Once upon a time, targeting an audience was a relatively simple proposition for a brand or an advertiser. Think radio, print, and television; specifically, the three broadcast networks and a handful of independent stations. Then there were more broadcast nets, the rise of cable, and the arrival of the internet, social media, and the streaming services. Flash to the present and the latest entry in the world of digital technology is the metaverse, which begs the question…what exactly is the metaverse? And how will this impact the world of content and the way brands plan their advertising strategies? “On paper, the metaverse is described as an immersive three-dimensional virtual experience spanning various digital platforms and merging with the physical world,” noted Mike Tankel, partner/optimist at the marketing and development firm To Be Continued. “Users can interact with a computer-generated environment for entertainment, social interaction, and work, among other things, which will increasingly take place in the metaverse world.” One prediction is a universal shift from the internet to the metaverse, or as some say, from web 2 to web 3, centralization to decentralization, bridging the digital and physical lives of the next generation. Another is how the metaverse promises to alter the current state of online advertising significantly. For a marketer or brand, the burgeoning influence of the metaverse certainly cannot be discounted. But that is not to say there might not be some initial skepticism. “What we often say to brands is to not be afraid of the metaverse,” said Ann Hand, Chairman and CEO at Super League, who spearheads the strategic partnerships for brands in this new digital world and culture. The audience is there and the opportunities exist, but the ad dollars have not caught up yet.” Super League is a leading creator and publisher of content experiences and media solutions across the world’s largest immersive platforms. “It is kind of like the move of TV and cable to the internet, where the advertisers and brands were initially questionable and could not get their heads around the content and the measurement being different,” said Hand. “We are here to not just create campaigns for brands in the metaverse, but to be the inner point solution for them to start to create a persistent presence no differently from what they do on other social media channels.” “For years, sports have been a holy grail for marketers, from in game promotions to Super Bowl activations and multi-million dollars ads,” noted Mike Tankel. “Now, with the metaverse, we have the stadium of the future where we know who’s participating, who’s sitting in each seat and who’s watching allowing us to deliver them an engaging experience they not only remember but can readily act upon.” By the numbers… According to the website METAV.RS, there are over 400 million active metaverse users at present every month. Seventy four percent of American adults are considering or have joined the metaverse. And, by 2026, 25 percent of individuals are expected to spend an hour per day in the metaverse. “At the beginning, we started bringing gamers together, structuring leagues around them, in movie theaters in 2015. But instead of watching a movie, they would sign on to the network we had established with city-on-city matchups and live leaderboards,” remembered Ann Hand, who prior to joining Super League in 2015 was the CEO of clean tech start up Project Frog, and held a variety of senior positions with oil industry company BP. She began her career at Exxon-Mobil in 1990 and had a two-year stint as a Business Development Manager at the McDonald’s Corporation in the mid-1990s. “What I saw in these early games were family connections and friendships being formed, communities coming together, barriers being broken down, and misconceptions about the gaming community being refuted,” noted Hand. “At that time, it was about finding the business model. The primary goal was to develop the right strategic partnerships and to see if there was something that could be scaled.” In market value, the metaverse is predicted to rise to $800 billion by 2024. An estimated 25 percent of American individuals will spend at least one hour per day in the metaverse by 2026. And, by 2030, the metaverse could contribute an additional five trillion U.S. dollars to the world economy. “Early on, the hardest part was getting the permission from the people who made the games and the publishers,” said Hand. “The model always was we would have brands or sponsors help us. I needed to position how Super League could be a trusted place for their brand and community, and that we would be transparent. And I was raising money; operations, fundraising, and partnerships basically.” The Road to Digital Recognizing the growing value of esports from a live event showcase that was not all that profitable at its inception, Ann Hand refers to 2015 to 2019 (or 2020) as having “a lot of pivots and iterations in the business.” “After the first couple of years of running these live events, we looked at the unit economics and realized we had to become more digital,” noted Hand. “That is the way gamers game; they game from home. So, we started to run digital tournaments that allowed us to grab more players, while the crescendo of the tournament might be a live event.” “Then, right before the pandemic, and when it hit, we then realized we had to be completely digital to properly monetize our actions,” she said. “We had a Minecraft property at the time, which we still have today, called Minehut, that allows you to invite your friends into your own private server. We grew that from about 100,000 registered users to about two to three million registered users, and we made the decision to just really double down on where we had the most digital engagement (which was that property).” “We still do esports experiences and events, but when you go into Minecraft and Roblox, or any of these open world or open map games, you are talking to way too small of a segment with just the most competitive one. So, we made the decision to cast a wider net and speak to the hyper casual gamer as well who was there for social and creation and other things,” explained Hand. “While we would still do things at times with other game titles, we shifted our focus to Minecraft and Roblox and took that brand positioning to say we were the place that could help bring brands into these massive digital social platforms.” A New Era of Content Creation Ann Hand also cites the emergence of the co-creation of social media platforms like Tik Tok, where you get to be the creator and get to make your own content, and Roblox, which puts the tools in. “All of a sudden you had Minecraft out there, you had Fortnite buzzing that they were going to open up all their tools to allow you, and then Roblox was the dominant factor,” noted Hand. “The average Roblox user spends 156 minutes a day on it. The second closest social channel is Tik Tok at 95 minutes.” For advertisers, targeting the gaming community, or any digital audience, was – and still often is – a foreign concept. But the advertisers and sponsors still marred by this uncertainty of anything new are predicted to eventually be part of these massively populated gaming communities. According to a data presentation earlier this year by Banklesstimes.com, American businesses are planning to increase their metaverse ad budgets from $0.53 million to $1.93 billion between 2023 and 2028, which at conclusion represents a rise of 264 percent in advertising spending in the virtual world. Statista, meanwhile, is predicting the metaverse ad budgets to skyrocket to $2.52 billion by 2030. “What we like about these open world games is we can bake advertising, so to speak, in an immersive way into the game because we can modify the maps,” noted Hand. “That is something that I think is hard to understand for some brands and investors because a lot of them don’t understand the difference, for example, between Pac Man, which you can’t change the map, and these mini- games inside Roblox, where you can continually change the them.” “What we have done for Mattel, where we created an immersive experience in Roblox in celebration of Barbie’s Dreamhouse, we can do themed to any brand. “Forty-seven percent of U.S. consumers say they expect to meet a brand first in metaverse or immersive verse. This is the place where you start the relationship, that then converts to the physical.” In addition to Mattel, Super League has worked with brands like Chipotle, Disney Paramount, LEGO, Toyota, Motorola, Hershey’s, Warner Bros. and with media properties like the Broadway musical Hamilton and Dreamworks animated film Trolls to design in-game activations inside platforms, such as Roblox and Fortnite. “What I often say to brands is to not let the word ‘gaming’ get in the way,” said Hand. “Yes, this is a highly interactive gamified experience. But this is also what the next generation of social media channels look like. They are just more personalized, more customized, and more intimate, and a must for any advertiser to reach today’s audience.” “Ideally, the metaverse is a destination without hierarchy, where people can play, work, speak, learn and shop not just as who they are, but as who they want to be,” said Mike Tankel. “And it is now a key destination for brands and advertisers.” Source: https://www.forbes.com Image Credit: GETTY and SUPER LEAGUE
0 Comments
Home-based businesses are becoming increasingly popular. There is a wide array of business types that can be run mostly, if not entirely, from home offices. If you’re looking for a home-based business idea to start your new venture, here are some to consider. The Home-Based Business Market The online business world has become exponentially more popular over the last few years. Many existing businesses were forced to pivot their existing operations to remote models during the pandemic. And this increased acceptance of remote work also opened up opportunities for home business ideas in other industries. There are also many technology opportunities to support those pivoting to remote models. Our Methodology to Choose the Top Home Based Business Ideas In identifying and evaluating home-based business ideas, our methodology focuses on a range of key factors crucial for individuals looking to start a successful venture from home. We use a 1 to 10 rating scale for each aspect, where higher scores indicate greater potential for profitability, ease of start-up, and alignment with home-based work environments. This scale helps aspiring entrepreneurs in making informed decisions when choosing a business idea that suits their skills, interests, and lifestyle. Market Demand and Profitability Potential (Rating: 9/10) We assess the current market demand and potential profitability of each business idea. High-scoring ideas are those with a proven market need and a clear path to financial success. Startup Costs and Investment Requirements (Rating: 8/10) The initial investment and ongoing expenses are crucial considerations. We rate business ideas higher if they require minimal startup costs, making them accessible for a wider range of entrepreneurs. Skill and Expertise Requirements (Rating: 7/10) We evaluate the level of skills and expertise required to start and run each business. Ideas that leverage common skills or have low barriers to entry in terms of expertise are rated favorably. Flexibility and Work-Life Balance (Rating: 9/10) The flexibility of the business idea, in terms of work hours and the ability to balance personal life, is assessed. Ideas offering more flexibility, especially important for home-based businesses, score higher. Scalability and Growth Potential (Rating: 8/10) We consider the potential for scaling the business in the future. Business ideas with the scope for growth and expansion receive higher ratings. Ease of Marketing and Customer Reach (Rating: 7/10) The ease with which the business can reach and attract customers, especially through online channels, is evaluated. Ideas that can effectively leverage digital marketing and social media are rated higher. Compliance and Legal Considerations (Rating: 8/10) We analyze the legal and compliance aspects related to each business idea, rating those higher which have fewer regulatory hurdles and are easier to set up legally from a home environment. Innovation and Uniqueness (Rating: 7/10) The level of innovation and uniqueness of the business idea is considered. Unique ideas that stand out in the market and offer something different are viewed more favorably. Top Home Business Ideas There are home business opportunities in nearly every industry. Finding the best one for you may require some introspection or trial and error. But here are some of the best home business ideas to provide early inspiration for your search. 1. Dog Grooming Business Set up a grooming space in your home or purchase a mobile grooming vehicle and travel to clients throughout your neighborhood. Then you can run the business operations from your home as well. Create a website or social media presence to showcase your services and attract potential clients in your local area. 2. Subscription Box Business Subscription box businesses involve selling groups of products each month or quarter on an ongoing basis. To run this business from home, you’ll need enough space to store inventory and sort it into boxes each month. Focus on selecting unique and trending products that cater to a specific niche or target audience to differentiate your subscription box from others in the market. 3. Virtual Assistant Virtual assistants businesses run entirely online. You can help business clients with everything from scheduling to managing their social media accounts and communicate with them via email or Zoom. Showcase your organizational and communication skills on your website or online profiles, and consider offering specialized services in areas where you excel, such as email marketing or data entry. 4. Social Media Manager Or you can start a dedicated social media business where to manage posts and strategies for various businesses. Create a portfolio of successful social media campaigns and use it to attract clients from different industries. Offer packages that include content creation, scheduling, and performance analytics to provide comprehensive social media management services. 5. Dropshipping Business A dropshipping business is an online store where the inventory management and logistics are managed off site. So you’d essentially pay an outside service to help you with these extra elements. Research popular dropshipping suppliers and focus on marketing and customer service to build a successful dropshipping business. Use e-commerce platforms like Shopify or WooCommerce to set up your online store. 6. Marketing Service Entrepreneurs with marketing experience can offer specialized services to businesses and communicate entirely online. Identify your target market and create a professional website that highlights your expertise and services. Offer a variety of marketing services, such as content marketing, social media management, and SEO optimization, to cater to different business needs. 7. Car Detailing Business Start a car detailing service where you travel to clients. You can run all the administrative tasks from home and just drive to jobs as they come up. Invest in high-quality car detailing equipment and market your services to local car owners through social media, community bulletin boards, and word-of-mouth referrals. 8. Affiliate Marketer Affiliate marketers earn a commission off each sale they send to a partner business. You can post affiliate links to your website, social media presence, or online newsletter. Select affiliate programs that align with your niche or target audience to ensure a higher conversion rate. Regularly track and analyze the performance of your affiliate links to optimize your earnings. 9. Online Tutoring Business If you have experience in a specific educational subject, offer online tutoring sessions on platforms like Zoom. Develop engaging tutoring materials and offer personalized lesson plans to cater to individual learning needs. Market your tutoring services through social media, educational forums, and local communities. 10. Catering Service With a catering business, you can run the business tasks and make the food from home and just travel to special events. You may need a special permit for a home kitchen, depending on your location. Create a diverse and appealing menu that caters to various events and occasions. Use social media and online platforms to showcase your culinary creations and attract potential clients. 11. Pet Sitter Pet sitting businesses can watch animals at people’s homes while they travel. Or you may bring them to your home if clients prefer. Set up a professional pet sitting website that showcases your love for animals and highlights the services you offer. Build trust with pet owners through positive reviews, personalized care plans, and regular updates during their pets’ stay. 12. Property Manager Property managers handle a variety of tasks like rent collection and maintenance for residential and commercial properties. Create a portfolio of properties you manage and demonstrate your organizational and communication skills to attract property owners seeking reliable management services. Utilize property management software to streamline administrative tasks. 13. Personal Trainer As a personal trainer, you may work with clients at a home gym or even online. Develop personalized fitness plans and offer virtual training sessions to clients seeking to achieve their health and fitness goals from the comfort of their homes. Market your services through social media, fitness forums, and community events. 14. Landscaping Business If you want to work outside, offer landscaping services like tree trimming and lawn maintenance. Then run the administrative tasks from a home office. Showcase before-and-after photos of your landscaping projects on your website to demonstrate your skills and expertise. Create seasonal promotions and offer maintenance packages to attract recurring clients. 15. Online Course Creator Online courses can teach anything from digital marketing skills to personal styling. Create high-quality and valuable online courses that cater to your expertise and target audience. Utilize e-learning platforms like Teachable or Udemy to host and promote your courses. Offer limited-time discounts and engage with students through Q&A sessions and course updates. More Great Home Based Business Idea Examples If you’re still searching for a home business idea that suits your needs, here are several more to consider. 16. Print on Demand Business Print-on-demand businesses use online services to design their own t-shirts and similar printed products. These sites manage most of the logistics like printing and shipping. Design eye-catching and trendy merchandise that appeals to a specific niche or target audience. Use social media and influencer partnerships to promote your products and drive sales. 17. Dog Walking Business If you like walking outside, offer your services to local pet owners. Create a professional dog-walking website and promote your services through social media and community bulletin boards. Offer flexible scheduling options and personalized care plans to attract busy pet owners. 18. Freelance Writing As a freelance writing business, you can contract with online publications or businesses and charge a set fee per piece. Develop a diverse portfolio of writing samples that showcase your versatility and expertise in different industries. Network with editors, bloggers, and businesses to secure writing opportunities. 19. Web Designer Those with design skills can offer web design services for businesses on a contractual basis. Create an online portfolio of your past web design projects to demonstrate your skills and style. Collaborate with businesses to create visually appealing and user-friendly websites that align with their branding and objectives. 20. Home Daycare Business If you are good with kids, consider starting a home daycare. You may need additional permits depending on your location. Create a safe and stimulating environment for children and adhere to all local regulations and safety standards. Market your daycare services to local parents through social media, local directories, and word-of-mouth referrals. 21. Music Lessons If you’re musically inclined, offer lessons to others in your area. You may welcome them in person or offer lessons virtually. Create structured and engaging music lesson plans that cater to different skill levels and musical interests. Utilize online platforms and social media to reach a wider audience and offer virtual music lessons. 22. House Cleaning Service As a house cleaning service, you just need some basic cleaning supplies and business sense to connect with local homeowners. Develop a pricing structure based on the size of the house and specific cleaning services required. Offer regular cleaning packages and one-time deep cleaning options. 23. Event Planning Business Help individuals and businesses in your area throw successful events using your organizational and communication skills. Create a portfolio of past events you’ve planned and highlight your attention to detail and creativity. Network with local vendors and venues to offer comprehensive event planning services. 24. Jewelry Designer Create your own jewelry and sell it online or at local craft fairs and shops. Design unique and trendy jewelry pieces that appeal to your target audience. Use social media and online marketplaces to showcase and sell your jewelry creations. 25. YouTube Channel Film your own videos and share your content on YouTube, earning money from the platform’s ad sharing option. Choose a niche that aligns with your interests and expertise. Create high-quality and engaging video content that keeps viewers coming back for more. 26. Podcaster You can also record your own podcasts in a home studio and charge businesses for ads. Select a podcast niche that aligns with your expertise and target audience. Offer valuable content, invite guest speakers, and promote your podcast through social media and podcast directories. 27. Author Write in a home office and either find a publisher or self-publish online. Develop a writing routine and set specific writing goals to ensure a steady stream of content. Use social media and author websites to promote your books and engage with your readers. 28. Interior Design Business Offer your interior design skills to local homeowners, either working with them in-person or online. Create an online portfolio that showcases your interior design projects and style. Collaborate with clients to create functional and aesthetically pleasing living spaces. 29. Photographer Photographers can capture images and then sell prints online. Showcase your photography portfolio on your website and social media platforms. Offer personalized photo sessions and creative packages to cater to various photography needs. 30. Woodworker If you have woodworking skills, set up a small shop in your home or garage. Design and create unique woodwork pieces that cater to specific customer preferences. Promote your woodworking business through social media and craft fairs. Other Ideas for a Successful Home Based Business All it takes is one great business idea to succeed working from home. If you’re still looking, here are several more ideas to help you earn money at your own house. 31. Blogger Start your own blog and then earn income from affiliate links, ads, or brand partnerships. Utilize your passion for writing and expertise in a niche to attract a dedicated audience and monetize your content effectively. 32. Furniture Upcycling Buy vintage furniture from local thrift shops and turn it into something that others may be interested in purchasing. Showcase your creativity and craftsmanship to create unique and personalized pieces that appeal to eco-conscious and budget-conscious consumers. 33. SEO Service Help businesses with search engine optimization, working with them entirely online. Utilize your knowledge of SEO techniques and tools to improve clients’ online visibility, driving organic traffic to their websites and enhancing their online presence. 34. Mobile App Designer Use your coding and design skills to create your own mobile apps to sell, or work with clients. Develop innovative and user-friendly mobile applications that cater to specific needs or interests, offering your expertise to individuals or businesses seeking to enter the mobile app market. 35. Life Coach Communicate with clients online to help them with various life goals. As a life coach, provide guidance, support, and motivation to clients seeking personal development, career advancement, or improved overall well-being. 36. Business Consultant Or you may specialize just in business subjects, charging clients on an hourly or per-project basis. Offer your expertise to businesses in need of strategic planning, marketing advice, operational improvements, or other specialized consulting services. 37. Handmade Business Owner If you like making crafts, sell your creations on an online marketplace like Etsy. Turn your passion for crafting into a profitable venture by creating and selling handmade products, leveraging the reach of online platforms to connect with a broader customer base. 38. Farmers Market Vendor You may also grow your own food or flowers and then sell them at local farmer’s markets. Embrace the farm-to-table movement by selling locally grown and fresh produce or flowers at farmers’ markets, promoting sustainable and community-oriented practices. 39. Massage Therapist Set up a massage area in your home to offer professional services. Some locations may require additional permitting. Utilize your massage therapy skills to offer relaxation and wellness services, providing clients with a rejuvenating and calming experience in the comfort of your home. 40. Home Hair Stylist Hairstylists can also work with established clients in their homes. Offer personalized hair styling services to clients in the comfort of their homes, building strong client relationships and providing convenient and high-quality hair care. 41. Social Media Influencer Start your own social media presence and then work with brands to create content that promotes their offerings. Leverage your social media following and engaging content creation skills to collaborate with brands, becoming an influencer and promoting products or services to a wide audience. 42. Proofreading Service Work with authors and businesses to proofread their content for a small fee. Utilize your attention to detail and language proficiency to offer proofreading services, ensuring error-free and polished content for authors, businesses, or individuals. 43. Alterations Service Sew clothes and home items for local clients. Offer alterations and sewing services, catering to clients seeking custom-tailored clothing or home decor, providing unique and personalized solutions. 44. Handyman Service Offer your services to homeowners to fix small issues with their homes. Utilize your handyman skills to assist homeowners with various household repairs, maintenance tasks, and improvements, providing reliable and convenient services. 45. Remote Travel Planner Work with clients online to help them plan trips. This can be especially useful for large groups. Use your travel expertise and organizational skills to plan and coordinate trips for clients, ensuring seamless and memorable travel experiences for individuals or groups. Why Should You Consider Starting Your Own Business From Home The allure of working from the comfort of one’s own home has become increasingly popular over the years. With advancements in technology and a shifting work culture, starting a home-based business is now more feasible than ever. If you’re thinking of starting a business in 2023, here are some top reasons to consider running it from your own home: 1. Lower Overhead Costs:
2. Flexibility:
3. Enhanced Productivity:
4. Opportunity for Growth:
5. Work-Life Balance:
6. Reduced Risk:
7. Personal Growth and Learning:
8. Environmental Benefits:
Starting a home-based business offers numerous benefits, from financial advantages to personal well-being. While it comes with its own set of challenges, the rewards can far outweigh the drawbacks for many entrepreneurs. As the world continues to evolve, the appeal and feasibility of home-based businesses are likely to grow, making now an excellent time to consider this entrepreneurial route. Whether you’re looking for more flexibility, reduced costs, or the chance to pursue a passion, a home-based business might be the perfect opportunity. Useful Tips for Starting a Successful Business at Home Even if you’re starting at home, small businesses need a plan to be successful. Here are some general tips to help your new home-based business succeed:
What Home-Based Business Is Most Profitable? Profitability varies widely by location, industry, and individual business. However, the home-based businesses that tend to be most profitable are those that offer a skilled service. For example, a bookkeeping business, marketing consultant, or research service can all offer the basis for a profitable business. What Is the Best Business to Start From Home? If you’re looking to start a new business venture in your home, the best idea is one that you may enjoy but that also offers opportunities for profit. The list above offers tons of ideas. Some of the most popular include an online store, pet sitting business, catering business, social media consultant, or house cleaning service. Source: https://smallbiztrends.com Image Credit: Envato Elements
The success of rental property businesses often depends on thorough planning, effective management, and adapting to changing market conditions. With a decent credit rating, you can get started if you’ve got 20% of a property’s cost for a downpayment, plus closing costs. But before you buy, read on to learn all you need to know about starting a rental property business. Starting a Rental Property Real Estate Business It’s essential to educate yourself continuously about real estate investing. You must also stay informed about local regulations and market trends. There are two main challenges: You’ll need to be ultra-careful about choosing the right properties and even more careful about choosing the right tenants. The last thing you want to do is pay out upfront money to renovate a property and then have tenants damage the property. Preliminary Steps for a Rental Property Owner Yes, it takes money to make money. Do you have the financial stability to start a rental property business? Here is a checklist with resources: “Use a business startup checklist to ensure you’ve covered all the essential steps in launching your rental property business, from legal compliance to market research.” “Develop a detailed business plan for your rental property business. This plan should include market analysis, financial projections, and strategies for growth and risk management.” Rental Business Ideas: “For those looking to expand their portfolio or explore different avenues, researching rental business idea scan offer innovative ways to grow in the rental market.” Best Rental Listing Sites: “To effectively market your rental properties, consider listing them on some of the best rental listing sites. These platforms can significantly increase your property’s visibility to potential tenants.” Printable Rental Agreements: “To ensure legal compliance and clarity with your tenants, use printable rental agreements. These documents can be customized to suit your specific rental terms and conditions.” How to Start a Property Management Company: “If you’re considering a more hands-on approach in your rental business, learning how to start a property management company can offer insights into managing properties more effectively.” How to Start a Business: “Starting a rental property business requires a strategic approach. Familiarize yourself with the basics of how to start a business to lay a solid foundation for your rental property venture.” Website Startup Guide: “For online marketing and tenant communication, consider creating a website for your properties. A website startup guide can help you build a professional online presence.” Common Business Structures: “Decide on one of the common business structures for your rental property business. Each structure, from sole proprietorship to LLC, has different implications for liability and taxes.” Assessing Your Financial Readiness for an Investment Property Business You should have a stable source of income that covers your personal expenses and leaves room for property-related costs. Before you approach a lender:
Researching the Local Real Estate Market Understanding local market trends helps you identify profitable areas and property types. Market research helps set competitive rental rates and predict future property values. Analyzing the average and eventual home sale prices will help you assess the supply and demand dynamics for rental properties. Crafting Your Rental Property Business Plan Your business plan for the residential properties you plan to acquire should factor in your real estate market analysis. Your business plan should also include your objectives and definitive financial projections. Include the steps you’ll take for risk management and also your strategy for business operations. As you write your business plan, keep in mind that the document can be a key part of a lender’s decision to grant you a loan. Setting Clear Objectives and Goals for a Real Estate Investing Define your short-term and long-term investment goals, such as cash flow, appreciation, or retirement income.
Analyzing Market Demand and Supply Evaluate rental property factors like population growth, employment trends, and local amenities that affect rental demand. As a real estate investor, you’ll want to keep an eye on vacancy rates and rental listings to gauge supply levels. You’ll also want to balance your investments to match demand and supply dynamics in your chosen area. Risk Management Strategies for Rental Property Owners You should diversify your property portfolio to spread risk across different locations and property types. Always establish an emergency fund for unexpected expenses. Stay updated on local landlord-tenant laws to minimize legal risks. Acquiring and Financing Your First Rental Properties Now, you’re ready to buy the first property for your rental property business. Property Selection Criteria and Local Regulations Choose properties in neighborhoods with low crime rates and good schools. You can check state education websites to check out the ratings of school districts. Once you’ve narrowed down the location, view the property. Assess the property’s condition and renovation needs. Evaluate the rental potential, considering local rental rates and property features. For example, if you hope to rent to families seeking a certain school district, does the house have enough bedrooms? Is it on a school bus route? Research zoning laws, property taxes, and rental regulations in your area. Also, consider the cost of certain utilities, such as public water and sewer. Make sure you renovate in compliance with building codes and safety standards. Financing Options and Budgeting for a Rental Property Business Owner Explore financing options like conventional mortgages, FHA loans, or private investors. Create a comprehensive budget that covers not only the purchase but also ongoing expenses such as maintenance, property management, property insurance, and taxes. Make sure you include numbers to reflect adjustments to insurance rates – rates are more expensive for unoccupied properties that are undergoing renovations, for example. Operational Aspects of Your Rental Property Business When you’re ready to advertise and show your rental properties, pay close attention to these next steps: Attracting, Screening, and Managing Tenants Getting the right tenants is one of the most important aspects of a rental property business.
Property Management Of course, rent collection must be timely, with guidelines regarding late or unpaid balances. Requests for maintenance must also be handled on a timely basis. To help reduce emergency maintenance issues, do regular property inspections to identify issues early. Establish effective lines of communication with tenants to address concerns and maintain a positive landlord-tenant relationship. Property Maintenance, Upkeep, and Legalities In addition to doing routine inspections and repairs to address issues promptly:
Scaling and Growing Your Rental Property Business Once you’ve got one or two properties renovated and rented, you may be ready to expand your rental portfolio. Here are some strategies to consider before you take that step. Diversifying Your Property Portfolio Explore different property types (e.g., single-family homes, multi-family units, commercial properties). Consider expanding into new geographic areas with strong rental demand. For example, you may learn that a new major employer is moving into the area. Explore real estate investment trusts (REITs) or real estate crowdfunding for diversification. Reinvesting Profits for Growth Reinvest profits to acquire more properties or fund property improvements. Should you consider paying down existing mortgage debt to increase cash flow? Remember that at tax time, you can deduct the interest you pay on a mortgage. However, using that deduction may not be enough to validate using it as a tactic to reduce taxes. You may want to talk to a tax professional before you make that type of move. FAQs: How to Start a Rental Property Business How profitable is owning a rental property? Let’s put some numbers on a hypothetical property. You purchase a three-bedroom house for $165,000, with the down payment and closing costs about $40,000. Your mortgage is for $130,000, with a monthly payment of $1,000. How much can you charge for that rental in your area? How much money will you have to put into the house before it is ready for tenants? Depending on your area of the country, you may pay much less or much more for a property, and also, charge less or more as a rental fee. How do you know if a rental property is a good investment? A rental property stands out from others if it’s in a good neighborhood with a good school district. If the property stays rented, it will prove its worth. Other features renters look for are: designated parking spot, hookups for washer and dryer and access to an outdoor area. What is the initial capital required to start a rental property business? Initial capital requirements vary widely but generally include a down payment (typically 20-25% of the property’s value), closing costs, and initial maintenance/renovation expenses. What are the tax implications of running a rental property business? Rental income is generally taxable, but you can deduct expenses such as mortgage interest, property taxes, insurance, and maintenance costs. Consult with a tax professional for specific guidance. Is the Real Estate Industry Risky? Real estate investing carries risks, including market fluctuations, property damage, and tenant-related issues. Effective risk management and thorough research can mitigate these risks. Source: https://smallbiztrends.com Image Credit: Envato Elements
For the CEO, stagnation is a myth. You’re either moving forward or getting swept backward in the lightning-fast world of business. There is no standing still. The world is constantly evolving, and your mindset should be as well. Purposefully shifting your mentality will ensure that you continue thriving as a CEO in 2024. Here are four critical shifts you should consider making as you work toward becoming an even better leader. 1. Embrace Your Creativity I recently read a Grit Daily article that talked about embracing your “artist power.” The idea is to rediscover and nurture the boundless creativity and vitality within yourself. Garrain Jones, who coined the term, said, “artist power is the little kid who remembers, the little kid who’s filled with life, vitality, boundless energy, creativity, bigness. It’s truly the magical world of the inner YOU. You don’t adopt it; you accept it.” It’s a journey back to the pure, unadulterated joy and imagination of childhood. And as we enter the holiday season, our inner child often wants to come out already. To tap into your “artist power,” revisit activities you found fun or meaningful during childhood. I will be decorating Christmas cookies to hand out to my neighbors this year. I don’t claim to be a great artist, but it’s something I used to do with my grandmother, and it brings me joy. If you lose the connection to your creativity and child-likeness, you may feel empty, which can result in compensatory behaviors like overworking. While there are times to buckle down and throw yourself into your company, don’t neglect yourself. Channel your inner child, unlock creativity, and take a moment to enjoy your success. 2. Strike a Genuine Balance Balance is your new power word. Yes, you’ve heard it a million times, but let’s frame it differently. It’s not just about work-life balance but balancing every aspect of your business and personal undertakings. Leadership coach Mitch Garber says, “All sorts of people work all sorts of hours, and arguably, if you want to work 24/7, you should be able to without being restricted. CEOs, who notoriously work incessantly through high-pressure situations, need to actively put things in place to make sure they reach some sort of work-life balance and don’t arrive at their deathbed wishing they’d done things differently.” Make sure you’re taking the time to be your best self. Wake up 30 minutes early to get that workout in, be mindful of your nutrition, and take steps to minimize stress. When you feel your best, you can perform your best. 3. Build a Team Around You You may be the most capable person in the company, but let’s face it — you’re not a superhero. And that’s OK. Many entrepreneurs and CEOs notoriously fall into this trap. The sooner you realize you can’t do it alone, the better. This is the year to lean into the power of teamwork, collaboration, and delegation. Start by building a team you trust. Then, truly empower them, giving them the autonomy to make decisions (and mistakes). When you truly trust your team, they’ll do their best to deliver for the business and demonstrate that they’re deserving of the responsibilities placed upon them. This not only produces buy-in from your team, but it shifts the burden from being placed solely on your shoulders. Also, work to broaden your network. Seek out mentors, join peer groups, and never underestimate the power of a casual chat over a cup of coffee. Having a solid support system around you is imperative to your success. 4. Don’t Marry Your Ideas Being passionate about your ideas is a sign of a great CEO. But it’s never wise to get married to them, no matter how sure of yourself you may be. The market is constantly changing, and your plans and strategies should reflect that. It’s all about being adaptable. There’s a thin line between passion and stubbornness. One breeds innovation, the other stagnation. Being married to your ideas can also create friction with your leadership team and cause you to miss out on great business opportunities. Instead, host regular brainstorming sessions with your team and other trusted advisers. This creates an environment where ideas are welcomed, and free-flowing thinking is embraced. Encourage (and execute) other’s ideas to show that you’re willing to actually consider other perspectives. Do everything you can to avoid being the only thing standing in the way of a great idea. Your mindset is everything when it comes to growth. 2024 will undoubtedly bring more change and a need for adaptation. CEOs must remain in a constant state of flexibility and growth. The four mindset shifts recommended in this article offer a holistic approach to leadership. By heeding this advice, CEOs can remain resilient and successful when it comes to navigating the uncertain waters of the future. Those who dare to embrace personal growth will be well-positioned to lead their companies and be an inspiration to those around them. Source: https://www.forbes.com Image Credit: GETTY
|
Membership is open to businesses and organizations interested in increasing visibility and brand awareness in Westchester County and surrounding areas.
Archives
February 2024
Categories
All
|