Buffet-esque Habits That Lead To Quality Property Investments

Calling all investors: who’s the one entrepreneur you look up to the most? Hint – it isn’t Donald Trump! No, the king of all businesspersons is Warren Buffett. When it comes to making the right decisions, he makes them without flinching. And, he offers plenty of advice for the budding investor, too. It’s because of these nuggets of wisdom that you can get into his mind and think like the great man. All you have to do is stick your head down Warren’s rabbit hole.

That’s a clever play on words; not a euphemism!

Never Lose Money

‘Cheers for that one Warren. I would never have thought of that!’ Okay, so his first tip sounds a little obvious, but it’s amazing how many people break the cardinal rule. And it’s easy to do if you don’t have the right mentality. Many investors chase profits because they see dollar signs and smell the money. The problem with this is that they take risks to make money. In the end, they lose more than they should and have to operate at a loss. It’s much harder to dig yourself out of a hole than to avoid it in the first place.

Have Healthy Habits

No, this doesn’t mean you should drink less and stop smoking. Well, you should, but it isn’t what healthy habits mean in this scenario. In this scenario, the practices relate to money. The bad news is that too many people have bad habits when it comes to their finances. But, the good news is that they are changeable. And, when you invest in real estate, they need changing ASAP. One of the easiest and hardest at the same time is saving money. An investment, even a good one, means unforeseen expenses, which means you need the cash flow to cope. Any investor that doesn’t save doesn’t have a security net.

Diversify

Buffett wasn’t the first man to encourage property buyers to diversify, and he won’t be the last. See, having a range of different investments is sound logic. If one goes bump, for example, the others might survive. Then, you only have to worry about one bad investment rather four. It’s for this reason that savvy investors have their hands in Boone real estate as well as New York property. The locations are so different that one factor shouldn’t affect both areas. Buying houses and apartments is also another safe tip, especially in this market.

Avoid Debt

Debt is a part of the average investment because properties are expensive. Still, it doesn’t mean a mortgage is your only option. If you want to make quick money, it’s vital to avoid debt as it sucks up the profits. The secret is to ask a family member for help or to use what savings you have as a down payment. That way, the terms of the loan will be much nicer as the repayments will be lower.

Now that you have Warren Buffett’s help, there is no stopping you making that all-important investment.

Refraining From Outsourcing Accounting Solutions Can Cost You

In-House Accountants Aren’t Cheap

Now your business is going to expand—that should be the goal, right? This means it doesn’t matter how good your accountants are, that department is always going to require some growth. There will be internal infrastructural pressures, equipment costs, space costs, taxes, benefits, and all the other accoutrements which surround internally-sourced departments.

But technology allows you to offset many of these costs simply and directly. Nimble.com lists eleven ways technology can help you save money at your business, and one of the most important items on that list is titled “crunch the numbers”.

To that end, consider some of the numbers which surround the regular employment of an in-house accountant, or the facilitation of even a small accounting department. On Quora.com, a business making $12 to $15 million in revenue annually is going to have between two and four individuals in the accounting department, minimum.

Estimates vary on an accountant’s yearly wages, but generally you can expect a spread between $30k and $100k. That means at best you’re out $120k/year for such a department. At worst, $400k or more. And to compound matters, as mentioned earlier, that cost is just going to keep getting bigger; especially if your enterprises have some measure of success.

You need to consolidate where it’s possible, and today there are online options which can entirely replace an internal accounting department every bit as effectively, but while curtailing literally thousands in costs. Generally you won’t need an accountant until you really need an accountant—but you can’t call an employee out of bed at two in the morning. The internet has no such hang-ups.

Exterior Accounting Solutions

According to Basis365.com, outsourcing your accounting services to an exterior agency can yield exceptional convenience and savings, as well as continuous access to information; like the site points out, their “…software, ecommerce, and service-based customers love how easy [the] process is. Everything is online – all the time.”

If you discover an error on the books over the weekend, you may be able to resolve it immediately wherever you happen to have access to the internet. It’s conceivable that you could clear up a difficulty on the beach with your smartphone, if the data were available to you. This can save days—or weeks—of work. With the swipe of a finger, you conserve thousands.

Even the best accountants are going to make costly mistakes. Should you pay them the highest wages, they will still drop a decimal here or fail to take something into account there. You can’t really penalize them, either. Well, you can; but if they know your books and don’t have requisite moral scruples, you’re leaving yourself wide open for an unexpected attack.

Online, you’re dealing with machines that have complete neutrality. Sure, you might make mistakes running the software; but none of those are going to hold a grudge and decide to take out your business from the inside. You’re a lot less likely to accrue an unexpected audit through use of online software than you are through a disgruntled former employee.

Adaptation

Now the transition can take a little time, but generally isn’t too complicated. Also, when you critically examine it, though an in-house accountant can substantially save your organization, their services tend to be required on a basis that is almost seasonal. Yet retaining them as a dedicated service provider requires year-round employment.

For those businesses who have yet to explore online accounting options, there are a great deal of ways in which this innovation stands to benefit you. Run the numbers and see if you can afford to save a few thousand.

3 Mistakes That Will Destroy A Small Business

Even if you’ve got a lot of experience in your industry, running a small business successfully will require a little experimentation, trial and error. You may have developed an airtight business plan, learned from a great mentor and secured an excellent product or service, but there’s still room for various problems to spring up. To ensure you have the smoothest start to your business, here are some of the biggest mistakes small business owners tend to make.

Hiring the Wrong Staff

Perhaps you’re reading this because you’ve managed to get by as a solo entrepreneur for some time, and finally feel ready to expand your operation. If you’ve had no prior experience with managing a recruitment drive, then you’re already at risk of making a major small business mistake. Hiring the wrong people to your business can quickly bring your great idea to ruin, so make sure you’re not settling, or trying to rush through this process. Make sure everyone you take on board has the right skills and experience, and a personality that will mesh neatly with your brand identity and values. The one thing you don’t want to do is hire friends or family. This can lead to objectively bad hires, and strain close relationships.

Neglecting Health and Safety

This is another big mistake commonly made by entrepreneurs who aren’t used to having staff to take care of. Aside from giving them fair compensation, and enough guidance and feedback to reach their goals, you also need to make sure you’re giving your employees a safe and healthy work environment to come to every morning. I know, getting this out of the way can be a long and tedious hassle. However, just one disgruntled employee with work injury representation from an attorney can mount a seriously damaging case against you, and rightly so! Start off by identifying risk factors that your staff are exposed to, and making sure these are covered with a set health and safety policy. Read up on what the law requires from you as an employer, and make sure you’re playing ball with all the relevant regulations. Follow this up by appointing someone competent enough to enforce and monitor health and safety at your organization.

Misjudging the Market

Thorough market research is one of the many essential cornerstones of starting and maintaining a profitable business. Obviously, you’re raring to go ahead and turn your ideas into a reality. However, charging headlong into a market that you don’t have a decent understanding of will cripple your business faster than you’d believe! Remember that the success of your business isn’t about how great it seems to you or your upper management, it’s about how much money it can realistically make. How much experience do you have in the industry? How strong of a hold do your competitors have on it? What can you do to undermine them? Even if your product or service is incredible, you need to make sure your business plan has a chance of surviving in competitive, buoyant markets.