Small Business

Apache is functioning normally

The National Association for the Self-Employed’s membership has grown dramatically over the last few years, says Keith Hall, the group’s president and CEO. And while that growth has slowed since its COVID-era peak in 2022, he thinks flexible work is here to stay.

The boom in self-employment started when “a lot of people had to do it because of COVID. They didn’t choose to do it; they had to do it,” Hall says. “Many others saw and learned and read that you can do this. You don’t need to be tied to the desk in corporate America.”

Below is NerdWallet’s 2024 list of the 10 best U.S. metro areas for freelancers and the self-employed. Our analysis used recent metro-area data from the U.S. Census Bureau and state-level data from the Tax Foundation. The top metro areas are those where a significant percentage of the workforce is self-employed already, rent is relatively affordable, unemployment is low, worker mobility is high and state income taxes are relatively low.

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Top 10 metro areas for freelancers and the self-employed

  1. Nashville-Davidson-Murfreesboro-Franklin, Tennessee.

  2. North Port-Bradenton-Sarasota, Florida.

  3. Chattanooga, Tennessee.

  4. Knoxville, Tennessee.

  5. Austin-Round Rock-San Marcos, Texas.

  6. Lancaster, Pennsylvania. 

  7. Boise City, Idaho.

  8. Columbus, Ohio

  9. Bridgeport-Stamford-Danbury, Connecticut.

  10. Portland-South Portland, Maine 

How much do you need?

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Key findings

  • Of our top 10 cities, Bridgeport-Stamford-Danbury, Connecticut, and North Port-Bradenton-Sarasota, Florida, have the largest percentages of the workforce that are already self-employed (8.5% and 8.2%, respectively). The median of all metro areas in our dataset is 5.3%. 

  • Housing affordability continues to benefit communities like Chattanooga and Knoxville, Tennessee; Lancaster, Pennsylvania; and Portland, Maine — all places in which more than half of renters spend less than 30% of their income on rent. 

  • Tennessee, Florida and Texas all have no state income tax, which can keep a portion of income in self-employed workers’ pockets. That said, “It’s rare when I personally hear an individual relocating states just because of the tax code,” Hall says.

  • Columbus, Ohio, was boosted by a significant increase in the number of people moving to the city for work between the end of 2022 and the beginning of 2023. While those people weren’t necessarily freelancers, we use this data point to better understand economic vibrancy.

Identify your self-employment goals when considering a move

What might self-employment look like for you? That depends on what you hope to get out of it.

1. Desired industry

Though some industries have shifted broadly toward remote work, others still benefit from proximity.

Brian Rood, a certified financial planner and owner of Artisan Financial Planning, knows that firsthand: He spent 27 years playing trumpet in the Kansas City Symphony before shifting to financial planning and now works primarily with artists.

In highly specialized fields like the performing arts, “you really do go where the work is,” Rood says. That might mean an industry-specific location, like New York or Los Angeles, or a small city where you landed an orchestra job and then built a network of students and professional contacts.

Seth Hodes, co-founder and managing partner at Able Wealth Management, also works primarily with artists and creatives. He says his clients often move from creative agencies to tech companies to freelance portfolios and then back again based on what opportunities arise. Living in regions that have active job markets and lots of opportunities in their industries helps facilitate such mobility.

“The artist freelancer has always been adaptable,” Hodes says. “It’s a grind out there — you’re going to have to survive and work up a certain kind of cultural capital.”

2. Financial goals

Self-employed workers typically need to set aside 25% to 30% of their income for tax payments.

Next, Rood adapts the 50/30/20 budget to each client; the budget is a framework that recommends spending 50% of your income on expenses, 30% on “wants” and 20% on savings. “It’s a little high on the first parts and a little low on the savings,” he says, but it’s a useful jumping-off point.

Rood encourages self-employed clients to have a larger-than-average emergency fund. For some performing artists, he recommends six to 12 months of living expenses.

That math can get difficult when the cost of living is high, and it can tempt people to move, especially if they can take work with them or are scaling back on hours.

When his clients leave a high-cost-of-living city, Rood says, “it’s because they either are going to retire, and so they want to go somewhere cheaper and they don’t need the work, or the rat race is too much and they want to do something else.”

Hall says he’s seen lots of older Americans strike out on their own, too. If your freelance work is a transition step out of full-time work, you may lean toward the place where you want to spend your retirement.

3. Identity, safety and values

Self-employment can afford you the freedom to live in a place for personal reasons, not just professional or financial ones.

For some, self-employment may support a move that lets them live more safely. According to a 2022 survey from the National Center for Transgender Equality, 5% of trans people had moved out of state due to laws targeting their community and 47% of respondents had thought about it.

And Hall says family ties and hometown memories are common reasons for relocation.

“We do hear a lot from NASE members and from small-business owners moving to a different community,” Hall says. “Maybe they grew up in a small city when they were younger and they had the need to go to the big city, because that’s where the jobs were. Now they’re going back home.”

Hodes says he works with his clients to find harmony between their financial goals and how they want to live their lives more broadly.

“You have to plan for the future, but it has to be a balance,” Hodes says. “Don’t sacrifice too much in the present.”

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Methodology

To create the Best Cities for Freelancers and Self-Employed Workers 2024 list, NerdWallet pulled data for major U.S. metropolitan areas from the U.S. Census Bureau. We also pulled state tax rates from the Tax Foundation and calculated the tax rate for a household earning the median U.S. household income. We weighted the impact of each factor depending on how important we felt that factor would be in the potential financial success of a freelancer. We excluded metro areas for which there was negative or no Job-to-Job Flows Census data.

NerdWallet’s analysis includes data from the following sources:

  • U.S. Census 2022 American Community Survey data for the unemployment rate, percentage of people in Census-designated metro areas who identified as self-employed in non-incorporated businesses, and percentage of renters in a Census-designated metro area who spend less than 30% of their household income on rent.

  • U.S. Census Q4 2022 and Q4 2023 Job-to-Job Explorer data.

  • The 2024 state tax rate for the median U.S. household (which earned $74,580 in 2023, according to Census data), according to the Tax Foundation.

Source: nerdwallet.com

Apache is functioning normally

Bootstrapping typically means relying on one’s self to reach a goal. In business, bootstrapping is generally used to describe entrepreneurs who use their own personal funds and resources to start a business instead of raising money through small-business loans or investors.

Whether bootstrapping is your personal preference or your best option to start a business, there are pros and cons to this funding method, as well as some alternatives that might be helpful to consider.

How much do you need?

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

What is bootstrapping?

Bootstrapping refers to entrepreneurs starting new businesses by relying on their personal resources instead of securing funds through business loans or raising capital through investors. Or, in the case of an existing business, bootstrapping can be used to describe an entrepreneur using the revenue generated by their company, along with personal resources, to grow the business.

Some personal resources that may be used in bootstrapping include:

  • Personal savings.

  • Personal credit cards.

  • Personal loans, including home equity loans.

  • Personal spaces such as an extra room or garage.

  • Personal assets like equipment and supplies.

Pros and cons of bootstrapping

Pros

Owner retains full control of the business.

No business loan debt is taken on by the company.

Accrue time in business and revenue to help qualify for future funding.

Cons

Business growth may be limited due to lack of funds.

Personal assets, such as savings and retirement, could be at risk.

Doesn’t typically build business credit history.

Why do entrepreneurs choose bootstrapping?

For some entrepreneurs, bootstrapping is a personal preference and for others it may be their only option for launching a new business or growing an existing one.

Here are some reasons entrepreneurs may use bootstrapping to start their business:

Can’t qualify for a business loan

One of the top reasons budding entrepreneurs turn to bootstrapping is because they can’t qualify for a startup business loan. They may not be able to meet lender requirements for time in business, credit score and annual revenue, among other things.

Banks and SBA lenders — lenders that offer loans guaranteed by the Small Business Administration — generally have competitive rates and terms. However, to qualify for funding, you’ll typically need multiple years in business, in addition to good credit. For example, a Wells Fargo BusinessLine line of credit requires a credit score of at least 680 and two years in business.

Online business loans are typically easier to qualify for than bank loans; however, approval can still be a challenge for brand-new businesses. For example, Fora Financial offers business loans for bad credit with a minimum credit score requirement of 500 but also a minimum of six months in business.

Don’t want to take on additional debt

Entrepreneurs who could qualify for a business loan may choose bootstrapping because they don’t want to take on business debt and the interest expense and additional fees that come with a loan.

Business loan interest rates vary based on a number of factors. However, according to the most recent data from the Federal Reserve, interest rates on the average small-business bank loan ranged from 6.13% to 12.36% in the fourth quarter of 2023

. Other types of loans, including online loans, can have even higher interest rates.

In addition to interest, borrowers often have to pay fees like a business loan origination fee. Interest and fees may push the total cost of the loan beyond what an entrepreneur is willing to pay.

Don’t want to give up full control of the business

Entrepreneurs who have ruled out debt financing may have the option of raising money through equity financing — selling shares in their business to investors in exchange for funding. While equity financing doesn’t require taking on debt or making loan repayments, some entrepreneurs may still prefer bootstrapping.

When an entrepreneur sells shares in their business, they exchange partial business ownership for the investor’s funding. And, depending on the number of shares sold and the investor’s goals, the entrepreneur may no longer have full independence to run the company their way. They’ll also have to share the profits if the business succeeds.

Want to test the business idea before fully committing

Bootstrapping can allow an entrepreneur to try out their business model, refine their marketing strategy and build a customer base before committing to long-term financing or arranging to offer equity to investors. In addition, a business owner may find it easier to qualify for funding from business lenders after they’ve been in operation for at least six months.

Also, some entrepreneurs may not be comfortable quitting a full-time job in order to start a business. Bootstrapping can be a way to get a business off the ground without losing your main source of income.

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Bootstrapping tips

The following tips may help you when bootstrapping your business:

1. Create a business plan.

Regardless of how you choose to fund your startup, you’ll need to write a business plan. The plan provides detailed information on your business, such as an executive summary, product description, market analysis, marketing strategy and financial projections.

Your business plan can be used as a guide to set up your business and help you identify your customer base, establish your marketing plan, lay out the organization of your operation and explain how you plan to generate revenue. You’ll typically update your business plan as your company grows.

In addition, if you decide to look for additional funding in the future, you can share your business plan with lenders and investors to show them that you have a profitable operation.

2. Officially launch your business

Bootstrapping may involve starting a scaled-down version of your business where, for example, you operate out of a spare room or use personal funds to buy supplies. However, no matter the size of your operation, you still want to take steps that will make your business official in order to best set it up for future growth.

Some common steps to take when launching a business:

3. Lay the groundwork for a future business loan

Bootstrapping is often used to get a business up and running; however, it’s not always the best option for business growth. For some entrepreneurs, bootstrapping may be a short-term option that will help them secure business financing in the future.

Bootstrapping can give you the opportunity to accrue time in business, generate revenue and build a customer base — all things that will make your business more attractive to lenders and investors down the road.

4. Take advantage of free resources

There are organizations that offer free or low-cost training, counseling and other resources to help you start and grow your business.

  • SBA resource partners are located throughout the U.S. and include Small Business Development Centers, SCORE business mentors, Veterans Business Outreach Centers and Women’s Business Centers, among others.

  • U.S. Chamber of Commerce chapters provide resources for entrepreneurs including virtual events and networking opportunities within your local community, though a membership fee may be required in some cases.

  • Industry and trade associations within your local community can provide opportunities to advance your industry knowledge and network through conferences and member events.

  • Public libraries can also be a resource to small-business entrepreneurs, with some offering online courses, demographic information, business planning tools and suggested reading lists.

Alternatives to bootstrapping

Here are some alternatives you may want to consider before deciding to fund your business on your own:

  • Business loans. There are many different types of business loans — term loans, lines of credit and equipment loans. Because the qualification requirements for business loans vary by type and lender, exploring a variety of options may allow you to find a loan that works for you and your new business.

  • Family and friends loans. Asking family members and friends to loan you funds or invest in your startup business is another way to raise money. Although these arrangements are often informal, it’s important to put the details of the funding in writing so there are no misunderstandings in the future.

  • Small-business grants. Grants can be a source of funding for small businesses, although competition for this “free” money can be fierce and the application process can be time-consuming. However, there are startup business grants offered by government agencies, corporations and nonprofit organizations that may be worth looking into.

  • Crowdfunding for business. Crowdfunding can be used to create online campaigns to raise money for a business startup, as well as other causes. A unique business idea and a wide network of supporters can help an entrepreneur launch a successful campaign.

Looking for a business loan?

See our overall favorites, or narrow it down by category to find the best options for you.

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Source: nerdwallet.com

Apache is functioning normally

High-risk business loans are loans targeted to businesses with poor credit history or limited cash flow, as well as to startups or those who operate in volatile industries. In other words, borrowers who pose a high credit risk to lenders.

Lenders may attempt to mitigate the risk on these small-business loans by requiring higher interest rates, shorter repayment terms or collateral.

How much do you need?

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

What are high-risk business loans?

High-risk business loans are a specific type of small-business loan given to borrowers who are considered to be risky to lenders. Risky borrowers may be those who have poor personal or business credit, whose businesses haven’t been operating for long, who operate in a volatile industry or have a history of defaulting or missing payments on loans.

What makes a business high-risk for a loan?

Both lending money and taking on debt involve some risk; however, the risk associated with high-risk business loans generally refers to the one that a lender incurs. Also called credit risk, this risk is essentially the chance that a lender won’t make back the money it has loaned out.

Did you know…

Credit risk refers to a borrower’s likelihood of repaying their debt to a lender. Credit risk is usually measured by an assessment a lender makes during the underwriting process based on a borrower’s credit score and payment history, debt-to-income ratio and the amount of available collateral.

There are several factors that influence credit risk.

Personal credit

Although it’s not always the case, a bad personal credit score — usually a credit score from 300 to 629 — may reflect high credit utilization rates and spotty payment history, which are concerns for a lender considering issuing a new loan. You can improve personal credit by paying down credit card balances, limiting new applications and catching up on past due payments.

Lower scores may also reflect a younger age of accounts or a limited variety in types of credit accounts (i.e., loans, credit cards, etc.). If this is the case for you and your payment history and utilization are good, make sure your lender knows the whole history when it is reviewing your application.

Startups

Startup businesses may be considered high risk simply because they don’t have financial records to demonstrate their ability to make payments on a loan. In these cases, lenders rely heavily on a business owner’s personal credit and repayment history, and in some cases, collateral.

Businesses in volatile industries

Volatility in business can affect the long-term predictability of a business’s revenue, and therefore its ability to repay a loan, which is why businesses that operate in volatile industries — such as energy, technology and financial services — may be considered high risk.

Offering collateral or having a co-signer on the loan can go a long way to help moderate that risk. A lender may also attempt to structure a loan in a way that matches up with your business’s cash flow, so it helps to be open to that.

Payment history

Businesses that have tax liens or past loan defaults demonstrate a poor repayment ability. To a lender, they are considered high risk because this payment history is an indicator of how likely they are to have difficulty making payments on any new loans.

If this is a part of your payment history, you may be able to help your case by being open and honest about it, and providing collateral to offset the lender’s risk.

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Est. APR 

20.00-50.00%

Est. APR 

35.40-99.90%

Est. APR 

15.22-45.00%

Min. credit score 

625

Min. credit score 

625

Min. credit score 

660

Loan options for high-risk businesses

Merchant cash advances

Merchant cash advances (MCAs) are an alternative type of financing where a lender issues a cash advance in exchange for a fixed percentage of your future revenue, plus a fee. Exact payment amounts will fluctuate depending on your sales, and lenders will usually take payments directly from your account.

MCAs are one of the most expensive forms of financing for a borrower. MCAs can come with factor rates that convert to APRs of over 100%. In addition, since they technically are not loans, they’re not subject to the same regulations that lenders typically have to adhere to.

Invoice financing

Invoice financing uses unpaid customer invoices to secure a cash advance, reducing the risk to a lender. A lender advances a certain percentage of the unpaid invoices — to be repaid by the borrower once the invoices are paid, plus a fee.

This form of financing can be fast to fund; however, fees are usually charged by the week, and repayment is dependent on how quickly a business’s customer pays their invoices.

Short-term loans

Lenders may also lessen their risk by requiring repayment as quickly as possible. Short-term loans mirror the structure of traditional term loans but provide a condensed, often more expensive, alternative to a longer-term loan’s lengthy repayment terms and relatively low APRs.

Equipment financing

Equipment financing is a type of business loan used to purchase large equipment or machinery that’s necessary to run the business. Equipment financing uses the equipment being purchased to secure the loan, thus offsetting some of the lender’s risk.

Online loans

Online loans are offered by online lending companies, and the process can be completed entirely online. They can be easier to qualify for if you are considered a high-risk borrower; however, rates and terms will be less ideal than you would find with a bank.

Secured loans

One of the ways your lender might look to offset its risk is through collateral, or by offering a secured business loan. Loans can be secured by assets like cash, large equipment, vehicles or real estate property. If you default on your loan, your lender can seize the collateral you’ve pledged in order to recover some of its money.

Personal loans

If you’re having trouble qualifying for a business loan due to length of time in business, you can use personal loans for business purposes. Like business loans, the best terms and rates for personal loans usually come from banks and require good credit history.

Equity financing

If you’re considered high risk because your business is a pre-revenue startup, you may consider equity financing, which involves raising capital by trading ownership stakes in your company. Angel investing and venture capital are forms of equity financing.

Peer-to-peer (P2P) lending

Peer-to-peer lending is a type of business lending that connects business owners with individuals or private investors. P2P loans are a way to borrow money without relying on banks, but they are often facilitated by a third-party company that provides a platform for business owners to connect with investors. They typically have less stringent qualifications than traditional loans, so they are a good fit for high-risk borrowers.

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Frequently asked questions

Source: nerdwallet.com

Apache is functioning normally

The NCAA’s name, image and likeness policy, or NIL, is an interim rule that allows college athletes to earn money by lending their celebrity to endorse or promote products, services or brands. Since it took effect in 2021, NIL deals have exploded, increasing by 146% from 2022 to 2023 according to SponsorUnited, an online platform that tracks sponsorship data.

In addition to the impact on college athletics, the policy increases access for smaller businesses that couldn’t previously afford big university sponsorships, allowing them to align themselves with the school brands through smaller NIL deals.

“There are a lot of athletes who want to be part of this economy, at most schools, and not all of them are looking for million-dollar deals,” says Robert Boland, a sports law professor at Seton Hall University and attorney at Shumaker law firm with a specialization in collegiate and professional sports, including NIL sponsorship.

Here’s what small-business owners need to know before investing in this type of partnership.

NIL is similar to other types of marketing

The majority of NIL deals involve social media posts, according to Opendorse, an online athlete marketplace and NIL technology company. These types of deals work similarly to other types of influencer marketing, where popular social media personalities collaborate with businesses to promote their products.

NIL activities can also include print or TV ads, clinics or in-person meet-and-greets or autograph signings. While compensation can be cash, small-business owners can also offer free or discounted products or services to athletes in exchange for promotion, Boland says.

The NIL landscape is broader than it looks

Though big-name companies and star athletes get all the media attention, data from Opendorse indicate that the average NIL deal since the policy was implemented ranges from $228 to just over $10,000, depending on the athlete and collegiate division. Keep in mind, though, that those averages are inflated by high-dollar deals that only a handful of star athletes receive. Many NIL sponsorships are, as Boland describes, “small-dollar deals.”

Though NCAA football is by far the leading sport for NIL endorsements, sports like volleyball, track and field, baseball and softball make up nearly a quarter of NIL activity, and athletes who compete in less visible sports can also be great partners, according to Boland.

The leading industries for NIL deals are apparel and footwear, followed by local restaurants and technology companies — but those aren’t the only businesses that can see a return from NIL deals.

Brian Quigley, founder of Beacon Lending, a Colorado-based mortgage company, has collaborated with three college athletes in Boulder and Fort Collins to promote his business. He’s found that these sponsorships have grown brand recognition and trust, particularly among a younger demographic, and have also deepened his ties with the respective communities, which he sees as especially important for someone in his industry.

Collectives can help facilitate NIL deals

Small-business owners who aren’t comfortable reaching out to athletes directly can go through NIL collectives, which are school-specific, independent organizations that act as marketplaces for athletes to connect with interested companies and vice versa. Collectives function similarly to marketing or talent agencies and are intended to protect athletes and businesses by facilitating NIL transactions and handling the financials of the deals.

Currently, there are over 250 collectives in existence or on the way, and the majority of schools in the Power 5 conferences — The Atlantic Coast Conference (ACC), Big Ten Conference, Big 12 Conference, Pacific-12 Conference (Pac-12) and the Southeastern Conference (SEC) — have at least one collective.

NIL activity isn’t uniformly regulated

The NCAA’s policy doesn’t allow an athlete to be compensated for athletic performance and strictly prohibits deals that are contingent on enrollment at a particular university. For now, such deals are regulated at the state and university level, which means that schools and students bear the responsibility of monitoring and reporting activity and potential violations.

This has led to concerns that NIL deals lend themselves too closely to a “pay-for-play” model and encourage illegal recruiting activities. Currently, several pieces of bipartisan legislation have been introduced in Congress that could make regulations universal nationwide.

This means that the model for NIL sponsorships is still very “dynamic,” cautions Steven Baker, a mentor at the Coachella Valley, California, chapter of SCORE, a nonprofit that offers free resources for small-business owners. Small-business owners need to be intentional about each aspect of their approach, including their marketing strategy and plans for return on investment, according to Baker. Above all, avoid investing just because you’re a fan.

Small-business owners will need to do their research on whom they’re working with. Quigley’s recommendation is to prioritize authenticity. “Choose athletes who resonate with your brand values,” he said in an email. “It’s not just a transaction but a partnership.”

Source: nerdwallet.com

Apache is functioning normally

In this exceptional episode of The Kings Table Podcast, we have the privilege of hosting 2024 presidential candidate Vivek Ramaswamy. Vivek opens with insights into his remarkable background, paving the way for a dynamic conversation spanning politics, business, and the future of the United States.

Vivek takes us on a journey through his personal and professional history, discussing his presidential aspirations and campaign strategies. We explore the role of business
leaders in shaping the nation’s future and how Vivek aims to support small business owners and aspiring entrepreneurs. The episode delves into the Federal Reserve’s
impact on the real estate sector and the president’s role in this context, providing clarity on what a president can and cannot do. The episode wraps up with a discussion on enhancing financial literacy and life skills within the educational system. Tune in for this engaging conversation with a visionary leader.

Meet the hosts:

1. Mike (The Sage) Ayala is an accomplished investor, speaker, and podcast host, who stands at the helm of Investing for Freedom, guiding busy professionals and entrepreneurs toward the path of genuine liberation and optimal living.
2. Ashish (Hostess with the Most-est) Nathu is a founder and CEO, entrepreneur, real estate investor, triathlete, and host of the Rich Equation Podcast.
3. Matt (Hero of Hospitality) Aitchison is a distinguished real estate investor, captivating speaker, and committed philanthropist.
4. Aaron (The Trend Spotter) Amuchastegui is a seasoned real estate virtuoso with a remarkable track record of over 1,000 house transactions, predominantly acquired through astute foreclosure purchases at courthouse auctions.

Highlights:

00:00 – Ashish introduces the episode with our special guest, 2024 presidential
candidate, Vivek Ramaswamy

00:53 – Vivek introduces himself and talks about his personal and professional
background, and why he wants to run for president

03:42 – Ashish asks Vivek about how business leaders can get more involved in politics
and shaping the country’s future

07:11 – Vivek talks about his campaign strategy, and how he feels what’s working for
him based on his expectations and the results

12:56 –  Mike asks Vivek about his ideas to help the small business owners and aspiring
entrepreneurs compete in the business sector along with the large companies

16:41 – Aaron asks Vivek how he views the Federal Reserve’s rapid interest rate hikes
over the past years, particularly their impact on the real estate industry, and what role
do you believe the president should play in this context

21:04 – Vivek sets the record straight on what a president can and cannot do

24:01 – Vivek talks about how listeners can help and support his campaign

25:54 – How can the current educational system promote financial literacy,
entrepreneurship and other relevant life skills

30:02 – Round table discussion of the host’s opinions and thoughts regarding the
interview

Welcome to Episode 11 of The Kings Table Podcast, a captivating new show hosted by Ashish, Mike, Aaron, and Matt. Join us for an unfiltered, authentic experience as we gather weekly to delve into the raw discussions that drive our lives, businesses, economics, and the world.

Connect with us!

We eagerly await your feedback about the show! Kindly share your thoughts via text message at this number: (844) 447-1555.

Mike Ayala:
Instagram: https://www.instagram.com/themikeayala/
YouTube: https://www.youtube.com/channel/UCoa4pNSAYxBM6nSn2jCrPYA
Website: https://investingforfreedom.co/

Ashish Nathu:
Instagram: https://www.instagram.com/ashishnathu/
YouTube: https://www.youtube.com/channel/UC1TXia_kxtVVCV29jmoTmeg
Website: https://www.therichequation.com/

Matt Aitchison:
Instagram: https://instagram.com/officialmattya
YouTube: https://www.youtube.com/mattaitchisonmedia
Website: https://www.MillionaireMindcast.com

Aaron Amuchastegui:
Instagram: https://www.instagram.com/aaronamuchastegui/
YouTube: https://www.youtube.com/@AaronAmuchastegui/about
Website: https://www.aaronamuchastegui.com/

Source: realestaterockstarsnetwork.com

Apache is functioning normally

Join us for another Kings Table podcast where we dive into the complex landscape of the current market to share valuable insights, concerns, and decisions impacting businesses in both the short and long term. We each present a unique perspective and cover a range of industries, discussing the pivotal data influencing our strategies.

For the full episode, visit MillionaireMindcast.com or search for Millionaire Mindcast wherever you listen to podcasts.

Meet the hosts:

1. Mike (The Sage) Ayala is an accomplished investor, speaker, and podcast host, who stands at the helm of Investing for Freedom, guiding busy professionals and entrepreneurs toward the path of genuine liberation and optimal living.
2. Ashish (Hostess with the Most-est) Nathu is a founder and CEO, entrepreneur, real estate investor, triathlete, and host of the Rich Equation Podcast.
3. Matt (Hero of Hospitality) Aitchison is a distinguished real estate investor, captivating speaker, and committed philanthropist.
4. Aaron (The Trend Spotter) Amuchastegui is a seasoned real estate virtuoso with a remarkable track record of over 1,000 house transactions, predominantly acquired through astute foreclosure purchases at courthouse auctions.

Connect with us!

We eagerly await your feedback about the show! Kindly share your thoughts via text message at this number: (844) 447-1555.

Mike Ayala:
Instagram: https://www.instagram.com/themikeayala/
YouTube: https://www.youtube.com/channel/UCoa4pNSAYxBM6nSn2jCrPYA
Website: https://investingforfreedom.co/

Ashish Nathu:
Instagram: https://www.instagram.com/ashishnathu/
YouTube: https://www.youtube.com/channel/UC1TXia_kxtVVCV29jmoTmeg
Website: https://www.therichequation.com/

Matt Aitchison:
Instagram: https://instagram.com/officialmattya
YouTube: https://www.youtube.com/mattaitchisonmedia
Website: https://www.MillionaireMindcast.com

Aaron Amuchastegui:
Instagram: https://www.instagram.com/aaronamuchastegui/
YouTube: https://www.youtube.com/@AaronAmuchastegui/about
Website: https://www.aaronamuchastegui.com/

Source: realestaterockstarsnetwork.com

Apache is functioning normally

Molly Armando closed 25 real estate deals in the last 12 months, and she hasn’t even hit her two-year mark in the industry! On today’s podcast, Molly shares the steps it took to start a successful real estate business and her plans to scale it moving forward. Shelby and Molly also discuss the marketing side of real estate, including why agents may not want to focus on just one strategy. Other topics touched on include real estate referrals, time blocking, and communicating with clients.

Listen to today’s show and learn:

  • What Molly Armando did before real estate [2:03
  • The steps it takes to get a real estate business started [6:38]
  • Ways to win business as a new Realtor [11:44]
  • Getting the most out of a real estate CRM [16:17]
  • Why real estate agents must time block [18:48]
  • How to mitigate interruptions when working other tasks [24:35]
  • Why communication is key in real estate [26:53]
  • What to expect when creating real estate content [29:37]
  • The keys to starting out successfully in real estate [32:44]
  • Molly’s contract-to-close process [32:59]
  • Molly Armando’s plans and goals for the future [35:51]
  • The importance of asking for referrals with every transaction [36:50]
  • The Real Estate Rockstars Mastermind and Tom Ferry events [37:57]
  • Where to find and follow Molly Armando [39:16]

Molly Armando

Molly Armando was born and raised in Dartmouth, Massachusetts and has stayed in love with the state’s Southcoast area ever since. As “The Southcoast Realtor” with Residential Properties Ltd., Rhode Island’s largest and most successful independent real estate company, clients rely on her native knowledge and unwavering commitment. Her year-to-date sales numbers have reached $12,011,065 with $3,100,500 pending as of October 2023, earning her a place as the #6 individual agent at Residential Properties out of 245, putting her in the top 3% of the company. She began her professional life at various digital marketing software companies, building a top-to-bottom approach to client success. Her background in business and digital advertising makes her an expert in marketing trends and sales strategy at its most cutting-edge. These capabilities serve only one purpose – to get results for her buyers and sellers. She lives by a simple yet powerful motto: “My goal is to help you reach yours.”

She is a leader throughout the Southcoast and deeply committed to giving back to her community. Residing with her family in South Dartmouth, Molly is recognized as the visionary behind the town’s annual Padanaram Buoy Tree, drawing visitors from all over New England. The Buoy Tree is made up of over 600 decorated buoys with 50 of the best entries auctioned off for local charities. This unique event has received wide acclaim and publicity, highlighted in publications such as The Boston Globe. She is also the founder of both the Dartmouth Mom’s Group and the Padanaram Community Coalition. Her professional memberships include the National Association of Realtors® (NAR), the Massachusetts Association of Realtors® (MAR), and the Realtors® Association of Southeastern Massachusetts (RASEM).

Related Links and Resources:

It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.

-Aaron Amuchastegui

Source: realestaterockstarsnetwork.com

Apache is functioning normally

Equity financing trades a percentage of a business’s equity, or ownership, in exchange for funding. Equity financing can come from an individual investor, a firm or even groups of investors.

Unlike traditional debt financing, you don’t repay funding you receive from investors; rather, their investment is repaid by their ownership stake in the growing value of your company. Equity financing is a common type of financing for startup businesses — especially for pre-revenue startups that don’t qualify for traditional loans — and businesses that want to avoid taking out small-business loans.

What is equity in business?

Business equity refers to the amount of ownership in a company or business, usually calculated as a percentage or by number of shares. For smaller private companies, equity is usually reserved for owners, investors and sometimes employees, while larger, publicly traded companies may also sell equity on the stock market.

Business equity is calculated by subtracting a business’s total liabilities from its total assets. For that reason, equity reflects a business’s value and indicates to shareholders the business’s overall financial stability.

How does equity financing work?

The process of getting equity financing will vary depending on the type of equity financing you’re looking for, your business and your investors. Generally, you can expect to follow these steps.

Gather documents

Before you start looking for investors, you’ll need documents like a business plan and financial reports, plus an idea of how much capital you need and what you will use it for. These are all things you’ll need to outline to a potential investor in your business pitch.

Find investors

If you don’t know investors or have potential investors in mind already, consider leveraging your personal or professional network to understand your options. You can also use online platforms to search for investors, or even check LinkedIn or attend local networking events.

Negotiate how much equity to give to your investors

Once you’ve found your investors, they may conduct their own business valuation, whereby they determine the potential value of your business to decide how much equity they want for their investment. Factors like business stage, amount of risk based on market trends and expected return based on financial projections will influence this negotiation. Angel investors may request 20-25% for example, while venture capitalists may want up to 40%.

Use funds

Once you’ve negotiated a price, the cash you receive from investors may be used for product development, new hires, debt refinance or working capital.

Share profits

Once your business starts making money, your investors will be entitled to a portion of your profits depending on how much equity they have in your business. This percentage will be paid to your investors in dividends within a predetermined time frame. If your business fails to make money, original investments do not have to be repaid.

Pros and cons of equity financing

Pros

  • No repayment terms. Strictly speaking, you don’t “repay” an investor in your company the way you would a lender. Instead, the initial investment is repaid by the prospect of the future value and profits of your business. While loans can be a great way to fund your business, not having monthly or weekly payments can be very beneficial to startups or businesses that are focused on growth. 

  • Access to advisors. Most investors have invested before, and have likely even run their own businesses, which can make them a good resource as you navigate the ups and downs of running your business. Plus, because they have money invested in your business, your investors will have a special interest in helping your business succeed. 

  • Larger funding amounts. You may qualify for larger amounts of financing with equity investors than with debt financing, especially if you’re a startup business. In addition, if you end up needing more money along the way, an investor may provide additional injections. 

  • Alternative qualification requirements. Rather than business revenue or personal credit, investors will typically look at things like your business idea’s potential and your character.  

Cons

  • Loss of ownership. Any time you receive an equity investment, your percentage of ownership in the business will decrease, which can affect your share of any future profits and value. 

  • Loss of control. When you hand over ownership, you may also be handing over some control of your business, which can become problematic if you and your investors don’t see eye to eye. 

  • Usually for high-growth, high-potential businesses. Equity financing is usually tailored for fast-growing businesses with high growth potential, which means many small businesses won’t be the right fit for this type of financing. 

Common types of equity financing

Angel investing

Angel investors are high-net-worth individuals, most often accredited, who invest their own money in startups or early-stage operating businesses. It is possible to find angel investors through platforms like the Angel Capital Association or AngelList, but they can also be personal acquaintances or members of your professional network. Angel investors are a good option for business pitches or pre-revenue startups because they are often experienced individuals who can provide guidance in addition to funding.

Venture capital

Venture capital (VC) is a type of equity financing that’s similar to angel investing, but instead of wealthy individuals, VCs are usually investing on behalf of a venture capital firm. In general, VC can be a little more difficult to qualify for, and firms usually get involved after angel investors have already made initial investments. VC may be best fit for early-stage, high-growth businesses that have started operating already.

Equity crowdfunding

Equity crowdfunding is a form of equity financing that draws on groups of online investors, some accredited and some not, to fund businesses. Crowdfunding platforms allow potential investors to learn about businesses or business pitches through online profiles created by the business owners. Some may find less pressure in raising capital on crowdfunding platforms, which may make equity crowdfunding a good option for less experienced entrepreneurs or smaller businesses. However, online investing poses additional risk of fraud, so you want to be diligent about the platform you use. In addition, issuing more shares, however small, may dilute your ownership and increase costs more than using an angel investor or VC.

Alternatives to equity financing

  • Small-business loans. Small-business loans are a common type of debt financing, and a fair alternative to equity financing. Loans can be either term loans or lines of credit, and may come from banks, online lenders, credit unions or nonprofit lenders like community development financial institutions (CDFIs).  

  • Small-business grants. If you want to avoid taking on debt and keep control of your business, and you don’t need a ton of funding, consider looking for small-business grants instead. Grants can be tricky to find and usually don’t fund in large amounts, but they can be worth it for funding that you don’t need to pay back. 

  • Self-investing. Tapping into your own savings can be a way to maintain full ownership of your business and avoid paying any interest. However, you risk losing your savings if your business fails, so it’s best to seek the advice of a financial professional to determine whether this option is right for you. 

  • Friends and family. If you have friends or family members you trust and who support you and your business, they may be willing to provide funding. Though this may feel less formal than receiving funding from a bank or other financial institution, you should still create a contract that details the terms of the loan.  

Source: nerdwallet.com

Apache is functioning normally

Are you longing for more beyond your current circumstances? To be more? To do more? To have more? Today’s guest, Dianna Kokoszka, helped countless Realtors become more while serving as the CEO of Keller Williams’ MAPS coaching program. And now, she’s striving to help more people, including listeners like you, reach their true potential. Listen and learn how Dianna took MAPS coaching from a program that was losing money to one that generated over $500 million per year by transforming real estate agents’ lives for the better. Dianna also shares several can’t-miss tips from her upcoming book, Becoming More: You Can’t Get to Better Until You Get to Different. Don’t miss it!

Listen to today’s show and learn:

  • Dianna Kokoszka’s first year in real estate: 104 homes sold [2:22]
  • The beginning of buyer’s agents [4:56]
  • How wrong things can go when you don’t watch your money [6:33]
  • Transforming KW MAPS Coaching into a $500 million business [8:42]
  • The power of the right mindset [9:52]
  • Advice on turning a failing business into a huge success [11:33]
  • Breaking out of your mental cage [15:00]
  • The difference between attitude and mindset [16:10]
  • The seven mindsets of limitation and the seven of liberation [17:22]
  • What dictates the decisions you make [19:38]
  • Bringing out the best in your people [23:51]
  • KW MAPS success stories [27:06]
  • The steps for scaling a real estate business [32:21]
  • Training your brain for success [37:21]
  • Learning from the leaders of thought [39:01]
  • What Blockbuster, RadioShack, and Sears taught us [40:43]
  • Get to better by getting to different [42:18]
  • Mentorship and adding value [42:35]
  • Where to find and follow Dianna Kokoszka [44:19]

Dianna Kokoszka

As CEO of Mega Achievement Productivity Systems (KW MAPS Coaching), Dianna Kokoszka was responsible for building the most powerful coaching and mastermind program in the industry. She led a team of more than 35 coaches, who provided coaching programs tailor-made to help their clients.

In 2009, Dianna created the BOLD (Business Objective: Life by Design) program, which instantly took hold and transformed the careers and beliefs about what was possible for thousands of real estate professionals.

Passionately committed to providing a high level of motivation and accountability to her clients, Dianna has over 30 years of real estate experience. Formerly as team leader of the Keller Williams Realty Denver-West Market Center, she pioneered documentation and accountability systems for real estate agents, helping others to draw upon her prior success as a mega agent.

Her entrepreneurial spirit and industry renown have resulted in many industry honors and awards, including the Stevie Award for the Best Sales Coaching Program; an appointment to the President of the United States’ Business Advisory Council; Denver Entrepreneur of the Year in 1984 and 1991; and Denver Businesswoman of the Year in
1986, 2003 and 2004.

Kokoszka’s tenacity and ingenious methods have not only brought her press coverage, they’ve brought her big business. She believes we are all creative, resourceful and whole. May we empower others to actively engage and participate in their own evolving transformations.

She is a founding member of the John Maxwell Team of Certified Coaches, an author of 19 system books for real estate offices, and loves to add value to others.

Dianna is the author to her new book Becoming More – published with the John Maxwell Publishing Company.

Despite her impressive achievements, Dianna believes that her greatest titles are wife, mother, and grandmother. She lives with her husband, Tony DiCello, on Lake Travis in Lakeway TX, where she loves to waterski or sit on the dock and read her Bible. She enjoys a good clean joke, traveling, reading, and spending her time with her 3 boys and 4
grandchildren.

Related Links and Resources:

It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.

-Aaron Amuchastegui

Source: realestaterockstarsnetwork.com