People, even successful investors say that starting a business is a hard thing to do. It is the fact that starting business even a small one is very challenging.
That’s why lots of people failed even before reaching their goal. Some people say that running a business is like playing game. It may be true in some sense. However, running a business is way more complicated because there are many things involved and you have to take into consideration even for the small details.
You cannot dive into business without any preparation.
Mentally prepared before starting business
It is true that money is one of the most important factors for running a business. It is a support you need to grow your business properly. Thus, financially prepared is necessary. However, it is equally important to have your mental prepared.
Business world is a tough so you need to make yourself resilient as not to easy to break. Here are tips to prepare yourself mentally for running a business:
1 – Be ready to fail
It is important to prepare yourself for the worst. This way, you will do anything to avoid failure. Starting business means you have chance to success as well as fail.
There are many things to determine the result. However, you will be at advantage if you are mentally prepared for the worst. It will drives you to work harder and smarter.
It doesn’t mean that you don’t have faith in your skill to be success. However, you need to realize that there are other things that can contribute to the failure. Anticipating all of them is better than live in unrealistic expectations.
2 – Be ready to face stressor
Running a business means there will be things that cause you to get stress. It is easy for you to feel drained physically and mentally due to business stress.
You need to be strong and resilient in dealing with stress because they are inevitable sometimes. Start planning something that can help you deal with stress effectively.
3 – Build your passion and determination
As mentioned earlier that running business is challenging. There is high possibility to fail. However, the most challenging thing is not when you fail but when you have to get back up from failure. If you are easy to give up, reaching success is more difficult.
When you are passionate and determined to run successful business, you will not get broken from one failure. Instead, you will find a way that can make you thrive.
4 – Learn to build patience
Running business means you need to interact with others such as business partner or customers. Sometimes, you need to learn to listen. Reaching success through business cannot be achieved overnight as well.
For some people, they take 5 to ten years before reaching their success. There is no such thing as instant success. The most important thing is to be patient. Dedicate yourself and love what you do to make things easier with your business. Your goal is for your business to thrive in the long run.
There are various factors influencing your property investment business. One of them is property market. You must have known that it has its own phase such as downturn, stabilisation, and upturn.
Involved in property business means you will likely experience each phase eventually. Of course property market plays significant role in property investment business. However, it is not what can determine your success.
If you have better understanding about how property market and its timing as well as cycle, it will be easier for you to find opportunities to strike and build great portfolio of your investment.
Property market, cycle, and timing
Property market works differently based on the location of the state. Different property market also means different performance. It is also common for investors to focus on property cycle that they tend to forget any other important factors that count.
Lots of investors wonder whether they miss the cycle due to bad timing, making their strategies don’t work according to the plan.
First thing first, what you need to understand is different stages in the market cycle. It is important so you can optimise the return of your investment while taking lower risks. When you know more about how the markets work, you can predict where it is heading to.
Thus, you can make quicker and smarter decision compared to the averages.
Of course, understanding property market doesn’t guarantee you a 100% success rates in investing because many other factors involved such as timing.
Timing in property investing is important because you don’t want to buy investment property at the wrong time because it can lead to financial loss. However, successful and smart investors don’t always depend on the timing or cycle poorly in good times.
The point about property market, cycle, and timing is that they are all important because they are also part of the business.
It is good and beneficial to understand about how property market works. However, solely depending on it is not healthy for your investment business. Instead of focusing on what happens in the market, it is much better to focus on building your portfolio and planning long-term strategies.
You can find opportunities quicker than others when you understand more about the market, its cycle, and the best timing. However, you can also create your own opportunities to create wealth regardless the situation in the market.
The keys are quite simple.
You need to invest in investment grade property at the right location with local economic growth. You also need to focus on making the time-proven strategies so your investment plan will run smoothly.
Remember that the cycle keeps changing and the timing is never perfect. If you focus on more important matters just like what has mentioned earlier, the timing of the property cycle won’t affect your investment too much.
You won’t have to worry about those things because you have been prepared with effective strategies and financial setting to thrive. Don’t wait until the time feels right because it will never come when it comes to investing.
Humans are called an irrational creature. We tend to simplify anything in our surrounding especially when we have to make choices. We made various choices each day like what time to get up, what we want to eat or when we need to go to the bathroom.
Most of these cases are decided automatically since we have made these choices frequently. We will not waste energy and the answers are easily generated.
However, there’s a big problem with automatically decision making. Often, in the end, we felt that we have made the wrong decision. Thankfully, we study and learn as much information as we can in order to make a better decision. These following are the most common errors we usually make on decision making. Avoid these and you will significantly improve your business.
The Money Loss Fallacy
This the most error we all make. In many cases, decisions that we have made are final and there’s no turning back. Even if you have lost some amount of money of investment, you should clear your mind and see the situation at hand is not relevant again with the loss.
You should be a better focus on the present situation and find new options. Take aside the sunk cost you have tasted and see everything in fair-minded.
Most people would be repulsive if they face some risks even though the reward could be greater. On the other hand, you might agree if the chances you lose are extremely small. When you are in situations that would be repeated over time, it is better to take one step back and choose to play average games.
Including emotional Aspect into Decision Making
Most people ever had this kind of emotional mistake. When you are upset or angry about something, you yourself is considered as the worst decision maker. When you need to make some important decisions but having a terrible mood, you have to hold off for that moment.
Wait until your emotional feelings cool down and capable to think clearer. This will help you get rid of any unnecessary influences from the outside and allow you to think in a more rational way.
Preconception information is one of the common mistakes in the domains of the behavioral economy and psychological. The expert says that preconception information or confirmation bias can hurt the ability to maintain an open mind thus altering your opinion.
When you hold a certain belief, you typically will only see the information which confirms your opinion and ignoring other data that tells the contradictory story.
This is a situation when we are tired physically or mentally, we are bound to think an uncritical way. Some people might see this as merely intuitive sense, but this is the very aspect that mostly causes us to make bad decisions.
Try to remember the times when you are really exhausted after a long period of the conference.
These moments are exactly when you are not wanting to think anything hard. Even, you will let your brain to work spontaneously. If your condition is already tired but has to face some challenging decisions, you will rely more on your intuitive sense rather than having it analyzed thoroughly.
There are many ways you can do to create and build wealth. Besides, everyone wants financial freedom so it is just right to pursue it in the most effective way. However, the choice is yours. You don’t have to follow others just because they have already achieved their dream of building their wealth.
One thing for sure is, property investment can be one of the most effective bridges to build wealth. Of course, it also has its own risks and weighs you need to consider. However, it is so rewarding once you can reach your goal.
Creating and building wealth by investing in property
Every investor must have had their on fair share in making mistakes and failures throughout their journey in property investing. When you decide to involve in property business, sometimes mistakes are inevitable. However, making mistake is different from failure. You can make mistake but instead of giving up, you should keep moving on.
Mistakes are invaluable lessons. The idea of creating wealth through property investment is not something unattainable. There have been proofs of people who succeeded at property investment. They have become successful, wealthy investors and gain their own financial freedom.
The cash flow in property investing. This is important because you need to maintain the cash flow to be at least balance and run smoothly. However, building wealth won’t do just by relying on the cash flow.
What you also need to pay attention to is the net worth. It is your asset base that you need to build in order to create and build your wealth. It is done through various stages of course. It is not a simple thing to do either. You need to make sure to place your money in the right property to invest, then try to lower the loan until you can live off your portfolio.
Building your net worth. Consider your property as your bridge or vehicle to grown and build your net worth. If you own the right property, it will provide you high capital growth which contributes a lot in growing your net worth and building wealth. It is also important for you to secure your income and make it increase gradually. This process may take years so it is also important to build your patience.
Building wealth is not always about money but also network and relationship. Aside from focusing on how to build and grow your net worth, you also need to value your relationships with valuable people.
You don’t have to be an all-round investor that is good in everything. Remember that you can work in team consisted of reliable and skillful people. That’s why maintaining and developing network and relationship is important in property investment because it can make the process more efficient.
Leveraging your time is important too. Instead of trying to do everything by yourself, you should leverage your time by putting it to the best use. Trust your property manager and contractor to do tasks they are good at so that you can focus on other important things.
Establishing a profitable property portfolio is not an easy feat. It requires effort, time, and money. However, it pays off when you make it. After everything is established, you just need to relax, sit, and enjoy the reward of your hardwork. When you reach this point, it is easy to lose yourself that you forget about the future.
Remember that everything can go wrong in life including business no matter how good it seems in the present. There are many things that could possibly go wrong such as skyrocketing interest rates, leaving tenants, natural disasters, and many other potential risks you may face in the future. Therefore, it is important to make your investment future-proof.
Protecting your property investment from risky future
It is true that nobody really know what the future holds. Even the most experienced property strategist or advisor won’t be able to tell you about it. One thing for sure is that the future is risky enough to destroy your hard-earning property portfolio in an instant.
Therefore, you need to make your investment proof against the risks potentially appear in the future. Thus, your portfolio will remain string no matter what circumstance will happen in the future.
Protecting your established property portfolio from risky future doesn’t mean you need to act passively today. Remember that aside from being risky, the future also holds hope and opportunities for your business to grow bigger.
Thus, don’t take only defensive action in order to protect your property from the future. Be prepared for the worst but plan strategies to take opportunities as well. Defensive action is as valuable as offensive action when it comes to building property investment.
Inspecting your property regularly is one of the ways to make it proof from the future. Termites and leaks will be getting worse if you don’t take immediate action. Through regular inspection, you will notice potential troubles and handle them immediately before it becomes horrendous damage. Important regular action also includes frequent pest inspection. Inspecting the property is one of your property manager’s job. However, you can also do and inspect it yourself.
Another way to protect your established property portfolio is to have landlord insurance. It is good that you have already had home and content insurance. However, it will be more reassuring if you also buy landlord insurance.
It can cover the cost caused by potential damages by tenants as well as a no-income period you may experience in the future. Choose landlord insurance with the policy that fits your circumstances and needs.
Next thing to do to make your property less risky for the future is to not over the leverage. It is highly advised not to borrow more than 80% of the property’s value because it is too risky for the future of your portfolio.
It is also highly advised not to overcapitalize. Excessive spending such as for renovation or construction is too risky because you will be potentially suffered from huge losses. Thus, make sure to prevent yourself from overcapitalizing.
How to Make Your Property Investment Less Risky for the Future
Establishing a profitable property portfolio is not an easy feat. It requires effort, time, and money. However, it pays off when you make it. After everything is established, you just need to relax, sit, and enjoy the reward of your hardwork.
When you reach this point, it is easy to lose yourself that you forget about the future. Remember that everything can go wrong in life including business no matter how good it seems in the present. There are many things that could possibly go wrong such as skyrocketing interest rates, leaving tenants, natural disasters, and many other potential risks you may face in the future. Therefore, it is important to make your investment future-proof.
Protecting your property investment from risky future
It is true that nobody really know what the future holds. Even the most experienced property strategist or advisor won’t be able to tell you about it.
One thing for sure is that the future is risky enough to destroy your hard-earning property portfolio in an instant. Therefore, you need to make your investment proof against the risks potentially appear in the future. Thus, your portfolio will remain string no matter what circumstance will happen in the future.
Protecting your established property portfolio form risky future doesn’t mean you need to act passively today. Remember that aside from being risky, the future also holds hope and opportunities for your business to grow bigger. Thus, don’t take only defensive action in order to protect your property from the future.
Be prepared for the worst but plan strategies to take opportunities as well. Defensive action is as valuable as offensive action when it comes to building property investment.
Inspecting your property regularly is one of the ways to make it proof from the future. Termites and leaks will be getting worse if you don’t take immediate action. Through regular inspection, you will notice potential troubles and handle them immediately before it becomes horrendous damage. Important regular action also includes frequent pest inspection. Inspecting the property is one of your property manager’s job.
However, you can also do and inspect it yourself.
Another way to protect your established property portfolio is to have landlord insurance. It is good that you have already had home and content insurance. However, it will be more reassuring if you also buy landlord insurance. It can cover the cost caused by potential damages by tenants as well as a no-income period you may experience in the future.
Choose landlord insurance with the policy that fits your circumstances and needs.
Next thing to do to make your property less risky for the future is to not over the leverage. It is highly advised not to borrow more than 80% of the property’s value because it is too risky for the future of your portfolio. It is also highly advised not to overcapitalize.
Excessive spending such as for renovation or construction is too risky because you will be potentially suffered from huge losses. Thus, make sure to prevent yourself from overcapitalizing.
When it comes to spend your holiday, Bali is a great destination to go to. Not only it offers charming nature but also because it has the best accommodation you could ask for. The best accommodation would be Bali villas, especially, the private and luxury one. Of course, there are many types of villa you can rent for your holiday in Bali. However, private villa usually offers more than simple accommodation. It is more than a place to stay at during your holiday. It is where you can make the most of your holiday besides tourist attractions of course.
Why private Bali villas?
People, especially travelers choose accommodation based on many considerations. It can be price, size, location, and even the type of serviced offered. As for accommodation in Bali, private villas are more preferable both for solo travelers or those who travel in groups. So here are some reasons why people prefer private villas instead of hotel or hostels to stay at during their holiday in Bali:
- Price is often the first thing taken into consideration when travelers look for perfect accommodation. If you think villas are more expensive than hotel then you are wrong. It depends on many things and not just as simple as the size of the building. It usually depends on what kind of services you will receives, the facilities you can enjoy, and privilege you gain. Thus, private villas are not only for luxury travelers but also for everyone who seek for more comfortable place to stay at.
- From service, there is no differences from how the hotels work. In Bali specifically, the service coming from private villas are mostly satisfying for the guests. However, service at private villas are usually more exclusive. It is not only because most of villas accommodate fewer guests than hotels but also because that’s how the way private villas works in giving the best service privately and exclusively. Every penny you spend to rent a private villa in Bali will be just worth it.
- From staffs matter, private villa usually have in-house staff ready at your service. Desk-front staff, manager, gardener, and cook are ready to provide what you need. There is no need for guests to do mundane things if they don’t want to such as doing laundry or grocery shopping. That’s why staying at private villas in Bali more preferable because everything is ready for you that all you have to do is going out to explore many places in Bali and come back at private villas to take quality rest.
- Another perk of staying at villas in Bali is that most of them overlooking stunning view. There are villas situated in the middle of rice paddies. Others situated at beachfront, and there are also villas located in the middle of the jungle like most of villas in Ubud. Staying at one of Bali villas means you can choose one of them that suits you the best. You can live off your fantasy of magical holiday in Bali by booking a private villa.
Are you thinking of starting a canteen business at school or on campus? Businesses can start anywhere and anytime, one of them is by opening a canteen at school. Children, surely like snacks, right? Before starting a business, share that you have to know a number of things, such as discussing strategy or not, then the market is elementary, middle school, high school, or college, etc. Then, although for children it sounds “anything can be sold”, but it would be better if you use children’s health too, don’t just sell food because it feels good. This article has collected some foods in the school canteen that can be your reference before starting to sell.
Who doesn’t like fried rice? Surely, everyone likes it. How to make fried rice is very simple, you only need rice, onion, and garlic, then served can be adjusted to your creation.
Instant noodles and meatballs
Instant noodles are a favorite food. Nothing can match the delicacy of instant noodles. This food is delicious and never makes people bored. The average person who orders instant noodles as lunch, but sometimes there is also someone who wants breakfast using instant noodles. Then, if you have meatball skills, you can also sell meatballs too. If you sell instant noodles and meatballs together, children like to ask for the instant noodles plus meatballs.
Indeed, the children really like grilled sausages because the grilled sausage tastes really good. If you sell in elementary or middle school, you can divide the long sausage into two or three parts. You don’t need to provide combustion and charcoal, because of course, it’s much more complicated. You can use the Teflon and the stove instead. Provide tomato sauce, chili sauce, mayonnaise, and powder seasonings (such as bbq spices, cheese, pizza, etc.) for the flavor variants. You also should provide sausages in various flavors, such as original, cheese, spicy, and the others.
Bread and donuts
If at home do not have breakfast, usually children prefer bread. Besides being practical because it can be carried everywhere, spending bread doesn’t take long. Then the bread is also filling, so it can be a stomach booster until the bell breaks later. You can sell packaged bread that is ready to eat. Usually, this bread consists of various kinds of flavors (chocolate, strawberry, and so on). If you have a roasting, you can also provide toast.
Besides bread, donuts are also selling well among children, especially those who are in a hurry or don’t want to eat heavily. Donuts taste sweet and delicious, so sometimes someone makes donuts as a dessert.
Fruit juice and ice blended
The best-selling food recommendations in the school canteen are fruit juice and ice blended. Usually, fruit juice traders also provide ice blended too, because the ingredients and tools needed are the same, namely water, ice cubes, and blenders. For the fruit, try to always be fresh, because the quality of the fruit will determine the taste of juice too. Then, for ice blended, you can provide drink powder such as Pop Ice, Nescafe, Nutrisari, Milo, and the others. Also, provide a variety of jelly and bubble ice blended toppings.
Those are some food recommendations for your canteen business at school.
When you are going to by an investment property, it means you will have to deal with the selling agent. However, you also must have known that the price they are quoting is less than what the owner stated.
Of course it is not illegal because the selling agent will be paid when the sale is made. Buying an investment property is like playing a game. You need the right strategy to win.
In this case, you want to buy the property at the lowest price.
Meanwhile, the selling agent also need higher price than what the owner is willing to take because that’s how they can receive their payment.
The negotiation process is where you need to be prepared to make the best deal.
Deciding the right price when buying property
Buying a property is not as simple as buying candy in a store. It takes time especially in the negotiation process since both the seller and buyer want to get the best deal.
If you are going to buy an investment property, you need to know more about the pricing beforehand. Thus, you will be more prepared. Here are some tips about pricing in buying an investment property:
- First thing first, do your research especially if you are going to do it on your own not hiring a buyer’s agent. Your research will help you to buy a property that is worth your money. What you need to research is the market price. Try to search similar homes with the one you are going to look at. Thus, you will know the fair idea of the price. You also needs to know more about the asking price and the sale price. The one that you should focus on during negotiation is the sale price. Meanwhile the asking price is usually used as starting point for negotiation.
- Another important thing about pricing when it comes to buying an investment property is the valuation. It is important because it is what determines the market value. The strategy you can use regarding to the valuation is to do it prior negotiation. Of course, this is not the most idea strategy since not all seller accept this condition. This may take longer time three or four days but it is worth trying if you really want to get the best deal.
- Aside from doing your own research and doing valuation, you can also ask some questions to the selling agent during negotiation process. You can ask question related to the asking price. You can ask questions regarding to other offers. Try to find out if the selling agent has made other offers or not. This will help you to know if the vendor serious about selling the property. Next question is about the period of property in the market. Try to find out how long has it been there. And of course, you also need to know the reason why the owner wants to sell the property. This will open chance for you to know how desperate the seller is to sell their house.
Keeping a real estate for a lifetime is a good thing, but there are indicators that might force you to sell your property business. Those indicators might not be clear at first, but they can come up, and they will often force you to sell your estate out. selling a real estate is not a recommended action, especially if you are planning on investing for a long time. There are several things that can force you to sell them, though, and most of those things are things that can happen to you anytime soon.
While there is no way of ‘countering’ these causes, you can read this article to prepare yourself about them. By knowing them, perhaps you can mitigate some of the damage before it is done on you, hence reducing your chance of getting bankrupt because of some freak incident. Without further ado, let us begin with the first cause:
When there is something major happening to you or your family
The first cause is the most imminent of causes on this list. Major things in life include deaths, childbirth, marriage, relocation, sudden layoff, et cetera. When all of those things happen, you will either be losing your primary source of income (if you got laid off), or you will lack the income to support a new family member (in case of childbirth or adoption). When those things happen, you might want to start selling your real estate to cover any present or future expense.
When you finally found a better passive income
A passive income is an income that comes passively to your wallet. Passively here means it will come to you without you doing anything more than investing in it. Compared to an active income, a passive income is an income with lower risk (depends on your investment and what kind of job you are doing actively) and a lower return. The good thing about passive income is that you do not need to do anything to make money; all you got to do is to keep a watchful eye on your portfolio and you will earn money passively.
Real estate is a source of passive income, especially if you are renting it to someone else. It is a passive income that can pay well, but that does not mean it is the best-paying passive income out there. Compared to other passive income ‘generators’, owning a real estate requires you to do lots of works (you might need to face the tenants, fix broken things, and many other). Other investment vehicles such as real-estate crowdfunding or even peer-2-peer lending are better alternatives in the long run.
Last but not least, when you are no longer sentimental of your real estate
If you think this is a joke, then you are half-right. Sentiment is not exactly a thing to keep around when you are investing in something, but there are times when you are feeling sentimental about your real estate. Perhaps you have fond memories of that place, making you unable to sell it. There will be times when you will feel jaded of it, though, and that is the time when you should be selling it (especially if it does not provide you with sufficient income). Might not be the thing that will force you to sell your property business, but we want to include it here because there are people who are dead sentimental about their estates (when in turn, selling them can lead to a higher profit for them).
When it comes to keeping a safe business, then, there are several ways that you can do. Definitely, running a business is a thing that can be both fun and challenging. Unfortunately, getting sued is not a fun thing at all and you should avoid running into it- no matter how challenging it is! If not properly dealt with, a lawsuit would leave a huge scar on your company’s reputation. Here, you will be given several ways that you can do.
- Keep company records that are accurate
The first example of the things that you should do to keep your business safe from lawsuits is that your company should always keep accurate records. Not only is keeping accurate reports a thing that distinguishes between reputable and non-reputable business but also a way to keep you safe. The reports, by the way, should include the date and time when an agreement is agreed upon and signed as well as every detail of items that are mentioned in every meeting that your company conducts. Every kind of communications is also needed to be documented. In case of a lawsuit occurs, you can utilize these records to defend yourself and your company.
- Get protection in the form of insurance
To ensure that it is a safe business, then, having insurance protection is a wise thing to do. Although, well, it would not prevent you from getting a lawsuit issue, it is definitely able to separate the business and personal finances of yours when there are financial strains. By having insurance protection, legal fees, as well as costs caused by liability issues, can be covered. But, you will need to conduct thorough research before choosing an insurance company- find out their respective policies and what they would be able to cover.
- Customer service must always be exceptional
The next thing which may avoid you from having lawsuit issues is to provide satisfying customer service. Well, if you do not provide such a thing, then, there is a chance that a customer of yours might get offended and he/she may take a way to sue you- unless you are able to calm him/her down with your exceptional customer service. Your managers and staffs should receive proper training so that they can deal with the situation and to prevent a lawsuit from happening.
- Always be honest and ethical
Well, the last thing that you need to do is always be honest! When practicing a business, companies must always stick to a straight and unshakable moral compass. This thing is very crucial since you need to build a positive reputation by showing that your company is clean, honest, moral, and ethical. If you bend no rules, then, no one would be willing to bend you in return! Always be professional when dealing with your employees as well as your customers so that the chance you get sued is minimal. Well, that is how you create a safe business!