Author: Jenny Smedra

Is It Worth Going into Business for Yourself?

Is It Worth Going Into Business for Yourself?

 

Many of us have often contemplated it but never taken the leap into entrepreneurship. For years, my friends and I have sat around and discussed how you could make that happen. But with all the risks and potential losses, it’s hard to leave security and strike out on your own. However, nearly three years ago, life presented me with an opportunity to do just that. When I returned home after years abroad, I decided it was time to make my dream a reality. While it has been one of the greatest challenges of my life, for me, the financial and personal benefits have more than made it worth going into business for yourself.

What Are the Risks of Going into Business for Yourself?

Change is hard for many of us. And, it’s even more terrifying when you have to make life-changing decisions, such as starting a business. No one can deny that there are serious risks involved.

The Financial Risks

First off, there are no guarantees that you will be successful or earn a steady income. If there are significant startup costs, that increases the financial stakes as well. And with a volatile market, it’s risky to attempt any new business venture right now. Furthermore, those who are entering saturated markets will face greater competition and find it even more difficult to achieve success.

The truth is that 20% of all new businesses fail within two years. If you don’t have a solid business plan in place, you could find yourself facing bankruptcy.

The Personal Risks

Any new business owner will tell you the same thing: starting a new business is a huge time investment. Unfortunately, as your business demands more of your time and attention, it could affect your personal life. Maintaining this balance is crucial. However, with so many people depending on me and several other time commitments, I know this will be a never-ending struggle.

The other major concern for me was the potential effect on my mental health. With all the added stress, I wasn’t sure how it would affect my anxiety, especially as my family was dealing with the care of multiple members facing serious medical conditions. Although some don’t calculate these risks into their decision, it has an impact on your productivity, quality of life, and job satisfaction.

Do the Benefits Outweigh the Risks?

The moment I made the decision was when I realized that the benefits would outweigh the risks. I was unhappy in my current field, returning to a place I hadn’t lived in for over a decade, and needed something that gave me flexibility. My job prospects were limited, so I started thinking outside the box. After some debate, it seemed like a good opportunity to finally see if my business idea would hold water. When I assessed my worst-case scenario, I didn’t have much to lose.

My biggest advantage was that online consulting has very little overhead costs. I only spend about 5% of my annual earnings on business expenses. Since I only need my computer and a strong wi-fi signal, I can generate more profit in a shorter amount of time. I have also established a few long-term clients and contracts that offer some stability. As long as I maintain these relationships and continue building my reputation, there will be a steady demand in the future.

However, the greatest benefit has been the improved quality of life. In the beginning, it was stressful. But once I learned how to manage my time and got things running, I have more free time since I have more control and flexibility to set my own schedule. This has allowed me to take care of both my professional needs and my personal relationships since I can be there when they need me. I’m simply happier all around when I don’t have to answer to superiors and can decide how I conduct business. Rather than dreading the workday ahead, I look forward to it. And you really can’t put a price on happiness.

What Is the Deciding Factor for Going into Business for Yourself?

For those who are asking themselves if now is the right time to start a new business, remember, this is not a decision you should make lightly. Discuss it with your family, friends, and your financial advisor to help you assess your idea.

However, the deciding factor will come down to a tough, personal choice. Are you willing to commit your time, energy, and finances to your idea? Because it will require all of them to make it a reality. Therefore, take the time to evaluate whether you have a viable business plan and the capacity to commit the resources needed before you dive in.

Once I made this choice to go all in, everything else fell into place with a cascading effect. It became clear who and what was most important in my life. This set my priorities. And, it helped me to see how going into business for myself would help me achieve my goals. I wanted a career that brought me personal satisfaction and enough income to support myself. Rather than keeping my personal and professional life separated, I began using them to support one another. When I stopped compartmentalizing these aspects of my life, I immediately achieved a better work-life balance and overall satisfaction in life.

Nothing worth having comes easily, and building a successful business doesn’t happen overnight. It will require your blood, sweat, and tears to make it happen. I won’t sugar-coat it and tell you that starting my own business has been a breeze. It has been a lot of long hours and hard work. But now that I see the results, it has been well worth every sacrifice along the way.

Have you made the decision to start your own business? What are your thoughts…was it worth it, or a waste? 

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The Three Ds of Real Estate in the Suburbs

The Three Ds of Real Estate in the Suburbs

There are many reasons people sell their homes. When you have a growing family or decide it’s time to upgrade your lifestyle, you may start looking for a larger house. Conversely, it may be time to downsize as you near retirement. Others get into real estate purely for investment opportunities.

However, the reasons aren’t always happy ones. And, these hardships can make transferring the title more complicated. If you hear someone refer to the three Ds of real estate in the suburbs, they are probably referring to unfortunate circumstances that cause someone to sell a property. Obviously, there are many reasons people sell their homes, but they usually fall under one of these categories.

The Three Ds of Real Estate in the Suburbs

No one wants to deal with the hardships that lead you to sell your home. However, major transitions in life present new opportunities as well as the need to make important decisions.

1. Death

It’s never easy to lose a loved one. It’s even harder to make difficult financial decisions when dealing with emotional turmoil. However, it doesn’t change the fact that someone has to make decisions to settle the estate. Unfortunately, a highly stressful and emotional situation can worsen when people don’t agree on how to proceed.

Dealing with valuable assets, such as real estate, can be a cumbersome and complex process for the beneficiaries. And, the more beneficiaries there are, the more convoluted it becomes. Oftentimes, families choose to sell the property after their loved ones pass. Some prefer not to move in because they have their own homes or don’t have the financial resources to maintain the property. Others simply don’t want the hassle of finding renters or the added expense of property taxes, mortgage payments, and homeowners insurance.

Settling someone’s affairs after death is much easier when there is a will in place and your loved one’s final wishes are very clear. It can provide a guide through the grief. Moreover, it removes the responsibility of making decisions and the likelihood of infighting among family members.

It takes time to settle the estate. So if you are the buyer, it will be cleaner to wait until the probate is complete. It’s better to protect your investment and guarantee the seller has the authority to complete the sale. Once the title passes to the personal representative who is handling the estate, you can move forward with the sale. While it may take longer, it makes for a smoother process with fewer complications.

2. Divorce

With half of all marriages ending in divorce, there’s a reason it’s included in the three Ds of real estate in the suburbs. Following a divorce, it may not be possible to maintain the property on a single income. Other couples simply want a fresh start. So if one party doesn’t take possession of the property, most people choose to sell and split the profit.

According to most lawyers and those who have dealt with divorce, it’s best to make a clean break and move on. Legal advisors will tell you not to attempt to share the asset, even if the divorce is amicable.

Additionally, it’s best to leave the emotion out of it so you come to a faster and easier resolution. Letting your anger or resentment get the better of you will drive up your legal fees, drag out a difficult process, and undermine your profit margin on the sale.

From a buyer’s perspective, divorce presents the opportunity to make a good investment, especially if the owners are motivated to sell.

3. Debt

The last of the three Ds of real estate in the suburbs is something we have all faced. At some point in your life, you will likely find yourself in debt. This may come in the form of student loans to pay for school, a mortgage on a home, or high-interest credit card debt.

Sadly, some people never seem to find their way out from under it. When it becomes too overwhelming, sometimes the only solution is to sell your home. People tap into their equity to help pay down their debts and reduce their monthly expenses.

If you try to sell your home, any debts associated with the property will come to light during probate. The title search will reveal liens from the IRS, creditors, mortgage companies, or child support agencies. All these debts must be paid off before you can go through with the sale. Otherwise, you will face another D for default.

Those who owe more than the value of their property will likely have their home go into foreclosure. In this case, the bank or lender takes possession of the property, then sells it to recoup some of the money. Many times, properties sell well below their assessed value. While this is great for buyers, it usually only covers a portion of the total debt.

Navigating Difficult Financial Decisions

No matter how hard you try, things don’t always work out the way you plan. The key is understanding that some things are beyond your control. People die, marriages end, and economic situations change. However, just because you suffer a setback doesn’t mean you are unsuccessful or a bad person. If you have reached one of these difficult crossroads, the only way out is through.

Those looking to buy property will also have a considerable amount of red tape during the process. While I can only speak from my perspective, I prefer expert advice to help navigate stressful financial decisions that will affect my future.

Although painful, these experiences offer us wisdom and opportunities to grow. Unfortunately, the lesson doesn’t always come before the decision. Therefore, it’s always best to seek out advice when you need guidance. Your financial advisor can help you navigate these difficult decisions, no matter which of the three Ds of real estate in the suburbs you are facing.

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Can You Put a Price on Kindness?

Can You Put a Price on Kindness?

Growing up, my mom always emphasized the importance of kindness. Her actions in her daily life set an example by showing us how we should treat everyone. She would go out of her way to help strangers, learn the names of service staff, and show gratitude for every effort. She went even further to include those in the lowest positions.

As someone who worked on cleaning crews and support staff, she wanted to show respect and appreciation for their work. Having worked in some of these jobs myself, I can tell you how rare it is that people take the time to recognize you as a human being. And, I would usually return the sentiments by providing better service. Sometimes, this also turned into financial rewards for customers. But, can you put a price on kindness?

The Perks of Being Polite

Although I have had many different jobs over the years, several of them revolved around the customer service industry. If you have ever worked the phones or in a service position, then you probably have your own stories that illustrate the best and worst that humanity has to offer.

Better Customer Service

From my own experiences, I can attest to the difference in my attitude towards customers who treated me with kindness. While I always strived to maintain professionalism, I put extra effort into helping those who treated me well. People who showed me an extra ounce of kindness received more personalized service than those who demanded things. I was much more prone to waive fees, offer upgrades, throw in freebies, and go the extra mile for customers who were patient and polite.

Discounts and Freebies

Since I have often been on the receiving end of it, I try to practice the golden rule with anyone helping me. This generally makes for more pleasant interactions. However, my patience and flexibility have sometimes included financial benefits as well. Not making a fuss has gotten me extra appetizers, free drinks from the bar, and discounts on our checks from grateful servers. Although I don’t expect these things, I tend to get these more often than my friends who don’t engage with service staff.

Upgrades

In the past, I have also received complimentary upgrades by working with employees to find fast solutions. Although this is more common in hotels, there have been other instances when I have gotten free upgrades.

Our last family vacation proved yet again that it pays to be polite. We decided to rent a car for the week. However, we noticed a mistake the morning we were supposed to pick it up. Normally we would roll with the bunches. However, this error would have left us waiting for an additional 3 hours with kids and bags in tow.

Rather than storming the rental counter, we simply showed up at our scheduled time and calmly explained our situation. The employee helping us apologized profusely for the inconvenience. And then, he offered us a free upgrade to a better vehicle. Not only did we not have to pay for the upgrade to a bigger vehicle, but he also gave us a more fuel-efficient model which saved us even more money on our trip.

Organizations That Put a Price on Kindness

While you shouldn’t expect these types of financial rewards for being nice, there are certain instances in which you can put a price on kindness. For example, the IRS offers tax breaks to those who make charitable donations. There is some paperwork and itemization involved when you file. But if you make frequent donations or monetary contributions to qualifying charities, it could save you a ton on your next tax return.

Some businesses are also offering rewards to their polite patrons. One of the most notable instances that I have seen recently is within restaurants. Several local businesses now advertise discounts to families with well-behaved children. While it is still not a common occurrence, it tells customers how much they value kindness and people who treat their staff with added consideration.

And of course, you can’t forget the incentives that many restaurants and retailers offer when you leave them a review. While they don’t necessarily require a nice review, leaving a comment for other potential customers brings in business. In return, many businesses offer discounts on future purchases, bonuses with their next order, or free entry into promotional contests. So if you are especially satisfied with the quality of your products or the service, leaving a positive review could earn you big savings.

It Never Hurts to Be Kind

The bottom line is that we should treat others as we would hope to be treated if the situation was reversed. And, it literally costs you nothing to treat others with kindness. It requires minimal effort on your part but could have lasting impacts.

Even when you are dealing with difficult situations, there is no reason to take your frustrations out on those who are trying to help you. Chances are that they are already doing everything within their power to resolve the issue. Treating others poorly won’t fix your problems. However, it could make them even worse.

You have to remember that these aren’t automated systems you’re dealing with; they’re real people. Treating them with respect may earn you an ally. Although I can’t speak for others, I was more willing to help those who showed me kindness. I would also find ways to save them money when they treated me like a friend rather than “the help.”

While there are no guarantees that it will reap financial benefits, I think you can put a price on kindness. Even if it doesn’t bring monetary savings, it could change someone’s day for the better. Feeling that you aren’t invisible and that your work matters is important. For some, making someone feel valued is the greatest reward of all.

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