Monthly Archives: December 2017

(Don’t) Fake it ‘Til You Make It’

Fake it until you make it! I heard this expression recently and many times in the past, but this time it made me cringe. Some might feel that there’s nothing wrong with showing people how successful and smart you are when you’re not really there yet. Here’s the problem and what to do instead:

It’s a Lie: If you just started your business and pretend that you are a huge success with your words or actions then that’s a lie. Don’t exaggerate your capabilities, the size of your business, or how long you have been in business. Would you want to do business with someone who lies to you?

It Hurts Financially: Purchasing a brand new piece of equipment, a very expensive vehicle, or renting a pricey office before you can afford to do so will put you in debt and cause a strain on your finances. This will actually reduce your chances of success in the future.

Damage to Your Reputation: A good reputation is one of the most valuable assets of your business. Why damage it before you even get off the ground?

Her are some alternatives:

Be Humble: Everyone has to start somewhere so start from where you are. Over time you can invest what you can realistically afford, including the “nicer things.” It’s amazing how much people are willing to help out their colleagues that need some help, and how customers appreciate authenticity. Many successful businesses have started from humble beginnings.

Get Better: Make yourself and your business better by investing time and reasonable sums of money to learn how to get better and more successful. Be creative and remember that bigger is not always better.

Be Honest: Don’t lie. This is self-explanatory.

Update: LOWER NJ Sales Tax Rate to Take Effect on January 1, 2018

The sales tax rate will decrease to 6.625% on and after January 1, 2018.

Don’t Start a Side Business Unless You Consider This

It seems so easy to make money from a side business. Just resell items through Amazon or some other website and now you’re raking in the dough! Sometimes that happens, but many times it does not. Here are few things to consider before doing so and some ways to make it more profitable:

The Value of Your Time: Once you get past the start-up period, are you making more than your wages or main business? For example, if your main job or business nets you $75 per hour and your side job nets you $15 per hour, then that is a poor use of your time. Ideally, your side business should make more per hour than your main job, otherwise you should consider investing  your time at your job or main business.

Expectations: What can you realistically expect to make? Calculate how much you can bring in and see if the additional time and focus is worth it.

Why?: Why do you want to own a side business? Is it for personal satisfaction or solely for monetary gain?

Ways to make it profitable:

Choose the right side business: Generally, a service business will take the most amount of your time and is harder to leverage because it depends mostly upon the owner. Choose a business that can operate with the least amount of your time or where tasks can easily be delegated.

Passive only: If you have the capital, but not the inclination to operate a side business, then you can invest in a business as a passive activity with minimal input.

Run the Numbers: No matter which type of business you choose, you need to perform research, analyze, and project what you expect the results to be. Since we usually tend to project very rosy outcomes, then try to come up with 3 different scenarios, including worst case, average, and best case. Your time and money are too valuable to invest them poorly.