Category: Entrepreneurship

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We’re Officially in a Bear Market. Here’s What to Do

We're Officially in a Bear Market. Here's What to Do

With the prolonged market downturn, no one can really blame you if you start feeling uneasy. Will the bear market last long? What should you do in the meantime?

Instead of letting the extended decline burst your bubble, there are a few things you can try doing for now:

Prevent Knee-Jerk Reactions

It can be quite tempting to jump out when there is a drop in the market and wait for the asset values to start climbing again. However, that knee-jerk jump may result in costly mistakes. Selling during a steep fall in the market will put you at risk of locking in a permanent capital loss. To optimize your long-term potential, time in the market is more critical than market timing.

Look for Strategic Opportunities

Defensive stocks have the potential of offering opportunities during a market downturn. You may even find some opportunities in the higher-quality dividend-paying stocks, specifically ones with a history of consistent growth of their dividends. These stocks can possibly increase your total return during the fall of stock prices.

Consult a Financial Advisor If You Haven’t Done So

If it seems that your emotions are starting to control you, it might be better to seek professional advice. A financial advisor will help you go through your financial approach once again and provide insights that can help limit the impact of the bear market on both your long- and short-term goals.

While the market recovers, the advisor will also ensure that you stay right on track and guide you in adjusting better while your priorities change over time.

Continue Your Consistent Investments

When you invest at regular intervals a set amount of money notwithstanding the market conditions, it is more likely that you can buy equities at more reasonable prices and possibly see a rise in the value of shares when the market starts bouncing back up

Making regular contributions every week or every month to your portfolio is a form of systematic investing that can possibly offer efficiency if the market falls.

Maintain Perspective

It doesn’t matter how long or deep the bear market continues to be, markets were able to bounce back in the past. Bear markets already happened before and anyone who studied the historical price charts will notice how these markets were able to recover and grow higher than they were before.

Any investor who stayed disciplined during a negative market will likely avoid common mistakes and possibly see better times ahead. When you stay invested longer, history reveals that you will also have a greater possibility of meeting most of your long-term goals.

Rebalance Your Investment Portfolio

During the long bull market, equities can depreciate or appreciate faster than your cash or bond holdings which can throw your investment portfolio out of alignment with your desired allocation of assets. During a bear market, consider it your chance to address the imbalances that occurred.

For example, if your investments are made up mostly of equities, it might be the time to sell some of your stocks and move this money to bonds or cash equivalents, depending on your specific situation and market conditions.

Do these tips and make it through the bear market unscathed.

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How to Break Free from a Stereotype

How to Break Free from a Stereotype

There is no problem at all when adjectives such as intelligent, feisty, and seductive are used for describing individuals. However, once they are used for describing groups of people, the same adjectives might lead to stereotypes.

What are Stereotypes?

Stereotypes refer to qualities that are assigned to certain groups of people in relation to their nationality, sexual orientation, and race, just to mention a few. Since they tend to generalize groups of people in ways that can ignore a group’s diversity and result to discrimination, it is important to avoid and break free from a stereotype.

Stereotypes are Complex

Although stereotypes might refer to a particular country, race, religion, or sex, they often link different identity aspects together. For instance, a stereotype regarding black gay males often involves sexual orientation, sex, and race.

While this stereotype targets a particular African American segment instead of blacks as a whole, there is still a problem in insinuating that black gay men all act in a certain way. There are a lot of other factors that can make up the identity of a certain black gay man to associate him with a definite list of traits or characteristics.

Stereotypes can also be complex once they factor in sex and race, members of a similar group can be pegged in different ways. Some stereotypes are applicable to Asian Americans in general but once the population of Asian Americans has been categorized by sex, it is easy to see that the stereotypes of Asian American men and women are different. Stereotypes that involve gender and race may peg men of a specific racial group as striking while the women are an exact opposite or the other way around.

How to Put an End to Stereotypes

There are several things that can be done in order to break free from these stereotypes:

    • Educate yourself.

Among the first and most important steps you can take is the same thing you are doing at this very moment, and that is educating yourself. Be sure to learn more about the issue and improve your awareness of stereotypes and how you can combat them.

    • Have the motivation to avoid being controlled.

Yes, one of the most effective ways of making sure that stereotypes don’t control you and your thinking is to just be motivated enough not to let them control you. With just a bit of effort and awareness on your part, stereotypes will never bother you ever again.

    • Know the facts.

It is all too easy to judge things, situations, and people as you see them with the naked eye. However, before making any assumptions, getting the facts straight will ensure that you don’t end up using unnecessary stereotypes.

    • Meet more new people.

While it is always good to learn about racism and race, it is never enough all by itself. Studies have long been revealing how establishing reciprocal and meaningful relationships with people from other different groups can work to put an end to stereotypes.

 

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Does Family Set You Back in Life?

Does Family Set You Back in Life?

Do you always feel shy being around your own family?

Does it seem weird when you are with your family and you meet someone your age?

Are you uncomfortable talking to a friend of the opposite sex while your parents are keeping an eye on you?

While it is always great to have your family around, there are times when they may also be the same people who may set you back or even pull you down in life.

Below are some of the most common ways that your family may not be helping you at all.

Addiction

Addiction is something that can result to numerous unhealthy relationships among the members of a family. There are many effects that addiction can have on a family’s emotional health and sometimes, this can even last from one generation to another.

Conditional Love

A dysfunctional family member may become too manipulative when it comes to their affection wherein they give love only if they want or need something from you. This habit of withholding love may make you want to please them all the time without even giving you a chance to just relax and enjoy being who you are.

Fear and Unpredictability

It is not easy to establish a trusting relationship if you are constantly living a life filled with fear and uncertainty.

If you are not sure how you parents will respond, you will always anticipate conflict and you will never be honest when expressing yourself. Instead, you will anticipate their criticisms all the time.

You may even want to stay away from things that could have been enjoyable and fun such as holidays and vacations.

Neglect or Abuse

Abuse is an indication of active harm such as physical or verbal abuse and violence. Neglect is a form of inactive harm that can either be emotional or physical. Examples of these are not feeding your kids or withholding attention, interest, or love.

Neglect and abuse can both be very problematic. Families may be caught in continuous cycles that may normalize dangerous treatment. People who are reared in such families may exhibit similar behaviors to their own children that may cause a new cycle of abuse or neglect.

Lack of Boundaries

The following are examples of lack of boundaries in a family:

    • An older child who takes on the parent’s role.
    • An intimidating parent who aggressively discourage children to assert themselves or even to speak their mind.
    • A controlling parent who takes charge of making life decisions for their kids and ignore their opinions.

No one in such families has their own personal space. No one respects the autonomy of each other. Living such a life may lead to codependent and unhealthy relationships later on in life.

Lack of Intimacy

There might be no signs of closeness within your family and no honest and genuine emotional support. The relationships in the family are more superficial instead of being emotionally available. This kind of relationship can make it difficult for you to be anywhere close with anyone because you have never practiced to do so in the past.

If you see or notice any of these signs, then, there is a chance that your family is indeed setting you back in life.

 

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Are Entrepreneurs Born or Made?

Are Entrepreneurs Born or Made?

Since time immemorial, there has been countless of debates about nurture versus nature. The same thing goes for entrepreneurs. Is an entrepreneur born or made?

While there is no way to solve this long-standing argument right here and right now, there are a few things that you ought to know first so you can decide for yourself whether you can be born as an entrepreneur or made to become one.

What are Entrepreneurs?

Although definitions differ from one source to another, there is one important thing that stays constant in every source. That is, entrepreneurs are people who build and manage a business.

Based on this definition, another simple question may rise. Is it a birthright to start and manage a business? Or is this an act open to everyone who is willing to seize the opportunity and take the risk? Consider that the answer is more favorable of the latter, it might be safe to say that the opportunity to become an entrepreneur is open to everyone, which means that entrepreneurs are not born.

However, it is possible that the usual perception of entrepreneurs is not really the definition standard. Instead, it is something that makes you think of the image of a thriving and successful business. For this reason, it is important to look into the traits that make entrepreneurs achieve success in order to know the answer to the age-old question.

What Does It Take to Become a Successful Entrepreneur?

The defining traits and characteristics of triumphant entrepreneurs can also vary from one person to another just like all traits. However, if you consider the most common traits, you might notice a pattern soon.

With this pattern, it will become apparent that successful entrepreneurs do share several key traits and these include:

    • Determination
    • Interpersonal skills
    • Discipline
    • Vision
    • Passion

If you take a closer look at these traits that make an entrepreneur successful, you can tell that these are not just common in people who had them since birth.

In fact, everyone has these traits at varying degrees. Having said this, it might be safe to assume that successful entrepreneurs are people who cultivated these traits to achieve their vision for success, something that anyone can do if they put their heart and mind to it.

This brings back the original question once again.

Is an Entrepreneur Born or Made?

At the end of the day, it might be safe to assume that the spirit or sense of entrepreneurialism isn’t something that a person has right upon birth. Instead, it is the product of training, determination, and some luck combined with a foresight of coming up with solutions that can make a person an entrepreneur.

So, it might be time to stop asking whether entrepreneurs are born or made. One thing is for sure here. The opportunity and chance of building a business around a certain idea and becoming successful on one’s own terms is something that is available to anyone who is willing to take that first step to achieve it.

 

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What Does Passive Income Mean?

What Does Passive Income Mean?

Are you curious to know how you can earn some extra money on the side with minimal effort? Then, it is about time that you learn more about passive income.

Passive Income – What is It?

Passive income is an income source that can be achieved with minimal effort. Good examples of these passive income opportunities include stock market investments, rental property incomes, and affiliate marketing participation.

Most people who try the different avenues of passive income use these as secondary sources of income and still retain their primary income at the same time such as their hourly wage or salary.

Similar to other forms of income, passive income can also be taxable. But, depending on the specific passive activity, you will notice that there are some that have higher tax rates compared to others. For instance, interest income is being treated similarly to ordinary income as far as taxes are concerned. Capital gains and dividends, on the other hand, have a tax category of their own.

Passive Income vs. Active Income

Now, you know what a passive income is. This time, it is time to know what sets passive income apart from the two other forms of income namely portfolio income and active income.

  • Portfolio income is the form of income made from stock investments, capital gains, interest, and dividends. Portfolio income is often considered as one type of passive income.
  • Active income is basically the exact opposite of passive income since effort is required to maintain and keep it. In general, active income is your hourly wage or salary.

Benefits of Having a Stream of Passive Income

Just like other financial decisions, it is important to consider the effects of a passive income stream not only on your financial situation but also on your personal life. Most financial experts suggest that people should try having a passive income as it provides a long list of advantages that could help boost your goals for personal finance.

Here are some of the exciting benefits of having your own passive income stream:

  • Having your own passive income stream helps you improve your discretionary income with no need to sacrifice other aspects of your budget. Have you always wanted to tour Europe but you cannot afford it with only your primary income? Passive income will give you the much-needed financial freedom so you can pay for all lifestyle expenses with no need to use up most of your free time.
  • Upfront money is not always necessary to start earning. You can choose from different options to earn extra cash with no need to spend anything to get started. There is also no need for you to become an expert just so you can take advantage of your skills.
  • You can start earning passive income no matter where you are. With all the available passive income opportunities online, you are free to work from the comforts of your home, during your lunch break, or even as you travel the world.

If you wish to establish better financial security and earn money according to your own schedule, passive income might be exactly what you need.

 

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How to Quit Your Job without Burning Bridges

How to Quit Your Job without Burning Bridges

Not everyone leaves a job for negative reasons. Maybe you were given the chance to move to a different city or a new opportunity came that you cannot simply pass up.

But, there are also many negative reasons why people leave their current jobs. You might feel dissatisfaction with your company at the moment or your role no longer challenges you.

Whatever it is, it is very important that you learn how to quit your job without burning bridges. Here are some tips you can follow:

Don’t Look for a New Job While You are Still on the Job

Maybe the first common mistake job seekers make every time they look for a new job is doing it while they are still at the office. Your company has all the right of tracking how you use their technology.

Once they notice that you are visiting inappropriate sites or you are spending your time looking for a new job instead of doing your current responsibilities, they might take some actions against you. The best thing you can do is to do your search after office hours.

Don’t Let Anyone in the Office Know about Your Plans

Rumors are your ultimate enemies when you are searching for a new job even before you are finally ready to call it quits. In fact, even your closest confidante in the office might not be to protect your secret. Be sure to keep everyone in the dark until you have formally submitted your resignation letter to your boss.

Be Familiar with Your Rights and Those of Your Employer

Can you still recall all those papers you signed when you were hired for the first time? You might have a non-compete agreement with the company you are working for right now. There are also states that are “at will” states wherein either employees or employers can have the job terminated at any given time. However, there are some that are not. Prior to making any crucial decisions, check the employment laws in your state and go through the original package you have with the company.

Prepare the Proper Notice

Most of the time, you don’t have the obligation to give your employer notice of your resignation but this is considered as a professional courtesy.  A minimum of two weeks will let your employer look for and hire your replacement.

This also gives you the chance of sharing your best practices with your replacement or your team. You can also try giving more than two weeks if possible. Providing notice to your current job is also something that even your new employer will appreciate.

Give Your Employer a Written Notice

Aside from the two-week notice, you also need to personally give your formal resignation letter to your direct supervisor. You can plan your message ahead of time and add positive thoughts about your stay at the company.

This will also force you to face your decision straight on as professionally as possible. Nothing can burn a bridge faster than leaving your letter of resignation on your table or simply walking off your job.

Use these tips and say goodbye to burnt bridges when quitting a job.

 

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What’s Turo and Why You Should Rent Out Your Car

What's Turo and Why You Should Rent Out Your Car

Turo is one of the newest forms of car rental services right now. So, what’s Turo and why should you rent out your car using this service in the first place?

Turo – A Quick Definition

The best way to describe Turo is that it is the Airbnb of cars. Instead of looking for big rental companies when renting a car, people will be able to rent cars from private individuals. Average hosts on Turo can earn up to $545 a month using the platform.

The motto of Turo is to let your car work for you. This is one interesting way to earn some cash as you offset the cost of your vehicle payments. This can also be considered as a passive source of extra income. It means that you won’t have to trade time for money. All you have to do is list your vehicle when it is available then earn some extra money with the least work and effort on your part.

How Turo Works

Turo can be found in 2,500 cities in the USA including 300 airports.  Average owners in the community of Turo US can earn significant income and on the part of renters, the cost is up to 30% lower compared to average rental agencies. This concept is currently being exported to Quebec, Ontario, and Alberta.

For you to rent on Turo, the first thing you have to do is sign up on the platform. They check and validate first all drivers and car owners before they are allowed to rent from the marketplace. Car owners can set the price, information, and location of the car. Travelers can browse through all the available cars and check the ratings and comments of other users. There are also owners that provide pick-up and some even deliver.

Why Rent Your Car Out on Turo?

The following are some of the top benefits of renting your vehicle out on Turo:

  • The app and website is easy and simple to use.

Turo’s interface is very user-friendly and this is what makes it very simple to navigate the website for bookings, getting paid, editing listings, messages, and more.

  • You can get good 24/7 phone support even for the smallest things.

Turo got reliable phone support available 24/7 even for common things like late returns or billing queries. However, if it is anything that is more serious like a damage claim, for example, the company doesn’t offer phone support for it.

  • You will have plenty of bookings.

Since Turo has now become very popular, you can consider yourself lucky, especially if you are living near the airport or in a major city. As long as your vehicle has open availability and comes with a fair price, you could expect that your car will be booked more often. To get a good idea of how much you will earn from your car, you can use Turo’s Calculator based on your vehicle’s make, model, and year and city you are renting from.

 

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Should You Take Your Business on Sharktank?

Should You Take Your Business on Sharktank?

While Shark Tank, the hit show of ABC, seems to focus on nothing but glitz and glam, it actually gives you a very realistic view of how it is like to be working with investors for your business. The only difference is that it is shown on TV with popular investors.

But, should you take your business on Sharktank? If you are still on the fence on whether or not Sharktank will be worth it, here are the best lessons that business owners like you can learn from this popular TV show.

You Be Able to Summarize Your Business Idea in Just 10 Words or Less

It is one question asked frequently on Sharktank and one that usually gets terrible answers or catches entrepreneurs by surprise. Be sure to spend time here. Ask yourself the reason why you started your business, where you hope to go, why it matters, then sum everything up. It is better if you can be clearer and more concise. It is probably the main reason why Sharks ask the question. This is an amazing chance to leave them impressed.

Preparing Several Presentations is a Must to Show That You Know Your Audience

When watching Shark Tank, you will soon realize that every investor cars about different areas of your business. There are others interested in your financial history, some like to hear about your objectives and how you plan to grow your business, while others just want to know about the business in general.

It means that you need to prepare the answers and consider them as separate presentations. Since presentations are everything as far as investors are concerned, it would be so much better if you make them more customized.

Spend More Time on Your Presentation

This is definitely that must be mentioned if you are planning to take your business to Sharktank because it is a no-brainer in the show. You should come prepared with answers for questions regarding your business. At the same time, you also have to make sure to sell your business in the presentation.

Even if you have the world’s most groundbreaking product, you might close the deal if you have less than stellar presentation skills, you answer questions nervously, you don’t seem interesting with presenting your product, or you don’t appear outgoing.

It is recommended to take note of all the basics regarding your business followed by all the advanced or cool ideas or features. After doing this, you can ask questions about ever item and practice how to present them in such a way that will keep the Sharks interested and show them its importance.

 Come Up with Realistic Goals for Your Finances

This is a lesson that you can transfer to all aspects of your business. It is a must to be realistic. While there is nothing wrong with being ambitious, you shouldn’t try overselling or overestimating when you pitch an idea to investors. Good investors can notice if you go overboard with your figures so make your financial goals realistic and follow through them. It will help you move forward better compared to overestimating only to come up short.

At the end of the day, taking your business to Sharktank will be worth it if you want to prove that it is practical and you want everyone to see it as that.

 

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How to Estimate How Much Your Company is Worth

How to Estimate How Much Your Company is Worth

Do you know your business’s economic value? There is a big chance that you have never tried to do it before even after running your business for a few months or even several decades. 

At one point or another, it will be necessary for you to know your company’s value in cash. But, how do you do it if you lack financial expertise in the first place? 

Whether you are planning to sell your business soon, you want to finance your upcoming retirement, you plan to put up a new venture, or you are in need of more investors, it is a must for you to know its real value. There are several steps on how to estimate how much your company is worth and these include the following:

Calculate the Value of Assets

Start by adding up the value of all the things that your business owns and these include all inventory and equipment. After that, subtract any liabilities or debts. The value of the balance sheet of a business is at least a good starting point to determine the worth of your business. But, there is a possibility that your business is worth so much more than the net assets that it has. You also need to consider your expected earnings and revenue.

Base It on Your Revenue 

How much are the annual sales that your business generates? Make sure you calculate this and determine the typical worth of a similar business in your industry for a specific level of sales with the help of a business broker or stockbroker. For instance, this might often be equivalent to twice the amount of your sales. 

Use the Earning Multiples 

Another relevant measure to estimate the worth of your company is with the multiple of its earning or the P/E or price to earnings ratio. Try to estimate your company’s earnings for the next several years. If your typical price to earnings ratio is P/E with projected earnings of $200,000 annually, the worth of your business would be $3 million. 

Conduct a Discounted Cash Flow Analysis 

This discounted cash-flow analysis is a rather complicated formula that checks the yearly cash flow of a business and projects this into the future and discounts the future cash flow’s value to today with the use of net present value calculation. 

It’s Not Just About Financial Formulas 

Never base the assessment of the value of your business on the numbers alone. You might also want to consider your business’s value according to its specific geographical location. Aside from this, you also need to take into account the potential strategic value of the business to a potential acquirer if business synergies occur.

Business valuation is extremely important for buyers and investors. Evidence of value is critical to gain the interest and attention of those who have the financial capital you need and are looking for. If you cannot show the worth of your business to an investor, they will never know the amount of reasonable monetary investment they can make. 

Use these tips on how to estimate how much your company is worth. 

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Five Tips for Hiring Great Employees

Five Tips for Hiring Great Employees

When you are a recruiter or hiring manager, you need to be diligent and creative enough to ensure that you recruit only the top talent from a large pool of candidates. But, the question now is, how do you ensure that you hire the perfect people for the position?

Check out these five tips for hiring great employees that can help with the growth and success of your company or organization:

1. Start with a Good Job Description

Job analysis is the first step to hire the right employee. This allows you to gather information regarding the essential skills, work environment, responsibilities, duties, and outcomes of a certain job. The data from job analysis is crucial to develop the job description for new employees. This job description helps you plan your strategy for recruiting the right employee. 

2. Treat Job Candidates Like Valued Customers

It doesn’t matter if it is a face to face interview or a phone screening because the first impression of an applicant of your company is crucial. You need to make them feel and show them that you are excited to know them better as you consider them for the job. Among the best techniques for recruitment is to treat applicants just as you treat customers and clients. Respect their time, be hospitable, and make yourself available. 

3. Provide an Employee Referral Program 

The best candidates often surround themselves with equally capable professionals. Although most employees might already share open roles with qualified contacts within their networks, a properly developed employee referral program may help encourage your employees further to refer to other great candidates they know. You can provide incentives for every referral with contests and bonuses to make the program even more exciting. 

4. Prescreen Candidates 

There is one very important reason why you should prescreen candidates every time you hire an employee and that is it helps save time for the selection and interviewing committee. While candidates might look great on paper, you can determine if their specific qualifications are really suitable for the position through a prescreen interview. 

In addition, a prescreening interview also helps you determine if the salary expectations of the candidate are compatible with the job. A skilled phone interviewer can also get evidence if the candidate is fit for your company culture or not. 

5. Take Past Candidates into Consideration

Finally, when hiring for a position, some talented candidates usually don’t make the cut because of timing and other external factors. Every time you recruit for the same position, you might want to revisit the resumes of previous candidates. These applicants are already familiar with the company and might have also gained new experience and skills since the last time spoke. 

As far as finding the best talents is concerned, it is a must that you are persistent enough with the willingness to use your creativity. With the use of these five tips for hiring great employees, it will be easier and faster for you to discover highly passionate and qualified professionals who are more than ready to be part of your team.