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5 Decisions All Responsible Entrepreneurs Make En Route to Financial Security

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5 min read

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Entrepreneurship inherently involves financial risk. That doesn’t mean, however, that entrepreneurs can’t become financially secure. Remember, your personal finances and business finances are not the same. Responsible entrepreneurs aren’t just focused on making their business succeed. They also take steps to achieve financial security in their personal life.

1. Create true separation between personal and business finances

Failing to separate business and personal accounts can create serious financial trouble in the long run. If the business were to fail, you would lose all the money that is also being used to pay your rent or any other expenses. Even more troublesome, liability issues could leave you on the hook for company debts or legal troubles.

Maintaining separate personal and business accounts ensures that even if your company runs into financial difficulty, your “nest egg” won’t be compromised. Paying yourself a salary from your business account can help increase this sense of separation.

Never use a business account (including credit cards) for personal expenses.

Related: 5 Personal-Finance Mistakes That Kill Promising Companies

2. Clearly define personal finance goals

While you may have established clear growth goals for your business, you can’t afford to let personal finance goals be an afterthought.

In a recent phone conversation, Tobi Roberts, co-founder and CEO of City Creek Mortgage explained, “As a business owner, you need to plan out what you’ll do with the salary you pay yourself from your company. After all, a big part of the reason why many people go into business is to support their desired lifestyle.”

Continued Roberts, “Setting clear and meaningful goals will act as a series of guideposts to help you stay on track for reaching that lifestyle. Whether you want to move into a bigger house or buy a boat, setting a savings goal will help you better control what happens after you pay yourself.”

Your personal finance goals (such as retirement or even building an emergency fund) can also affect how you structure your business’s cash flow. You need to find a balance between paying yourself enough to live your desired lifestyle without creating a cash crunch for your company.

3. Create passive income through investments

“Making your money work for you” may sound like a bit of a cliche, but it’s an important to-do for entrepreneurs trying to achieve financial security. Continued investments in the stock market allow your money to grow at a much greater rate than it would if you left it in a checking or savings account.

As Investopedia reports, the more passive, long-term buy and hold strategy averages 12.1 percent returns on small stocks and 9.9 percent returns on large stocks, even when accounting for market crashes.

By simply putting money aside into an investment account each month, your money will compound, giving you an additional revenue stream beyond your salary. You don’t need to chase the latest meme stock to increase your financial standing.

4. Religiously track spending and saving

Managing cash flow is vital for any startup — and it is just as important for your personal finances. If you don’t understand where your money is going, you might find yourself running out of money as you try to attain a lifestyle you can’t quite afford.

Tracking monthly expenses is vital for identifying ways you can better use your money. This can help you identify things you should cut out of your life — like that gym membership you never use. Or, it can put the amount of money you spend on meals at restaurants into perspective.

Writing down how much you spend each month — and what you spent it on — makes it easier to compare your current habits with your long-term financial goals so you can make necessary changes. Quite often, small sacrifices now (like investing $50 toward an investment account instead of daily Starbucks runs) will pay big dividends later.

5. Plan for the unexpected

You never know what life will throw your way. This is just as true in your personal life as it is in the business world. And of course, unexpected negative outcomes for your business can have a tremendous impact on your personal finances.

While times are good, you should prepare for the future by building an emergency savings fund. Financial experts generally recommend that most people have emergency savings that would cover three to six months of living expenses.

Notably, those with a variable income or less stable employment — a category that many entrepreneurs fall in — are advised to have an emergency fund that covers six months or more. Contribute a bit of money to your emergency fund each month. This way, if disaster strikes and you are no longer making any money from your business, you won’t need to liquidate investments or retirement funds to stay afloat.

Related: 5 Tips To Protect Your Company From Legal Liabilities

No matter what your business goals may be, you cannot make finances an afterthought. By taking steps to account for both your business and personal financial standing, you will have much-needed security.

Ultimately, financial security allows you to support the lifestyle you want to live while giving you one less thing to worry about in your hectic entrepreneurial life. Prioritize your finances early on so you can establish good habits that last a lifetime.

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Get $50 off Branch Furniture’s Highly Rated Standing Desk

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2 min read

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.


Although many of us will be returning to the office fairly soon, living in a post-pandemic world of new norms can also mean having the flexibility to work from home more often than you would have had in years prior. To prepare for this hybrid remote/on-site work culture, commercial-turned-D2C furniture brand Branch is offering $50 off its well-reviewed Standing Desk, along with free shipping, using the exclusive promo code ENTREPRENEUR. Given its $699 list price, that brings your cart total down to $649. 

Scour the web for the best standing desks on the market and you’re guaranteed to find this model listed across a variety of trusted recommendation sites including The Strategist, Apartment Therapy, TechRadar, Good Housekeeping, and Business Insider. And it’s not hard to see why. This standing desk’s minimalist yet sophisticated design gives it a mature look suited for the modern home office. Available with either a woodgrain or white top depending on your aesthetic preference, the Branch Standing Desk’s all-white legs will blend seamlessly into rooms of any color palette, serving as an especially welcome addition to contemporary spaces brimming with natural lighting. 

As well as the ability to hold up to 275 pounds of materials without impacting its lift functionality, the Branch Standing Desk can be raised between 25 and 52 inches. A panel on the front lets you customize the height using a combination of presets and centimeter-level adjustment while a discreet brushed grommet helps to keep cables out of the way in order to maintain a clean-looking workstation. Three-stage columns and leveling feet are in place to support all of this. Perhaps best of all, Branch asserts drink and coffee spills are out of the question, thanks to its Standing Desk’s dual, low-decibel motors, which were created with smooth elevation in mind.

In addition to the Standing Desk by itself, the $50 ENTREPRENEUR coupon code is also applicable to Branch’s Task Package and Ergonomic Package bundles. While the former includes a combination of either the company’s Team Plus Desk or Executive Desk and Task Chair, the latter couples the Team Plus Desk or Executive Desk with an Ergonomic Chair. Whatever your newfound work-from-home needs, Branch has you covered with a deal that could save you the time and money spent shopping around elsewhere.

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Gifts for mom: 4 ideas that you can buy from WhatsApp for this May 10

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Why not give him a different gift and at the same time support Mexican entrepreneurs who make local products?


3 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.


This Monday, May 10, we celebrate Mother’s Day in various Latin American countries and, as every year, it is time to think of a gift that can make the celebration different for Mom and remind her how much you love her.

Why not give him a different gift and at the same time support Mexican entrepreneurs who make local products? WhatsApp gave us some recommendations for you to consent to the queen of your house.

1. Choose something for your personal care

Image: MyCoffee Box via Instagram

We have all turned to flowers for Mother’s Day, but this year we will live again on May 10 amid restrictions due to the health emergency due to COVID-19. That is why you can choose to give mom a different gift so that she can pamper herself at home. For example, the Panalli brand offers products made from honey. On their website you can find everything from skin care kits to scented candles. On the other hand, the Mexican brand MyCoffee Box , offers organic coffee scrubs with a touch of honey and grapefruit to renew the skin.

Get to know the catalog of both businesses through WhatsApp Business:

2. Something that is useful and stylish

Image: Tashi Cerámica via Instagram

Crafts Think about the style that Mom uses both to dress and to decorate her house. Cheél is a brand of reusable fabric bags, while Tashi Cerámica offers handicrafts in a wide variety of colors, designs and shapes.

Check their WhatsApp offers here:

3. Surprise her without spending

Image: Depositphotos.com

We know that financial circumstances this year are still complex, but that doesn’t mean you can’t tell Mom how much you love her. You can congratulate him with the WhatsApp tools with photos and videos.

To do it you must:

  1. Select the chat
  2. Click on the camera icon
  3. Select a photo from your gallery or take one right now
  4. Once you are comfortable with the image, use the icons at the top of the screen to add emojis or stickers, text, and use the stylus to make free strokes.

Use your imagination and support local businesses to remind the woman who saw you grow up how much you love her and thank her for her effort.


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Tesla vs. Geely: Which Electric Vehicle Manufacturer is a Better Buy?

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4 min read


This story originally appeared on StockNews

The electric vehicle industry is growing at a rapid pace and as such is attracting the entrance of established manufacturers, such as the China-based Geely (GELYY). But are these new entrants in general, and Geely specifically, be able to threaten Tesla’s (TSLA) leadership position?.

One of the hottest industries in which to invest currently is electric vehicles (EVs). As the globe inches towards clean energy production and consumption, companies within the EV space are  poised to grow at an accelerating pace. 

While 2020 was a breakthrough year for EV stocks, several EV companies have underperformed the market this year, allowing investors to buy growth stocks at more attractive valuations.

Here we compare two popular EV stocks. One is a market leader, Tesla (TSLA), and the other is Geely (GELYY), a company that is domiciled in the country with the world’s largest  EV market—China.

Click here to checkout our Electric Vehicle Industry Report for 2021

Let’s see which stock is a better EV buy right now:

Tesla continues to surprise Wall Street

In the first quarter, Tesla sales were up 74% year over year, driven primarily by a  109% increase  in vehicle deliveries. Its net income also surged to record highs on the back of regulatory credits.

In Q1, Tesla increased deliveries of its low-cost Model 3 and Y by an impressive 140% year over year to 182,338 units. However, deliveries of its  higher-priced Model S and X vehicles were down 83%, at 2,030 units,  in Q1 because Tesla put the production of these vehicles on hold and aims to launch newer versions of the models in coming months.

Tesla reported $438 million in  net income, or $0.93 per share, in the first quarter. This  included a $101 million gain associated with its  sale of Bitcoin. It also reported $518 million in sales of regulatory credits. Tesla bought $1.5 billion worth of digital assets in the quarter. Absent the  above-referenced sales, Tesla would have reported a $181 million loss in  Q1.

Tesla has pumped in $1.35 billion in capital expenditures and began construction in two new factories in Berlin and Texas. Once these projects are complete the company should benefit from positive free cash flows over time.

Even though  Tesla continues to use   unconventional methods to boost  its bottom-line, it remains one of the best stocks in the EV sector. It is on track to increase its vehicle deliveries by more than  50% year over year in 2021. The company’s management also confirmed it has sufficient liquidity to fund its expansion plans without having to raise additional capital.

Geely stock is down 42% from 52-week highs

An investment holding company, Geely operates as an automobile manufacturer in China. It develops , produces, markets, and sells automobiles and  automobile parts and related components. Geely manufacturers sedans, wagons, and sport utility cars.

Geely is an established  automobile manufacturer that  is now eyeing the  lucrative EV space. Earlier this year, China’s tech giant Baidu disclosed that it will partner with Geely Automobiles to manufacture smart EVs. Baidu will provide intelligent driving capabilities while Geely will leverage its design and manufacturing expertise.

But while Tesla is growing its top line at an enviable pace, Geely has seen its sales decline to RMB 92 billion in 2020 from RMB 106.59 billion in 2018. Its EBITDA has also fallen, to RMB 11.83 billion in this period from RMB 17.24 billion.  And Geely’s EBITDA margin has fallen to 12.8% in 2020  from 16.2% in 2018.Geely has attributed the sales decline to China’s weak passenger vehicle market. While its sales volume was down 10% year over year in 2019, it fell by another 6% in 2020. This is in-part why its stock is trading 42% below its 52-week high.

The final takeaway

While Tesla is the largest EV manufacturer in the world, Geely is still trying to gain a foothold in this nascent industry. In terms of valuation, Tesla is trading at a far higher multiple than  Geely. For example, Tesla’s trailing price to sales multiple stands at 20.5x, while Geely is valued at less than two times trailing sales.

But Tesla’s robust revenue forecast and expanding profit margins can support this lofty valuation, making it a better investment bet right now.


TSLA shares . Year-to-date, TSLA has declined -5.97%, versus a 12.45% rise in the benchmark S&P 500 index during the same period.


About the Author: Aditya Raghunath

Aditya Raghunath is a financial journalist who writes about business, public equities, and personal finance. His work has been published on several digital platforms in the U.S. and Canada, including The Motley Fool, Finscreener, and Market Realist.

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The post Tesla vs. Geely: Which Electric Vehicle Manufacturer is a Better Buy? appeared first on StockNews.com

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