October 2, 2023

How Entrepreneurs Can Build Their Own Safety Net


As an entrepreneur, building a safety net is crucial for weathering the unpredictable nature of business. While venturing into entrepreneurship offers exciting opportunities, it also comes with risks and uncertainties. These three key strategies can help entrepreneurs build their own safety net.

Build Your Savings

Building a robust savings account is the foundation of a safety net for entrepreneurs. Having a financial cushion provides peace of mind and ensures that you can navigate unexpected challenges or periods of economic downturn. Make it a priority to set aside a portion of your income specifically for savings. Aim to accumulate at least three to six months’ worth of living expenses in an emergency fund. This fund can cover personal expenses and business overheads during lean times or unforeseen circumstances. By consistently contributing to your savings, you create a buffer that offers stability and resilience in the face of financial setbacks. Consider creating a budget that allocates an appropriate percentage of your earnings to savings each month. Even if it’s only a small amount, you can use the power of compounding interest to steadily grow your funds. Investing in higher-yield savings accounts and certificates of deposit (CD) can help accelerate this process.

Insure Against Disasters

Entrepreneurs face unique risks that can jeopardize their financial well-being. To protect yourself and your business, it’s crucial to obtain the right insurance coverage. Insurance acts as a safety net by providing financial support in the event of personal, financial, or business disasters. Consider obtaining insurance policies such as health insurance, disability insurance, and liability insurance. Health insurance safeguards your well-being and helps mitigate the financial burden of medical expenses. Disability insurance is particularly important as it covers loss of income in case of injury or illness. The vast majority of disability claims stem from some kind of illness. Liability insurance protects your business from potential lawsuits and damages, providing a layer of security. As an entrepreneur, it’s essential to have financial protection against disasters. Make sure you are properly insured and that your coverage is adequate for the risks you face. It may save you from financial ruin down the line.

Diversify Your Income

Diversifying your income sources is another powerful strategy for building a safety net as an entrepreneur. Relying solely on one business or client for your income leaves you vulnerable to fluctuations in the market or unexpected changes in circumstances. By diversifying your income streams, you create a more stable and resilient financial foundation. Explore opportunities to expand your offerings or venture into complementary business areas. Consider creating passive income streams through investments, real estate, or digital products. Building a network of freelance or consulting clients can provide alternative income sources. Diversification not only provides financial stability but also fosters creativity and adaptability in your entrepreneurial journey.

Building a safety net is essential for entrepreneurs to navigate the inherent risks and uncertainties of business ownership. By building your savings, insuring against disasters, and diversifying your income, you establish a solid foundation that can provide stability and resilience in challenging times. As an entrepreneur, investing in your safety net ensures that you can continue to pursue your passion and thrive in the dynamic world of entrepreneurship.

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What to Do Before Offering Delivery Services


In today’s digital era, it’s just about impossible to run an effective business without integrating the proper technology. Delivery of goods and services is a big part of that. 

But before you start offering a delivery service, here are the first preparatory steps you need to take.

Develop an App

The vast majority of consumers who are looking for delivery will do it over an application. Certain service apps like Uber, UberEats, GrubHub, Doordash, and Postmates have exploded in popularity in recent years for this exact reason. 

At the very least, you should be able to sign up for delivery services on one or more of these apps relatively easily. But an alternative, if you can afford it, is to develop your brand’s own application. This will drive the customer traffic that will come with delivery services to the same location as all other important information and user interfaces.

Choose Your Vehicles Carefully

A good commercial vehicle can make all the difference in the world. Make sure to carefully consider your options, with a complete understanding of what the vehicle will need to do on a regular basis. How much space does the vehicle need? Would sedans, vans, trucks, or other vehicles be the right choice? Will the driver need training? 

How good is the gas mileage? Will maintenance costs be abnormally high or low? Once you weigh all the options make sure to do the right paperwork. If you’re looking to replace your vehicle fleet, using electric vehicles can earn you tax credits. Any business purchase should be deducted.

Find the Employees

Certain businesses might be able to get by without having full-time delivery employees. Sometimes, your current employees will be able to pause their other work and go deliver. But most of the time, it’s a good idea to at least consider hiring a couple of extra hands. You will also need to consider training or certification if the vehicle in question is specialized in any way. Even if it’s not, you should make sure to provide the right protocols carefully in order to avoid any liability on the part of yourself or the employee. 

It’s not an exaggeration to say that delivery services are essential in the modern day. In a post-pandemic world, people expect delivery to be an option automatically. If you don’t take the proper steps toward tech integration, you’ll be missing out on a lot of business.

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Reasons Customers May Leave You a Negative Review


Getting reviews for your business is a great way for you to know how you’re doing. You can see what people enjoy and what they have issues with. 

Some reviews may be more specific, but there are some general reasons customers might leave you a bad review. 

Poor Customer Service 

Your priority should be your customers’ experiences. You want them to enjoy their time interacting with your business and you want them to leave with the desire to return. Poor customer service is one of the most common reasons customers leave negative reviews. People expect to be treated well by businesses. 

They expect to be made a priority, treated politely, and to have their problems addressed. If these expectations are not met, they are left feeling like you don’t value them as a customer and they will make sure to let other people know not to waste their time with your business. To address these reviews and avoid future ones, you need to prioritize improving your customer service

Health and Safety Issues 

If there are ever issues with the health or safety of your business, this is an immediate red flag to customers and they will be quick to inform others of potential hazards. There are plenty of issues people may be wary of. 

Pest infestations can cause illness among your customers and employees. If a pest is seen, people are quick to turn away. Customers will also be put off if you don’t follow basic sanitization and cleaning procedures. This also increases the risk of illness. You need to make sure your business is a safe place for your customers to be. 

Poor Products and Services

Sometimes bad reviews aren’t left because of the behavior of your business but because of the substance. Sometimes products and/or services aren’t the best quality and if this is the case, customers will let you know. These reviews are actually helpful because they can let you know when what you’re doing isn’t going well. You can look at reviews and see how you can change your product or improve your services. 

Negative reviews may seem like a bad thing, but that isn’t always the case. You should view them as a learning experience. You can see what things are like from your customer’s point of view and see what you can change to make things better for them. 

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Why Setting Up a 401(k) Can Get Complicated


When you work a job, you are entitled to many benefits including a retirement plan. Often, this is a 401(k) retirement plan. If you’ve never set up a 401(k), you should know what complications may arise so you can prepare for them. 

Administrative Requirements 

Before you can reap the benefits of a 401(k) plan, you need to first meet all the qualifications. Some of these qualifications are simple. In general, you need to be 21 years old or older in order to be put on a company’s 401(k) plan. However, things get more complicated from there. Some businesses will require that you work for at least one year before you can qualify for the plan. 

This can either be counted as you working exactly 365 days or you being at the company for 365 days regardless of how many you actually worked. Depending on the employer contributions made to your plan, you might need to work two years before getting a 401(k) plan. All these qualifications and requirements make it more complicated just to get started. 

Non-Discrimination Testing 

401(k) plans are meant to provide people with a means of saving money for their retirement. Many laws are put in place in order to make this fair. For example, plans have contribution limits and once you max out your contributions for the year, you can’t add more to your account. 

Another way things are made fair is through non-discrimination testing. This testing makes sure highly-compensated employees (HCEs) aren’t disproportionately benefited and that everyone is equally and fairly being compensated. Non-discrimination testing can make it harder to set up your plan. Safe harbor plans can help you resolve discrimination issues in your plan.

Understanding Contributions 

A 401(k) plan can work differently for everyone. You have options for how much you will contribute and it can be complicated to understand the whole process. Understanding the contributions you will make is step one. Each plan has limitations on what you can contribute and the exact amount changes from year to year. It is your choice how much you will actually contribute. Some sources recommend contributing 10-20% of your salary. You may also want to contribute up to what your employer will match. Some people even choose to max out their accounts each year. Before you get started, you need to know what the best option for you is. 

It can be difficult to get your 401(k) started, but if you know what to expect then things can be easier. Having a 401(k) is a great way to prepare yourself for retirement. You just need to get the ball rolling. 

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Resolutions to Make in the New Year for Your Business


As we approach the end of another year, it’s time to start thinking about resolutions for the New Year. For business owners, there are a few things that should be on your list. 

Here are three resolutions that you should make to help your business grow in the coming year.

Grow Your Customer Base

Now that the New Year is here, it’s the perfect time to set business resolutions and make an action plan on how to achieve them. If you’re looking to take your business to the next level, a great place to start is by focusing on growing your customer base. This could mean expanding into new markets, running targeted ads, improving your reach through digital marketing strategies, or simply leveraging existing customers for referrals and reviews. 

Whatever direction you decide to go in, there are definite benefits that come from expanding and engaging with more customers—namely increased revenue and insights into crafting even better products or services. A resolution this year should include taking steps to grow your customer base and tap into more opportunities for expansion.

Create a New Vision

As the New Year approaches, it’s the perfect time for business owners to evaluate their current objectives and resolutions. One resolution that could help ensure success in the coming year is to create a new vision for your business. Thinking big doesn’t necessarily have to go hand-in-hand with grand-scale change. 

Sometimes, even small changes can effectively turn around a business. While 1% improvements may seem small, they can produce exponential change. Having a clear vision will equip you with the right frame of mind to carefully consider and make better decisions, ultimately yielding positive results and helping you achieve excellence in the upcoming year.

Introduce a New Product or Service

As we move into the New Year, it’s a great time to reflect on how to help your business continue to grow and further engage with customers. Introducing a new product or service can be an effective way to stay ahead of the competition. Not only can you match customer demands by providing niche offerings, but you can also create additional revenue streams for increased profits. Thinking outside the box and adding something new and innovative could add that special spark of creativity to your business. Relationships established through such creative endeavors will only forge stronger connections with customers and open up numerous opportunities for continued success.

There is no time for setting goals like the New Year, both for yourself and your business. To keep your business ahead, you need to know where to focus. Keep these three resolutions in mind for your business this New Year.

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