Several Ways to Fund Your Business

How to Choose the Best Type of Business Financing

      Finding the right type of financing for a business can be a difficult task. Cash flow and benefits are not the same. Lots of profitable businesses require funds to help with working capital and drive growth plans.

Most entrepreneurs use various ways to get working capital, for their small businesses, including personal savings.

External sources of financing for a business fall into 2 primary categories: 

Equity financing, i.e. funds provided, in exchange for partial ownership of the company and future profits; and debt financing, which is cash that must be repaid, usually with interest.

Grants, and scholarships, are non-refundable cash and are usually offered by government agencies, non-profit organizations, or non-profit corporations.

What is Financing Business Definition?

Financing a business definition is the process of providing cash/funds for business activities, making purchases, or investing. Financial institutions, such as banks, are in the business of offering capital to businesses, consumers, and investors to assist them to obtain their goals. Utilization of financing is very important in any economic system because it allows companies to buy products from their immediate reach. (investopedia.com) 

The Type of Finance You Choose Matters

When you’re desperately keen to buy, begin or develop a business, you might also feel like any finance will do. Don’t fall into that mousetrap. Choosing the wrong type of finance can damage your business later, or seriously hamper it.

Different types of financing have their advantages and disadvantages. Use this information to study them. Ask which one suits your business, and you as a person – because that matters too.

Types of Equity Finance

Equity financing includes a variety of smaller funding solutions. With equity finance, you must provide shares in your company in the trade for funding. There are no payments or interest, but you will need to share some of the management and profits with your investors.

Crowdfunding

Crowdfunding has become the most popular way for startups, and innovative companies to seek funding. You don't need to have a strong credit rating or collateral to get financing, but you do need to create a brilliant promotional campaign to attract potential investors.

Getting crowdfunding may be a lengthy process, and there’s no guarantee you will increase the money you need.

Angel Investors

Angel investors are investors with significant amounts of cash, who provide financing for startup companies. They are a rich person or groups of people seeking a return on their investment and are very savvy in the business they invest in.

Some angel investor groups are actively looking for early-stage companies to invest in, and they provide technical and operational information for startups. These angel investors can provide a second round of funding for developing companies after initial funding.

Financing a Business Venture Capital

Venture Capital Investment: Private equity investments are usually obtained from institutional investment groups. These funding groups vary in measurement from $50M to $5B. These investors generally invest in technology business companies that have had some initial sales and are estimated to have the capacity to grow rapidly.

They generally make investments between $1M and $50M and can actively participate in management. In general, these institutional investors concentrate their investments on certain industries they trust to have the greatest potential for growth. These investors choose to stop their funding in approximately 7 years.

Types of Debt Finance

Debt financing is the most common type of funding and includes both traditional and alternative sources of funding. You don't have to provide equity in exchange for funding, but you usually need to pay back the amount you borrowed plus interest costs.

Bank Loans

A bank loan can provide a very large lump sum to cover a large purchase or fund the expansion of a business with a strong credit rating. The principal loan plus interest is paid over a certain period of normal payments.

Loans are a very rigid type of funding, and many businesses are unwilling to do so. The application process can take several months, with strict loan criteria, meaning you must submit your detailed commercial enterprise plan, provide collateral, and have a strong financial track record.

Asset Finance

Asset Financing is a type of financing that helps businesses to finance the purchase of high-value assets, which include new and used machinery, equipment, and vehicles.

It can also be used to help businesses release capital tied to high-value assets, that they already own.

This form of financing typically includes the purchase of leases, finance leases, and operating leases. Unlike a traditional loan, the asset the business needs to purchase acts as collateral for funding, so there is no need for property security. The business makes regular payments over a specified period to repay principal and interest.

This is a long-term funding solution. You’ll need to have a compelling pitch and be willing to dedicate plenty of time and effort to promote your business.

Business Credit Cards

A business credit card can help your working capital and cover your daily business expenses. More accessible than business loans, but credit card interest rates and fees can be a luxury, and increase quickly if you don't clear your balance each month.

Credit cards are usually used to cover small purchases. If you need more funds to pay your suppliers, cover overhead costs, or expand funds, there is a more affordable and more suitable alternative.

Lines of Credit

Lines of Credit are usually used for financing working capital needs and are used on a needed basis. They are expected to rotate normally, i.e. you borrow cash for one month, then pay it back with interest the next.

They are usually provided by banks and financial companies and have an upper limit on the money that can be used on a fixed term of 1 year, a variable annual interest rate, and variable monthly payments depending on the amount of money used.

They are usually secured by things like accounts receivable and inventory. In general, this kind of debt financing is generally given to companies that are break-even, or profitable, and have been in business for more than 3 years. Current interest rates range from about 7% to 12% per year.

Invoice Finance

Invoice Finance is a flexible funding solution that allows your business to convert outstanding sales invoices, into available funding sources. Instead of waiting 30+ days for your customer to pay, you can use invoice financing, to get up to 95% of the invoice value, as a down payment. When the buyer pays the invoice, you receive the amount after deducting the fee.

Unlike bank loans, you don't need to use your home as collateral. There are 2 main types of invoice financing: factoring and discounting.

This type of funding is available to businesses that sell to other businesses, and raise sales invoices for their goods and services.

Benefits of Having a Savings Account

Savings Account that Earns Interest in Bank

     Keeping all your cash in one place, such as a checking account, may seem like the best choice for control your cash. And depositing some of that cash into a financial savings account, can assist you set aside some fund— and put your cash to work for you by earning interest.

A Savings Account is one of the most famous bank accounts that all people can invest in. This is one account that can be used for many special purposes. In fact, there are various types of savings account that can be used for different requirements. For many person, this is their first interaction with the banking and monetary system.

What Is a Savings Account Definition?

According Investopedia.com, a financial savings account meaning is an interest-bearing deposit account that held at a bank or other financial institution. Although these accounts usually pay a modest rate of interest, their security and reliability make them a superb alternative for parking money you want available for temporary needs. Savings accounts are one of the most secure ways to save and grow the money.

How do Savings Accounts Work?

Putting the cash in a savings account normally makes it work harder, than if you left the same cash in your daily checking account. When you put your money into a savings account, the financial institution will pay you a higher percentage of account savings interest rates each year, than you would earn with most checking accounts.

Saving Account Benefits

What are the benefits of putting your money in a savings account?

A savings account can make saving automatic

Let’s face it — Finding more money to put aside isn't always easy. Setting up automatic deposits to your financial savings account, can help you accumulate your savings without questioning them.

You can choose to automatically deposit a portion of each paycheck, or set up a regular automatic transfer from your checking account to your savings account.

If you are married or in a household partnership, a joint savings account can assist you and your partner effortlessly shop for mutual financial goals by permitting each of you to savings money automatically into the account.

Savings Accounts Make Interest.

One of the biggest savings account benefits is that the money saved earns interest over time. Your cash is deposited in a non-interest bearing bank account, or in a home safe and you lose valuable earning potential. Note: The rate you get is based on the terms of your savings account agreement and which bank you open it at.

Protection.

A savings account at a bank that is a member of FDIC, (Federal Deposit Insurance Corporation) insures your cash for up to $250,000. If you use a credit union protected by using NCUA insurance, your account is also covered up to $250,000. 

Savings Accounts are Simple to Open and Manage.

You can usually open a savings account in just a few minutes, either online, over the phone, or in person at the bank.. Plus, you can make normal deposits and withdrawals, (within federal limits ⁠— more on this below) without committing to a term length or disturbing about withdrawal penalties.

When you have a savings account online, it's easy to access your cash 24 hours a day, seven days a week, from wherever you are, as long as you have an internet connection. You can also link your savings account to other accounts, such as checking accounts and Money Market Accounts, and transfer money between them.

Consider whether you have to open a checking account and savings account together. Between your credit cards, debit cards, online shopping, streaming subscriptions, and more, everything can turn into a financial mess. When you open a savings account and a checking account together, both accounts are in one bank, streamlining your finances.

Provide financial cushion.

Many businesses have seasonal sales cycles, and some industries, such as manufacturing and agriculture, see dramatic fluctuations between low and high seasons. The more frequent and more downtime, the more savings your business should have. Even for businesses that experience little or no downtime, it's a good idea to plan for the unexpected. Just as monetary experts recommend that individual households have sufficient emergency savings to meet month-to-month expenses, so should your business.

Making Investments

Savings bank accounts can be used to organize systematic transactions. An SIP, or a bank RD can be set up for a specific date of the month for a certain period. A 3-in-1 investment, trading and demat account can be opened by method of the savings bank account holder to make investments in securities world. Investments in PPF, FD using sweep-in facility, insurance plans, and other investment products can also be made via Internet banking.

Income tax compliance

With the savings account, you will handily be able to track how your assets are discovered from the income, as the account records the income earned by the investor, as well as expenses made by him/her. With the help of an annual bank statement, you can find out all the income earned, including salary, profit, interest, gifts, dividends, etc. Therefore, it is considered a key document for income tax compliance.

Bottom Line.

There are plenty benefits of having a savings account. It not only brings financial self-discipline, but also makes day-to-day transactions easier. It offers you access to credit facilities, and helps track your income tax returns. You can maintain your savings account  in your name, or with a joint holder. A compelling reason to open a joint account is the option you have. Bank accounts recently go beyond conventional storage; with it, you can get access to much more.

Are REITs Still a Good Investment?

Are REITs a Bad Investment now?

     REITs, or real estate investment trusts, are business companies that are engaged in real estate finance. They own and finance real estate, which in turn generates revenue from several property sectors. These real estate investment firms must meet a number of requirements to qualify as a REIT. The vast majority of REIT investments are traded on major stock exchanges, and they offer investors great returns.

How does REITs make money? Real estate investment trusts (REITs) are the primary reason when creating a portfolio of equity or fixed income. REITs provide greater overall diversification, potential returns and lower overall risk. Thus, the ability of a REITs company to earn dividend income along with capital gains makes it an excellent counterweight to cash, stocks and bonds.....(investopedia.com).

One of the main reasons to invest in REITs is, the exposure they provide to residential, real estate, commercial, or retail without making you have to purchase individual properties outright.

This provides the opportunity for individual investors, or smaller institutions, to reinvest without the substantial financial commitment to due diligence, or the privileged risks that come with investing in individual property.

In order to qualify as a REIT provider, REIT investment companies are required to pay at least 90% of their taxable income to shareholders. That makes REITs a source of great dividends. Investors get REITs to co-purchase, because they like the returns. Especially now, with interest rates that are historically low.

As of January 2020, dividends on shares of REITs have paid out about 3.93%, according to data and information analyzed by the NYU Stern School of Business, though certain REIT sectors may also offer higher dividend payouts. For context, the S&P 500 REITs fund delivered a dividend yield of approximately 1.71% in August 2020.

What Are Real Estate Investment Trusts (REITs)

Real estate investment trusts ("REITs") enable you to make large-scale real estate investments and generate income. The meaning of REITs is a business enterprise that owns, and generally operates in, real estate that generates money or income, and related assets.

This can also include office buildings, shopping centers, hotels, resorts, warehouses, apartments, self-storage facilities, and mortgages or loans. Unlike other real estate companies, REITs do not make property or housing for resale. A REIT company buys and develops property, primarily to operate it as part of its own investment portfolio.

How Do REITs Work?

Congress created the real estate investment trust in the 1960s, as a way for individual investors to acquire and own equity stakes in real estate companies on a large scale, just as they could own shares in other businesses. This action makes it more convenient and easier for investors to buy and trade a wide variety of real estate portfolios.

REITs as an investment vehicle must meet the positive standards set by the IRS, including:

- Returns at least 90% of taxable income, in the form of shareholder dividends annually. This has become a big enough attraction for investors to invest in mutual funds.

- Has at least 100 shareholders, after the first year the company was founded.

- Receive at least 75% of the gross profit from real estate, such as property rentals, property financing mortgage interest or from sales of real estate.

- Invest at least 75% of all property in real estate or cash.

- Owns a maximum of 50% shares owned by 5 people or less during the last 1/2 tax year.

By complying with these rules, REITs don't have to pay taxes at the company's normal rate, allowing them to finance real estate cheaper than a non-REIT company can. This means that over time, the REIT can grow in size and pay higher dividends.

Pros and cons of REITs

Pros of REITs

Despite a solid track record of performance, investors have a number of reasons and motives for supporting REITs:

- Large dividend yields, stemming from a legal mandate, to pay for income, and are supported by constant cash flow from rental properties.

Less correlated with a larger, broader market, that means REITs are driven by a differentiating factor than most stocks, so they can provide a diversified REIT benefit.

- Property diversification, which means REITs are often invested in dozens, or even multiple properties, so that their success is not based on just a few assets, unlike the portfolios of a few independent landlords.

- No headache management, investment allows you to rest well, you don't have to take care of a broken air conditioner at 3am, or deal with fussy tenants.

These advantages are some of the most important for investing in REITs, relative to any stock, and direct investment in rental properties.

Cons of REITs

Investors prefer to buy specifically for the following issues when they are investing in REITs:

- High debt burden, especially in business enterprises, as REITs finance properties with as much influence as the average homeowner. Investors must ensure that the group of reit investment firms is able to manage debt, and continue to pay dividends.

- Non-traded REITs and private REITs that do not share the same high standards of governance as publicly traded REITs.

- Potentially unsustainable dividends to avoid, if you are investing in individual REITs. If a REIT reduces its dividend, its share price will drop, or may fall, in anticipation of the cut.

- Increases interest rates, which may have an impact on REITs stocks in the short term, as buyers sell them based entirely on the popular consensus that a rate hike recommends lowering REITs. But usually, that doesn't crush them in a long bull market.

- Property prices are actually high, which can help push up the price of REITs, but this value can eventually drop too, hurting REIT costs.

Before You Invest: Things to Note

Don't expect that REITs are low-risk, and dividend income is recurring. Read your prospectus and search for reviews to identify the best investment goals and REIT methods.

Find the data for the three main fields below:

- Information about REIT supervisors – their journey and track record, and where applicable, REIT sponsors and asset channels

- Information about the place of residence to be included in the REIT – in particular, whether you know the geographic exposure and area of the REIT in which you wish to invest.

- Other funding records like dividend coverage, fees and expenses.

REITs can have unique structures, foci, or geographic zones, and some REITs may also carry additional risks, such as political and regulatory risks, than others.

Things Should You Know About Multi-Level Marketing:

Knowing Multi-Level Marketing Business Model

      Searching for the highway to financial freedom? Multi-level marketing (MLM) companies want you to trust that a) there is such a thing and b) they are it.

Their pitches can vary from “Achieve financial freedom working just a few hours a week” to “The ideal job for the stay-at-home mom.” And no matter what your interests are, you’re probably to discover an MLM that complements them.

The Multi Level Marketing business provides an excellent opportunity to build a second income, or stable income and job for everyone without the risks, which are usually associated with business, and without spending a huge amount of money.

MLM companies sell their services or products through person-to-person selling. That means you sell directly to other people, maybe from your home or customers, or online.

In the MLM world, everything from holiday club memberships to jewelry to kitschy stickers for your nails can be sold through its network marketing model.

Businesses that involve selling merchandise to family and friends, and recruiting others to do the same, are known as multi-level marketing (MLM) businesses, network marketing, or direct marketing. Some MLM is an illegal pyramid schemes. Before joining an MLM program, here are a few things you need to know.

What Is MLM (Multilevel Marketing)?

The term MLM marketing refers to the methods used by some direct income companies to sell their products and services. Multi-level marketing encourages existing participants to promote and sell their offerings to different men and women and bring new recruits into the business. Distributors are paid a percentage of the sales of their recruits. The new recruits become a network of distributors or downlines, and in turn, are influenced to make money. While many MLM businesses are legal, there are also illegal ones that are run as pyramid schemes.

Is Multi-Level Marketing a Pyramid Scheme?

The idea that has come up frequently before about multi-level marketing is, it is some kind of scam or scheme. One of the main motives for this is, the fact that more than 99% of people who become part of MLM lose money.

Even though the FTC has decided that the MLM business model is a legitimate business, their business practices, and hiring strategies are highly controversial. They have a tendency to take advantage of minorities, people in dire need of finance, and people who are very young.

They have a tendency to make wild profit claims without much real evidence and are usually focused on getting you to buy, into a "mindset" mentality.

Now, that's no longer to say that all MLM organizations are scams. If you've ever had any concept about becoming a member of an MLM agency or organization, it's very important that you become familiar with the compensation structure, the range of fees, and all the downsides associated with joining.

Can You Truly Earn Money from Multi-Level Marketing?

Under the commercial enterprise model, as an MLM distributor, you will make money from two income streams:

- Monetize through revenue from the products/services you sell and promote - this phase usually generates the bulk of your income when you first start out.

- Commission on income earned through crew members/downlines. Over time, as you (the distributor) increase your community through recruiting downlines, this usually exceeds the income earned from selling the distributor's character.

The bigger the downline the distributor has and the merchandise that is being promoted is selling well like hotcakes, the more money it will make.

Is an MLM a Great Method to Make Money?

You may be tempted to become part of an MLM because you want to make a side profit. Or you may view it as a stepping stone to starting your own business. However, to really make money from MLM is quite difficult. Before joining, you should be realistic about how much money you can make, and how much time you will have to spend, to make that money.

It may be useful to have a discussion with someone you know who has been a member of MLM. Or perhaps you should be part of a Facebook help group for former MLM members.

You should ask your MLM recruiter this question as well, but keep in mind that they will benefit if they control and signal you to MLM, so you may not get a completely transparent answer.

Beware of MLMs that make unrealistic claims that you can 'get rich fast

If something looks too imaginary to be true, it probably is.

You should also think about the impact it will have on your relationships with friends and family, especially if they will form a large part of your customer base.

How Do I Join MLM?

Distributors are often recruited by friends, family, or online contacts to learn more about a company or product.

They will of course need to sign up for MLM, study materials to learn about products, and buy inventory.

Multi-level marketing companies have their own terms, and understanding what they mean can be helpful. Here are several phrases you wanna know.

Distributor. This term is sometimes used to describe a seller in MLM. They may also be referred to as “participants” or “contractors,” according to the Federal Trade Commission.

Sponsors. The man or woman who recruits distributors to MLM.

Downlines. In the MLM world, downline sponsors consist of recruits, who sell products to their own network. The recruiter can get a share of their sales. Be wary of companies that place too much emphasis on recruiting new sellers. If MLM wasn't a pyramid scheme, it would pay you based on your sales to retail customers, without having to hire new distributors.

Upline. The individual who hires the salesperson and everyone above the recruiter is sometimes referred to as the "upline." In a multilevel marketing company, each upline will receive a commission based on the seller's profit.

Bottom Line

A lot of people are afraid of network marketing, also known as multi-level marketing (MLM), because of all the myths and misconceptions about this kind of business. Part of the negativity comes from the low MLM success rate. However, multi-level marketing businesses are not destined to fail any more than other businesses. Regardless of which home business you start, success comes from doing the work and perseveringly growing it.

Things to Know about Investment Banking

What is Investment Banking?

      Businesses need capital to function, and investors are constantly wandering around for big profits. Investment banks (IB) act as intermediaries working in the capital market, to raise funds for their corporate clients, and/or government agencies, from these investors. In principle, an investment bank can be a sub-division of a much larger bank or it can operate as a stand-alone business altogether.

An investment banking company performs two important basic functions.

1. An investment bank acts as an intermediary between the entities that need capital (companies) and those who offer it (investors). This is generally facilitated through debt and equity options with company assistance.

2. Investment banks advise companies on mergers, restructuring, acquisitions, and other major corporate actions. While some investment banks perform both of these functions. It is important to understand which products and offers each financial institution specializes in.

Investment Banking Definition

According Investopedia.com, investment banking is a specific division of banking associated to the creation of capital for other companies, governments, and other entities.

Investment Banks earn income through charging fees and commissions, for offering these services, and other types of financial and business advice.

Securities are made up of bonds and shares, and a stock offering may also be an initial public offering (IPO). Underwriting is a technique by which the underwriter brings a new security issue to the public investing in an offering. The underwriter guarantees a certain price for a certain number of securities, to the corporation (client) that issues the securities (in return for a fee). Thus, the issuer is confident that they will raise a certain minimum amount, while the underwriter bears the risk of the problem.

What do Investment Banks usually do?

There is sometimes confusion between an investment bank, and a bank's funding banking division (IBD). Investment banking is a full service offering a wide range of services that include underwriting, M and A, income and trading, equity research, asset management, business banking and retail banking. The investment banking division of a financial institution offers only underwriting services and M&A consulting.

Investment banks are regularly divided into 2 camps: buy side and sell side. Many investment banks offer both a buy side and a sell side service. The selling aspect typically refers to selling shares of newly issued IPOs, issuing new bonds, engaging in market-building services, or helping clients facilitate transactions. The buy side, on the other hand, works with mutual funds, pension funds, hedge funds and the investment public to help them maximize their returns when trading or investing in securities such as stocks and bonds.

Let's identify how investment banks make money by providing acquisition advice.

Think company ABC buys some other company XYZ. ABC is in doubt, how much is firm XYZ worth, and what are the long-term benefits in terms of revenues, expenses, etc.

In this scenario, the investment bank would go through a due diligence process, to price the company, finalize the deal by helping ABC prepare important documents, and advise it on the exact timing of the deal.

Here an investment bank, working on the buy side, and some other investment banks may also work on the selling side, to help XYZ. The larger the size of the investment banking transaction, the greater the fees that the bank will accrue.

Investment Bank Structure

Investment Banks considered an all-encompassing financial institution, that provide a range of services, to corporates throughout industries. People might have as many types as they want, however at the end of the day, three most common categories are: Middle Market, Bulge Bracket, and Boutique. Bulge Bracket Banks – the broadest institutions – have the whole organization.

A massive investment bank is divided into the front office – directly producing income for the firm, the middle office – intently supporting the front office, and the back office – responsible for human resources, accounting, and other administrative duties.

Many corporations are adopting new technologies that automates and modernizes banking strategy, to create leaner offices, faster operations and enhance client services. This application allows banks to save manual labor hours, and significantly decrease less palatable fees  to focus on their core business – deliver great services to their clients.

What is the Role of Investment Bankers?

Investment banks employ investment bankers who help governments, companies and other groups to plan, and control large projects, saving their clients time and money by identifying the risks associated with the project, before the client moves forward. In theory, an investment banker should be an expert, who knows the pulse of the modern investment climate.

Institutions and businesses turn to investment banks for advice on how great their development plans are, and investment bankers, using their expertise, adapt their guidelines to current economic conditions.

Conclusion

Investment banks play an important function of facilitating funds and capital allocation for corporations and government entities. They serve as financial advisors to their clients by helping them allocate resources, control instruments and price capital.

Investment banking support is in mergers and acquisitions, raising capital, and providing a number of financial aids. Be it non-public or corporate, investment banking is essentially involved in investment advice and operations are essential in investment activities.

Simple Steps to Start a Thrift Store Business

Guide to Starting a Thrift Store Business

     Thrift stores look like losing their reputation, while the country's economic system is great. However, they keep coming back whenever people start to discuss a recession. These can be some of the best kinds of stores for some people when they start finding their budget to save their cash.

Starting a thrift store has changed, as the market for online purchases has grown. 

It no longer costs tens of thousands of bucks to open a store, and you can start your online store in just an hour. Shopping for used products without a proper purpose is like shopping for daily necessities with an empty stomach. It can be done easily but not ideal. (thegoodtrade.com)

This isn't your mom's garage sale, or the stuffy, dimly lit shop you visited as a kid. There are plenty of people who make over a million sales every year and make a six-figure income from their online thrift stores. Being profitable with your own thrift store means changing the purpose of the thrift store idea in general, and bringing it into the 21st century online!

Thrift Store Business Description

Thrift store definition in principle means to come across goods at the thrift stores, with a potential high-profit margin, hence, bring through the flipper (or the thrifter) to make money from it.

I personally began with purchasing designer and branded bags from thrift stores, then I moved on to fashion or clothes, and several family products, and also collectibles.

I usually purchase something I see from a thrift store, as long as it has a potential high-profit margin.

Where Can You Buy Products for Resale?

- Independent thrift stores

- One-off privately-owned stores, and Church stores

Most resellers love going to church stores. They have a tendency to sell things very cheaply, making them a great source of items. I discover privately-owned thrift stores, to be hit or miss in terms of the objects and prices.

Estate sales

Estate sales are a fascinating source. In several areas, goods are priced so high that if you don't have time to visit these "sales shops". You'll be hard-pressed to discover something cheap enough to resell.

If that's the case in your area, you may find prices lowered at the end of the sale. The seller will prefer to get rid of as many of the remaining items as possible. They will be willing to negotiate.

How much does a thrift store owner make?

Is thrift store profitable? Having the thrift store online or offline seems easy. If you don't like owning a retail business, or have never worked in retail, this is not the thrifting business suitable for you. Starting a store costs between $20,000 and $30,000 to get proper, and survive until the store selections up, if you are going to quit your job. Consider that having a signal put over your store can cost between $4-10,000 relying on the sign. If you take into account the basic needs of a store, such as counters, fixtures, and merchandise tagging equipment, the cost of owning a store will be prohibitive.

Although many internet pages will tell you that you will withdraw $1900 a day, the truth is that you will only make $100-200 a day (that's a good day). A new thrift store is lucky to make $50 cash a day, for the first year. It's not a profit, barely makes rent. You may not want to end your day job. The second-hand industry is just a money cow for big stores like "Goodwill" which have a higher quantity and field size. If you pay close attention to your area or city, you'll notice several independent thrift stores popping up, and then they disappear.

Marketing The Merchandise

A method that works well for a branch store can also work for a thrift store. To create a good shopping experience, try to display the products in an attractive and logical way.

Elizabeth B, a former volunteer in the Atlanta Junior League, suggests separating designer dresses, pants, blouses, and other high-end products, to develop boutiques that will make more cash.

You should keep the show updated as new designer merchandise comes in, and add additional inventory like handbags, shoes, and accessories. As such, it only caters to customers looking for an expensive item to find it quickly and make a sale.

Tips for Successful Thrift Store Flipping

Thrift store turnaround isn't complex enough, but there are some advices and methods that will increase your success and maximize the profits.

Quality is key

Thrift store turnaround isn't complex enough, but there are some advices and methods that will increase your success and maximize the profits.

Quality is key

Take the time to inspect the quality of each item. When the product is in the right condition, and of the best quality, they will get the best price. Selling high-quality goods will also help build your reputation as a trustworthy and reliable seller.

Try Everything On.

Each brand seems to fit differently. Unlike walking into a branded shops where you commonly knowing your size, the myriad brands and eras from which all these sections hail leaves no continuity in how certain measurements might fit the shopper. BBrands with the same quantity size may have different measurements or cut differently. That piece might even have been changed. If feasible, try it in its entirety before you shop. You just never know.

Pay Attention to Shipping

Make sure you know the shipping costs and the various packaging requirements for your product. This is assuming, you get your thrift store found via an online store or app.

It's crucial to factor shipping expenses into the profit margin calculation and to pack the products so that the goods arrive safely. And, you don't like shipping goods and having them break when they arrive.

Don’t Hurry and Be Patience.

The successful business of thrifting needs forbearance both in the long and short term. One trip to the thrift store will probably take an hour or two. Plan accordingly (and don't bring your kids!). Be patient sifting through the shelves. Your rush trip will guarantee an empty-handed departure. Furthermore, understand that you will not be left with a treasure after every visit. In fact, most visits are likely not the best.

Be disciplined and diligent in shopping. Just because it's cheap doesn't mean it's a good buy. Wait for the portion you really like, and maybe you'll buy one, even if it costs more. Over time (years!), you'll create an amazing used wardrobe, and have lots of things you love with all your heart. Success at thrift shops online will not occur overnight! 

Things to Know About Business Development

The Ultimate Guide to Business Development

     Your business development methods can be the key to the success or failure of your company. In this article, you will discover how to create methods and related plans that can propel an individual, practice, or entire company to new levels of growth and profitability.

Business development ideas are techniques that you can apply to positively impact your company in several ways. They can help you select the best prospects, network more effectively, increase brand awareness and discover new opportunities.

The following techniques are here to get you started — every business and team is different, which means these ideas may or may not work for your specific situation.

What does Business Development Mean?

Business development is any activity or concept that seeks to make the business grow better over time. This means leveraging customers, implementing strategic partnerships, leveraging your marketplace, and building your company's reputation.

In the simplest terms, according to investopedia.com, business development can be summarized as the ideas, initiatives, and activities that help make a business better.

Business development roles at any level, from executive to VP, will see how they can make the business thrive in increasing revenue, physically growing, and expanding, while cultivating strategic and long-term partnerships in the process.

A business development expert is likely to have discussions with several departments such as sales, finance, marketing, customer service, and legal, for reasons such as: strategic management, product launches, and even to cultivate brand awareness which explains why people often confuse between marketing and business development.

What Does the Right Business Development Process Look Like?

A good business development process should be the main objective to drive business improvement, with unconventional strategies, partnerships, and marketing for the company's output.

The success of companies such as Google also depends on their business development capabilities.

While you may be looking for a straightforward definition of what business development is, you need to realize that it is a discipline in continuous evolution, which has a key driver for business growth. In this context, a good place to start is to define what isn't business development.

4 Steps of Your Business Development Process

Business development is made easy and methodical when you adopt steps for your group to follow. Here are 4 outline steps you can follow to get started serving prospects close to your sales team.

1. Identifying the correct leads.

2. Connecting with the correct leads.

3. Find out the root cause and impact of the Lead Problem.

4. Scheduling meetings and getting their time commitments.

Marketing vs Business Development.

Marketing is the procedure of identifying which products and services, you will provide to which target audience, and at what price. It also discusses how you will play a role in and promote your company and its offerings in a competitive market. The result of all this activity is increased attention of your company among your target market — and a better flow of prospects and opportunities.

Innovate, How You Deal with Networking.

It's no secret that cold calling is less effective today than it was in the past. Instead, innovate the way you network by setting up solid relationships with your prospects. You can do this by meeting them in person at conferences, trade shows, or activities related to your industry.

Browse your online networks like LinkedIn and other social websites for potential customers as well. Reach people who have signed up to subscribe to your email or complete other forms on your site.

Innovation is the key to beating your competition. After all, if you give your customers something unique, there's a good chance that they will do business with you.

What is greater you can do with your service? Is there a phase of what you're providing, that requires more to make a bigger sale? Maybe you need to bundle the services into the package?

Continue to innovate and improve your business development processes, to benefit your customers and of course your revenue channel.

Avoid These Business Development Mistakes

1. Not budgeting enough money to cover the costs of growth.

2. Underestimating how much cash is required to grow.

3. Think temporarily, not long-term.

4. Focus on too many growth opportunities: assume quality, not quantity.

A Career in Business Development

To be a person who develops a business means to have an entrepreneurial spirit. It's almost like you are the business in your business. Therefore, working as a commercial business development person will help you:

- Get extra freedom compared to normal jobs

- Develop an entrepreneurial mindset

- Earn more money (variable is an important part of remuneration)

- A dynamic job that pushes you to learn new things fast

- Quickly build a professional network

- Higher stress but also extra fun than the standard job

Be your boss (if you are in a giant organization, of course, you will respond to someone. However, the only boss you have is the target business you agree on)

Summary

A business development strategy is essential to help your business grow, thrive, and reach the next level.

Effective business development is one of the fastest methods to grow your business but it can also be one of the most time-consuming because it often requires focus, planning, stamina, and resources. However, when done correctly, your business development procedures can have a huge impact on your growth, your income, and the future of your company.

Business Manager, Job Description and Salary

Is Business Manager a Good Career?

     The function of the Business Manager is to supervise and lead the company's operations and employees. They perform various tasks to ensure the productivity and effectiveness of the company including implementing business strategies, evaluating company performance, and supervising employees.

In order for any company to optimize its success, it must run like a well-oiled machine. Day in and day out, business enterprises need to provide employees with the resources they need to complete their jobs at a high level. When a company has a strong business manager, then there is someone there to lubricate the gears.

The business manager may oversee certain departments in a large company. In a smaller company, they may oversee all the departments. In both cases, they are the captains who control the day-to-day activities, oversee the work, and drive toward financial and operational goals. With strong leadership skills, business managers are the key to the daily — and ultimately, long-term — the success of companies large and small.

The Meaning of Business Manager

Wikipedia.com says the business manager directs the work of other people (if any) to function properly and (in the case of a nonprofit company) to make a profit.

A business manager is a supervisor who directs and supervises the employees and operations of an organization or department.

They work to ensure the company remains productive, efficient, and organized at all times by implementing operational strategies, conducting overall performance evaluations, and supervising all day-to-day activities. Business managers take the time to discover new opportunities to help companies grow and advance in their markets and set goals and targets to help achieve this.

Types of Business Managers

Business managers oversee the daily operations of organizations large and small. In large corporations, managers typically oversee individual departments, such as marketing, sales, or production. In smaller companies, the business manager may oversee operations across all departments. The office manager oversees clerical work or assists staff in doing business work.

Most business managers work in cozy places of work and generally have support staff. Those employed by firms with more than one location may be required to pay regular visits to various local, regional, or global offices, and many business managers travel to attend conferences and meetings. Some business managers may also have opportunities for temporary or everlasting job transfers to different offices around the u. s . or overseas. Most professionals in this position put in at least a 40-hour week. Flexible hours and beyond regular time are frequently required to meet business demands, however, in return, business managers commonly enjoy high salaries and high-quality benefits.

Tasks and Duties of Business Manager

1. Prepare and oversee budget administration, cash flow, account payments, and financial planning to ensure an enterprise meets its financial goals.

2. Overseeing the daily activities of certain departments such as HR, marketing, administration, or sales.

3. Advise leaders and stakeholders on financial, compliance, and organizational issues.

Business managers must have good communication skills as they deal with all levels of an organization. They have discussions with unskilled part-time employees as well as the company's CEO (Chief Executive Officer).

Average Business Manager Salary

The median earnings of business managers, according to zippia.com in 2021, will be $86,415 per year, or $41.55 per hour, in the US. People on the lower end of the spectrum, the bottom ten percent to be exact, earn about $57,000 a year, while the top 10% earn $130,000. Like most things, areas can be critical. Washington, Connecticut, New York, Rhode Island, and Virginia provide the best commercial enterprise manager salaries.

How to Become a Business Manager

Most business manager positions will require you to possess at least a bachelor's degree in business administration or a related subject and years of experience. Knowing the ins and outs of a company's operations is the key to success. Preparation for this career course includes working in a specific or related industry. Some positions require an advanced level of certification. The job involves different skills like decision-making, problem-solving, and leadership. Many employers offer training and development programs. Excellent conversational and analytical skills are critical to managing business plans, clients, and employees. A global perspective of your field can be a plus.

3 Primary Skills Needed for Business Management

1. Management and Leadership

Whether you are in a management position or not, having basic business management skills will go a long way toward your future professional growth, and may even allow you to take on new challenges in your current role. Management and leadership skills are relevant even if you're not managing a group of people - management principles consist of planning, organizing, and controlling organizational resources, as well as preparing for and managing organizational change. While this may not be a skill you can practice at an organizational level, you can certainly use it in your personal work environment to exercise in the future.

2. Critical Thinking & Problem solving

Critical thinking and problem-solving are two of the most important competencies required for running a business management. In any business setting, regardless of your function on the company chart, you will often face complex challenges that require careful analysis and careful decision-making. You must have the skills necessary to really get to the root of a problem and understand it fully, by identifying, formulating, and communicating the questions that guide investigation and reflection and seeing the patterns and connections that develop that will help you reach a solution.

3. Communication

Communication skills in business administration are the key. As a professional in the modern field of business, you must be able to carry ideas, information, and intentions successfully and professionally in a variety of settings and formats, including any oral and written communication. Being able to speak clearly with your personal team members, as well as those in different departments, customers, and other key organizational stakeholders is required for almost any role in the commercial enterprise world.

Ways to be a Successful Businesswoman

Simple Ways to be a Successful Woman in Business

     In today's modern world, the business landscape is no longer dominated by men. Today, there are more and more successful women who are building real business empires. However, even though the business landscape is becoming easier for women to cope with, it can still be unbalanced. To be a successful businesswoman right now, you require to be flexible and have great planning and organizational skills. (investopedia)

There are lots of females out there, who are fully ready to give everything when it comes to being a businesswoman. However, there are so many questions and so many things to learn, before you jump into the business world.

As a businesswoman, You still face some obstacles that can manifest any time you seek to advance your profession and have a personal life.

Many women in business today state that workplace discrimination is still an obstacle in their way. So, as a businesswoman, you must learn the key tips to grow into a successful businesswoman today.

What is a Successful Business Woman?

How can I become a female entrepreneur? What do businesswomen do? Working in a business firm can suggest a lot, from holding a top management position in a small or giant organization to venturing out on your own as an entrepreneur, and starting your own business. Success can have different meanings for each individual, of course.

Some women might define it as rising to the top in a male-dominated business industry, while others might define it as launching a business that makes a profit relatively quickly. Given the particular challenges that businesswomen face, particularly in contrast to their male counterparts, this achievement is particularly noteworthy.

Business Success Tips for Women

What makes a woman successful in business? Here are some of the list:

Know Yourself

Get to know yourself, your true level of motivation, the amount of money you can risk, and what price you are willing to pay to become a successful businesswoman. Of course, people prefer to make tens of millions of dollars. But are you willing to give up to get that goal? How many times a week will you work on an ongoing basis? How far do you want to get out of your comfort zone?

To be successful in business, keep your business plan in line with your personal and family goals and resources.

Prepare Your mindset

Business success is very much based on the mindset in which the business was once started. To transform into a successful businesswoman, you must have the right mindset. You should never see yourself as the weaker sex. You have to have the mindset to deal with anything that comes your way. Success will never be handed over to you on a plate of gold just because you are a woman. You will stick your neck out for it.

Get Educated

To be a successful entrepreneur requires proper training in the field. You may have an excellent business concept, and the capital to invest in it, but don't know where to start.

The right education, such as an MBA program, may be needed to train you in everything you need to know about doing business. You will learn how to understand market trends, which is the most important concept in starting a business, and how to turn your business idea into a profitable company.

Quality to Build

There are 3 features that entrepreneurs must have and want to build, which are significant assets for starting and running a business successfully. Attention! the key word here is "build" not "already have" the will, desire, and potential to learn, new abilities and habits can contribute to the success of any woman entrepreneur. One of these qualities is an attitude you can adopt, one of which is a skill that can be easily learned.

- Skills: Networking.

- Strongest Personality Traits: being objective

- Best Business Attitude: Refuse to quit when the situation gets tough.

Get Out of Your Comfort Zone.

Get used to stepping outside your comfort zone. Leaping outside of your comfort zone may make you feel uncomfortable. But it will also reveal hidden abilities and interests that you may never have seen in yourself.

Try to make the most of your time by learning new things to help you in your business. It will also impress your coworkers by showing that you're not afraid to take risks and be a pioneer.

Business Skills

Few things will help you set up and grow your business faster than growing a solid network. No man or woman knows everything or can do everything, so if you isolate yourself and your mind, you isolate your business enterprise as well. Having access to a wide range of assets can broaden your knowledge of publicity and the efficiency of your business, and your chances of success.

If you no longer have a lot of face-to-face contact with other people in your field, you can still work on building a commercial business community differently. Start by becoming an expert member of online companies, creating press releases, brochures, and various written communications.

Choose the Right Business for You.

The historical system - find what you want and fill it - still works. It will continue to work. The secret to success is finding a desire that you can fulfill, and that will generate a lot of income to build a profitable business.

Studying Your Competitors.

No matter what type of business you develop or run, you will have competitors. Even if no other business firm delivers exactly what you plan to sell, chances are there are other products or offerings that your target clients use to meet their needs. To make your business a success, you have to find opponents and find out as much as you can about what they are promoting, and how they are promoting it. Competitive searches are some of the things you need to do, on an ongoing basis too.

Make sure there is a market for the product you plan to sell.

One of the biggest mistakes startups make is, relying on a few markets that will choose to buy a unique product or service, because the business owner likes the thought, or knows one or two people who like the product or service...

Become a tough negotiator in the business world

It's time to negotiate and recommend on your behalf what you choose for your business and life. Examples include negotiating for mergers and business enterprise benefits, negotiating flexible hours for work/life balance, and sticking with the training and business development possibilities you want.

Be Assertive.

Why did you choose to grow into an entrepreneur? This is a very precise question, which you need to think about, to keep yourself swayed and focused on your goals. Becoming a business owner comes with many challenges and responsibilities, and the road to success will not be easy every time.

One of the most enduring stereotypes about businesswomen is that they are vulnerable and emotional. Getting rid of these stereotypes means denying them. To gain admiration as a courageous businesswoman, it is important to be assertive.

You can build assertiveness through your every move and speech, be confident in your choices, and don't second-guess yourself. Speak with authority, clearly and convincingly, and people will not hesitate to doubt your decision.

When faced with criticism, try to be rational. Consider what has been stated, and determine whether or not you can use the criticism constructively. Whatever you do, don't let it become a trigger that makes you doubt yourself and your abilities.

Take danger

Playing it safe doesn't mean it's available to everyone everywhere. When it comes to life, love, and money, there is often an unstable business. That doesn't mean playing as a whole, in your opinion. It may take a good and hard look, to be on the side of executives and cons before determining what is worth a small opportunity, and what is more likely to be missed in the long run.

Be Confident

Having your confidence and abilities is necessary, to become a profitable entrepreneur. People will see you, just like how you describe yourself. If you are brave and confident, people will think you believe in yourself. Remember that you are where you are now since you were right in what you did.

Project confidence through your body language. You can do this by keeping your head high and standing straight. Greet people with a friendly handshake and smile. The most important thing is to make eye contact, with the person you are talking to. Pay attention to keep an eye on them, as this is a positive confidence signal. If you have to work in a large room with people, try to make eye contact with every man or woman in the room for at least a second or two.

If you're having a bad day, where your confidence feels shaken, try reassuring yourself by using positive affirmations. This might seem stupid, but look at yourself in reflection, and repeat things like

"I decided to get to the top" or "I'm great at what I do" can help you rediscover the belief and determination within yourself.

Read about profitable Business Women.

There are many profitable businesswomen out there in business firms, and many different fields. Research and study of their heritage and professional paths will help motivate you. Knowing their journey will give you some insight into what the road to success looks like, and what obstacles you may encounter along the way.

The internet is a tremendous help in finding profitable businesswomen.

Determine how to balance work and family.

Perhaps the biggest challenge for women in business is how to stabilize business and family life. Women are generally in their prime fertile years while at the same time trying to increase their business.

Find Networks and Mentors

It's great to spend time studying while getting ready to launch a commercial business project, but if you want to win, you have to start networking too. If you are still working in a 9 to 5 job, you may not have time to attend to many brilliant physical activities, fortunately, you can start building a community of advisors and friends online, thanks to social networks.

Summary

Remember, you don't win in business just by completing a to-do list. Your business will also not be successful just because you think it's the right idea. The main key to building a business is persistence. That's all a guide on how to make a successful business woman.