You need a steady approach to build a business. Part of the mix will be accurate record keeping. Here is how this pans out.
How Accurate Business Records Can Improve Your Profitability
Your business may be on the brink of collapse and you don’t even have an idea! In today’s competitive economies, any business that is not improving is surely on a steady decline. To stay afloat, stave off competition, and turn a decent profit, your business needs a strong record-keeping culture.
“If you can’t measure it, you can’t improve it”Peter Drucker.
This quote by successful business mogul, Peter Drucker, should be framed and hung in every business owner’s office as it is a foundational principle. It is critical to keep detailed records of every aspect of your business for the following reasons:
Gauge the effectiveness of your expenditures
There are a thousand and one tools that are being advertised as “driving business growth”. Digital marketing, fancy productivity tools, content development services among others are the in-thing for businesses these days. Most businesses are pushing for a wider audience on social media.
These things work, however, there’s often a point of diminishing returns where the amount expended becomes way greater than the revenue generated. Without keeping accurate records, this becomes a cash drain for the business, slowly losing money despite the fact that the customer base is being expanded.
Action point: Measure everything! Most digital marketing tools have analytics such as interactions, click conversions, etc. They’re not there by mistake, run the numbers and be sure that every cent spent is justified by commensurate income.
For productivity tools and others, ensure that your staff give feedback on a regular basis, so you can know which subscriptions to pull the plug on as they’re no longer working.
No matter how careful you are in the recruiting process, it’s inevitable that some of your employees or even partners will try to steal from the business.
Fraud is one of the biggest causes of business failure and it stays unnoticeable until things get really bad. It, therefore, becomes very important to keep detailed records and track the flow of cash through the business.
Action point: If you’re finding it difficult to keep financial records because of the size of your business, you may consider finding an external auditor.
Preferably, you should contact certified professionals such as auditors who will go through the existing records and fish out any previous fraud. Going forward, you can employ a chartered accountant to help track the flow of money through your business.
Legal Agreements, Receipts, etc.
Lots of businesses get into trouble and have to close down after losing huge sums in lawsuits. This often occurs due to inability to keep records of contracts and copies of agreements signed with counterparties. How can you ensure you don’t fall a victim to this? Find out in the action point below.
Action point: If you can afford it, employ a lawyer, possibly on a part-time basis. This legal staff will be responsible for keeping records of contract documents and going over contractual terms to ensure that they’re in your favour and you don’t lose out whenever litigation comes up.
Not keeping detailed records can be detrimental to your business. However, by following the above action points, you can plug the leaks and build the profit-generating business you have always dreamed of.
IRAs are gaining attention around the globe. How best can you optimize them? That is the subject of this guide.
Best Hacks On Self-Directed IRAs
In order to understand the basic
misconceptions about the IRA, we first need to have a full grasp of what an IRA
is, and what is the major difference between traditional and self-directed IRA.
An IRA or Individual Retirement
Account is a way to save money for post-retirement with tax-free benefits. It
is an investment option designed for building saving funds for the time of your
The concept of self-directed IRA has
been introduced for quite a long time now, but people are still not comfortable
with the idea and have various concerns about it.
There are multiple misconceptions about the
use of funds in self-directed IRA that should be clarified for the better
understanding and benefit of common folks
Self-directed IRA is a magnificent
financial tool that can help you to generate a huge amount of wealth easily and
legally. It opens a huge range of investment options for you that can have huge
valuations for your portfolio.
Traditional VS Self Directed IRAs
There is a very small but major
difference between the two types of IRA. The difference is about the authority
of the custodian about the investment restrictions in either type of IRA.
The custodian has a much more active
role in traditional IRA, and it decides the investment direction of your funds.
It usually allows people to invest only in areas like bonds, stocks, annuities,
and mutual funds, and no other form of investment is welcomed.
Whereas, in self-directed IRA, the
custodian doesn’t have that much active role in investment options. The
custodian’s responsibilities are limited to mainly tax management and allow you
to manage your investments as you desire.
Hence, for self-directed IRA, one can have multiple investment options, in addition to the traditional options, like real estate investment, new start-ups, cryptocurrency, etc.
Self-Directed IRA Misconceptions
Many people have certain misconceptions about the mechanism and processing of the self-directed IRA.
These misconceptions misguide them badly and lead to bad investment decisions and negative financial consequences. So, here we have enlisted all these major concerns to clarify them once and for all.
1. The first misconception is about investment options. As discussed above, traditional IRAs have a limited room for investment options. The reason for the fixed policy is that conventional markets are relatively easier to engage with and monitor compared to alternative options.
For example,cryptocurrency is a very risky investment option that can be unacceptable for traditional IRAs. On the other hand, the self-directed IRA has no such issues and are open to every kind of investment option.
2. The next misconception about self-directed IRAs is that these firms have absolute authority over the money. Whether traditional or self-directed, no IRA firm has any such authority. Their mere responsibility and control are about keeping your money safe.
They can’t invest your money without your permission, and even after investing, you have the authority to cancel their access to your funds.
3. Another common misunderstanding of people is that real estate investments in self-directed IRAs could be used personally. It is not true at all. The only purpose of the IRA-based real estate investment is to make a profit. You can’t use the property or live in it.
4. The biggest misconception of self-directed IRAs is about their legality. The non-traditional investments are generally considered illegal.
Cryptocurrencies, tax liens, venture capitalism, etc. all these are legal forms of investment, where markets are regulated by safety measures and laws.
Uncertainty is at the core of investment. Just because alternative investment options are not widely discussed doesn’t elevate them as riskier than traditional methods.
Real estate is the safest investment option while cryptocurrency is volatile but not overly risky.
Even in traditional investment options like bonds
and stock, uncertainty is inevitable. The more you concentrate on one specific
market the higher the risk will be. In any investment market, the simple and best
way to avoid risk is diversification.
The self-directed IRA makes you more empowered concerning your fund investment.
You have more liberty to make more money compared to traditional methods by adopting alternative ways.
Take advantage of the greater options and the possible gains available for you and get benefited excessively in your future.
To become a successful entrepreneur requires the development of vital traits that can make the difference. Learn more..
Though there is
no hard and fast rule to success it can be achieved through hard work and
simply following the common habits, characteristics, and qualities of the
There are generally six common habits or qualities that I have sorted out here. With every quality, I am going to give you an example of who and how it has benefited others to be the best they can be.
Arianna Huffington is one the biggest examples of persistence, who after repeated rejections didn’t stop trying to get her second book, ‘After Reason’, published.
She had been rejected by almost 36 publishers at the age of 23 before she finally got it published. She didn’t stop here and ran for governor of California in 2003 but dropped out of the race soon after seeing only 2% support in her favor.
But she learned
from this incident how vital the power of the internet is while running the
fundraising campaign. As a result, she launched HuffingtonPost.com, 2 years
later, which she sold to AOL.com for $315 million ultimately in 2011.
A successful entrepreneur understands the importance of failure. Rejections and failures are the signs to keep pushing forwards instead of stopping due to failure.
They provide you with learning experiences and serve as steppingstones towards success. Being persistent despite the hurdles is the most rewarding experience for entrepreneurs.
2.Forever Learning and Self-Improvement
The CEO of SpaceX and Tesla Motors, Elon Musk, is famous for being a fast learner.
He declared in an interview that before starting the corporation, he spent a lot of time in reading as many books as he can about rocketry and propulsion to learn about building rockets. In an interview on Reddit, he compared knowledge to a semantic tree.
He stressed that
it is important to understand the fundamental principles of the tree like the
trunk and big branches before going into the details like leaves, otherwise
without basics or the branches, there will be nothing for leaves to hang on to.
Even after all
the success with PayPal and Tesla, Elon knew that he would have to learn all
about the rockets and rocket propulsion system to become the competent leader
of a space flight company.
A feedback loop is very important for constant success. It allows you to think about what you have done, how you have done, and how you could have done it.
Constantly question yourself and get the chance to become better. A successful entrepreneur always strives for knowledge. They know that no matter how successful they are, or how much knowledge they have gathered, there is still room for more success and personal growth.
One of the
greatest risk-takers of all times is Bill Gates, who risked his future at the
age of 20 by dropping out of Harvard to co-found his software company, Microsoft.
Bill Gates writes that in business and even in real life, you need to take big risks to achieve great success. A big risk can either mean big success or a big failure. Now if we look back, the success of Microsoft seems inevitable, but it wasn’t the case at that time.
At that time, it was the biggest risk of all to start the first personal computer software firm, and everyone thought it is going to be a huge failure.
To be a successful entrepreneur you need to look the potential to take your business to rise heights. What are the potential risks that you are afraid of? What could they benefit you and your business?
The best way to overcome these fears is to get exposure. Surround yourself with other risk-takers and people who encourage you to move forward, rather the ones who discourage and think you would fail.
During 2008’s massive recession, when Starbucks was at the brink of failure, Howards Schultz’s leadership helped them to get out of the crisis.
Talking about his leadership techniques and what helped him to revive Starbucks, he mentioned that according to his views, leadership is something which has to be decisive, where you need to be ready to take decisions without having perfect information.
The core of
leadership is transparency and truthfulness. You don’t need to be vulnerable
all the time but there are times when you have to share your mind with people
to tell them what you are and what you think, without being afraid.
Leadership is about being decisive and implementing things that will lead to the betterment and success of our business.
If you also have other people as employees, then being a leader you also have to explain to them the logic of your decisions. Taking initiative and responsibility are two main things that you can start with to develop leadership skills.
5.Hustle and Incredible Work Ethic
Oprah Winfrey, the host of The Oprah Winfrey Show, while working hard for the show was not afraid to take on other projects. She worked in about 12 movies and cameos, many other TV shows, documentaries, and even movies.
She kept on appearing in and working on several other projects while keeping her main TV show among the top-rated and winning various awards for it.
Even after the end of the show in 2011, she continued to be a media tycoon by owning her own television network, a channel, a website, a magazine, an XM satellite radio channel and various movies and TV show cameos.
There is no big
secret to success. It only comes to you when you are willing to go for it and
work hard to get successful. Oprah worked hard to build up her personal brand.
She managed to appear at every channel without compromising the quality of her
It is up to you how you manage to expand your brand on business and can put it on how many platforms. It is time to get activated and bring awareness to your business and brand.
Do not be passive and wait for opportunities to come towards you. Work proactively in the market for your product and make a name there. No one can help you to be successful but you.
In 1996, when
Steve Jobs came back to the declining corporation of Apple, what he noticed was
that the organization had lost its main focus. By the next year, he reduced the
product line from 350 to 10 key products.
management had caused the company to spread a lot but became too thin. I was
very tough for Steve Jobs to focus and kill off various products and projects
of the organization. In a conference in 1997, Steve Jobs stated that focusing
is no about saying yes, rather about saying no.
A successful entrepreneur knows that the business must not be spread to limits that would make the corporate so thin and feeble that it will lose focus from the originality of the brand.
Keep yourself focused on the original vision of your organization. The only way to do that is to keep things simple. Try to make fewer but quality products, rather making dozens of okay products.
You don’t need
to focus on all of these qualities altogether. Adopt one or more that applies
to you and start working to improve your business today.
The news made ripples, as often happens in the crypto world whenever any mid to large-size established company jumps in.
TD Ameritrade started a formal crypto division. While the move was somewhat expected, since it had already invested in crypto exchanges, news still left many people wondering: what does this mean?
What is TD Ameritrade?
In order to know
whether this move matters or not, we first need to know the company we’re
TD Ameritrade is a long-established American broker. With almost fifty years in the market, its mission is to help customers both buy and sell all kinds of stocks, funds, and futures.
In other words, Ameritrade is a very large stock trading house, one with established success in the business.
While this might look as just another financial company trying to break into crypto, the type of company matters a lot this time around.
As we have mentioned in many of our articles, the crypto world is a lot like the stock market. Crypto exchanges, and many crypto investors, work in more or less the same way stock traders do.
So when a company renowned for stock trading options joins in, it can’t but be important. The fact that such a company is jumping into cryptocurrencies means two things:
Its managers see a future to cryptocurrencies,
They feel the market has settled and is stable
enough that they can start offering their expertise without risking much.
Both of these
things are huge, since many traditional economy-related businesses have shunned
crypto, and at times even outright tried to sabotage it.
But TD Ameritrade trades in
many things, doesn’t it?
TD Ameritrade works both as an exchange of sorts and as an investments company. Its goals aren’t just to commercialize stocks and values, but to help those looking to invest find the right things to invest in.
To attain this, it offers customers several both premade and customized portfolios containing mixtures of stocks, funds, futures, and now crypto its team of experts consider good investments.
The advantage of these services are huge for clients who don’t know the stock market inside out. With Ameritrade’s guidance, they can choose where to put their money following the advice of leading experts in the market.
This helps minimize, although not eliminate, the risk involved in investments.
TD Ameritrade also offers many specialty plans dealing with managing both one’s own finances and one’s economic future. Customers get help not only investing, but also managing their properties and assets. TD Ameritrade thus seeks to help its customers optimize their own portfolios.
For more knowledgeable customers, it also offers personalized portfolios where they can choose exactly what to invest, although always while receiving advice from professionals in the area.
How important is this for crypto? Is it important at all?
In a way, it’s
One of the main problems with cryptocurrencies is driving adoption. Many people who have thought of investing in crypto have found the whole blockchain-related environment much too confusing.
Even people who are used to trading in the stock market can feel taken aback when talking about private wallets, public wallets, wallet keys, nodes, mining, and so on.
With this move, TD Ameritrade is allowing its customers to invest in cryptocurrencies without needing to know all this.
It’s also offering professional guidance in the process, both to minimize the risk any newcomers face and to help them understand how the crypto world moves.
What this means for the crypto world is that as of now millions of accounts managed by Ameritrade can jump into cryptocurrency investments.
This doesn’t mean that many people will, or that they will even display any interest in it, but that they have the option to.
In other words, there’s now a simple way for people not in the know to invest in cryptocurrencies.
So is this a game changer? Is
mass crypto adoption about to happen?
Let’s slow down.
entering the market is big, yes. But not necessarily as big as to drive mass
adoption on its own. This is but another step towards that goal, but there’s
still a long way to go.
we don’t know how many of TD Ameritrade’s customers will actually invest in
crypto. For all we know, Ameritrade might roll out this platform only to have
it fail to attract any relevant interest and become just another offering with
relatively low adoption rates.
opposite might happen. It’s always possible Ameritrade’s customers will be
thrilled to hear they can now invest in crypto and rush to their services,
causing the beginning of a new crypto rush that drives all prices up and leads
to a golden age of cryptocurrency.
Whether this is true or just a comment to hype up the crowd and help drive adoptions we can’t know, although it does mean the firm is expecting their new program to do well.
So, to be honest, we should keep our expectations tempered about this. It’s a big thing simply because it marks a new household-level investment company joining the crypto world.
This means trust in the market is growing, which at the same time means we’re one step closer to mass adoption. It also will help drive more crypto adoption, but you shouldn’t expect it to cause a rush.
Can I buy any crypto I want
with TD Ameritrade?
No, you can’t.
TD Ameritrade, and most brokers, will only trade in select stocks considered by their experts to have relatively low risk.
While it does have high-risk offers, they’re usually offered only to clients who specifically look for them, and even then, they tend to come from already curated lists that ensure a certain degree of predictability.
This is because Ameritrade, as any brokers do, wants its customers to have some success in their investments.
It doesn’t look good for a broker to have many clients who end up losing their investments, particularly if they count the elderly among their main demographics.
So even when offering “risky” investments, TD Ameritrade will want to limit the risk.
market, as we know, isn’t particularly stable. Any crypto investments offered
by Ameritrade will be considered high-risk right away, due to the
unpredictability of the market. Allowing customers to invest in about any coins
will only make it worse.
That’s a ridiculous number, and making customers browse through such a list trying to understand what each of them is and get a grasp of the risk involved wouldn’t be an option for any brokers.
Also, the vast majority of those cryptocurrencies would make for really awful investments nobody would ever recommend even to their worst enemies.
In the spirit of
making it easier for their users to understand what they’re getting and to
avoid them going bankrupt, TD Ameritrade is for now only
offering Bitcoin and Litecoin.
Is there any logic behind these
Yes, although it
might not be the kind of logic most crypto users would follow.
Bitcoin is there mostly because it’s easily recognizable. Also, because it’s been relatively stable over the past year, with a tendency to rise the last couple months. But most of all, people know about it.
General media often uses “bitcoin” to mean cryptocurrencies in general, and while most people might not know what Ethereum or Ripple are, they do have a grasp of what Bitcoin is. After all, it was all over the news just a year and a half ago.
indeed unstable, outdated, slow, and it will never become the crypto for
widespread use. We know that. But many of the people looking into crypto will
go straight for Bitcoin, because that thing was once worth almost $20,000 each.
Also, Ameritrade is offering crypto as an investment solution, meaning users getting it through them will mostly be parking it.
They won’t buy and sell stuff with it, since that’s not the goal its customers are after. Since Bitcoin is well-known and has kept a stable price with a tendency to rise this past year, it’s an easy choice.
As for Litecoin, it has been on the market for long, has a decent price record, and once again has been rising this last year.
Being a fork of bitcoin, it also isn’t likely to ever attain mainstream use. But once again, this is investment. These people will see it as a value, not a proper currency.
The fact that
Bitcoin’s value is mostly based in expectations and isn’t actually tied to
anything other than public perception doesn’t matter either. As long as its
value keeps going up, people will want to invest in it.
Will this affect the market?
It sure does.
Part of Bitcoin’s rise over the past two months can be attributed to this, among other things. BTC is currently experiencing a bit of a renaissance thanks to several projects being launched around it.
The fact that the crypto market is quickly growing into maturity and BTC’s price is basically an indicator for public trust in crypto also helps.
Should we expect this rise to
We can’t tell. There are currently actors predicting another BTC rise, along with a rush to $50,000, but the last time such a thing was predicted it was quickly followed with a crash once the bubble burst.
Since bitcoin’s nature is that of a bubble, it’s better to remain wary of any extremely positive predictions.
It might even not be in the crypto world’s best interests to have Bitcoin grow too much, in fact. BTC is known for being outdated, and the sooner another, newer crypto takes over the market the better.
BTC reaching a ridiculously high price will make this very, very difficult – which would in turn make widespread use and adoption of crypto about as difficult.
On the other hand, BTC creating another bubble and bursting would be even worse. Crypto already had a terrible 2018, and it’s only now recovering and making it to the news again.
Another quick price drop would erode public trust in crypto in general, which would greatly slow down general adoption for crypto.
The best we can expect is for BTC to keep rising… a bit. And then stabilizing. A stable market is a requirement for widespread adoption and use.
People can’t trade using a coin that’s constantly changing its value, after all. BTC stabilizing would help bring stability to the market as a whole, which might lead a few high-profile companies to start accepting some cryptocurrencies for payments.
If enough of these companies do so, we’ll start seeing widespread use of crypto.
Adolph Obasogie is the CEO of Harrison Global Capital. Get firsthand info from firstname.lastname@example.org
The 7 rules of cryptocurrencies and stock market investment will help you minimize your losses and maximize your gains.
Investors looking to make big profits from investing in stocks and cryptocurrency can be successful as long as they do it wisely.
For instance, investing in stocks and cryptocurrencies is time sensitive.
You have to make sure that the time is right. Besides investing at the right time, you will need exceptional investment strategies.
Only the most disciplined and skilled investors run away with the big profits. Although both stocks and cryptocurrencies have similar foundational investment principles, they are quite different. Here is how:
Stocks are shares issued by listed companies and sold to investors as equity. Usually, the stock market or exchange is responsible for the various activities of investing, buying, or selling stocks.
In most cases, investors buy stocks intending to hold them for the long-term. Long-term investment of assets tends to pay much bigger profits as compared to short-term investments.
And unlike cryptocurrencies, investors who buy stocks are often paid dividends for the shares they hold. At average, stocks generate about 7% ROI year on year.
Cryptocurrencies are digital currencies without any physical presentations. Cryptocurrencies operate under Blockchain technology, and anyone can buy, trade, or sell them. This makes the market very risky and highly volatile to invest in.
Unlike the stock market, cryptocurrencies trading lack regulation as they lie in decentralized non-governmental nature.
Anyone regardless of their nationality can trade in cryptocurrencies. In fact, trading in Bitcoin is quite fast. For instance, using the Bitcoin lightning Network, Bitcoin transactions are almost instant with deficient fees.
To invest in Bitcoin, you need to do thorough research about the crypto industry. Otherwise, you may invest and end up losing all your investments.
In fact, most investors who trade cryptos use them as a store of value to allow them to appreciate.
Here is a stock and crypto trading guide to use if you want to invest successfully.
Rule 1: Know the basics
If you are beginning, it’s highly likely that you are eager to trade but don’t rush it. It’s vital to educate yourself thoroughly before investing.
Research the basics of the cryptocurrency industry including the Blockchain technology to fully understand how Bitcoin works. The same applies to stocks.
You have to familiarize yourself with certain investment terms such as circulating versus total supply, trading exchanges, inflation, Bitcoin wallets, and public and private keys among others.
If you can’t answer any basics questions related to such terms, then it means you aren’t well prepared to trade. Learn the basics first or seek the help of an expert.
Rule 2: Buy and hold
The easiest and most profitable investment strategy for trading both stocks and cryptocurrency is to buy and hold. Like Bitcoin investment, it may require you to hold your funds for some time.
However, it’s necessary for you to set up a specific trading rule. Of course, you can’t hold your stocks or coins forever. For Bitcoin, it was a wise decision to sell it when it went up to $20,000.
Investors who didn’t sell at that price may have missed their opportunity while hoping that it would rise higher. So, set a target and stick by it.
Rule 3: The fundamental analysis strategy
Fundamental analysis is a method of evaluating an asset by examining related financial, economic, and other qualitative and quantitative factors in the attempt to measure its intrinsic value.
Warren Buffett, one of the richest men in the world claims that this strategy is one of the best investment tools in the stock market.
Besides analyzing the financial factors of a particular asset, this method also uses the price to calculate the price to earnings ratios, and trends among others.
With such information, the investor can compare different assets and cryptocurrencies including Bitcoin. Therefore, they can make an informed investment decision.
Rule 4: The dollar cost averaging strategy
This strategy requires you to buy a certain amount of stocks or cryptocurrencies like Bitcoin each week or month.
This reduces the chances of buying high which may lead to massive losses, especially in the cryptocurrency market.
Investing in small amounts over time will keep your investment accumulating as time goes by. And, when the prices begin to rise, it will attract more buyers which in return will increase volume.
On the other hand, investors who bought Bitcoin at $20,000 are still facing massive losses as it’s currently trading at approximately $5300.
According to experts, it’s now a great time to try and invest in Bitcoin before its value rises again.
Rule 5 :Don’t overtrade
Stock and cryptocurrency investments have made some investors millionaires, if not billionaires. That said, most people want to become millionaires within a fortnight which in most cases is not practical.
For instance, many beginners may want to make about 20 trades a day which is, of course, very dangerous. At the end of the day, most of such investors end up losing a lot from fees or bad trades.
Stock and cryptocurrency investment is very risky, and once you make a mistake, you may end up losing more while trying to recover.
So, unless you are for sure an expert, there aren’t 20 or more trading opportunities within a day. Trading too much only leads to poor decision making and further losses.
Rule 6 : Don’t invest your life saving
The rule number one of investing primarily in cryptocurrencies is that you should never invest more than you are willing to lose. This means that you can’t use a loan or your life savings to buy Bitcoin.
Although investing can make you rich, only place whatever amount of money you are ready to lose. This way, whether the prices of your assets or tokens keep on swinging up and down, you will remain calm.
Otherwise, if you place more than you are willing to lose, you may end up in a hospital bed.
For instance, investors who bought Bitcoin at $20,000 are already regretting their decision as Bitcoin value is far way less than what they purchased it at.
Rule 7: Diversify your portfolio
Diversifying your portfolio not only means holding several cryptocurrencies or stocks.
Given the high volatility of the cryptocurrency market, it could be a wise decision to invest in both stocks and bonds as well as cryptocurrencies.
On the other hand, if you choose to invest in either stocks or cryptocurrency, make sure you diversify further.For instance, if you are considering Bitcoin investing, invest in other coins too like Ethereum and Bitcoin Cash.
There is limitless room for opportunities in both the stock market and cryptocurrency investment. But, to succeed, you need to understand the market and yourself.
For instance, there some investors who like risky investments, others are conservative, while others prefer both high-risk and conservative trading.
Therefore, before investing in either Bitcoin or the stock market, be sure about your risk tolerance. It will dictate how successful you will be.
At the end of the day, it’s entirely you that decide the best route to take towards building an impressive investment portfolio. Talk to us today for more leads.