Friday 24 January 2020

10 Tips For Starting A Small Business That You Haven't Heard A Thousand Times Already

Entrepreneurs This article is more than 2 years old.

Starting a small business can be both difficult

Tips for starting a small business

Opening your own business is often a learn-as-you-go process. But, the more smart decisions you make early on, the better chance your company has for success. If you have an entrepreneurial idea, try these ten tips.

1. Address excuses

Countless people dream of becoming entrepreneurs, but they never do. They’re burdened with excuses and fears of failing. From money to time to responsibilities, you can make a million cases for not starting a business.
Let’s face it, being your own boss is scary. In most cases, new business owners have a lot to lose with little insight into their chances of success. Worrying about the risks of business ownership is normal.
But, excuses only slow you down from reaching your goals. If you really want to start a business, you need to address the reasons you think you can’t start a business and get rid of them. Find a solution to the issue rather than let it hold you back.

2. Absorb everything

Listen to what others have to say—friends, family, experts, even yourself. When it comes to things that have to do with your entrepreneurial goals, be a sponge. As you learn, start to work out the idea in your head. Write things down. Keep notes from all the resources you come across to develop a detailed plan.
When you tell people about your startup, read their body language. Do they like the idea? Or, are they just being nice and really think you’re going in the wrong direction? Encourage your listeners to be honest with you. The collective opinion you get from peers could be a reflection of how consumers will react.
Don’t ignore the power of advice from experts and veteran business owners. These folks know first-hand what does and doesn’t work. Smart entrepreneurs learn from the mistakes other business owners have made.

3. Be a solution

Rather than starting your idea with what to sell, think about what it will solve. It’s a lot easier to gain a solid customer base when your business is fixing a problem. Your startup should fill a hole in a certain market or niche.

For example, I didn’t create Patriot Software just because I had a passion for software. I wanted to solve an issue that small business owners like me faced. After doing some research, I found I could provide payroll and accounting software that is easy-to-use and affordable.

Home in on why you are opening your own business. Understanding your motives will help you create a brand and market your company. Know what problems your target customers face and how you can solve them.

4. Keep it simple

If you’re like many entrepreneurs, you have a business idea and you’re ready to run with it. Be careful not to let your concept snowball into something overcomplicated. You could end up with an expensive, elaborate end-product that nobody wants to buy.
As a new business owner, try to start small and narrow your focus. Learn how to test your business idea. Create a simple, quality good or service. A successful business idea should fulfill promises to customers and exceed expectations.

Cut unnecessary features that water down your offerings and cost you money. As a small business, you don’t need all the bells and whistles of a giant corporation. It will be easier to add to your business as it grows.

5. Count the costs

Once you start to develop your business idea, add up how much it will cost. You will need to factor in every business expense necessary to launch and operate. Some costs to keep in mind include your location, rent, supplies, marketing, and more.
Come up with the most educated number you possibly can. Then, take whatever you think that dollar amount is and quadruple it. Seriously, quadruple it. You’ll experience unexpected costs of running a business around every corner. It’s better to be over prepared than short on funds when bills start to roll in.
When you’re thinking of the cost to start a business, don’t forget about your personal budget. Look at how much money you need to live, including rent, food, gas, healthcare, etc. Lay these expenses out in order of which ones you must pay (e.g., mortgage) to ones that can slide if the money runs out (e.g., entertainment).

Once you have a grasp on all your expenses, start to create a business budget. At first, you might need to get some outside capital to make ends meet, like a small business loan. Go over all of your options before putting your money into the startup.

6. Imagine yourself with zero money

I mean zero. There is a high probability that this will happen. I’ve had several businesses not make it for the long haul. And, I’ve come close to bankruptcy.
Launching an unsuccessful business idea is a reality for many entrepreneurs. Over half of new businesses fail within the first five years of opening. How would you handle having no incoming money?
It’s a good idea to come up with a “just in case the worst outcome happens” plan. You might need to get a job on-the-fly or temporarily live with your parents. You might have to go without comforts that you’re used to. Figure out how you would get by if your business plan went south.

Look at your current sources of income. What do you earn from your current job? How long would your savings last if you quit? What unexpected things could mess up your plan (e.g., you wreck your car or your furnace breaks)? Prepare yourself for all the situations that could happen if the business idea doesn’t work out.

7. Earn while you build

If you want to start a small business, don’t quit your day job—yet. Launching a successful startup is a process. Build your business in stages and gradually transition from employee to entrepreneur.
As a new business owner, it will take some time to earn a steady income. Keep your nine-to-five and work on the business during off hours so you can earn during those tough, first stages. Once you have a healthy inflow of cash from your company, you can tackle business ownership full time.

8. Speak up about your business

One challenge many business owners face is that they don’t know how to sell. It can be intimidating to share your business with the world, especially when you’re new.

If you’re worried what people will think about your business, you need to get over it. If you can’t convince consumers to buy from you and support your company, it’s difficult to make money. Not outgoing? Fake it ‘till you make it. If you really want business success, you can’t afford to be shy.
In my early days as an entrepreneur, I had to to do public speaking for the first time. Back then, I didn’t have any training or experience in talking to large groups of people, not to mention I wasn’t very keen on the idea of facing my worst fear.
But, if I wanted my young company to succeed, I need to to get out of my comfort zone. This came in the form of planning and hosting nearly 70 three-day conventions for my customer base of network recruiters.
I can’t begin to tell you how afraid I was. As it turned out, I became a lot more comfortable in front of people after speaking at the conventions. Though I was more introverted than extroverted, I learned to “put myself out there” for the sake of my business.

Be ready to speak confidently about your business, even if it makes you uncomfortable. As a new business owner, you will need to market and network constantly. From networking with clients to negotiating supplier payment terms, you must be able to communicate.

9. Know the legal requirements for starting a small business

Starting a business is exciting. Laws are not. But, you need to understand the rules that come with opening a business. If you fail to follow government regulations, you could face steep penalties.
From forming a legal structure to setting up an accounting system, you must follow laws. You need to register the business with your state. You must also take care of business-specific tax liabilities. And as you hire workers, you need to follow employer laws.
The rules that apply to you depend on your state, business structure, and industry. Consider talking to a small business accountant as you set up your company.

10. Balance passion with wisdom

One of the most important ingredients in a successful business idea is passion. Passion will consistently drive you to improve your process so your business grows.
That said, don’t let passion take over all your decisions. Passion will move you forward, but knowledge will point you in the right direction.
Conduct market research on your industry and talk to target customers to find out your business’s potential. Ask experts questions about launching a startup. Reach out to professionals that can help you with certain areas of business, such as financial advisors and lawyers.
As your business starts to come together, think of it like driving a car. Let your passion hit the gas pedal and your mind control the steering wheel. That way, you can be confident about the direction you’re headed and sustain the momentum you need to get there.

Mike Kappel

I'm founder and CEO of Patriot Software, LLC. I have over 30 years of entrepreneurial experience across five startups. I started Patriot Software in the basement of a…

Top 10 Business Trends That Will Drive Success In 2016

Ian AltmanFormer Contributor

Leadership Strategy

Ian Altman is a B2B Integrity-based sales and growth expert

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Click here for the 2017 Version
For decades I have observed business trends from the stage and from the trenches. For the third consecutive year, I am pleased to share with you what I see as top business trends that leading companies embrace to drive success. In some cases, I spot trends that are starting to take shape. In other cases, I spot established trends that have not yet found their way into the mainstream. I see some of these patterns by interacting with participants when I speak at events, and others I notice while working closely with businesses of varying sizes. Feel free to take a look at my past predictions from 2015 by following the link at the bottom of the article. Here are the Top 10 Business Trends That Will Drive Success in 2016.

1. Top Performing Companies Will Focus On Connecting Customers
In discussions with industry leaders like Seth Godin and Clay Hebert (among many others), it has become clear that we are in a Connection Economy. The connection economy rewards value created by building relationships and creating connections, rather than building assets by industrialism. This means the most valuable companies will connect buyer to seller, or consumer to content. If you don’t buy that argument, consider these facts:

Uber is the largest “taxi” company – yet they own no vehicles and excel at connecting riders with drivers.
AirBnB is the largest provider of accommodations – yet they own no real estate.

Facebook is the largest media company – yet they create no content.
Crowdfunding businesses like Kickstarter and IndiGoGo are expected to surpass venture capital for funding in 2016 – yet they have no funds to invest.

Whereas it used to be sufficient to sell a product and receive revenues, customers now seek to connect with other like-minded individuals to get the most value in the long run. The most successful conferences build communities that survive much longer than the event itself. If you want to build something that stands the test of time, you’ll connect your customers to each other and to valuable resources that extend beyond the sale. This type of connection is something we included in the Remarkable Growth Experience event for 2016 – we had overlooked the ongoing community aspect in the past.
2. Smart Businesses Will Shift From Complaining About To Embracing Millennials
The largest group of individuals, according to the Census Bureau is people in their 20’s (80 million). This group, often categorized as Millennials, now represents the largest customer and employee segment. They are also soon to be the largest business owner segment. From 1947 to 2010, Baby Boomers represented the largest segment of the population.

Brad Szollose, author of Liquid Leadership and an expert on generational leadership development says, “Millennials want to work for companies they can be proud of, and buy products from companies that give a damn about the things that matter most to them.” Szollose adds, “The reason companies must start embracing Millennials instead of rejecting them is simple; Boomers will be forced to retire soon. This leadership exodus will leave a leadership gap like we’ve never seen before. Since Generation X is much smaller demographically than Millennials, who do you think will be the dominant force competing for those positions? Millennials.”
If you are looking to hire Millennials, you might need to change your approach. Kim Cole, co-founder of TheSalesZone.com, has a great track record of finding extraordinary sales and executive talent. According to Kim, “Millennials need to see a clear vision of their growth and future role in the organization. They might have aspirations that go beyond their current skills. If you share how you help your employees develop skills to advance in their careers, you might attract quality talent – and they will often help you attract other like-minded individuals.” For a great interview question for Millennials, Cole suggests asking, “What types of challenges do you see yourself tackling and how do you envision making an impact five years from now?”
3. Innovative Organizations Will Invest In Mentoring And Engagement For Remote Employees
As more businesses employ telecommuting strategies, it is easy to overlook employee development and training. Top performing companies will make a commitment to electronic tools to teach, monitor, and even mentor team members regardless of physical location. These tools will enable team members to learn on their own schedule and get on-demand support whether it be technical issues, strategy, or sales tactics.
This type of career development will lead to more engaged employees, and will help to improve recruitment of millennials who tend to value skills development. This will extend beyond just learning, but will provide tools to verify concepts, tie to additional clarification, and will track and report on progress to validate the investment.

This also means meeting your employees and customers where they want to find you. Many individuals extend their learning outside of traditional models. Look for continued expansion with podcasts. We’ve seen a strong audience on the Grow My Revenue Business Cast from listeners who tune-in while exercising or in transit.
4. Top Businesses Will Focus On Strengths-Based More Than Remedial Leadership
For years, the approach in employee reviews was to discuss deficiencies and help employees overcome their weaknesses. In 2016, look for an increase in Strengths-Based Leadership. Though we can be taught just about anything, we are most engaged and productive when doing the things we enjoy where we can demonstrate proficiency. Gallup Research shows that productivity increases 21% when employees are engaged at work. Lisa Cummings, CEO of LeadThroughStrengths.com says, “Give them the chance to use their strengths at work every day. Employees who work in their strengths zone daily are 6x as engaged as their peers. So as a leader, you should invest in their natural talents. When you do, the business gets a productivity boost and the employee feels more energized and in their flow.”
Cummings gives a tangible example of the difference: “It used to be that a manager would tell an introvert to ‘get out there more and network.’ With strengths-based leadership, you are more likely to guide the employee to achieving results leveraging their unique strengths. For an introvert, they’re often excellent at deepening 1-to-1 relationships. Rather than sending this person out to run a trade show booth, give them responsibility for showing deep care to five of your top customers.”

You don’t have to be Nostradamus to know you’ll achieve results better and faster if you lead through strengths.

5. Commodity Products Will Continue To See Margins Erode. Services Will Extend Value
Simply being able to deliver a product or service will continue to put you in the commodity game. When it took online retailers a week or more to deliver products to customers, you offered consumers a better alternative. When it took two days for delivery, it was a bit more challenging. Free overnight delivery made it tougher. I recently experienced Amazon Prime NOW when I needed an adapter for my computer. I could have driven to a local electronics store, but the Amazon service was faster, cheaper, and more convenient. I ordered it just before sitting down at a client lunch. By the time I got back to the hotel, the adapter was waiting for me with free delivery.
Top companies will differentiate based on expertise and skills, even when they used to offer commodities. You might think that Amazon and other online retailers are “killing small business.” If you used to count on making money simply because you had the commodity available, you might be in trouble. However, Amazon is essentially training customers to be comfortable buying remotely from faceless vendors. This opens new market opportunities where you can charge for your expertise to online consumers who are now, thanks to Amazon and others, comfortable making purchases from remote sources. While you might suffer trying to provide a commodity in your local market, business opportunities for your niche expertise may have grown beyond your neighborhood. Today, with almost no financial investment, you can sell your expertise and talents anywhere in the world.
Susan Friedmann coined the term “The Riches Are In the Niches” in her book by the same name. In today’s world, generalists need to have the scale and logistics of Amazon to compete. A local brick-and-mortar business might struggle in a small market if they are in a narrow niche. Expand that business on-line, and specialization attracts ideal customers from across the globe. Just be sure you have a product or service they can easily buy to build trust so they can easily do business with you.
6. Leaders Will Invest In A Corporate Culture Of Customer Service To Grow Revenue
According to NY Times Bestselling Author, Jay Baer, “Globally, we spend $500 billion on marketing each year, and $9 billion on customer service. This is despite the fact that we know that customer retention is the quickest way to profit growth. Smart companies are starting to embrace the notion that customer experience and customer service IS the new marketing, as Walker research says that by 2020 customer experience will be more important than price for B2B purchasers.” Baer covers these topics masterfully in his anticipated latest book, Hug Your Haters.

The fastest way to grow your business is to NOT lose existing customers. Customer Service has become a spectator sport, top companies realize that online customer complaints spread like wildfire. Zappos became a legend by investing in a big way on customer experience. They proved that customers in fact, will pay a bit more for an incredible experience.
According to Robert Richman, author of The Culture Blueprint and former Culture Strategist for Zappos, “You can’t demand culture. The best organizations build culture from within. Great culture is built by engaging your team through thoughtful discussions, not by issuing edicts.”
7. Leading Companies Will Measure And Deliver Results Not Just Solutions
Customers are sick of investing in solutions that do not deliver the intended results. Top performing companies will invest in an approach to ensure success of each project for each customer. Doing so will lead to high customer satisfaction, and repeat and referral business.

Price matters most when the seller BELIEVES price matters most . By focusing on results, the seller and buyer will both share appreciation for the value delivered. Once your clients sees that your approach is likely to deliver better, measurable results than the competition, they’ll be able to see beyond price. As more companies focus on measuring results, this also spells trouble for those vendors who today compete as the low-cost service provider. As Seth Godin says, “Competing on price is a race to the bottom that you just might win.”

8. Creative Businesses Will Introduce Fun And Games To Engage Customers And Employees
The average human attention span, according to a study by Microsoft, is eight seconds. This fell from an average of twelve seconds in the year 2000. In comparison, scientists measure the attention span of a goldfish at nine seconds. The study shows that smartphones and mobile devices contribute to this phenomenon. If you recognize that Millennials are the largest segment of consumers and employees, then we better figure out how to capture and retain attention.
One way creative businesses will achieve better engagement is through gamification. Whether it be in the form of electronic games, or traditional games, the idea is to make activities fun and engaging. Let’s face it, would you rather do something fun, or boring? In my business, for years we would work to get teams to embrace role-plays to develop sales skills. Rarely would teams follow-through. We introduced Same Side Improv – a game to allow teams to practice real-world customer dialogs. My clients often report, “I see them laughing and having a good time. Of course, what we care most about is they are seeing better results.” Now they practice weekly and the results speak for themselves. All we did was make it fun.
9. The Best Companies Will Tightly Integrate Content Marketing Into Their Sales Process
When you are looking to make a purchase, how much research do you do on your own compared to the information you rely on getting from salespeople? Consumers value impartial input. When the customer goes silent in the middle of the sale process, it used to signal that something was wrong. Today, it often means they are doing their own research. You have two options: 1) Provide valuable, impartial content to support their research, or 2) Allow your customer to get their information from other sources.
Smart companies will integrate impartial content to support customer decisions. This means not only sharing where you are the best fit, but also acknowledging where you are not. Marcus Sheridan, founder of TheSalesLion.com is one of the foremost authorities on content marketing and he provides a wealth of knowledge on the best approach to achieve results on his website. According to Marcus, “The top companies are seen as the best teacher on the planet on what they do.”

10. Rapid Growth Companies Will Invest in Developing “Selling/Solving” Skills For Non-Salespeople
Revenue generating professionals fall into three main categories: Order takers, salespeople, and subject matter experts. It doesn’t matter which one you think you might be. What matters, however, is what role you want when you are a customer seeking to solve a problem. If you are like most people, you want the subject matter expert. This means that the role of the salesperson is changing. Customers don’t have to put up with the back-slapping, boisterous, stereotypical salesperson.
Instead, subject matter experts are the people who setup a meeting that the customer would be willing to pay for. However, those experts might not have the requisite skills to navigate a complex purchase. Managing the sales process today requires skills similar to solid project management skills – with great attention to detail and follow-through. Those companies seeing rapid growth will invest in developing skills that help their experts manage the process to help their clients solve more challenges. They’ll be seen as trusted advisors. Since these experts wear many hats, the top companies will establish a consistent, simple approach everyone can embrace, even your customer.
It’s Your Turn
Which trend did I miss? If you want to see how I did in 2015, here is a link to the 2015 Trends. I welcome your comments and invite you to join the conversation on Twitter, LinkedIn, or your favorite channel. Please tag @GrowMyRevenue so I can join the discussion.

Gallery: Top 10 Business Trends That Will Drive Success In 2016

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6 Ways To Attract More Clients To Your Business (That You May Have Overlooked)

Avery BlankSenior Contributor

ForbesWomen

I help people advocate for themselves and leverage opportunities.

Trying to secure more client business can be overwhelming. You may not know what to do or where to start. You may feel like you tried “everything” and are stuck. There are many ways to market yourself for more business, and some methods can be overlooked. Consider utilizing these six tips to obtain more clients.

1. Optimize your website.
To maximize your business, you need to have an online presence. Can people find you on the Internet? Can potential clients contact you readily? Do prospects have a sense of the quality of your work?
Make sure that your website is SEO-friendly, which refers to search engine optimization. When your website is optimized for search engines, people can more easily find you online. Think about the names or words you want people to associate with you and your business. Let’s say you are a freelance high school chemistry tutor. Make sure your website appears when someone might search online with words like ‘”chemistry,” “tutor,” “science,” “teaching,” “learning support,” “high school” or “college prep.”

Make sure people can easily contact you. You might have a webpage titled “Contact” and include your email address and phone number or an option to submit a message. It does not help you if people are interested in hiring you but are unable to make contact.
Also, include testimonials. Include on your website brief content from past clients who can speak to the quality of your work. Recommendations go a long way.
2. Reach out to past clients.

Repeat business is easier to come by than new business. While the probability of selling to an existing customer is 60-70 percent, the probability of selling to a new prospect is 5-20 percent. Also, repeat business brings in more cash. Past customers spend 33 percent more than new customers. It pays to focus on past clients.

Past clients can also help you to get new clients. Let your past clients know that you are available for additional work so that they can refer you as opportunities arise. Do not assume people will think of you, even if your work is stellar. The key to obtaining more business is consistently staying top of mind. It is your responsibility to remind people of your abilities and availability.
3. Give a workshop for the local chamber of commerce or community working space.
Provide some in-person content to wet people’s appetites. Give people a preview of who you are and what you have to offer. If you are a financial planner, you might talk about the markets and the economy. If you are a medical professional, discuss the new trends and techniques in your specialty. If you are a website developer, talk about the importance of SEO and the elements that go into having an online website. Give people enough content for them to think of you and want to hire you for your skills.
4. Publish on LinkedIn.
Start writing. Share your knowledge with people. You don’t have to publish on a major platform. You have the means to start publishing now. Use LinkedIn’s publishing platform.
Promote your knowledge through writing. This is particularly important for women who tend to promote themselves less than men, including on LinkedIn.

Gallery: Tips For Making Money Via Fiverr

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5. Hold yourself out as an expert to reporters.
When reporters are writing, they will consider sources or experts to include in their story. Subscribe to HARO (Help A Reporter Out), an e-mail that looks for sources for journalists. Studies show that more men than women are used as sources in articles. Put yourself out there to let journalists know that you exist and the knowledge you hold. People who read the articles will now know who you are to be able to consider you for services.
6. Be active in professional associations.
Get to know other professionals in your area. They may have tips on other ways to secure business. They also may provide referrals if they are unavailable or the work is not in their wheelhouse. Colleagues are not competition. Your peers can help you.

There are many ways to try and secure more business, and sometimes you need reminders of ways that can be overlooked. Optimize your online presence, utilize your business relationships, be a source for articles and engage with professional associations.

What other ways do you secure more business clients? Share with me your stories and thoughts via Twitter or LinkedIn.
Follow me on Twitter or LinkedIn. Check out my website.

Best Places To Keep Your Emergency Fund

Kevin Payne

Contributor

Advisor

Updated: Jan 21, 2020, 6:56pm

Editorial Note: Forbes may earn a commission on sales made from partner links on this page, but that doesn't affect our editor's opinions or evaluations.

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Chances are you’ve faced events or obstacles in life that could be categorized as being an emergency. These are events that catch you off guard and usually have financial ramifications. An emergency can be as simple as having a furnace break down or it can be a health issue that turns your world upside down.
While we can’t predict the next emergency, we can prepare for it. Creating an emergency fund is the ideal way to deal with the potential financial consequences of emergencies. What’s the best place to keep your emergency fund, though? While you can just open a new account at your local or online bank, there are other options to consider.
In this article, we’ll look at five of the best options for your emergency fund.

What is an emergency fund?

An emergency fund is money that you set apart from other savings. It’s there to help you deal with the unexpected events of life. Emergencies can take the form of an unpredictable expense, such as your car breaking down. They also can take the form of an unexpected loss of income, such as having to change jobs or not receiving a bonus you were expecting.
The word emergency evokes different images depending on who you are. An emergency fund should only be used for true emergencies, though. It’s not a backup cash account or vacation fund. If you get into a car accident, that can create an emergency need for funds. Or emergencies could be unexpected hospital visits, home repairs, losing your job or a death in the family. The bottom line? Emergencies aren’t selective. They happen to everyone.

Where are the best places to keep an emergency fund?

When the time comes to start building your emergency fund, where is the best place to keep it? It’s best to keep your emergency fund separate from your other bank accounts. You want your emergency fund to be accessible in case you need access it quickly. And yet you also want it not to be too convenient to reach, so that you’re not tempted to dip into these funds when it’s not necessary.
Here are some of the best options for where to build your emergency fund.

High-Yield Savings Account

Opening a high-yield savings account to start an emergency fund makes a lot of sense. Almost all high-yield accounts are found at online banks. However, you can’t go to a brick-and-mortar bank location to withdraw funds. You’ll need the use of another bank account for transferring money in and out of your high-yield savings account. This could create a delay in receiving funds when an emergency arises.
With that said, a high-yield savings account is still reasonably accessible and allows you to receive a higher interest rate than a traditional savings account. Many high-yield accounts earn between 1% and 2%, depending on the size of your account and other factors.
A number of online banks offer high-yield savings accounts, including:

CIT Bank
Capital One
Discover
Marcus by Goldman Sachs
UFB Direct
HSBC Direct
Barclays
Citizens Bank
Axos Bank
Ally Bank

It’s important to look at rates when you open an online savings account, and also to pay attention to any fees, other perks offered and rules concerning withdrawals.

Money Market Account

Money market accounts are similar to high-yield savings accounts. While both earn a higher APY than traditional bank accounts, they are different in other ways. Money market accounts sometimes come with a debit card and check-writing capabilities, making them more convenient, especially in a pinch.
Another difference, which could affect your decision on where to keep your money, is that money market accounts generally require a larger minimum deposit to open an account. They also may require that you maintain a higher balance to earn the higher rate. Many banks have tiered interest rates based on account balances. Depending on how much you plan to save in your emergency fund, a money market account could be the perfect solution for you.
You can open a money market account at most local banks, as well as at online banks. You may find higher rates online. Online-only banks can offer better rates because they don’t have all the overhead costs that traditional banks face. Whichever you choose, be sure you understand how to access your funds in a hurry, if necessary.
As with savings accounts, federal law limits the number of withdrawals or transfers you can make from a money market account to six per month. You’re likely to face a fee if you exceed this limit. However, if your money market account is being used for your emergency fund, this shouldn’t be an issue.

Certificates of Deposit

Certificates of Deposit (CDs) are another possibility for your emergency fund. They are different from other options on this list because they require you to keep your money in the account for a specific period of time in exchange for receiving a guaranteed rate of return. This could be as short as a month or as long as five years. When the term ends, you can access your initial funds and any interest you earned. CDs typically earn a higher interest rate than other bank accounts.
Earning a higher APY is great, but there is some risk with having your emergency fund tied up in a CD. What if you face an emergency before your CD has fully matured? You can still withdraw money from a CD during this time, but in most cases you’ll have to pay an early withdrawal penalty. Some banks charge a flat fee, while others may charge a percentage of the interest earned on your CD.
Having to pay a fee isn’t ideal and can defeat the purpose of choosing an account that earns higher interest. In a way, it’s like gambling as to whether or not you’ll face any emergencies during that time period. There are a few no-penalty CDs, but you’ll need to read the fine print to be sure that the no-penalty feature isn’t tied to a specific circumstance like losing your job.
One way around this is to create what’s called a CD ladder. This involves rolling over several CDs of varying term lengths. Doing this allows you to earn at a higher rate while leaving some of your emergency fund accessible. You could have one CD with a 3-month term, another with 12 months, another with 18 months, and so on.
Individuals can open a CD account at almost any bank. There also are online banks that offer CDs with more favorable rates or better term options. Some CDs have minimum deposit requirements, while others don’t.

Traditional Bank Account

If the idea of keeping your money in an online account or tied up for an extended time doesn’t sound ideal, you can always keep your emergency fund in a traditional checking or savings account with a brick-and-mortar bank. You won’t earn as much interest, but you have the peace of mind that comes from knowing you can access your funds almost immediately at any time.
One risk with this strategy is that keeping your emergency fund in a traditional bank account could lead to your withdrawing money when it’s not truly an emergency. To combat this, you could open an account at a different bank from your other checking and savings accounts. This can at least add a degree of difficulty that may help keep you from pulling funds out when you’re not facing a real emergency.

Roth Individual Retirement Account

There is a case to be made for putting money into an investment account instead of keeping a more conventional emergency fund. Even bank accounts that earn high-yield interest won’t keep up with rising inflation. Investing your money in a Roth IRA would probably earn more money in the long run.
There is a risk to keeping your emergency fund in a Roth IRA because it could lose value. Choosing more conservative investment options can help lessen the risk of loss.
You can withdraw your contributions from your Roth IRA at any time with no penalty. There may be tax implications and early withdrawal penalties for withdrawing earnings.

Why is having an emergency fund important?

Emergencies happen. It’s a fact of life. You don’t create an emergency fund in case there is ever an emergency. You do it because you want to be prepared when it happens. Having an emergency fund has several benefits, including two essential functions:

It provides you with financial help when something breaks, there’s an accident or health issue, a loss of income or another emergency.
It provides you with peace of mind.

Having an emergency fund keeps you from being caught off guard or unprepared for life’s twists and turns. In a time of crisis, you can focus your attention on the issue at hand without financial worries. Without an emergency fund, you’re left trying to figure out how to pay for something you didn’t save for, which can lead to making bad financial decisions, such as taking on debt to spend money you don’t have.

How much should you save in your emergency fund?

There is no simple one-size-fits-all correct answer to this question. Most experts say to save between three and six months of expenses. Depending on your income, though, that could be a lot of money to save. Also, depending on how well you budget your finances, saving up six months’ expenses could take a considerable amount of time.
A better option may be to create a starter emergency fund and then work toward a more long-term plan. A good starter fund could be $1,000, which would cover many emergencies you could face. Then, work toward adding money to your emergency fund as part of your overall financial plan, along with investing, retirement and other financial goals.
If you have existing debt, it’s better to work toward paying it off than to build up a big emergency fund. Whether it’s from credit cards, student loans or something else, having debt is your emergency. Saving for a future financial issue doesn’t make as much sense when there’s a current problem that needs to be addressed.
The ideal emergency fund is one that gives you peace of mind, knowing you are prepared for most of the storms you may face in life. This could be a month’s income or six to eight months’ living expenses. It’s really about what makes you most comfortable. What’s the ideal emergency fund size for you?

10 Ways to Get Customers to Buy Now without hesitation

Adnetwork

You’ve sent out the best direct mail piece you’ve ever seen. Your catalogue belongs in the Smithsonian. Your brochure is slyly being copied by those in your industry, and you created an online campaign that would make the Internet gods cry tears of joy.

So why aren’t the sales orders pouring in?

There are a few reasons this could be happening. If you hired a top-notch marketing agency and not even your competition can fault your product, it’s time to take a hard look at the pitch you’re sending out. And most importantly, the call-to-action.

With any marketing campaign, it’s crucial that you get potential customers to act without hesitation. Here are ten techniques you can use to create a call-to-action that will have new orders pouring in and your profit margins soaring.

Give a Deadline for Ordering
We’ve all received some promotional material that has a deadline for ordering. The offer could end on that date. Or, you could use the deadline in conjunction with an upgrade or free gift. For example, “order by the 15th of the month, and you will receive a free XYZ product.”
Try to make the cut off date in the same month as your materials will be received. That way, your potential customers know they only have a limited amount of time to respond, and they won’t spend their money elsewhere—especially products offered by your competition.

Warn Customers of a Price Increase
Everyone—no matter how wealthy they are—likes a good deal. If your price will be increasing on a specific date, let your customers know. They’ll want to buy before the price goes up. A great example of this is online behemoth Amazon, who announced the launch of a Prime increase months before it happened and experienced a huge spike in Prime membership.

Establish a Trial/Introductory Period
Trial periods are a great way to get new customers. Offer a special deal, extra service, or a lower price during your trial/introductory period. And, when the time comes to cancel the special promotion, make sure it’s not a long, difficult process. You don’t want to make people hate you.

Offer a Free Gift
Nothing attracts new customers like free gifts. Again, even wealthy people like freebies. As an added incentive for ordering, try offering your free gift to the first 100 people that respond.

Try a No-Risk or Risk-Free Trial
People like to shop, knowing there isn’t any risk involved. Let new customers know if they aren’t satisfied with your product or service, they can cancel for any reason before the trial period expires.

Let People Know It’s Only Available Online
Is your product exclusive to mail order? If your product is not available in stores, be sure to tell your customers that they can only purchase it at your web outlet.

Offer a Free Upgrade
One simple line can boost sales dramatically. “Order within ten days, and we’ll upgrade you to the deluxe model.” People love getting something extra in the form of a higher quality product, and your profits won’t be affected because you’ll sell a lot more inventory, quickly.

Give Out Free Supplies and Accessories
You’ve seen this technique used with computer sales. Buy a computer and receive a free printer. Or, buy a printer and receive free ink. It works with a whole range of products. But be sure to include a date on your offer. It politely urges people to take advantage of your offer before time runs out.

Refer a Friend
It is a tried and true approach that works well if you are in the service industry. It’s easy enough for a consumer to refer a friend to a health club, and in the process, they receive a free massage or a discount on gym gear.

Use Powerful Action Phrases
No matter how you approach your call-to-action, be sure to include action phrases such as any of the following:

Call Now.
Toll-Free.
24 Hours a Day.
Mail this coupon today in the postage-paid envelope.
Email us now with questions.
Instant message us now.
Ten items left in stock.

Conclusion: Advertising your business to the right people is a must for you to gain more customers and the right place for you to place your adverts in other to reach the right people is on Adzword. Click here to show your business in front of 100,000 people start with #500 learn more

Should Know About Passion (And How To Find Yours)

10 Things You Should Know About Passion (And How To Find Yours)

‘Passion’ is a word so excessively used and almost always blindingly paired with work, that if you actually ask around you may find that not everyone really gets what Passion is. At the root of it all, it points to that strong emotion you have inside of you, for someone, or some thing. And anyone who has ever succeeded in making a name for themselves would probably state their passion for the work / craft / industry as a reason for their success, but do you know yours?

I asked around, compiled some questions, got some answers, had a few headaches trying to decipher why everyone is telling me different things about what passion is to them. For example, some equate a passion (for something) to a hobby or a dream, but just because you love to sing (in the shower), that doesn’t necessarily mean that your passion is the act of singing.

Here are 10 things you should know about passion, which can perhaps help you find what your real passion is.

Recommended Reading: 8 Tell-Tale Signs You’re A Geek

1. It’s not A Hobby or A Dream

There should be a purposeful word choice in what you use in a sentence. With this logic in mind, ‘Passion’ is as far from a ‘hobby’ as a ‘hobby’ is to a ‘dream’. One special ingredient separates passion from the two. In the 2004 movie, National Treasure, treasure hunter Benjamin Gates asks his sidekick, Riley, this simple question: "We don’t need someone crazy. But one step short of crazy, what do you get?"

His sidekick says "Obsessed" but he corrects him with "Passionate."

When you do what you love to do at a moderate level, you can call it a hobby. It could be cooking, gardening, singing in the shower, disassembling gadgets, playing with action figures; the mix. But when you go all out with it, to the point that someone deems you a step short from crazy, that’s passion for you.

2. Being Happy With Your Passion

And you do it for a few reasons, one of which is because of how it makes you feel. Passion is engrained in your body and soul. For me, when you are really happy doing something, there’s a hint of what you are passionate about right there.

From that, add a level of obsession to it, a lot of man-hours, a devotion second only to a dog’s love for its master, and that’s just about as close as you can get to pinpointing what your passion is.

(Image Source: My Modern Met)

One of the reasons defining passion is so different from one man to another, is because sometimes it is hard to pin down what your real passion is.

3. You might not see it

It’s not true that passion has to be something that you can feel (as in touch, in physical form). Sometimes it is an effect of what you do. Believe it or not, some people really like to help other people, and that is really important in some professions e.g. a nurse in a child’s hospital, a social welfare worker, a flight attendent, a special needs teacher etc.

That effect not only pushes them to get out of bed and face all kinds of things that would cause you and me to break down on a daily basis (see #4) but they also do it because their passion is to make a difference in someone’s life.

4. Rough It Out

To be passionate about something is to weather the storm no matter how hard it is. If practising for hours on the guitar makes the skin of your fingers break, or dancing the ballet to the tune of the nutcracker gives you ugly toes, passion says ‘so be it’.

(Image Source: philosophyforchange)

You cease to care because at the end of the day you just want to be known as the person who can play Stairway to Heaven in your sleep or still dance even without all your limbs attached (go ahead, click it. It’s beautiful).

5. Childhood Crush

A probable source for what we are passionate about may come from what we were exposed to during our childhood. Many simple things such as sketching, music, collecting action figures or airplane models that we did when we were young evolve to become what we are passionate about when we are adults.

Have you seen what they can do with LEGO bricks? With just pen and paper? With wooden blocks? With trash and light? They may have the talent to do those things but passion is what brings those things from thought to reality, even when they are well into adulthood. For them, growing up doesn’t mean the same thing as letting go of what you love doing.

6. Being passionate is Being invested

Invested here refers to how much of you, you put inside your passion. The time, the effort, the costs, the blood and sweat – it’s not always positive energy or good news all the way (see #4). Passionate people may be angry almost all the time – passion is a combination of love and hatred – because along with the obsession, comes a need for perfection.

(Image Source: stephenwiltshire)

"Good enough" is never good enough because the passion does not allow it. And it has to do with #7.

7. You Don’t Mind Going Full Nerd

No one can describe passion better than geeks and nerds. It probably began as a hobby, then it became a favorite pastime, then a partime unpaid job (because of the hours you spend on it), then you start collecting and learning the jargon, and joining communities of fellow fans.

This is where you shut out almost everything else and fully devote yourself into pursuing and elevating what you love so that it is out in the limelight, looked at by the rest of the world. And the irony of it is, the world probably don’t and won’t ‘get it’. But you do and you don’t care.

8. You can’t stop it

Say you don’t want to go full nerd on it; well, here’s the bad news, you can’t stop it or refrain from doing it. It’s always there in your heart and up there at the back of your mind. You can’t switch it off or tone it down. And you won’t stop until you have let it all out or satisfy your craving – be it to draw your next masterpiece, or to write your breakthrough novel, or to redefine an industry. Follow it far enough in your career and your life and something big may come of it.

9. Raw Passion, Ambitions & Limits

At least the one thing that everyone could agree on about passion is that it is closely associated with drive, enthusiasm, limitless energy, motivation, the push, etc. Passion can be transformed into raw enthusiasm which is then processed into an internal drive that keeps you going.

Passionate people are almost always ambitious. They want to have a say in the field that they love. They read about it, study it, embrace it and never really escape from it. It is a gift and a curse. And I don’t think everyone has it.

10. Embracing Passion

"It is obvious that we can no more explain a passion to a person who has never experienced it than we can explain light to the blind." – T.S. Elliot

I think about passion the same way that I think about talent. Not everyone is gifted with it. Even if they are, not everyone has the bravery or the opportunity to embrace their passion. In order to survive, most of us prefer to be practical rather than passionate.

"Get a steady job, buy a car, pay your bills, sign checks, manage accounts." Don’t get me wrong, it is necessary to have a steady income to pursue your dreams but I don’t believe it when people say, "I am passionate about my work". Are you working for the money or for what you love? It’s a fine line between the two, but to be technical about it, it’s still a line.

Conclusion

When it comes to passion – a strong emotion of desire – there is a need to be brave enough to both acknowledge and embrace it. Some let their passion take over the wheel and do things that challenge the status quo, push boundaries, wreck tradition and ultimately reshape the world as we knew it. To strive for your passion is to be different from the rest. Take it from astronaut Chris Hadfield who has some pretty good advice to share with youngsters who want to one day go to space like how he did.

Do you have the same level of bravery to embrace your passion?