Podcast Summary
Monetizing underutilized assets with Airbnb: Turning unused spaces into income streams through Airbnb is a popular and accessible side hustle. Entrepreneurs and solopreneurs must prepare for unexpected costs, late payments, delegation, market changes, and self-care.
Monetizing underutilized assets, such as hosting a space on Airbnb, can be an effective and low-cost side hustle. Nicole Lappin, the host of the Money News Network podcast and author, shared her experience of writing in remote cabins but feeling uneasy about leaving her home empty. She turned to Airbnb hosting as a solution, which she considers one of her favorite side hustles due to its ease and accessibility. For those new to side hustles or entrepreneurship, Airbnb makes it simple to get started. Additionally, Lappin, who started her own business, Money News Network, shared five hard-learned lessons for entrepreneurs and solopreneurs: 1) you will get paid late, 2) you will face unexpected costs, 3) you will need to learn how to delegate, 4) you will need to adapt to changing markets, and 5) you will need to prioritize self-care. These lessons demonstrate the importance of being prepared for the challenges that come with starting a business or side hustle.
Late payments from customers can impact cash flow: Businesses should prepare for late payments and add a buffer to cash flow projections to cover unexpected expenses.
Businesses, particularly small ones, should be prepared for late payments from customers. The speaker shared an experience of receiving a large purchase order for Saint Patrick's Day, expecting to receive payment within net 30 days. However, the customers ended up requesting net 90 days to pay. This resulted in the business not having enough cash flow to cover upcoming expenses, such as ordering supplies for baking cupcakes. The speaker emphasized that this situation occurred frequently in the early days of their business and they had to use their personal savings to cover the capital. To prevent such issues, businesses should add a buffer to their cash flow projections, assuming that payments will be late. This could mean scheduling bills for later than expected payment dates or negotiating longer payment terms with vendors. Late payment fees or interest could also be considered as an option to incentivize timely payments from customers.
Managing Cash Flow and Home Buying for Small Business Owners: Effective financial planning, seeking professional help, and identifying costly tasks can improve cash flow management, home buying chances, and business efficiency for small business owners.
Effective financial planning and seeking professional help can make a significant difference in the challenges of cash flow management and home buying for small business owners. Cash flow issues can be unexpected and daunting, but being aware of potential roadblocks allows for proactive solutions. When it comes to purchasing a house, having a mortgage broker on your side can improve approval chances, and their services are often free to the borrower. Additionally, when scaling a business and delegating responsibilities, it's crucial to identify and prioritize the most expensive tasks for yourself, which can lead to budget-friendly hiring and improved efficiency.
Pay yourself and build a team for business growth: Founders should pay themselves a salary, hire the right team, and budget for unexpected expenses.
As a founder, it's important to pay yourself a salary and build a team to help grow your business. Delegating responsibilities and hiring the right person for the job can be done through platforms like LinkedIn, which has a vast network of professionals and an easy-to-use hiring process. Additionally, it's wise to budget an extra 20% for unexpected expenses, acting as a business emergency fund. While this may not always be necessary, having the extra funds can provide peace of mind during unexpected situations. Remember, taking care of yourself and your business's financial needs are crucial for long-term success.
Setting bridge goals for progress and motivation: Recognize smaller steps towards larger objectives to stay motivated and resilient. Identify potential bridge goals through research and celebrate each achievement.
Setting realistic and achievable goals, also known as bridge goals, is crucial for entrepreneurs. While having ambitious dreams is important, focusing solely on them can lead to feelings of stagnation and lack of progress. Bridge goals represent the smaller steps necessary to reach larger objectives, providing a sense of accomplishment and motivation. For instance, if your goal is to build a million-dollar business, you'll need to make six figures before reaching that milestone. Recognizing and celebrating these smaller victories can help entrepreneurs stay resilient during challenging times. To identify potential bridge goals, consider researching job postings from similar-sized companies to understand the roles and responsibilities required to grow your business. Remember, every step you take, no matter how small, brings you closer to your ultimate goal.
Writing a job description and seeking financial advice: Confidently write a job description using LinkedIn Jobs for inspiration, and for financial advice, consider reaching out to Money Rehab
When it comes to posting a job description for your company, you have the resources to do it yourself through platforms like LinkedIn Jobs. Seeing other job postings can inspire you in the process. And if you need help with money-related matters, consider reaching out to Money Rehab for potential answers on the show or even a one-on-one intervention. Remember, investing in yourself is the most important investment you can make. So, go ahead and put down that job description with confidence, and for money advice, Money Rehab is here for you. You can find the link to get started with LinkedIn Jobs in the episode description or follow Money News Network on Instagram and TikTok for exclusive content. Thank you for listening and for investing in yourself.
