to learn the latest tools, and be a part of the latest technology buzz. But, trust me, that’s a backwards way to build a business. (Unless your business involves selling to other technologists!) Your customers don’t care much about technology. They have real-world problems to solve and want practical solutions. Whether those solutions are built with the latest bleeding edge, something tried and true, or even aging legacy technology, is largely unimportant to them, as long as it works and the price is right! Technology might be important to you. It might impact your job satisfaction, your ability to attract employees, and your profits in the long run. But, at startup, it’s mostly your customers and their problems that matter.
3. Avoid infrastructure and build only the core of your business. The most critical question is this: Can I deliver something compelling to customers who will pay more for it than it costs me? Do whatever it takes to answer that question as quickly as you can, and you will find a viable business. Avoid at all costs any overhead or infrastructure that gets in the way of answering that question. And, yes, I mean you should skip, at the start, everything from writing a formal business plan, to incorporating, to printing business cards, to buying office equipment, setting up bank accounts, designing logos, and joining professional organizations. Replacing some aspects of the business, like a small business voip instead of a full phone network, can save a lot of money at a crucial time. All that stuff that business “experts” say you need. Most of it, in most situations, will simply cost you time and money without bringing you any closer to the goal of getting customers and making money!
4. Be realistic about your skills. Starting a business is hard. Many fail. Before jumping into a new venture, and especially before quitting your day job, ask yourself what gives you an edge? Why will you succeed? Just wanting to set your own hours or be wealthy someday is great. It’s good to be motivated. But you need more fuel than that. Focus on two areas: (1) your business domain skills, and (2) your networking and marketing skills. Do you know an in-demand business product or service so well that you can produce it very competitively with just a fraction of your available time (say 25%)? Good, because you’ll need to do that. You won’t have the luxury of spending most of your time actually doing the work. Instead you’ll be running and marketing your business. Next ask yourself, what gives you an edge in marketing? How will you get the word out, cheaply, so enough people take notice? Do you have a record of doing this well, or can you partner with somebody who has? This is essential if paying customers are to find out about your business.
5. Know when to do it yourself, and when to get help. This is the next step after realistically assessing your business idea, and yourself. Ask, “what is lacking?” Strongly prefer businesses where you already have all the necessary skills for the initial launch. Because you, yourself, can do everything that’s required, cheaply, and on time. But, if you don’t have all the skills, network with friends and colleagues to complement your available skill set. Barter for tasks if possible. If necessary, pay for small freelance tasks through sources like 99designs.com or odesk.com. Partner, or hire employees, only as a last resort, because then you are starting to add infrastructure, before you even know if you have a viable business. It’s much better to commit to such lasting relationships only as part of scaling out an already proven idea.
6. Do something so good that it can’t be ignored. The last time you encountered a mediocre, boring, or overpriced new product or service, did you buy it? Exactly. We’re not talking about commodities here, but something new and compelling. Don’t expect to get sales, or even much interest, without that ‘wow’ factor. At least one dimension — quality, novelty, or price — and preferably more than one — should impress your customers. Otherwise they just won’t notice you in today’s sea of competing ideas. How do you get that ‘wow’ factor? Sometimes new technology, or stunning presentation, or breakthrough pricing can deliver the knockout punch. But behind those elements is always a more traditional factor: hard work. That’s right, at least at the start, you’ve got to sweat the details, go the extra mile, and pour additional value into your offering — so your customers don’t have to.
7. Diversify your revenue sources. Ok, so you’ve followed all the steps up to this point. Do you have a viable business yet? Possibly. One last element to consider, before you take it to the bank, is this: how diverse is your customer base? Are you a consultant with just a couple customers? A retail operation with spotty traffic? A web site that appeals only to frugal students? Even if it looks like a business, even if it is currently making a profit, it may not be viable in the long run. Some lost customers, a shift in fashion or demographics, could snuff you out. Don’t rest until you have a diverse revenue stream — only then do you have a truly viable business.
So that’s it, 7 mistakes and 7 lessons I learned the hard way, that you don’t have to! This is by no means everything needed to start a successful business, but it is essential knowledge that will give you an edge in the early stages. Ensure there is a market, focus on customers, avoid infrastructure, be realistic, do as much as you can yourself, do it all well, then diversify your revenue. And you’ll be well on the way to a successful business that can take you to financial independence!
How about you all? How can you apply some of these takeaways to a business you’re getting started with? Have you learned any business lessons “the hard way” throughout the years?
Share your experiences by commenting below!
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Carnival of Passive Investing # 4 Live at Canadian Finance Blog
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Happy Saturday Morning Everyone!
I’m in an awesome 2-star hotel in Richmond, Virginia today (used Priceline.com’s Price Negotiator to get a $65 normally priced hotel room with a kitchen for $31 – nice!) getting up early for the Ukrop’s Monument Avenue 10k running race. They say that 40,000 people will be running today! Yikes!
As you all read in my blogging goals for this year (goal # 7 to be exact), one of my targets was to grow the Carnival of Passive Investing to a point where people are excited to host it.
Going along with this aim, the March 31st edition of the Carnival of Passive Investing recently went live at The Canadian Finance Blog at the link below. This was the first time that the carnival was guest hosted! A big “thanks” to Tom @ The Canadian Finance Blog!
Carnival of Passive Investing # 4 – March 31st 2011 Edition
***Photo courtesy of http://www.wnrn.org/wp-content/uploads/2009/05/sunrise.jpg