If you’re new to flipping houses, it’s natural to wonder what’s in store. Below, you’ll find a rundown of several things you should expect.
Homes with Issues
Sometimes, flipping houses means you’ll run into homes with significant issues. Even one that looks like a dream deal from the outside may have plumbing, electrical, or structural issues on the inside. Therefore, it will behoove you to put some effort into securing a thorough inspection from a reliable professional before you buy a property. Also, set aside funds for potential extra costs during the renovation phase. That will keep you covered in case an issue that was impossible to spot before the purchase comes up.
Some things will be outside of your control when you’re flipping houses. One of those is how long your for-sale homes sit on the market. Keep that in mind while you’re evaluating properties to purchase: You’ll want to have room in your budget to cover costs like mortgage payments and utility bills until the house sells.
The Importance of Research
Flipping houses successfully relies on research. Among other pieces of information, you should know:
- How much a home is likely to sell for, given its size, condition, and location
- Which renovations will add the most value and which aren’t worth the effort
- What events, like a school opening or a business leaving, may affect the value of the home
Flipping houses is not a solo venture. For instance, along with a good inspector, you’ll also want to find a reliable realtor, a title and settlement company, and a real estate agent. Wholesalers (who scout houses) and contractors (for renovations) are invaluable as well. Also helpful are house stagers and people who can expedite permitting processes. Forbes has assembled a comprehensive rundown of what makes for a good house-flipping team, so check it out.
Looking to start or expand a business? Dorra Financial has funding solutions that can help. Get more info by reaching out today.
Businesses in the United States are not limited only to one type of entity. There are several business structures to choose from, including a sole proprietorship, a C corporation, an S corporation, and a limited liability corporation (LLC).
Limited Liability Corporation: A Primer
More and more, LLCs are becoming popular when people erect a business entity. They have several benefits that many business owners find attractive:
- Your personal property is protected.
- They require minimal paperwork to start.
- They carry certain tax advantages.
- They offer a fair degree of flexibility to the owner.
The Need for Financing
Of course, just like any business, there are many situations when an infusion of working capital is needed, whether for growth into new niches, property acquisition, purchase of new equipment, or even debt reduction. Here are a few common forms of financing for LLCs:
Business Line of Credit
In this form of financing, a set amount is set aside by the lender and the LLC can use as little or as much of it as is needed.
An exquisite solution for those businesses that utilize invoices, this form of financing involves the outreach sale of invoices to a financing agent.
Loans guaranteed by the federal government can be taken out under the guidelines of the Small Business Association.
Non-SBA Term Loans
Often the first idea to be considered, loans are offed by banks, credit unions, and financial agencies.
Of course, there are many other forms of business financing, some of which may be particular to your LLC business model.
Seek Expert Assistance
Dorra Financial Group knows LLCs and can provide needed capital when they need it. They welcome your call. Get the financing you need today.
The definition of a recession is “a substantial decrease in an economic activity affecting all aspects of the economy for more than a few months.” Research shows that approximately 81% of small business owners are expecting a recession as interest rates continue to rise to counteract inflation. Many small businesses will not survive this period.
The best way to ensure your business survives is to prepare ahead of time instead of waiting until it hits. In this blog, we’ll outline 10 things you can do to recession-proof your business.
Chances are that you’re spending more than you need to on business expenses such as payroll, marketing, rent, and utilities. Take some time to look at these expenses and make cuts where you can. Consider relocating to a more affordable space in another part of town or negotiate with your suppliers for discounts on inventory.
Don’t Neglect Marketing
When business owners often think about how to recession-proof businesses, they cut their marketing budget. However, you should continue to market your business even in a recession to promote awareness of your brand and build relationships. Even though people may not buy right away, they will likely keep you in mind in the future.
Evaluate Your Pricing Model
During a recession, your customers will be looking for ways to save money. Take some time to review your products/services to find ways that you can cut costs and then pass your savings to your customers. One way you can do this is by offering a subscription that gives customers more value and encourages retention. You may also want to consider offering perks such as free gift-wrapping or shipping.
Continue to Pay Your Bills & Collect Payments On Time
During a recession, it’s easy to be slow with vendor payments because you want to preserve cash flow. However, this gives you an inaccurate idea of how well you’re doing. The payments you owe will eventually need to be paid.
Additionally, make sure that you have a solid collections plan. Your contracts should be well-written, invoices sent promptly, and fees added for late payments. Standard payment terms are 30 to 60 days.
Cut off Problem Customers
Take some time to review your customer base. If you have customers that often complain, ask for extra, underpay, or make late payments, cut them off. However, review your contract terms so that you can safely end the contract without repercussions.
Build an Emergency Fund
Chances are you’ve heard about the importance of a personal emergency fund. A business emergency fund is just as important to recession-proof business. The size of your fund will depend on factors such as your expenses, risk tolerance, and the industry you’re in.
Assess Current and Proposed Projects
Your business likely has a list of projects and initiatives that need to be completed. Take some time to assess that list and determine if there are any that can be delayed or cut entirely. You don’t want to invest resources in a project that is not going to yield results for your business.
Consider Financing Options
During a recession, cash flow is a problem. One way to combat this problem and recession-proof business is with financing. Take some time to consider your options such as term loans, credit lines, merchant cash advances, equipment loans, and more to determine which would meet your needs.
Search for Opportunities
A recession allows you to search for and consider opportunities you may not have before. If your competitors are scaling back on their marketing efforts, it might be a good time to ramp up yours. If your business engages in repetitive manual tasks, consider automating them. You may also want to consider moving into new markets and/or finding new vendors.
Finally, one of the best ways to recession-proof business is by staying positive. Things will eventually get better. Keep in mind that your business is not the only one that is struggling. By implementing these tips, you can increase your chance of survival.
You Can Still Succeed Even in a Recession
Running a small business can be challenging- especially in the face of a recession. Still, there are things you can do to recession-proof your business and increase your chances of survival. If you need help with funding options, contact Dorra Financial Group today.
Social media marketing is now considered the norm, with more than four billion users. You can use social media to generate quality traffic, improve engagement, and drive sales no matter what niche your business operates in.
However, just being present on social media isn’t enough. You have to create a social media marketing strategy to help you get results.
Define Your Goals
What’s the point of marketing if you don’t have a target? You have to know why you are taking certain steps. Your goal is the driving force of your entire social media marketing strategy. Make sure you are specific, set realistic goals, and that they are measurable.
Know Your Target Audience
Once you have a goal, consider your audience. After all, if you don’t have the support of your audience, your entire strategy will be pointless.
Creating a social media strategy based on your audience is a must. Your target audience can help you figure everything out, including what social media platforms to be on and what type of content to create. Remember, your goal is to create messages that resonate with this audience. You have to know what they care about the most to do this.
Take time to define your audiences’ questions, problems, and concerns. Usually, one of the biggest challenges for businesses is connecting with the right audience. To find your target audience, you must determine your target demographic and what social platforms they are on.
Choose the Right Social Media Platforms
You don’t have to be present on all social media platforms. However, you want to impact the few you choose to be on. This is one of the best tips to follow when it comes to social media marketing.
It isn’t the quantity that makes a difference, and it’s the quality that counts. If you publish subpar content, it will make things harder in the long run. Take time to research and plan what you will show on social media and make sure it aligns with your goals while appealing to your target audience. Try to focus on the platforms that are preferred by your demographic.
Creating a social media marketing strategy is something that takes time and effort. While this is true, you can create a strategy that will help you achieve the desired results and meet your goals with the tips here. Just remember, you have to keep working to ensure your presence remains visible.
When people often talk about starting their own business, they use the terms “entrepreneur” and “small business owner” interchangeably. However, a report from the Quarterly Journal of Economics indicates a difference between the two.
According to this study, the primary difference between an entrepreneur and a small business owner is the business’s legal structure.
In this blog, we will explore the difference between being an entrepreneur and a small business owner.
Entrepreneur vs. Small Business Owner
To understand the difference between these two, it’s essential to define each of them first.
The definition of an entrepreneur is: “an individual that organizes/operates a business, taking on a financial risk to do so”
Entrepreneurs can focus on independence and innovation. Many times, an entrepreneur can be found starting a new business based on ideas slightly outside of the norm.
Therefore, most of the time, an entrepreneur is just starting, which means they do not have access to resources like an established company. They often rely on business loans and other funding, which makes them apt to take significant risks.
The definition of a business owner is: “an individual/entity that owns a business to profit from the success of the said business.”
Typically, a business owner is more established in the industry and understands what they need to do to succeed. While business owner may start their own business, they are just as likely to take on a leadership role at an established company.
Their experience and expertise make them less apt to take risks. Most business owners prefer to stick with what works instead of stepping outside the box for a potential increase in revenue.
Are You an Entrepreneur or Small Business Owner?
The way you describe yourself impacts your success more than you might think. The term “self-employed” is not accurate for all business owners.
The terms “entrepreneur” and “small business owner” are not just two different titles- they have varying mindsets and behaviors. Your personality and the legal structure of your business will determine the status of you and your business.
Whether you are an entrepreneur or a small business owner, Dorra Financial Group can help you get the funding you need.