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How To Use an Area Chart for Effective Business Analysis

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In the business world today, the ability to interpret and communicate complex data is increasingly important. Area charts are a visually appealing and informative tool for business analysis. Their ability to illustrate trends, patterns, and comparisons over time makes them a go-to choice for professionals seeking to gain insights from their data and make more informed decisions for their organizations.

In this article, we will dive deeply into the world of area charts to understand how they can be an effective tool for business analysis. Keep reading to learn more.

Understanding Area Charts and Their Relevance for Business Analysis

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Alt Text: An image depicting an example of an area chart

An area chart is a visualization tool that combines the benefits of a line graph and a bar graph to show how numeric values change over time. Here, the area between axes is emphasized with colors or textures. It bridges the gap between thorough statistical analysis and accessible interpretation of data.

Area charts lend themselves well to tracking multiple variables over time, showcasing the trends and changes in a clear, simple manner. This makes them invaluable for business analysts who constantly deal with complex data.

These charts are especially beneficial when dealing with big data — from tracking sales performance and monitoring website traffic to trend forecasting. The ability to understand trends and interrelationships between multiple variables quickly is essential for strategic business decision-making.

Key Components of a Typical Area Chart

An area chart, at its most basic, consists of two axes, a line, and the area under it. The x-axis typically represents the time or the sequence of data, while the y-axis represents the measured value. Each unique data set is usually represented by a different color or texture, allowing multiple variables to be tracked concurrently.

At the intersection of the measured value and time, a point is made. Joining these points creates a line. The space between this line and the x-axis is usually filled with color or texture, highlighting the cumulative value of the data.

A stacked area chart is a variant of the area chart that stacks data on top of one another rather than saturate them. It helps to understand the overall trend as well as the individual trend of each data set.

Decoding the Insights from an Area Chart

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Alt Text: Business professionals look over data gleaned from area charts

Interpreting an area chart begins by evaluating the overall pattern. Any seeming increase or decrease in the total area represents the total trend. To understand individual trends, one can view the width of each area representing a data set.

Unexpected increases or decreases, called outliers, might indicate an error or a significant event worth investigating. It’s important not to overlook such points as they can provide valuable insights into the situation at hand.

A common mistake beginners make is confusing area size with the value. The larger area size can sometimes simply mean that the data set has more values, not necessarily higher ones. Always refer back to the y-axis for exact value figures.

Finally, comparing overlapping areas can highlight the relationship and interplay between different data sets. Whether they move in harmony or against each other, they can offer fascinating insights into the inner workings of a business or industry.

Enhancing Business Decision-Making through Area Charts

The inherent visual nature of area charts aids in identifying business trends and patterns quickly. Such insights can help identify high-performing products or seasons, leading to more focused marketing strategies.

By juxtaposing various business variables, leaders can gain insights into how the different fields interact with each other. For instance, comparing sales campaigns and website traffic can reveal the effectiveness of particular marketing initiatives.

Furthermore, by benchmarking and comparing with industry or business past trends, leaders can identify any abnormalities. These might signal areas that need further exploration and investigation.

Ultimately, the true value of area charts is in their ability to convert raw, often complex, data into easily comprehensible visuals. Being able to grasp and react to business trends quickly can ultimately lead to data-driven decision-making and enhanced business performance.

Altogether, area charts are effective data visualization tools for business analysis. They transform complex datasets into comprehensible visuals, helping analysts and decision-makers to quickly grasp trends. Evading common pitfalls and harnessing advanced techniques can further empower your analysis, leading to more valuable business insights, smarter decision-making, and, ultimately, improved business performance.

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Interested in Starting a Dog Park Business? Here’s What Every Park Will Need

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If you are a dog owner or lover, you understand the importance of dog parks. They are fun, casual, and green spaces for individuals in cities to bring their dogs to play and socialize with other furry friends. If you’re thinking of starting a dog park, you’ll be in charge of a valuable business that many people will use. Here are a few things you must include for your dog park in Colorado Springs to shine.

Trees and Shade

You can’t have any park without trees. According to the U.S. Department of Agriculture, 100 trees remove over 50 tons of carbon dioxide and 430 pounds of other contaminants annually. As you can see, trees are responsible for keeping the air clean from pollutants and ensuring everyone can breathe well.

Trees also are important for providing much-needed shade. While the hot summer months are great for the extra vitamin D, it can be hard being outside for too long when the sun gets too intense. With enough trees in the park, you can make sure owners and dogs alike have protection from UV rays and can chill outside for as long as they need to.

Porta Potties

Colorado Springs is a dog-friendly place containing several dog parks, at least nine of which are off-leash parks. While those parks are dog-friendly, they’re also people-friendly as well. The dog park grass allows the dogs to use the bathroom, as long as the owner cleans it up.

For anyone planning to be at a park for a few hours, it’s best to have facilities for dog owners to go to the bathroom, too. This is where rentable porta potties come in handy! This allows dog park users to avoid rushing home or having to find a local business to use the bathroom. Instead, porta potties provide convenience. Plus, if you rent from a high-quality company, employees will clean the porta potties frequently so those using the dog park have a reliable restroom to utilize.

Seating

Park benches are a must, as dog owners may want to sit as they watch their dogs play. Install enough comfortable benches for many people to have a place to sit. Remember, they may end up spending at least an hour there, so they want to be comfortable! Plus, having proper seating allows individuals to mingle, creating a social and safe space for dog owners throughout Colorado Springs.

Eco-Friendly Lawn Maintenance

The vegetation at a park goes beyond the trees: the grass matters, too! That’s why you must keep the grass as well-maintained as possible. For the fastest and most economical way of keeping your lawn and top shape, consider hiring a professional hydroseeding service.

Once hydroseeding has begun, it won’t take long to have a beautiful plot of green grass for your park. Grass will grow within one week, and you’ll have a whole new lawn in less than a month. This method also allows avoids the use of harsh chemical fertilizers, which not only damage the environment but may also affect the dogs if they eat the grass or roll around in it. Create a safe and healthy dog park for owners and dogs in Colorado Springs alike!

Starting a dog park is a great idea for a business. Many Americans love their dogs, which is why they are the most common pet among homeowners. Dogs need exercise, and local parks are just as useful for fur babies as they are for fellow humans. Follow the above steps to ensure your budding dog park has what it needs from day one. With enough seating, green grass, trees, and porta potties, you’ll have a comfortable environment for both humans and dogs to enjoy spending time in.

What Are The Best Ways to Monetize a Fan Base For Instagram Influencers

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Instagram has become a powerful platform for influencers to build their fan base and make a living by monetizing their content. If you’re an influencer looking to turn your passion into profit, you’re in the right place. This article will guide you through the best ways to monetize your Instagram fan base, along with tips and strategies to maximize your earnings.

Understanding Instagram Influencer Marketing

Before diving into monetization strategies, it’s essential to understand how Instagram influencer marketing works and the factors that influence an influencer’s earning potential.

How Influencers Generate Revenue

Influencers can generate revenue through various methods, such as affiliate marketing, sponsored content, selling products, partnerships, consultations, and more. The key is to find the right mix of revenue streams that align with your niche, target audience, and personal brand. Even platforms like alua.com can offer a great way to earn money by just chatting with your fanbase. Success stories are many on alua.com and some of their top models like Maria Follosco are earning a sizable income from the site with just posting a sexy selfie here and there on the platfrom.

Factors Influencing Monetization

The success of your monetization efforts depends on factors like your niche, follower count, engagement rate, authenticity, and the trust you have built with your audience. It’s important to keep these factors in mind when exploring different monetization options.

Affiliate Marketing

Affiliate marketing involves promoting other companies products and earning a commission for each sale made through your unique affiliate link. It’s an excellent option for influencers who want to monetize their audience without creating their own products.

Best Practices

  • Choose products that resonate with your audience and align with your niche.
  • Disclose your affiliate relationships to maintain transparency and trust.
  • Create engaging content that seamlessly incorporates affiliate products.

Sponsored Content

Sponsored content involves partnering with brands to create posts promoting their products or services. In return, influencers receive payment or free products. To get started, reach out to brands that align with your niche and audience.

Tips for Creating Successful Sponsored Posts

  • Maintain your authenticity by only promoting products you genuinely believe in.
  • Clearly disclose sponsored content to your audience.
  • Balance sponsored content with organic content to avoid

alienating your followers.

Selling Your Own Products

Creating and selling your own products, such as merchandise, digital products, or physical goods, allows you to retain full control over your revenue streams. Popular options include apparel, ebooks, printables, and courses.

To sell your products, set up an online store using platforms like Shopify, Etsy, or Gumroad. Integrate your store with your Instagram account to promote your products and make it easy for your followers to shop.

Offering Paid Partnerships and Collaborations

Partner with brands that align with your niche and share similar values. Reach out to brands you already love or use tools like BrandSnob or Influencer.co to find potential partners.

When offering paid collaborations, consider factors like your follower count, engagement rate, and content quality to determine your pricing. Research your competitors and industry standards to help set your rates.

Providing Consultation Services

Leverage your expertise in your niche to offer consultation services. Share your knowledge and help others grow by offering one-on-one coaching, group sessions, or even a monthly membership program.

Hosting Online Workshops and Courses

Create and sell online workshops or courses on platforms like Teachable or Kajabi. This allows you to monetize your knowledge and reach a larger audience than with individual consultations.

Instagram’s In-App Shopping Features

Take advantage of Instagram’s in-app shopping features, such as shoppable posts, product tags, and the Shop tab. These features make it easy for your followers to discover and purchase products directly from your Instagram content.

Donations and Patreon Support

Encourage your most loyal fans to support you through donations or Patreon subscriptions. Offer exclusive content or perks in exchange for their monthly support, such as behind-the-scenes access, Q&A sessions, or personalized shoutouts.

Utilizing Instagram Live and IGTV

Instagram Live offers another avenue for monetization. Host live events, such as Q&A sessions, product launches, or tutorials, and ask your audience to support you through donations or paid “badges.” This not only generates revenue but also strengthens your connection with your audience.

IGTV allows influencers to create longer videos, providing more opportunities for monetization. Collaborate with brands to create sponsored IGTV videos or promote your products and services through in-depth tutorials, reviews, or storytelling.

Leveraging Email Marketing

Building Your Email List

Email marketing is an effective way to monetize your Instagram audience. Encourage your followers to subscribe to your newsletter by offering exclusive content, discounts, or updates. An engaged email list can help you promote your products, services, or affiliate offers directly to your audience.

Conclusion

There are numerous ways for Instagram influencers to monetize their fan base, from affiliate marketing to selling their own products. The key is to diversify your revenue streams, maintain authenticity, and create valuable content for your audience. By following the strategies outlined in this article, you’ll be well on your way to turning your Instagram influence into a profitable business.

 

12 Easy Ways to Cut Costs as a Business

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As the old saying goes, every business needs marketing and innovation to stay successful. But then a bit of cost-cutting does not go a miss either! 

Not only does taking steps to reduce your expenditure streamline your operation, but it enhances your profitability as well. 

As we approach the end of the year, it is always a good opportunity to take a moment to evaluate how your business is performing and identify ways it could be improved. 

In today’s unsettled economy, it is more important than ever to keep an eye on your company spending, as even the smallest increase in returns can have a positive impact on your bottom line. 

With that in mind, to kick start your retrenchment activities, here are 12 easy ways to cut costs as a business. 

 

 

How to Cut Costs in Business 

 

The 12 cost-cutting measures below could be adopted by any type of business – small, medium, or large – to save money immediately. 

For some of these methods, you will see the benefits of these reductions straight away, while others might take a bit longer for the benefits to manifest. 

However, as all of these will positively impact your bottom line, they are well worth implementing as soon as you can. 

 

1. Reduce employee hours 

On the face of it, you might think reducing employee hours might also lower productivity. However, some studies suggest this not to be the case at all. 

Indeed, several companies are now allowing their employees to work either four-day weeks or nine-day fortnights, to keep them fresh and engaged in their work. 

Productivity levels aside, the one thing most business leaders can agree on is that the less time an employee spends in the office, the less money an owner will need to fork out, for costs relating to things like electricity, kitchen supplies and heating. 

When this is scaled across several employees, for every working day of the year, it can soon add up to quite a saving. 

2. Payment costs

All businesses that accept payments via any method other than cash should regularly keep track of the costs they absorb when receiving payments. 

It is particularly true if you are using Eftpos or any other payment gateway, and you should consider payment fees and surcharging when doing so. 

Again, like with insurance, the simple act of switching providers can save you quite a lot of money year on in. 

3. Encourage more WFH 

In the same way as reducing employee hours can lower office-based costs, so can encouraging your staff to work from home, one or two days a week. 

If you can work it, so that at any given time only 75% of your workforce is currently in the office, this not only saves money on the previously mentioned electricity, kitchen supplies and heating. But also provides an opportunity to save money by….. 

4. Downsizing your office space 

If you only have 75% of your workforce in the office at any one time, then it follows that you only really need 75% of your office space from which to operate. 

By downsizing your office space to another location, you could save a significant amount of money on rent, as well as other costs like electricity, heating, and insurance. 

You will also not need to purchase as much in the way of equipment on computers, furniture, and other fixtures. Which will save you money, in the long run, on purchasing or replacing these items as well. 

5. Use more freelancers

Instead of hiring more full-time staff to save money on wages, you could always take on more freelancers. 

With freelancers, you will not need to pay them superannuation, parental leave, or sick leave. Instead, you can pay them a flat rate for the project you give them. 

Platforms like Upwork or Croudie Network can connect you with high-quality freelancers that are skilled copywriters, developers, graphic designers, and admin professionals.

Overall, they provide an invaluable cost-cutting resource most companies do not exploit. 

6. Become fully online

If you are serious about saving money for your business, the first thing you should consider, if you are a brick-and-mortar operation, is whether it is viable for you to operate solely as a fully-fledged online business. 

If you can do this, you could save a small fortune in rent, electricity, insurance, employee wages and a host of other operational costs. 

Whilst you might be reluctant to give up your street presence, if you look at the profitability of your physical store, it might make good financial sense to do so. Especially as some of the money you save on these areas can be put into further establishing your online presence. Another thing why online businesses are growing is because most people are using smartphones and mobile eCommerce statistics show that mobile purchases are almost half the percentage of all eCommerce sales, so better think of strategies to build your online presence and build customer interaction for more sales.

7. Insurance  

Insurance is vitally important for business, as it can protect you from unexpected expenses which arise from legal claims, workplace injury or damage to your property. 

However, insurance tends to be something you ‘set and forget’ and then pay via direct debit on the same date every month when it is due. 

It is always a clever idea to source quotes from several insurance companies regularly. To ascertain if they can provide you with a cheaper offer than what you are getting from your existing provider. 

This simple act can save you hundreds, if not thousands of dollars. So be sure to make a point of doing it at least every 12 months. 

8. Postage costs for orders

If you run an online business, then the chances are you will be shipping lots of orders out to customers. 

It could be local, state-wide, nationwide, or even internationally. All of which could result in you incurring very high postage costs. 

Switching to a new shipping provider thus could provide you with plenty of cost savings over a year. Be sure to gather several quotes to determine if this is a good move for you. 

9. Re-evaluate your marketing efforts.

Businesses tend to spend a lot of money on marketing activities, in particular marketing activities that are non-profitable. So, it follows there will be plenty of opportunities to cut costs. 

Paid advertising might be an integral part of your promotional mix right now. But if it is ineffective, it is essentially a waste of money. 

It is a worthwhile exercise to take the time to understand how effective your advertising strategy is, eliminating campaigns or activity that is not providing your business with a good ROI. 

For instance, instead of focusing resources on promoting a product on your website that has not sold in months, use that money to build an email list of customers. You can then send them targeted emails with discount incentives that might facilitate sales. 

Similarly, instead of spending money advertising in magazines or directories, make a concerted effort to grow your social media following and create online shops on Facebook and Instagram for them to visit. 

10. Go Virtual

Technology has come a long way in the last decade, just as business thinking has also advanced. Today, the adoption of virtual technology has become a valuable way of reducing overall business costs.

Tools like Zoom, Google Meet, and Microsoft Teams have led to a significant reduction in travel budgets, as more companies are facilitating introductory meetings with each other online, as opposed to face-to-face. Thanks partly to how the COVID-19 pandemic proved businesses can still be effective by conducting remote activities.

Similarly, the likes of Microsoft Azure have centralised the process of storing company documents on the cloud, which has significantly reduced the cost of funding office staples like printer paper, ink, and even photocopiers or fax machines. Businesses can work with azure management services to create an efficient digital storage structure that not only protects data from cyber attacks, but help streamline the workflow and increase productivity.

11. Rent out some of your office space

Another innovative way to save on business costs is to rent your office space. 

Depending on its layout you could offer a hotdesking facility, where you can charge people a small amount to use a spare desk on your premises, as well as your WI-FI and photocopier or fax machine. 

Alternatively. should your space be big enough, you could even allow a business to set up a retail space within it, for example, an art studio or a small coffee or flower shop. 

By renting out your space to another company, you can offset the cost of funding what would otherwise be an empty and unprofitable space. 

12. Hire an expert in cost-cutting 

Lastly, if you have implemented some of these strategies and still want to find more ways of cutting costs, you can always hire an expert. 

A certified public accountant can run a complete audit of your business, analysing every single cost with a fine-tooth comb to help you determine strategies to reduce your expenditure. 

It might cost you a bit to employ their services, but they will be very comprehensive in the work they do for you. They could also potentially save you thousands of dollars. Not just in terms of the money you outlay but also in tax deductions.

 

7 Things You Need to Know Before Opening a Retail Store

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Opening a retail store is an exciting move that can help you gain more finances and have a successful business! However, it might be tricky if you’ve never opened a retail store. Below are some pointers to keep in mind before opening your store so you have a successful storefront that makes you money quickly.

Find a Niche

When it comes to retail, you want to make sure you have a specialty. By having a specialty store, you’ll be able to draw in a specific type of customer looking for the items you sell. It could be selling vintage items, plus-size fashion, children’s clothing, or pet supplies. Plus, it’ll be easier to market your store since you’ll have a target audience in mind.

Location, Location, Location

The saying is true – location is key in retail stores. You want to make sure your store is in a visible spot that gets a lot of foot traffic. The more people see your store, the more likely they will come in and buy something. If you’re unsure where your store’s best location would be, consider hiring a commercial real estate broker to help you find the perfect spot.

Get the Right Insurance

When you own a retail store, there’s always the potential for accidents or theft. That’s why it’s so important to have the right insurance. Make sure you’re insured for the type of products you sell and any potential liabilities. The proper insurance will give you peace of mind knowing you’re covered if something does happen.

Hire the Right Employees

As the rate of retiring workers increases, they are being replaced by young workers entering the labor market at a slow ratio of 2:1. Consider getting help from both older and younger employees, as they each have something different to bring to the table in terms of customer service, product knowledge, and social media marketing. Older workers have the benefit of years of experience and can offer excellent customer service.

Younger employees, on the other hand, are often more comfortable with social media and technology. They can help you create an online presence for your store and attract younger customers. You need to hire the right employees to have a successful retail store. They should be friendly and outgoing and knowledgeable about the products you sell. Take your time when hiring, and don’t be afraid to train your employees so they can provide the best possible service to your customers.

Invest in Technology

You must be aware of the latest trends and technologies as a retail store owner. Investing in the right technology will help you run your store more efficiently, help you streamline your finances, and attract more customers. Plus, it’ll give you an edge over your competition. New retail store technologies include point-of-sale (POS) systems, barcode scanners, and mobile apps.

Work on Improving Customer Experience

Over 85% of customers say they’d pay more for a better customer experience. That’s because the customer experience is becoming more critical than ever before. To attract and keep customers, you need to work on improving their experience, which can in turn help improve your finances. Fortunately, it’s easy to improve customer experience with small gestures like offering free shipping, having a returns policy, and providing excellent customer service.

Save Money on Energy and Overhead Costs

Consider investing in energy-saving appliances and equipment to help lower the costs of your new retail store. LED light bulbs can last up to 25,000 hours due to their lower heat levels. You can also save money on your store’s overhead costs by negotiating with your landlord and looking for ways to be more efficient.

By following these tips, you’ll be well on your way to opening a successful retail store. Just remember to take your time, research, and invest in the right employees and technology. With these tips, you can run a successful retail store and keep your customers happy.

Which Is Better For A Small Business: Financial Advisor vs. Accountant

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financial advisor vs accountant

When you run a small business, having a strong financial team by your side is a difference maker. However, you may need to choose between different types of financial professionals. Financial advisor vs. accountant is a common debate among small business owners. If you’re wondering which option is best for you. Here’s what you need to know.

Financial Advisor vs. Accountant: What’s the Difference?

While financial advisors and accounts may have similar knowledge in some cases. They represent two different specialties, each with unique areas of expertise.

In many cases, an accountant focuses on the basics of your financial picture. Thus, ensuring that your ledger remains balanced. Additionally, they typically help with finding tax-saving strategies that align with your situation. That could involve how assets are managed from a tax perspective, recommending specific types of retirement accounts, ensuring you capture every deduction, or similar steps.

Financial advisors are a bit different. While they may also recommend strategies that are beneficial to your taxes, their main goal is to assist you with seizing financial growth opportunities. Along with financial planning, investment advice is commonly a part of what a financial advisor offers.

The unique perspective each of these professionals provides means they can work together to ensure your entire financial picture is well managed. However, not all small businesses can afford to hire both.

Pros and Cons of a Financial Advisor

Financial advisors are adept at planning and recommending paths that can lead to financial growth. Often, they focus heavily on the investment side of the equation, though many will also examine other areas to seek out opportunities. For a small business, financial growth can be a priority, particularly if they’re in a startup phase and are dealing with financial uncertainty or there are plans for various kinds of expansion.

Another area financial advisors focus on is insurance. They can assist with choosing the correct coverage for your business, ensuring any assets are adequately covered and that all critical scenarios are addressed in that coverage.

However, financial advisors don’t typically handle the more transactional side of the equation. Handling ledgers, tracking payments and expenses on a daily basis, and similar services aren’t commonly what a financial advisor offers. This leaves those tasks to someone else, which may not be ideal if you don’t have time to handle them personally and don’t have other financial professionals on board.

Pros and Cons of an Accountant

In many ways, accountants are more transactional. They track and log the flow of money in and out of a business, and make recommendations that often feel more logistical. For small businesses with complex financial activities, this can be a boon. It ensures someone is solely focused on the company’s earnings, expenses, taxes, and reporting, reducing the odds of errors and increasing your chances of securing tax savings.

Accountants can also assess the financial impact of various moves. For example, if you’re considering an acquisition, an accountant can help analyze the situation and produce estimates that give you a clearer picture regarding how proceeding may impact you financially.

When it comes to drawbacks, accountants aren’t as growth-oriented. While they may recommend investment accounts, they usually limit that to options that result in a tax benefit, as that results in a savings for the company. In some cases, this can make the level of financial guidance feel incomplete, suggesting you were looking for advice in the growth arena.

Financial Advisor vs. Accountant: Which Is Better for a Small Business?

Neither financial advisors nor accountants are inherently better for small businesses. Instead, you need to factor in your financial needs, allowing you to select the best option for your unique situation.

If you’re concerned about balance sheets, financial reports, transaction tracking, and tax preparation, an accountant is typically the way to go. Accountants specialize in that type of financial tracking, and they’re particularly adept at identifying tax-saving strategies that allow you to reduce what you owe legally.

For guidance about investments, insurance, and long-term financial plans, a financial advisor could be a better fit, as much of their focus is on financial growth and preservation strategies. They’re also skilled at asset management, which can be beneficial in some scenarios.

Consider what you need from a financial professional, and use that to guide your decision. That ensures you bring the right one on board. However, you can also consider hiring both. Financial advisors and accountants can work together to manage the entire financial picture. That ensures that every base is covered, which could be the better choice in the long run.

When it comes to financial advisor vs. accountant for small businesses, do you agree with the points above? Did you choose one over the other and would like to discuss your reasoning? Did you choose one only to discover that it either wasn’t the right fit or was the perfect match? Share your thoughts in the comments below.

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5 Tips for Climbing the Career Ladder in the Auto Industry

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It’s no secret that the current business world is highly competitive. With the right tricks, however, you can climb the corporate ladder in the auto industry and become a top business executive. Have a look at these five tips below that can help you do this and start to develop your career.

1. Know Your Company Well

If you want to climb up the rungs of your company’s corporate ladder fast, it’s important to know the company well. This will enable you to have a clearer vision of your future, and you will have an easier time knowing what you need to do to keep getting into higher positions. Know all the details you can know, and share some of this information with your superiors when the occasion presents itself. Doing this will let them know that you’re capable and can take on leadership roles.

2. Keep a Current Folder of Your Accomplishments

A portfolio is an important tool for someone who intends to seek a promotion. This is because it provides solid evidence of your intelligence and potential. From positive reviews that you receive from clients to commendations you get from supervisors and more, there’s a wealth of things that you can keep in your folder. Ensure to keep it up to date so you don’t leave out recent achievements, which may carry more weight because they’re current and possibly more relevant.

3. Be a Team Player

Every workplace consists of a team that needs to work together towards a common goal, so if you can work well with everyone in your team, you have a good chance of getting promotions. Make sure to follow safe practices and help your coworkers whenever possible, as doing this will make you a great person in general. Construction workers in the United States, according to the Bureau of Labor Statistics, lose an average of 11 workdays every single year as a result of serious injuries at the workplace. While this is in a different industry, it may reflect many ones that involve working manually with machines and moving parts. In this case, practicing safety and helping your team stay safe will be a good thing to do, as it’s what a worthy leader would do.

4. Stay Flexible

Staying flexible is an important thing in any industry as it shows that you’re dependable and creative, and able to think on your feet. One definition of a good leader is someone who takes initiative to fix something that’s going wrong or improve the general condition of things, no matter if it’s their job or not. For example, you could suggest that your company think about refreshing its logo if it’s remained the same for the last 15 years. This is something that businesses do in order to stay fresh and relevant, and suggesting helpful things like this in the right setting can help you present yourself in a good light.

5. Be a Good Time Manager

Finally, remember that a good leader manages their time well and doesn’t leave anything to chance. They get their tasks done in a timely manner so they’re able to work on different projects. Work towards improving your time-management skills and you may be noticed by your supervisors. While getting things done with a good turnaround time, make sure that they are done well and carefully, as there’s no point sacrificing quality just to beat a personal record.

With the market for automotive collision repair expected to cross $280 billion by the year 2024, you have a great chance of growing your career in the automotive industry. Stay motivated and you may be happy to start getting promotion after promotion if you follow these tips, and enjoy the position and additional finances that follow.

Pros and Cons of Self-Employment

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self-employment

The number of businesses that have started since the start of the pandemic has shot through the roof. People realized how short life can be and decided to take their earning potential and work-life into their own hands. Here are a few stats to illustrate the self-employment picture in the U.S.:

  • As of 2019, the self-employed section of the population accounted for nearly 30% of total employment (Source).
  • As of November of 2021, there are 9.9 million self-employed people in the United States.
  • 96% of self-employed people don’t want regular jobs (Source)

Business structures

Sole proprietorship – There is no separate business entity. You are the business entity. That means your assets and liabilities are your assets and liabilities. Banks are more hesitant to lend to sole proprietors than they are for other entity types.

Partnership (LP/LLP) – An limited partnership (LP) has one general partner with unlimited liability and all the other partners have limited liability. Creditors can come after all of the general partner’s assets including things they personally own. Limited liability partners can only lose what they put in. A limited liability partnership provides limited liability to all partners. Profits are paid through on personal tax returns, except for the general partner – they must pay self-employment taxes.

LLC – Very similar to the LLP in terms of how profits, losses, and liabilities are treated. Profits are passed through to employees on personal returns. However, members of the LLC are required to file and pay self-employment taxes. 

Retirement plan options

As a self-employed individual, you have a few options when it comes to retirement accounts – Traditional IRA and Roth IRA (available to everyone), SIMPLE IRA, Solo 410(k), and SEP IRA.

Traditional IRA and Roth IRA – Contribution limits up to $6,000 ($7,000 if you’re 50 and older). Withdrawals prior to 59 ½ are subject to a 10% tax penalty unless certain conditions are met.

SIMPLE IRA – available to employers with fewer than 100 employees. Contribution limits up to $14,000 ($17,000 if 50 or older). Employer match available.

Solo 401(k) – Contribution limit is $61,000 ($67,500 if 50 or older). Available to self-employed individuals and self-employed individuals that have their spouse as their only employee.

SEP IRA – Contribution limit is 25% of employee compensation up to $61,000.

Click here for more information about business retirement plans.

Be your own boss

You get to set your own hours and work with whoever you want to. There’s no one to tell you what to do and how to do it. For people that like to make their own schedule and like to go to the beat of their own drum, self-employment makes a lot of sense.

Earning potential

There’s no ceiling on your earning potential. You don’t have a salary range, you make what you make. You can make $10,000 or you can make $10 million. That’s a double-edged sword though, your effort determines your income. You will only make money if you work for it. Someone who isn’t a self-starter, should not be self-employed.

Costs

You have to pay for everything. Whatever the cost of business is for your sector or industry, that’s on you. Health insurance, you have to pay for that. There’s no business or employer that can foot those costs for you. Same with your retirement plan, a lot of employers offer an employee match. If you’re the business owner and the employee, ALL of your contributions are your responsibility.

Related reading:

6 Ways to Save Money When You’re Self-Employed

How to Be Self-Employed Safely and Wisely

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Tax Tips for Tax Time

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April is fast approaching and soon, everyone will have to visit their accountants and file their taxes. That said, we need to make sure we are filing taxes correctly. Keeping accurate and up-to-date records is important. Here are some tax tips and how to be well-prepared for tax time.

Contribute to retirement accounts

If you haven’t done so yet, or you’d like to contribute more, you have until tax filing day to do so. For a refresher, here are the contribution limits for some IRAs: IRA/Roth IRA – Max contribution is $6,000 ($7,000 if you’re over 50 or older).

If you have a SEP IRA and you get an extension, you have until October 17, 2022, to make your 2021 contribution.

This is more of a tip for the end of the year, but make sure you take your Required Minimum Distributions. For people that are either over 70 ½ or over 72, depending on when you turned those ages, you need to withdraw money from your IRA. If you don’t, you’ll pay a tax penalty of 50% of the amount you should have withdrawn. For example, if your required amount was $10,000. You’ll pay a $5,000 tax penalty if you didn’t take that distribution.

Make a last-minute estimated payment

If you didn’t pay enough or you didn’t make a payment to the IRS for 2021 taxes, you have until you file to make your payment.

According to the IRS rules, you must pay 100% of last year’s tax liability or 90% of this year’s or you will owe an underpayment penalty.

Get tax docs in order

Get all of your tax documents in order. For earnings for the year, you’ll need one to several forms, depending on what you do for a living and how your business is set up. W2s are pretty common. If you’re an independent contractor, you’ll need 1099. 

Itemize your deductions

Most people will take the standardized deduction, which is $12,550 for single filers and $25,100 for married couples filing jointly.

However, if you are self-employed or you have a lot of expenses that are tax-deductible, itemize your deductions. You could save a lot more money IF your total itemized deductions are larger than the standardized deduction.

Home office tax deduction

With the move to work from home still taking place, it might make sense to take advantage of the home office tax deduction. Here are some of the rules:

  • You must use the space exclusively for business
  • Expenses related to the space used for business are tax-deductible but need to be calculated according to the amount of square footage used for business
  • A lot of taxpayers stay away from this deduction, as they think it’s a red flag for an audit. If you’re legitimately using the space as you say and you aren’t fabricating numbers, then you have nothing to worry about

Last-minute tax tips for tax time

Triple-check your work if you prepared your own taxes and file on time. If you’re having someone prepare your taxes on your behalf, make your appointment ASAP because their calendars will fill up really fast.

Related reading:

Tax Tips for Small Business Owners

Are You Ready for Tax Time?

Why Financial Literacy is Important

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Economic Pressures

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There’s a lot of movement in the economy. Several different news threads and innovations have the ability to change the direction and velocity in which our economy moves. In today’s newsletter, we’re going to talk about some of those economic pressures, what they entail, and what they mean for our economy.

Taxing corporations and the wealthy

A news story recently came out about taxes. More specifically, this news shed light on how the wealthy manipulate the tax code in their favor.

I think the information shared in this story was well known already, or assumed rather, but served as a confirmation. A large number of wealthy individuals aren’t “paying their fair share” in taxes.

This will only add fuel to the fire. The fire I’m talking about is the tax overhaul in the tax code. The Biden administration has said that they want to increase taxes on corporations and wealthy individuals/families.

If they’re successful, it would mean more tax revenue for the federal government, which is a good thing. Is there a chance that the increase in taxes creates a disincentive for those corporations and wealthy individuals?

Perhaps, but I don’t think it’s very likely, broadly speaking. I have only one reason…those corporations and individuals are good at making money, and I believe that will continue.

Government spending

As I said, the change in the tax code will generate more income for the federal government. You may be thinking, “Great! We can reduce the national debt!”

I think that’s very unlikely. That may sound skeptical, and it probably is on some level, but both parties are spenders now. It doesn’t matter if it’s a Republican or a Democrat in the White House, they’re both going to print money to push forward their agenda.

Borrowing costs

I’ve talked about inflation a lot lately, and I promise I’ll tone down after I make this point, but I haven’t explained why runaway inflation is a bad thing.

Now don’t get me wrong, there are advantages (i.e. increased rates on savings accounts), but the disadvantage is higher prices. Households can run into trouble because they can’t afford necessities anymore.

The larger problem, however, is the cost of borrowing. Over the last, almost 15 years, rates have been low. And they’ve stayed low, other than an attempt to increase in 2018.

People and corporations borrowed a lot of money. Some bought things they didn’t need. Others to increase research, development, and innovation. Some people used record amounts of leverage to take part in the wild stock market (as of late).

With that said, the cost of borrowing will go up and the cost to service that debt will go up. The higher rates go, the more money that will be needed to pay for/down the debt. When that happens, less money will be spent on “productive” things.

That can slow growth and negatively impact the economy. That’s why central banks reduce rates in times of negative or low economic growth. It reduces borrowing costs and incentivizes people and companies to spend money instead of saving it.

Labor

The last thing I’ll say that has the ability to tie into the last point is the current labor shortage. There are more jobs available right now than people to take those jobs.

Small businesses, in particular, find it especially difficult to fill vacancies. Couple a labor shortage with a strong push from workers, unions, and government bodies to increase wages, and you get wage inflation.

When wage inflation becomes more prevalent, price inflation (CPI) becomes more likely. If companies have to pay their employees more, they need to account for that increased expenditure somehow. They turn to increase the prices of their products and/or services.

Demand is unlikely to suffer because of higher wages. People are making more money, so they should be able to afford higher prices, right?

Conclusion

If you read back some of my other posts, you’ll see I’m optimistic in select areas of the market, and I’ll stay optimistic in those areas no matter what type of economic pressures the country faces.

With all that I said, I believe there are enough economic pressures to cause a decline in the market and the economy, but there’s no telling when that’ll actually happen.

Related reading:

Employment, Stimulus, Rising Prices

Inflation, Gold, Semiconductors

Why Financial Literacy is Important

Disclaimer

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com