Entrepreneurship

8 Ways to Minimize Costs and Maximize ROI on Employee Travel

Linsey Knerl — Thu, 26 Mar 2020 20:00:05 +0000

Link:

http://blogs.openforum.com/2009/07/06/8-ways-to-minimize-costs-and-maximize-roi-...

Whether you have a sales force of two that only does the occasional overnight, or you maintain an army of road warriors and have your own travel coordination department, these 8 tips will help you get the most out of your company's travel budget.

1. Know your travelers' needs.

Talking to your employees about their travel needs is one of the best ways to keep costs down. This doesn't just include selecting smoking vs. non-smoking, or aisle seat vs. window, but rather asking your road warriors “what do you really need to feel comfortable traveling?” You may find that certain employees don’t care for a king-sized bed or wouldn't mind taking a red-eye flight so that they can return home to family earlier.

Prepare a simple travel questionnaire for each employee to fill out. Ask them what their preferences are by priority and have it on hand when making their travel arrangements. In addition to standard questions regarding flight seating, bed size, and rental car preferences, be sure to include detailed preferences such as dining choices, special health or disability accommodations, and even whether they like rooms on the first or fiftieth floor (some travelers feel more secure in rooms off the main level).

By giving each employee this simple “needs” analysis, you will save money on things the employee didn't care about while maximizing their comfort (and efficiency) while away from home.

2. Save your resources for when it counts.

Before a trip is ever booked, talk with your team to decide whether the trip is really necessary. Meetings that can easily take place via conference call or web interface should almost always happen in-house. Google Voice and Skype are low-cost video-conferencing options that work well.

However, if the trip has the potential to produce an on-site contract signing or another major milestone, the investment should be made. There is no substitution for the candor and connection that results from grabbing a drink or a quick bite to eat with a would-be client.

By betting on only the best opportunities, you can keep your team sleeping in their own beds more often.

3. Let the team know what's going on.

Everyone is feeling the economy, and while it may be acceptable to give a blanket “we are putting you in coach because we need to save money” excuse, providing even a bit more of an explanation can put you in the good graces of your employees.

Your team needs to be assured that their comfort and safety will always come first. For each cut in the budget you make, explain your reasoning to the team. If a switch in hotel vendors is made, give an adult explanation to why it’s being done and how the change can positively affect pay and benefits.

Putting the cuts in a “team-oriented” light will bring a sense of unity to those most affected by cuts. If the CEO is also expected to fly coach, middle-managers will be more likely to swallow it easily. Remember that these are capable adults being sent out to represent your brand and mission, not kids being shuttled off to day camp. The level of respect you provide will directly equate to higher morale, better sales, and a more loyal workforce.

4. Take advantage of corporate discounts.

If you don’t already have a group rate set up with the hotel or rental car chain that you use the most, this is the perfect opportunity to ask for a discount. Many companies offer details on their website, but a simple call to their corporate office can get you going in the right direction. Discounts can vary from getting a small percentage (5-10%) off all your bookings, to getting a free night or day rental after a certain number of purchases.

5. Utilize credit and charge card rewards.

And pass travel rewards back to employees. Have a chance to upgrade a seat from coach to business class using reward points? Do it, and get your road warrior to their destination happier. There are also cards that give you access to airline lounges or business lounges in cities around the world. These comfortable lounges offer your jet-lagged road warrior a place to work and freshen up all over the world. Plus some cards offer exclusive access to events, impossible-to-get dining reservations, and access to premium concierge service.

Use all the rewards you have to make life easier for your traveling employee (especially amidst cutbacks in other areas).

6. Plan ahead.

Cancelling a trip on last-minute’s notice is not only inconvenient, but it can also be very costly. Airline change fees start around $150, and many hotels will charge for nights canceled within 24 hours of the reservation. If you find that cancellations are eating up even a small amount of your travel budget, it may be time to revaluate the common causes for these travel snags and get them under control via the communication methods mentioned above.

7. Mind your time.

Money can be lost when travel time is not clearly specified. Will your sales team be gone three hours or six? Can they return that night or do they need to stay until the next afternoon? Small decisions can balloon into big expenses. By finding out just how much time the trip really needs to take, you can cut back on time out of the office (and money out of your pocket).

8. Hold fees accountable.

ATM and luggage fees are just two examples of charges that many employees wouldn’t think about incurring if it were on their dime. Be sure to have a clear policy for what will be reimbursed for company travel.

If you decide to exclude certain items, help your employees work around it. For example, by offering packing tips, allowing conference materials to be shipped in advance, or providing a list of locations for fee-free ATM services.

This article is from Linsey Knerl of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways to Avoid Scams When Selling Your Stuff Online

Paul Michael — Thu, 29 Nov 2018 09:00:12 +0000

These days, selling items you no longer want or things you've made has become easier and more lucrative than ever before. We no longer have to hold yard sales every week, or pay for classified ads in newspapers. With eBay, Amazon, Etsy, Craigslist, and so many other outlets available, you have the world at your fingertips. But of course, the more open you are to sellers, the more accessible you are to scammers. Know what to watch out for, and you can sell your stuff with minimal stress. (See also: How to Protect Elderly Loved Ones From Financial Scams)

1. Don't accept big bills

If you're selling on Craigslist, you have to be very careful with cash transactions. Something scammers love to do is present a fake $50 or $100 bill, and take home an item along with a bunch of change. The seller is left holding a worthless note and down a valuable possession. One way to keep this kind of damage to a minimum is to only take $20 bills and below.

However, $20 bills can be fake as well, so you have to keep your wits about you. There are many ways to detect fake notes, and if the bill has blurry text and lines, no watermark, you likely have a fake. If you're in no mood to become a detective, pick up a fake note detector kit. It costs less than $10 and will pay for itself the first time you detect a phony bill. (See also: 12 Garage Sale Items That Sell Like Hotcakes)

2. Always meet your buyer in a public place

It may be inconvenient for you to meet in a police station parking lot or at a local coffee shop, but your first priority here has to be your personal safety. You have no idea who you're meeting and what they have in mind, even if they sound wonderful via email or over the phone. Some "buyers" lure you in to steal your item, and whatever else you have on you. Some want to cause you physical harm, or worse, and have no intention of purchasing anything. If you ask to meet in a public place and they refuse, that's a massive red flag. If they want you to bring the item to an address of their choosing, you also need to steer clear of that transaction. If you can, bring a friend (or friends) and tell other people where you're going and all the details about the person you're meeting. Most of the time, it's just a regular person looking for a deal. But you really don't want to let your guard down and trust the wrong person.

3. Have evidence of the item's condition

Many people abuse the good will of online sellers to save money. One of the nastiest ways you can be taken advantage of is when someone buys a mint condition item from you, then asks for a return and a refund because "it doesn't work."

For example, let's say someone buys a high-end computer mouse from you, then they say it doesn't work and want a refund. You know it worked fine when you sold it. If it's something that costs more than just a few bucks, have evidence of the item working in the listing itself. Take accurate photos and videos, and record serial numbers. It takes just a few minutes to get this all down, and you only have to store it until the transaction is closed and everyone is happy. (See also: How I Make $800 on Month on eBay Selling Used Clothes)

4. Avoid buyers with brand new accounts

This is not to say that all buyers with new accounts are scammers. This is simply a precaution you should take to avoid getting stung. Scammers tend to get banned by eBay after a few incidents that form a pattern of fraudulent behavior. These people will just keep opening new accounts, doing a few returns for broken items, or "item not as described" before being banned again and continuing the cycle. Luckily, you don't have to weed these buyers out on your own. eBay has settings that let you block certain buyers. (See also: This Airbnb Scam Will Ruin Your Vacation — and Your Budget)

5. Be wary of requests for partial refunds

So, you sold your item and everything seems fine. Then you get an email from the buyer, saying that the item isn't in the condition they were expecting, or it's missing some parts — which you know were included. But they want to keep the item. They'd just like you to refund their money to make things right. If you're asked to do a partial refund, try and get evidence of the problem. If it's damaged, ask to see the damage. If it doesn't work as described, ask for a video. If they refuse, you know something's afoot.

If they do send pictures, you have a few choices. You can say you want the item to be returned, and will fully refund their purchase upon receipt. If they don't want to do that, they're probably trying to get a quick buck from you. Of course, sometimes these partial refund requests are genuine, perhaps due to an inaccurate listing from a new seller, or another mistake. In that case, a partial refund is something you can issue if you feel comfortable.

6. Never ship to a different address than the one on file

When you set up an account on an online selling site, you should enter a shipping and billing address. This is standard practice. If you sell an item, and receive a note asking that you ship to a different address, you should decline. On rare occasions, the person hasn't updated their shipping address from a move, or it's a gift for someone else. Too bad. Don't do it.

When you're asked to ship to a different address, it could be that the account in question has been hacked, or you will be asked for a refund because the item was not delivered to the address on file. It's just not worth it. (See also: Make Money and Declutter by Selling These 5 Unlikely Treasures)

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Fundraising Steps for Building a New Business

Paul Michael — Wed, 13 Jun 2018 08:30:21 +0000

Perhaps one of the most exciting career moves anyone can make is to start a business. However, that rush of excitement and adrenaline often comes with apprehension, intimidation, and fear of failure. How are you going to get the money you need to make a go of this?

It's estimated that 50 percent of businesses fail within the first five years of operation. And while a lot of that has to do with lack of focus, motivation, and commitment, money is also an issue.

Once you've legally incorporated your business, here are some basics that will help you raise funds for your new company. Note that while angel investors, incubators, and venture capital companies are most often associated with Silicon Valley, some also work with non-tech companies.

1. Raise money in stages

You are not going to get all the money you need to operate your business in the first round. What you will do is go through different stages of funding, building up to greater amounts of money as the business becomes successful. Think of it like weightlifting. You would never go into the gym and start with the heavy rack; you work up gradually, making progress and using those gains to lift larger amounts.

The first stage will be a small amount of money you can raise through your own network. Then, you will move on to other sources of funding. In the venture capital world, funding for successful businesses usually continues through a series of investment rounds — A, B, C, D, and so on. (See also: 4 Ways to Fund Your New Business Without Borrowing a Dime)

2. Figure out exactly what you need to get started

What will it take to get your venture off the ground? This can't be some arbitrary figure plucked out of the air. It should be based on operating costs (including paying yourself a salary) for at least six months. Some expenses will be one-offs, such as purchasing manufacturing equipment, and others will be recurring. That all needs to be added into the mix. Don't forget utility bills, employee pay, and costs that can vary from month-to-month.

Consider how you will grow over that six-month period. You may need to buy a lot more inventory or supplies in month six than in month one, especially as demand booms. You don't want to be in a situation where you cannot fulfill orders or give customers what they want. Disgruntled customers will quickly move to another business.

3. Start with friends and family

It's unlikely that you're going to be able to completely fund your new business with money from friends or family. However, some new businesses have done this (it's known as bootstrapping), and it will all depend on the size and scope of your business, and just how wealthy your inner circle is.

Starting here is the best way to take your first tentative steps into acquiring the seed money you need, because these people know you, trust you, and want to see you do well. Of course, people also say that you should never mix business with pleasure, and it's true that doing so can cause problems.

If you decide to go this route, make it all official. Hire a lawyer to draw up the paperwork and the terms of the loan. You may give away shares in your business in exchange for the cash, or promise a return on the investment. Do not simply shake on it.

Also, be aware that money borrowed from friends and family does not come from accredited investors. Should your company ever get to the stage of doing an initial public offering (selling stock to the public for the first time), having money from non-accredited sources can hurt it. That is, of course, a long way down the line. (See also: 9 Times to Hire a Lawyer Immediately)

4. See if you qualify for a small business loan

Chances are, your business is in its infancy and does not need millions of dollars to get off the ground. Whether it's a restaurant or bar, a salon, a new product, or a service, you will usually be able to get it off the ground with a small business loan from a bank or credit union. However, qualifying for that loan is not always easy.

Most banks won't give you a loan backed by the Small Business Association unless you've been in business a few years, or can demonstrate experience and success in that industry. Even then, you will need excellent credit, and may be asked to secure the loan with your home or other collateral. (See also: 5 Ways to Build Business Credit When You're Self-Employed)

5. Consider a crowdfunding option

You are no doubt aware of crowdfunding platforms like Kickstarter and Indiegogo. These websites give you the tools to reach millions of potential investors around the world, and you don't have to rely on one or two "angels" (investors with deep pockets) to get your business off the ground.

Thousands of people can donate as little as $5, but you must have a product, project, or service that is compelling and innovative to make this work. Most businesses on the platforms are offering a great new gadget or device, and will give investors the chance to own it at a discount in return for getting in early and funding the initiative.

However, it's not all about physical goods. Music and movie projects have been launched via crowdfunding, as well as food products, art, and even comic books. If you have an interesting story to tell, and something tangible, you should do well. Just make sure you set a financial goal that is attainable, or your business will not get fully funded.

6. Look for "incubator" funding

Before you get to the angel investors and the venture capitalists, see if your startup would benefit from an "incubator." As the term suggests, these funds are designed to help nurture a fledgling business and help it grow. Entrepreneur defines an incubator, or business accelerator, as: "An organization designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services that could include physical space, capital, coaching, common services, and networking connections."

Should you need it, you will be given office space at below-market rates, plus coaching and other assistance for the day-to-day operations of a small business, as well as many other advantages. Of course, all of this comes at a price, and that will usually be a chunk of equity. But if this kind of startup business model suits your needs, visit the International Business Innovation Association to learn more about incubators and accelerators in your area.

7. Find an angel investor

Unlike venture capitalists, angel investors work alone. They are independently wealthy people with a large amount of money that they want to invest. Angels are a better option than venture capitalist firms, because they bring with them a more personal approach to their investment. They will offer you advice on how to use the money, and will no doubt have a list of valuable contacts that you can tap into to help grow your business.

Angel investors want you to succeed, and not just because they will profit from it. But don't mistake their personal touch for a laid-back approach to their investment. They want you to have all your ducks in a row, and will want to know your plan. Not for the next few months, but for the next few years. Rich people don't get rich by slacking with their investments, so be buttoned up before you find one.

8. Pitch your business to venture capitalists

Venture capitalist (VC) firms will usually not get involved in your business unless it is worth their time. Venture capitalists want to invest millions of dollars and see a substantial return on that investment. Therefore, a VC is going to be an option for you once you have established your business and can show a healthy balance sheet and massive growth potential.

However you get your money, spend it wisely

Cash is king in a startup. It's also one of the key reasons a startup will fail. Whether you get $5,000 or $500,000, your approach to the money should be the same. Get spending under control. Meticulously track money coming in and money going out. If you can afford it, hire an accountant to help you keep the books in order and flag possible concerns.

And whatever you do, do not look at just the profit you are making. It can be deceptive to see that number without context. Look at cash flow, and add in all of your expenses, debts, accounts payable, and inventory if applicable. Remember, inventory stockpiled on the shelves is not making you any money.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Turn Your Expertise Into a Side Hustle

Nick Wharton — Tue, 12 Jun 2018 08:30:33 +0000

As the old saying goes, "knowledge is power," and the rise of the internet has created many opportunities to turn your knowledge into cold hard cash. Maybe you're looking for a new career, or perhaps you're just looking to build a side hustle that will bring in a few extra bucks. Either way, selling what you know online could turn out to be a great little earner for you.

There are various ways to sell your knowledge over the internet, depending on what you are selling and the format you use. A few years ago, it might have required an advanced understanding of technology or a load of cash to get your idea off the ground, but these days, there are plenty of ways to get going with minimal upfront investment — making it easy for anyone with a computer and an internet connection to start a side hustle. (See also: How to Build a Side Business While Keeping Your Day Job)

1. Write an ebook

It used to be that if you couldn't find a traditional publishing house that accepted your manuscript, then you'd have no other choice but to pay to have it printed yourself. Luckily, ebooks have blown the publishing world wide open and have enabled almost anyone to produce and sell a story directly to readers with very few costs attached. It also means that books are extremely quick to create. You can have your ebook ready to go not long after it's written.

To go through Amazon, you can write the ebook in your normal word processing software, then format it with Kindle Create, and create a cover for it in a free design program like Canva. You can then self-publish it through Amazon's Kindle Direct Publishing.

But for wider distribution, look also at NookPress and Kobo Writing Life, which are other self-publishing platforms. For the widest reach possible, it's best to publish with all of the major players rather than sticking to a single one.

2. Host webinars

Hosting live webinar sessions allows you to share your knowledge to an audience without the need for them to be physically present. It's like a conference or seminar but done on a remote basis, saving learners the cost of travel and accommodation. The real benefit of webinars is that you can interact with your audience as you go, by allowing real-time questions or holding a Q&A session at the end. This ensures that everyone gets exactly what they want from the session.

Webinars can be simple presentations carried out on Skype or even Facebook Live, but more advanced tools will allow you to create better, more engaging seminars. Google Hangouts is free to use and has numerous collaborative features perfect for hosting web sessions.

Alternatively, there are various paid software tools such as GoToMeeting or Cisco Webex that are specifically for designing and conducting webinars. You need to have an audience large enough to make it worth your while, so it helps if you already have a following on social media or a website to allow you to publicize the event. (See also: 13 Ways to Make Money Teaching Your Skills to Others)

3. Become an online consultant

For people with a sought after skill set that businesses want to access, online consulting works extremely well. There are many reasons why businesses prefer to work with online consultants rather than those who physically come onto the work premises. These range from not wanting to upset the workforce with an outsider's presence while still benefiting from a pair of fresh eyes, to the simple reality that it's often less costly to hire an online consultant while still receiving an expert level of service.

It helps to have a niche skill that you have proven expertise in, as this will lend you much needed credibility. Getting started in online consulting can be difficult, so it's vital to use any and all contacts you already have to get your first break. Once you have your first few contracts secured, you will hopefully begin to get referrals or recommendations and see a snowball effect.

4. Provide online tutoring

Online tutoring is a great way to share your experience with people who want to learn one-on-one with an expert in their chosen subject. You don't need to have a degree in education, but you’ll need skills or knowledge in something that people are willing to pay to learn. Subjects like English, math, and science, are particularly in demand. However, it's possible to tutor online on other topics such as foreign languages (or English as a foreign language), or even learning an instrument.

There are numerous online agencies that match people with tutors in their chosen subject, so you won't have to actively search or advertise for clients. Generally, you fill out an application and they decide whether they accept you or not. Once you've been accepted and have registered, they will send you jobs as they become available. (See also: How to Earn $1,000 a Month or More as an Online Tutor)

5. Create an online course

If you have knowledge that you want to spread far and wide, and know there's an audience there to lap it up, then an online course may be the right path for you. Online courses allow you to reach more people than you could on a one-on-one basis, both from a time perspective, and also because you can sell a course much cheaper than individual tutoring.

It's a huge amount of work initially to design and build your course, but once this is done, the course should provide passive income with little to no further effort. There are various delivery methods that you'll have to select, depending on what you want to achieve. Courses that email your lessons to students are easy to set up with providers such as MailChimp, or you can put your materials out in module format with the Udemy marketplace. (See also: How I Made $400 in 10 Days by Selling an Online Course I Created)

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Must-Have Items You Need to Create the Perfect Remote Office

Nick Wharton — Mon, 11 Jun 2018 08:30:15 +0000

Being able to work from anywhere in the world is an appealing way of life, but without the right gear, it can quickly turn from a dream into a nightmare. A laptop, a smartphone, and Wi-Fi are the absolute basics for building a portable office, but there are some other gadgets that will make your working life more productive and much easier. Here are nine items to help build the perfect remote office. (See also: 15 Ways to Make Money While You Travel)

1. Portable projector

Staring at your laptop screen all day can put strain on your eyes, particularly if you have a compact model that's easier to travel with. It's convenient when you're packing, but this can cause all sorts of problems from headaches to neck pains, and has become one of the main perils of remote working.

Moving around with a desktop computer or large screen is clearly not practical, but a miniature portable projector can provide the perfect solution. It fits in the palm of your hand, making it easy to carry around. It's ideal for when you want to watch video on a larger screen that has HD resolution, or even for when you need to give presentations to clients on the road. You connect your computer to the projector with a USB cable, and the projector shows your computer screen on a larger space, like a wall, curtain, or projector screen.

I just picked an Axxa projector and it's been great. I can just open up Netflix or Hulu on my computer, phone, or tablet, connect it to the projector, and turn any wall into my very own big screen TV. It's bright enough to use inside during daylight, but works much better in lower light. For presentations, it works best if I can dim the lights and close the curtains.

2. Wi-Fi range extender

A strong internet connection is key to working remotely, but depending on where you are, it's difficult to guarantee. There's nothing a like a spotty or painfully slow connection when you're just at the edge of the Wi-Fi range to ruin a day's work.

A Wi-Fi range extender will allow you to increase the reach of an existing network and improve the signal strength. So when you get stuck in a hotel room at the end of a corridor with a dodgy Wi-Fi connection, or find yourself in a cafe with a weak signal, you're still able to make it work.

I definitely recommend checking out either the TP-Link AC1900 Range Extender or a D-Link N300 Range Extender as they both plug into the wall, have great range, and a solid, portable build. You’ll need the Wi-Fi password, but you should already have that anyway from the hotel or cafe where you’re working. (See also: 4 Tech Add-Ons That Can Save Travelers Time and Money)

3. Surge protector

Power surges are an unavoidable reality. Even when you're at home, it's a good idea to always use a surge protector when you're charging your valuable electrical devices, as a sudden jump in power can instantly destroy the components in things like smartphones or laptops — leaving you high and dry.

In some countries, these power surges occur more frequently, so it's even more essential you protect against them. Surge protectors are a cheap and effective way of doing this, and will take the damage instead of your gadgets. You can get some with international plug adapters, too, for when you’re traveling in different countries.

4. Bluetooth speaker

Many people believe that music improves their productivity when they work, and a Bluetooth speaker will allow you to wirelessly blast out all of your favorite tunes no matter where you are. Also, if you're giving a presentation with video or audio content, you don't want to rely on tinny laptop speakers for the sound.

There are lots of affordable options that are compact, lightweight, waterproof, and shockproof, making them great for travel.

5. Noise-canceling headphones

If you're a remote worker who spends a lot of time in public places, then you know just how annoying it is when there's a high level of noise in the background. It can be distracting and make it extremely difficult to concentrate on even the simplest of tasks.

Noise-canceling headphones will make you feel as though you're all alone in a sealed room, even when the world around you is bustling. Models with a microphone will also allow you to make calls in peace, so you can work just about anywhere you please.

6. Power bank

There are very few gadgets that don't require power to function, and even less that you don't need to charge regularly. Smartphones, tablets, speakers, headphones, and other gadgets can all quickly run down after consistent use, leaving you in the lurch if you're relying on them to work.

A portable power bank is ideal for when you're out and about and one of your devices needs some emergency juice. Larger ones are able to hold several full smartphone charges, while smaller ones that can easily fit in your pocket or purse will hold a single charge. (See also: The 5 Best Power Banks)

7. Universal power adapter

If you're a remote worker who travels between different countries regularly, then a universal power adapter is an essential item to have in your bag. Rather than carry numerous adapters, just one will do the job, allowing you to plug in your devices anywhere in the world. Some also come with a built in surge protector that has both plug and smart USB outlets.

8. External hard drive

One of the most important considerations for any remote worker is how to best backup their files and documents. The last thing you want is to have a problem with your laptop and lose all of your work.

The cloud has made it easy to store documents online quickly and safely, but if the Wi-Fi is slow or nonexistent, it's not a feasible option, and it's certainly not possible to work offline. An external hard drive will give you the ability to back up and store all of your important data regardless of the internet situation.

I recommend getting a SSD (solid state drive) external hard drive, as opposed to a traditional HDD (hard disk drive) that works with a mechanical arm-type reading system. HDD systems can be more fragile. I dropped one of my 1TB HDD external hard drives and it never worked again, so I lost 1,000 GB of data!

Today, I use the Crucial MX500 SSD as my external drive along with the StarTech adapter cable to plug it into my laptop through the USB port. This drive is meant to be inside of a laptop, but I find that it's more compact and affordable than most drives that are meant to be external.

9. Backpack

One of the best things about remote working is just how flexible it is. With the right collection of gear, you can set up virtually anywhere in the world and complete your day's work as though you were in a permanent office. But all that portable gear costs money, so it's important to keep it safe when you're moving around.

A good backpack is as crucial as any of the gadgets above to help keep your remote office safe. You should get one that provides some padding for your gadgets, has a separate laptop compartment, some integrated anti-theft components, and is also comfortable to carry around.

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

12 Free Software Tools for Your Small Business

Samantha Stauf — Fri, 01 Jun 2018 08:30:28 +0000

Freelancers and small-business owners might not have the financial capital on hand to invest in all of the tools and apps that can help a business run smoothly. Thankfully, they don't need it — because plenty of free, open source software is available online at the click of a button.

Many of the free versions of business software cover, at minimum, the basic needs required by startups and self-employed individuals. Check out a few below. (See also: 6 Helpful Tools to Manage Your Small Business)

1. Google Drive

Google Drive is a free service that gives users access to spreadsheets, word processing, slideshows, and form software. The drive is tied to Gmail accounts. Each user has access to 15GB of cloud storage under a free account.

These free tools don't have the same level of robust options as Microsoft's suite of office software, but they offer most of the common features that small businesses will be looking for. As an added bonus, the documents are updated in real time, so it's a solid choice for companies that do real-time collaboration on projects.

Drive allows users to upload and download documents in a Microsoft format, so you will not have problems sharing documents with clients, customers, or partners who utilize Office.

2. LibreOffice

LibreOffice is a free collection of open source office tools that gives users access to downloadable spreadsheets, word processing, and presentation software. It's important that you only download the software on the LibreOffice website to avoid potential computer viruses.

LibreOffice is a pretty solid alternative to Microsoft Office. LibreOffice Writer has most of the major and minor features found in Microsoft Word. LibreOffice Calc also has similar features to Excel, but Microsoft macro and programming language can't be imported from Calc to Microsoft Excel. The presentation software (Impress) has similar compatibility issues with PowerPoint.

The bottom line is that LibreOffice is a good alternative if your business doesn't receive Excel files with macros and doesn't need to send presentations to individuals who utilize PowerPoint.

3. Evernote

Evernote is a "freemium" application (free to download and use, with additional paid features) that can be used for word processing, slideshows, note taking, and document storage. The main perk of the platform is the ability to easily store and organize various types of documents in one place.

The basic platform is free and allows users to upload 20MB of new content each month and sync it across two devices. It's a neat tool, but I wouldn't necessarily recommend it as your sole project management software. The basic freemium plan doesn't offer a robust means of sharing documents internally and externally.

4. Prezi

Prezi is online presentation software. A basic, free account allows individuals to create an unlimited number of presentations, but has no miscellaneous options, such as offline sync, privacy controls, or revocable shared links.

The tool, despite its limited scope, is worth evaluating because the presentations that can be created aren't typical, old-fashioned slideshows. Presentations are shown on large slides that offer the presenter smart capabilities like zooming in on certain details.

5. Trello

The basic, free version of project management software Trello gives members the ability to create an unlimited number of lists, cards, and checklists. Members can upload up to 10MB of files.

The free version of Trello only has two major downsides. First, basic accounts lack the ability to put the lists and cards into collections to make the system easier to navigate. Second, users aren't able to remove group members. The basic account relies heavily on the honor system and managers externally policing how individuals interact with the tool. As your company grows, you might want to invest in a paid project management and organization tool.

6. SurveyMonkey

SurveyMonkey is a survey creation tool. The free version allows individuals to create a 10 question survey. Each survey can have up to 100 responses.

Which should you use, Google Forms or Survey Monkey? Survey Monkey tends to be a tad more aesthetically pleasing, but Google Forms allow the survey to have more than 10 questions. I'd recommend using Google Forms if you regularly create long surveys.

7. Buffer

Buffer is a social media management platform that serves as a valuable marketing tool. A basic, free Buffer account allows users to manage up to three social accounts at one time. Each account can have 10 posts in the schedule queue.

Due to the limitations, I'd recommend this for businesses or individuals who don't rely heavily on preplanning a large number of social media posts. The free plan also, unfortunately, does not give users access to valuable analytics data for a more targeted social campaign.

Despite those restrictions, it can be a valuable tool for small businesses and freelancers until they can invest in a more robust social media management plan.

8. Google Hangouts

Google Hangouts allows organizations to create video calls, phone calls, and online chat forums. The tools are free and can be accessed through users' Gmail accounts.

Video and audio calls can have up to 10 active participants; individuals who video call can use screen share to give presentations, as well as share documents, websites, and videos. Google Conversations — the chat feature of Hangouts — can have up to 150 participants.

9. Slack

Slack's main function serves as a robust interface for team chat and collaboration. The free version also has the ability to make one-on-one voice and video calls, offers 5GB of file storage, and allows users to search through a history of the previous 10,000 messages.

10. Audacity

Audacity is open source audio editing software that can be downloaded on Microsoft, Mac, and Linux computers. You should only download the software from the official Audacity website.

Audacity allows users to import or record audio files. Once audio files are uploaded or recorded, they can be combined and edited. The first time a business or freelancer utilizes the software to create a piece of audio content, I'd recommend they consult one of the dozens of video guides available on YouTube. Experts of the software can, at the very least, give inexperienced recorders tips that might save them hours of work.

11. GIMP

GIMP is a free photo editing program that is compatible with most operating systems. Like LibreOffice and Audacity, GIMP should be downloaded from the official GIMP website.

It's important to note that GIMP, as an open source, community-built program, isn't as advanced as Adobe Photoshop. GIMP has basic editing functions, but lacks many of the higher quality functions present in Photoshop.

Entrepreneurs and self-employed individuals who either lack the capital to invest in Photoshop or don't require advanced photo editing software should give GIMP a try.

12. Canva

Canva is a "freemium" graphic design tool that lets businesses and freelancers create featured images and graphs that can be utilized on their websites, blogs, or promotional materials. Canva can be accessed online or by downloading the app on a variety of tablets and smartphones.

A free Canva account has 1GB of storage and gives up to 10 team members access to the software. Novice image editors can streamline the photo editing process by choosing one of the 8,000 image templates as a guide. Users can either upload their own images or purchase an image through Canva.

If you're not quite up to delving into GIMP for your photo editing needs, Canva can be easier to utilize.

This article is from Samantha Stauf of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

3 Online Businesses You Can Launch In No Time

Nick Wharton — Wed, 09 May 2018 08:30:20 +0000

The opportunities for making money online are endless in this digital age. I'm not talking about creating the next Google or Facebook, and I'm definitely not suggesting that there are any get rich quick schemes that will land you thousands for just a few hours of work. But there are plenty of full-time businesses, as well as lucrative side hustles, that can be set up relatively quickly with little to no upfront investment.

It takes a lot of hard work and dedication to get a business off the ground. There are lots of things to consider before even launching, such as what the business will provide, who the customers will be, what your pricing structure is, and what you're going to call it.

Stuck for ideas? These business ideas will enable you to get set up and ready to go in 24 hours or so. Here are three online businesses you can jump-start in no time. (See also: 11 Ways Anyone Can Make Money Online)

Virtual assistant

The role of the virtual assistant is completely open-ended, and the tasks can vary wildly depending on whom you're assisting. Assignments could be anything from replying to emails and updating social media, to editing spreadsheets and coordinating your client's schedule. If you're organized and are happy taking on smaller tasks for other people, then you can make money from anywhere in the world by being a virtual assistant.

Timothy Ferriss's The Four-Hour Work Week helped to create an emerging market for virtual assistants with individuals and small companies looking to outsource the menial tasks that take up the majority of their time. This allows them to focus on growing their businesses. Once you've decided on the skillset you're going to offer, there are several ways of kick-starting your new business online.

You can apply for a job with a virtual assistant agency and once you're hired, you'll already have a client or list of clients waiting to be connected with an assistant. This is how many VAs start, but you may also find jobs through word of mouth or from former employers. Social media is a free and easy way to advertise your services, too, and just a few posts to your professional profiles, particularly LinkedIn, can get the ball rolling. (See also: How to Find a Legit Virtual Assistant Job)

Social media manager

Social media management has become so crucial to the success of businesses that for most companies, it pays to have someone in charge of their accounts who really understands the ins and outs of all the social media platforms. Though most people have personal accounts on at least a couple of the big platforms, social media for businesses is an entirely different animal. That said, in order to prove you have what it takes to help a business with their accounts, you'll undoubtedly need to have built a significant presence of your own online.

Social media management involves building thriving communities for your clients, which ultimately generates extra revenue for them. It can involve writing and scheduling engaging content, running advertising campaigns, and replying to queries or complaints. You're probably also going to be in charge of a budget dedicated to social media growth, and therefore should know how best to spend it for the highest returns.

Similarly to virtual assistant positions, there are online agencies where you can find social media management jobs. However, once you have some experience under your belt, it may be worth pitching clients directly. Though it can be scary at first, it's an invaluable skill to learn and gives you much greater control over your rates and schedule. It's easy to assess whether you think you can help a client by simply looking at their social media content and engagement. Then you can put a plan together for how you will quickly improve it. (See also: 6 Ways to Make Extra Money Using Social Media)

Online tutor

If you enjoy teaching and have in-depth knowledge of a particular subject, then online tutoring could be a reliable moneymaker for you. Where previously, tutoring was all done face-to-face and relied on finding students in your local area, the internet has made it global. Thanks to video calls and online teaching programs, you can tutor anyone anywhere in the world, from anywhere in the world, with just a laptop and a decent internet connection.

Languages are a fantastic starting place, as you don't necessarily need qualifications. Often, you don’t even need to speak the student’s native tongue, as you’re encouraged to teach only in the language being learned.

But tutoring is not limited to language instruction. The most open sector in tutoring is for school-aged children, and math and science tend to be subjects that children require help with. Around exam times when many parents want to give their kids a boost, tutors can be extremely busy, and you can adjust your rates accordingly to meet that demand.

More often than not, tutoring positions are relatively short-term, so you'll likely have to continually be looking for new gigs. There are many online platforms that connect tutors to students, such as Tutor.com and Chegg.com. Apply online and set up a profile to begin finding jobs. You can also market yourself online using social media platforms, free classified ads on sites like Craigslist, online teaching directories, and even your own website or blog. Once you've successfully tutored some students, the best way to get new business is to ask for referrals, as it's likely that they know other people looking for similar help. (See also: How to Earn $1,000 a Month or More as an Online Tutor)

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5 Ways Freelancers Can Promote Their Work Without Social Media

Ashley Eneriz — Tue, 08 May 2018 08:30:27 +0000

While social media is a wonderful resource for freelancers to promote their work, it can be exhausting to constantly stay plugged in and try to stand out in such a noisy world. Plus, in light of Facebook's privacy issues, many social media users are jumping ship — afraid of how the platforms are misusing their personal data.

How is a freelancer supposed to get the word out and attract clients without social media? Here are a few ways.

1. Your own website

Your website should be the premiere place where you professionally showcase your work and let people know what you do. Of course, creating an amazing website will not instantly attract clients or visitors. You have to put in a little work to reel them in.

Having targeted keywords on your site and in blog posts will allow your website to pop up higher in search engine results. It takes time to build up strong SEO — search engine optimization — especially in competitive fields, like freelance copywriting. But when done correctly, traffic will follow. In addition to SEO, your site should be cleanly designed, easy to read, and have a contact page readily available. And don't let it just lie stagnant. Search engines favor sites that have frequent updates and new content on a regular basis. (See also: 8 Surprising Ways a Personal Website Can Improve Your Life)

2. Forums and portfolio sites

Popular online platforms like Reddit, Quora, and Flickr can help you promote your freelance work. Reddit even has subreddit lists where freelancers can post that they are for hire. For freelancers who provide services like editing, legal advice, accounting advice, and more, answering questions in forums and on Quora can help you direct more potential clients to your website. Images or artwork shared on sites like Flickr should also provide links back to your site.

3. Guest posts

Guest posting on popular sites and blogs is popular with freelance writers, but any freelancer can use this idea to promote their work and get more business. Whatever your freelance business is — whether it be web designer, voice-over work, or accounting — find out where your target client is going on the internet to find help and advice, and offer specific guest posts for these publications.

For example, new bloggers might be looking for advice on how to save on web design, so a guest post on a popular site titled, "Why DIY Web Design Is Going to Cost You 35% More Than Hiring a Pro," will not only grab their attention, but also might convince them that they do need to hire out for this task. Since you gave them the advice in the article, they may also be more inclined to reach out and hire you. (See also: 11 Freelance Jobs That Pay Surprisingly Well)

4. Write an ebook

Similar to the idea of guest posting, you can write a short ebook and offer it for 99 cents with free promotions on Amazon. Again, this idea can work for any freelance business if you angle the topic directly at your target client. Writing something like, "Why You Need to Hire a Voice Actor" or, "Why You Need a Copywriter and How to Afford One" is too generic. Instead, really hone in on your ideal client and write specifically to them.

If you are a freelance writer who only writes copy for lawyers, you could offer something like, "How to Build a Law Firm Website That Attracts More Clients." Writing a book will take more time than a guest post, but you can build a name for yourself while offering valuable advice to readers and directing them back to your business. (See also: Can You Really Make a Living as an Ebook Writer?)

5. HARO

HARO, which is short for Help a Reporter Out, can be useful to establish yourself as an expert and get your name cited in publications. Reporters post notices on the site when they're looking for sources to interview for their stories. Many times, the reporter will link back to your website when the story is published, but other times they will only quote you. Either way, it's helpful to get your name in front of more readers and it gives you bragging rights on your website and portfolio.

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This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Characteristics of the World's Youngest Billionaires

Rachel Slifka — Wed, 18 Apr 2018 09:00:07 +0000

According to Forbes, there are 2,208 billionaires in the world today. And just 63 members of this elite group are under the age of 40.

Though the 63 youngest billionaires are a diverse group of individuals with different claims to fame, they do have quite a few things in common. Here are a few characteristics shared by some of the world's youngest billionaires.

1. More than half are entrepreneurs

Over half the billionaires on the under-40 list are self-made, with a majority being in the tech industry. Of course, people like Mark Zuckerberg of Facebook and Evan Spiegel of Snapchat made the list. So did the founders of Airbnb, Stripe, Uber, among others. But tech isn't the only profitable industry. Several of the billionaires on the list are from manufacturing, design, and medical industries.

2. Inheritance is prevalent

Not all of the world's most wealthy pulled themselves up by their bootstraps. While many of the world's youngest billionaires were self-made, there are also many who inherited their wealth.

Twenty-four-year-old Gustav Magnar Witzøe, heir of Norwegian fish farming company Salmar, amassed a net worth of $1.9 billion after inheriting nearly half the company from his father. Heiress Yang Huiyan is worth over $21.9 billion at only 36 years old after inheriting her father's real estate development company in China. And Norwegian sisters Alexandra and Katharina Andresen — just 21 and 22 years old, respectively — each inherited 42 percent of their family-owned investment company, Ferd, for a net worth of $1.4 billion a piece.

3. Many of them left school to pursue their businesses

School was not the end game for many of the world's youngest billionaires; their business was.

While enrolled in a product design class at Stanford, Evan Spiegel came up with the idea of Snapchat. In 2012, he officially dropped out of Stanford to focus on his growing app. Mark Zuckerberg dropped out of Harvard in 2005 to manage the ever-growing Facebook. Even some of the world's more established billionaires, such as Steve Jobs and Bill Gates, all dropped out of school before they graduated.

This isn't to say dropping out of school to pursue a business is the secret to their success: Many billionaires on the list hold at least a bachelor's degree. (See also: 5 Jobs That Pay Over $50K and Don't Require a Bachelor's Degree)

4. They have multiple successful businesses

The world's wealthiest often have more than one claim to fame. In fact, many of the youngest billionaires have worked on several notable and profitable projects on their rise to success.

Garrett Camp, mostly known as the billionaire founder of Uber, was well on the tech scene before he even started the rideshare company. He actually was the founder of StumbleUpon, which he sold to eBay in 2007 for $75 million.

Facebook's third employee, Dustin Moskovitz, worked with Zuckerberg to launch Facebook out of their dorm room at Harvard. After they both dropped out of college, Moskovitz moved to California with Zuckerberg to focus on further developing Facebook. In 2008, Moskovitz left Facebook to start Asana, a project management software — though most of his $12.4 billion net worth comes from his small remaining stake in Facebook. (See also: What Small Business Owners Can Learn From Top Forbes Entrepreneurs)

5. They prioritize hobbies

Norwegian heiresses Alexandra and Katharina Andresen spend most of their time riding horses competitively. Airbnb billionaire Brian Chesky was a former bodybuilder, and 27-year-old Stripe founder Jack Collison prefers to spend his spare time running — a hobby we can all afford.

While many of these billionaires spend a majority of their time overseeing extravagant business operations, they still value taking time for their own interests and hobbies. That's something we should all take to heart.

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This article is from Rachel Slifka of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How Authenticity Could Make or Break Your Small Business

Denise Hill — Mon, 16 Apr 2018 08:30:10 +0000

Owning a small business is no small feat. There are hundreds of articles written on how to effectively market yourself, attract customers, and drive traffic to your website. With so many gimmicks and tricks out there, it can feel impossible to determine what you should actually do in order to be successful.

The best piece of advice I have found that works for all successful small businesses is: Just be you.

Be authentic. Be genuine. Be true to who you are and work to ensure your business embodies and reflects this. Authenticity is the thing that can make or break your business.

Don't be obsessed with making a profit

I love supporting small businesses — and not just because I own one. I love the personal touch and the intimacy that comes with working with small business owners. As you think about your business, especially while your business is in its infancy, you've got to take your focus off the bottom line. Turning a profit has to come second behind establishing good business practices and customer rapport. Remember, people come to you for a product or service, but the experience is what brings them back.

As a "for profit" entity, making money is on the mind of every business owner, as it should be. But for the truly successful small businesses that have stood the test of time, profit is never the number one goal. If you operate with integrity, put the customer first, do a decent job, and stay true to who you are, the profits will come.

This also means that there will be times when your profits may suffer. If you make a mistake, refund the customer's money, and do the job again — for free. This shows that you genuinely care about the customer and about the product/service you provide. (See also: What Small Business Owners Can Learn From Top Forbes Entrepreneurs)

Let your love for your craft show

If you're in business just for the money, it'll show. And you won't be in business long. Pause for a second and think about a business or service you've sworn off. Think about that horrible restaurant server, drive-thru attendant, or cabdriver that made you swear you would never use that business again.

Now, consider what made you so angry. For most of us, it all comes down to how we were treated and how we were made to feel during the experience. Some waitstaff aren't in love with what they do. But the really good ones love people and want to ensure that you have a pleasant experience while you are at the restaurant.

Passion translates. You can see it. You can feel it. You can sense it whenever you are around someone who has it. As a business owner, if you don't love what you are doing, you may want to consider alternate employment. Allow your passion for your craft to show. Take extra time and care to show your customers that you're not just out for a quick buck. The service you provide is also a labor of love.

Surround yourself with authentic people

Who you hire, your business associates, and even your friends affect your ability to remain true to who you are. Think back to the era of the stereotypical "used car salesmen." They were categorized by their willingness to do and say anything to separate you from your cash. They were despised, ridiculed, and became a caricature for the disingenuous.

If you surround yourself with people who are constantly following the trends, doing what is in, and live life by an ever-changing set of rules, that is what you will do. As a business owner, your word truly is your bond. We no longer do business in a "handshake" environment, but you should operate as if you do. Your word should be solid. Everything you say (website, correspondence, contracts, marketing, etc.) should be the clear and simple truth.

It is also important to be true to who you are because you attract people who are similar. If you make a habit of being shifty and sly, you'll attract shifty and sly people. And this is dangerous for a small-business owner. (See also: How to Hire Your First Employee)

Establish core values and stick to them

Your mission and vision should articulate who you are and what you believe. They don't need to be catchy, erudite, or full of words that have no real meaning. Sounding good and being good are two different things. People are smart enough to quickly spot the difference.

Establish who you are as a business. Determine what you believe, how you will operate, and say exactly that. No fluff, no sleazy catchphrases. Just open, honest, and direct communication. Cute and corny may attract customers, but it won't keep them. Trends will come and go, but who you are at your core shouldn't change.

As your business grows, you may find yourself drifting in a direction that isn't you. When this happens (and it will), stop, regroup, and rechart your course. The key that underpins your success in business and in life is to be genuine and remain authentic.

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This article is from Denise Hill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Can't Get Business Credit? Consider Alternative Financing

Elaine Pofeldt — Thu, 12 Apr 2018 08:30:09 +0000

In an ideal world, you'd be able to turn to your banker or business credit card to borrow money any time you needed it for your business. But not everyone has a long enough credit history or a high enough credit score.

If you're losing sleep because you need cash quickly and traditional sources are not working out for you, it may be worth considering alternative financing. The interest rates and fees can be significantly higher than for a traditional bank loan or on a great business credit card deal, but they can come in handy in a cash crunch.

Here's a quick crib sheet to help you determine the right type for you. (See also: 10 Smart Ways to Get a Small-Business Loan)

Take stock of industry-specific options

If you work in a field such as ecommerce, look into lending programs tailored to your industry or the platforms where you sell your products or services. One example is the Amazon Lending program, an invitation-only program for merchants who run Amazon stores, which helps them finance inventory.

Often programs like this are tailored to the cash-flow quirks of particular industries. If you're not aware of lending programs specific to your industry, ask your trade association for ideas.

Consider factoring

In factoring — a type of financing that is often used by companies that sell merchandise through big retailers — you sell your accounts receivable to a company called a "factor" at a discount. In one common type of factoring, the factor buys your invoices and purchases the right to collect the money owed from your customers. Once your customers pay their invoices, you get the face value of the invoice, with a small discount subtracted, often in the neighborhood of 2 to 6 percent. The factor will give you 70-90 percent of the value of the invoice up front, and the rest when the customer pays it.

One reason some small-business owners like this type of financing is the factor bases the decision to buy the invoices on their customer's credit, not the business owner's. For instance, if you make a household gadget that a big retailer has stocked on its shelves, the factoring company would decide whether or not to buy the invoice based on the retailer's credit, not yours. That could be a plus if your credit profile is not strong.

Borrow against your receivables

Another type of financing that may come in handy is borrowing against your receivables, particularly if you run a professional services firm. If you use popular accounting software programs such as QuickBooks, Freshbooks, or Xero Accounting, you may be able to borrow against your receivables through Fundbox.

Fundbox will let you borrow up to $100,000 against your receivables and repay the loan over 12 or 24 weeks. You can figure out what it will cost you using the calculator on the site. You must pay back the loan each week in a preset amount (part of the amount owed, plus a fee) for the duration of the repayment period.

You don't need a credit check or personal guarantee, approvals can happen in a matter of hours, and you can get the loan as soon as the next business day once approved.

The challenge with this type of financing is that Fundbox automatically deducts the money you owe from your business bank account. If money is flowing into the business slowly, you could end up in a period where you have very little cash on hand until you repay the loan.

If you're going to go this route and aren't sure if you'll have enough free cash to run the business during the repayment period, do a cash-flow projection with your accountant to be sure. As in all financial matters, it's important to understand what you're taking on. (See also: How to Pull Your Small Business Out of a Cash Crunch)

Try an alternative loan

A working capital line of credit from an alternative lender is another option that might help you in a pinch. At Kabbage, one fast-growing provider, small business owners can apply for a credit line of up to $250,000. Kabbage offers six-month and 12-month repayment terms. Each month, you'll pay a fee of 1.5 percent to 10 percent, based on your business's performance. For example, if you borrowed $10,000 for six months with a 4 percent monthly fee, you would pay $1,667 each month for the loan repayment, plus $400 a month in fees.

Peer-to-peer lending (aka, P2P lending) is also an option. You can borrow money from investors, who may be institutional funds or private individuals, instead of going to a bank. Among the providers are Lending Club, Prosper, Upstart, and Funding Circle. Generally with peer-to-peer lenders, your interest rate will be based on your credit profile, so the stronger your credit, the better your options.

Get an advance

In the past few years, more companies have been offering small businesses advances on the money they expect to receive in a given month from certain sources of business. They can be helpful when you're in a jam, but make sure you understand what you're actually paying for the money, because some providers charge quite a bit for this type of financing.

One example of a service in this space is PayPal Working Capital. This service offers loans based on your PayPal sales history, up to a maximum of 30 percent of your annual PayPal sales (and up to $97,000 for your first loan). Fees depend on the amount you borrow, your annual PayPal sales, and the percentage of your receipts that are deducted to pay back your loan. For example, if you borrow $5,000, you have $20,000 in annual PayPal sales, and you repay 30 percent of your PayPal receipts every month, you'll pay a one-time fixed fee of $615. Pay back less every month and your fixed fee will go up.

As in the case of Fundbox financing, repayments of advances are typically deducted automatically from your business bank account at regular intervals.

Once you're out of your cash crunch, turn some attention to doing what you can to add to your revenue and profits. Your business will be a lot healthier if you can finance most of your growth out of cash flow. And the stronger it is, the easier it will be to find financing at great rates in the future.

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This article is from Elaine Pofeldt of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Need Business Credit? Build Your Personal Credit First

Elaine Pofeldt — Wed, 04 Apr 2018 08:30:09 +0000

The most exciting opportunities in a small business often arrive unexpectedly. And sometimes, taking advantage of them requires money — more than you may have at the moment. Whether you need to fill a big retail order or hire contractors to complete a professional services contract, you'll be able to act a lot more quickly if you have business credit lined up.

Many small business owners don't realize that their personal credit plays a big role in obtaining the business credit they need until they actually apply for it. Entrepreneurs are often surprised to discover that for both small-business loans and business credit cards, lenders typically require a personal guarantee.

It's very difficult to get credit based solely on the business's credit profile unless you run a very substantial-sized business. So how can you get business credit if you have a limited personal credit history or made mistakes with your personal credit in the past? There's really only one answer if you want to borrow at attractive interest rates. It's buffing up your personal credit.

Fortunately, you can make a difference in your credit profile quickly if you start doing the right things today. Here are some strategies to put into action ASAP.

Create a wall between your business and personal finances

If you've been using your personal checking account to deposit payments from clients, make this the week you get serious about your finances and open a separate business checking account. To do so, your bank will probably require you to have an employer identification number (EIN), so make getting one your first step, if you don't have one already. You can apply online for an EIN from the IRS.

Keeping a separate business bank account will help you to maintain the protections that come with your business entity, if you have set one up, safeguarding you from financial liability. It will also force you to bring valuable discipline to how you manage your business and personal finances. If you are constantly raiding your business bank account to pay personal bills or vice versa, you probably don't really know where you stand in either area. Getting clear will help you to make better financial decisions in both arenas, which should ultimately lead to better credit.

Know your personal credit score

If you have poor personal credit, it will be hard to get a business loan. Many people don't know their score, so take a few minutes to find out what yours is this week. You can buy your personal credit scores from each of the three major credit bureaus (Experian, TransUnion, and Equifax), and at MyFICO.com. It usually costs less than $20.

Many credit cards also offer free credit scores for cardholders. While each paid and free credit score will be slightly different from the one ultimately used by your business lender, they can give you a good estimate of what that score will be. (See also: Are Free Credit Scores from Credit Cards the Real Thing?)

Your FICO credit scores — the ones used most often by lenders — reflect five factors, including your payment history, the amounts owed, the length of your credit history, your credit mix, and new credit (opening a lot of new cards can be considered risky behavior).

FICO scores range from 300 to 850. If you're going after a small-business loan, most lenders want to see a FICO score of 700 or better. If yours is below that, take the time to rebuild your credit before applying for business credit.

Take charge of your personal debt

Pay down any balances on your personal credit cards as quickly as you can. It will be hard to get business credit if you are maxed out personally.

Focus on the cards with the highest interest rates and highest credit utilization to improve your situation most quickly. (With revolving credit, lenders look at the ratio of your current balance to your available credit to come up with a credit utilization ratio. The lower your credit utilization, the better.)

If you have maxed out one personal card but other cards are empty, consider spreading the debt among those other cards by doing a balance transfer. Ideally, look for a 0% APR balance transfer deal.

Limit use of your personal cards

If you know you'll need business credit in the next three to six months, do all you can to limit your current spending on personal credit cards, unless you're paying off the balance each month. Make sure to pay all of your credit card bills on time, as well.

Running a business inevitably comes with financial surprises. The more work you do to keep your personal credit in shape, the easier it will be to handle the unexpected — and the more peaceful your life will be.

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4 Signs You Should Sell Your Small Business

Denise Hill — Thu, 08 Mar 2018 09:30:09 +0000

Owning a small business is a labor of love. In addition to investing your money, resources, blood, sweat and tears, you also invest a small part of your soul. You love it. It's your baby — you've nurtured it from nothing to the success it is now. But every now and then, a thought flashes through your mind: Should I sell?

Or, maybe someone else has seen, appreciates, and is willing to pay for what you've done. They offer to buy you out. Should you accept?

Selling your business is a tricky endeavor. It's tough to know when you should take the money and run. Here are a few telltale signs that it's time to cash in your chips and call it quits. (See also: 8 Common Myths About Starting a Small Business)

You've become more risk averse

One of the biggest differences between a business owner and an entrepreneur is risk aversion. Business owners like to keep things steady and solid. As the business grows, business owners can grow more conservative — sometimes to a fault — to protect and preserve the value the business has gained.

However, taking chances is essential to continued growth. Once you get to the point that new opportunities invoke more fear than excitement, you may want to think about calling it quits.

When you become too conservative, you lose your edge and stunt your business's growth. Stagnation leads to death. Before you drag your business into the ground by standing still, consider capitalizing on all your hard work by selling it for a profit.

You're tired

Owning and running a business is not for the faint of heart. It sounds sexy, but behind the curtain of success is a ton of backbreaking work. And as much as you love what you do, no one wants to work that hard all of the time.

When you start to feel tired — I mean deep down in your soul tired — that's a sign it's time to exit stage left. Being successful brings with it a satisfaction in beating the odds and accomplishing something notable. But there is a hidden side of success that is brutal and exhausting. Running a successful business can drain your energy and sap your strength. At some point, you have to know when you have had enough and allow someone else to take over.

Exhaustion is dangerous. You don't make the good, hard choices you used to make. You find yourself doing what's easy, and nothing will bring your business down quicker than taking the easy way just because it's easy. It's better to sell and capitalize on your success, rather than lose what you worked so hard to build.

You've lost your drive and your passion

Running a business takes a sense of commitment and grit that is driven by passion. When you first launch a business, you are hungry for success and work day and night to achieve it. That hunger and love of what you do sustains you during lean years and propels you forward during turbulent times.

When you lose motivation and the enthusiasm just isn't there anymore, that is a sign that it may be time for you to try something else. When you are no longer intrigued by and "into" your business, that's the time to begin thinking more like an entrepreneur than a small-business owner. Use your energy, talent, and creativity to figure how to leverage what you've built and the knowledge you've gained.

This may be the time to groom an up-and-coming business owner and show him or her the ropes. You may not be ready to sell the business entirely, but you can allow others to buy controlling interest in the business and you can direct the choir from the back row. And when you're ready, sell your share and move to next challenge.

You need a change or you want to do something else

Remaining committed and passionate about the same thing your entire life is difficult. As a successful business owner, your experiences will undoubtedly cause you to evolve as a person. And sometimes that change whets your appetite for something new.

If you feel the urge to strike out and do something different, go for it! Don't allow your business — which once was your inspiration — to become your prison. Allow yourself the freedom to do something different and explore other interests. Understanding when you've outgrown something takes a wisdom and insight that some people lack. Trust your instincts. If you feel it's time for a new challenge and a change of scenery, it is.

Making your decision

Deciding to sell your business is a tough call. And per the experts, the best time to sell is at the height of profitability, which is what makes the decision so much more difficult. Choosing to sell while business is good is paradoxical. On one hand, it makes sense because a prosperous business is more attractive and marketable. But on the other hand, who wants to sell when things are going great?

The easiest way to solve this dilemma is to begin with the end in mind. Start thinking about when you'll be ready to give it up and plan for it. You may not be able to sell during your most profitable years, but you can ensure that you are in an uptick when you do put it on the market. Selling your business isn't the end of something good. It's the start of something better.

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This article is from Denise Hill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

What Small Business Owners Can Learn From Top Forbes Entrepreneurs

Nick Wharton — Wed, 07 Feb 2018 09:31:07 +0000

Successful entrepreneurs come from a variety of backgrounds, and their journeys start at different stages of life. But nearly all have lessons about how to create success that we can learn from.

Forbes is continually shining the spotlight on individuals who have managed to overcome hardships and wind up on top. Whether you're starting out on your own entrepreneurial journey or just keen to know what goes into building a winning company, here are four lessons you can learn from top Forbes entrepreneurs.

Get your brand story right

Chris Pfaff, probably better known to MTV reality TV fans as "Drama" from his stints on two shows, followed an unusual path to entrepreneurial success. With no college education, no background in business, and no real idea of how to run a company, he started the streetwear clothing label called Young & Reckless. Launched on the TV show Rob Dyrdek's Fantasy Factory (Dyrdek is a professional skateboarder and Pfaff's second cousin), the line of T-shirts, tank tops, and accessories became profitable right away. (See also: 4 Best States to Start a New Business In)

Despite its rapid success, the company later experienced setbacks as Pfaff experimented with different marketing techniques. Customers had come to associate the Y&R name with the lifestyles of many of its early ambassadors: rappers, skateboarders, and BMX bike riders. But the company flubbed when it hired a celebrity who didn't have a story that fit the brand's carefree, "reckless" image. "There was nothing reckless to tell," Pfaff told Forbes. It taught Pfaff that the most important thing about marketing is making sure it embodies the spirit of the brand. (See also: How to Start Your Dream Business)

The take-away: Your customers buy into your story as much as the product or service you're offering. If a marketing idea doesn't embody the brand, don't do it.

Failure is part of the game

Adam Pisoni is a great example of someone who has picked himself up after stumbling. Pisoni, a high school dropout, says naive optimism led him to launch a web design firm called Cnation in 1995, when he was just 19 years old. That optimism, plus hard work — Pisoni put in 100-hour work weeks — paid off as the company grew to 30 employees and over $2 million in sales. Cnation made its name by designing websites for large brands like CBS MarketWatch, Fox Interactive, Nissan of Japan, and Honda, earning the latter a Clio award for interactive design in 1997.

But everything changed for Pisoni after the dot-com crash of the late '90s. As clients tightened their purse strings, he had to close Cnation — a devastating blow. But he used what he learned years later to co-found Yammer, a social networking service for enterprises. He helped grow the company, and in 2012 it was acquired by Microsoft for $1.2 billion. (See also: 8 Common Myths About Starting a Small Business)

Since then, Pisoni has continued to "bounce back," founding Abl Schools in 2015, a company that creates time and resource management software for secondary schools (and soon elementary schools). The young company has just raised $7.5 million in series A funding and has grown to 12 employees.

The take-away: Business and entrepreneurship comes with failures, but it's how you digest them that matters. Instead of allowing losses to consume you, take what you learn and implement your findings in future ventures. (See also: Top 7 Blogs for Entrepreneurs)

Generous, fair benefits policies help retain workers

While it's become common for tech companies to provide perks such as Ping-Pong tables, free food, and errand-running services to coders and engineers, few extend those benefits to the low-paid employees who work in their warehouses and fulfillment centers. One notable exception: Boxed, an e-commerce company that offers mobile ordering and bulk delivery of products such as toilet paper, pet food, and toothpaste.

Founder and CEO Chieh Huang treats all his workers the same. Not only do they get company shares and unlimited parental leave, Boxed also pays for employees' weddings and college tuition for workers' children. (See also: How to Hire Your First Employee)

Those unique benefits cost tens of thousands of dollars a pop. But they're important to Huang. His immigrant parents worked menial jobs when he was growing up, and he always promised that if he started a business, he would treat his employees well. There's a business reason for this largesse, too. Turnover is costly and common among warehouse workers. It can cost up to $28,000 to recruit and train one, according to Bloomberg.

The tactic may be working. Huang told CNBC that only 10 of Boxed's full-time employees have quit since the company was founded in 2013. That loyalty has helped build Boxed into a company worth over $100 million in revenue as of 2016. (See also: Best Small Business Credit Cards)

The take-away: Treating your employees well breeds loyalty that builds success for the whole company.

Bootstrapping is sometimes the best way to build a business

When starting a business, many entrepreneurs try to follow a familiar blueprint that they see as necessary for success. Come up with a unique idea, raise millions in venture capital funding, use that money to get the business on the map and, voilà, an initial public offering is just around the corner. But there are other ways to achieve this end goal, and not securing venture backing doesn't mean all hope is lost. (See also: 10 Smart Ways to Get a Small Business Loan)

Take Little Passports, the educational subscription service that delivers activity kits to kids. Founders Amy Norman and Stella Ma failed to secure any venture capital when they started the business back in 2009, yet they persevered. They bootstrapped the company with their own savings and contributions from angel investors. (See also: 35 Resources for Female Entrepreneurs)

Without generous venture backing, they were forced to be very disciplined about hiring, marketing, and facilities decisions. Now they believe this path was a blessing, as it allowed them to grow the business organically at a sustainable pace that wouldn't have been possible with millions of dollars in venture capital. Today, with millions of loyal subscribers and a revenue of $30 million, they've proved all of their doubters wrong.

The take-away: Disappointments can be blessings in disguise. Using your own resources and hard work gives you a scrappiness that can pay off as your business grows. (See also: 5 Business Lessons From Child Entrepreneurs)

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Tax Mistakes Freelancers Need to Stop Making

Aja McClanahan — Wed, 07 Feb 2018 09:00:06 +0000

No doubt about it, being a freelancer is hard. From serving clients to staying on top of your money game, there's no shortage of work to do. Sometimes, things may be overlooked or set on the back burner while you tackle pressing business matters. However, there is one major thing that just can't be ignored — taxes.

As your own chief financial officer you'll need to be aware of major tax missteps that could ultimately ruin your business. Ideally, you'll engage the help of an experienced small business accountant who knows the ins and outs of tax strategies for freelance business owners. However, you've got to have your ducks in a row to double and triple check their suggestions and advice, too. (See also: What Freelancers and Side Giggers Need to Know About Income Taxes)

These are the top tax mistakes freelancers really need to stop making.

1. Not paying self-employment tax

As a freelancer, you probably have a number of clients that pay you without deducting any taxes. Because you are a contractor, you are responsible for any and all taxes on your income.

Self-employment tax is a term that covers two main taxes: Social Security and Medicare. As an employee of a company, your employer would cover part of this tax. However, lucky you, since you are your own employer, you get to pick up the tab on the entire tax bill.

On the other side of paying all these taxes, you do get some reprieve by deducting a portion of these payments from your gross income, which can reduce the amount of taxes you owe overall.

Just know that it's very important to pay self-employment taxes on your freelance income. If your client issues you a 1099 form, it's also transmitted to the IRS. The IRS becomes aware of this income and can demand you to make an accounting for that money if they suspect you owe taxes on it.

2. Not having an accounting system

Making a lot of money as a freelancer can also increase your tax liability. If you don't have a good system in place to track all of your income and expenses, you could end up paying more (or less) taxes than you're supposed to.

Charleen Fariselli is a CPA who has worked with small businesses for over 10 years. She says that freelancers who don't accurately track income and expenses are at a disadvantage. "This affects their taxes because they don't have a good accounting system and are often losing deductions so they pay more in tax," she says.

Charleen also adds that a lack of a good accounting system can have an impact on making timely, accurate tax payments: "These freelancers can't calculate what their taxable income is each quarter for making tax payments, so they over or underpay, if they pay at all."

The good news is that there are many accounting software options out there to help you organize your books, including QuickBooks, Xero, Wave, and Freshbooks. You can also use a simple Google Sheets document. (See also: 5 Free Accounting Tools for Freelancers)

3. Mixing business with pleasure

One of the worst things a freelancer can do is allow their business expenses and income to spill over into their personal finances. For example, a business owner may use a business credit or debit card to cover a personal expense like purchasing groceries for their family.

The biggest problem with this behavior is how it affects record keeping for tax filing purposes. Joshua Zimmelman of Westwood Tax & Consulting says that bad record keeping can cause confusion for freelancers at tax time. "Too many freelancers miss out on deductions because their finances are not organized," he says. "Separating your expenses from the start makes filing your tax return so much easier."

If you need help keeping your personal and business finances separate, you can opt for a business checking account or credit card. You could also use both.

If you do have to use money from your business dealings to cover personal expenses or vice versa, make sure you keep a record of such transfers. A small business CPA can help you categorize (loan, owner draw, paycheck, etc.) the transactions so that you don't run into problems with record keeping or tax liabilities. (See also: The 5 Biggest Mistakes Freelancers Make)

4. Neglecting retirement savings

The freelance life can be a roller-coaster ride of feast or famine, but it's still important to keep savings in the equation — especially retirement savings. Saving for retirement is not only critical for your golden years, but can also help you save on taxes.

When you put money away for retirement, it reduces the amount of your income tax withholding. Joanna Zarach is a consultant who helps freelancers plan for retirement. She says, "Solo retirement plans are the most effective way to lower your tax bill now and to build tax-free growth in your investment accounts."

There are different options to save for retirement. Some smart options include:

Individual 401(k): This type of account is ideal for solopreneurs who want higher contribution limits. You can save with pretax dollars while receiving tax deductions for employer contributions (you are the employer) as well.
SEP IRA: Tax-deductible contributions are made by the employer (in this case, you). Growth is tax-deferred until withdrawal.
ROTH IRA: With this type of retirement account, you save after-tax income that grows tax-free forever.

5. Neglecting health care contributions

Paul Jacobs is a CPA, EA, and officer at Palisades Hudson Financial Group. He says he often sees freelancers, "Forgetting to deduct health insurance premiums. A great tax break that is available to the self-employed is the ability to deduct this expense."

As a small-business owner, there are tax benefits when you pay insurance premiums for yourself and family members. Premiums for medical, dental and, in some cases, long-term health insurance qualify.

Reporting these premiums on your taxes can reduce your adjusted gross income (AGI) which can make you eligible for certain tax breaks. The only caveat here is that you may now have to itemize deductions in order to take advantage of this deduction come tax time due to the recent Tax Cuts and Jobs Acts of 2017.

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This article is from Aja McClanahan of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: