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What Is the Qualified Business Income Deduction (QBI), and Can You Claim It?

What Is the Qualified Business Income Deduction (QBI), and Can You Claim It?

by | Dec 9, 2023 | Blog

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Are you curious about what the qualified business income deduction (QBI) is and whether or not you can take advantage of it? If so, this article will provide an in-depth overview of the QBI deduction and answer the fundamental question: “Can I claim it?”

Given its complicated nature, understanding how to maximize your tax deductions on business income with the QBI deduction should be a top priority for anyone who is self-employed.

Learn all about it here, from what qualifies as eligible business income to when you can use this deduction and more. Let’s dive in!

What is the Qualified Business Income Deduction?

The Qualified Business Income Deduction (QBI) is a recently established tax deduction allowing businesses to deduct as much as 20% of their earnings. This deduction applies to sole proprietorships, partnerships, S corporations, certain trusts, and estates.

The QBI was introduced under the Tax Cuts and Jobs Act of 2017, which sought to provide tax relief for businesses and individuals by reducing income taxes and introducing other incentives.

The QBI has helped to promote business investment and stimulate economic growth throughout the United States.

How Does it Work?

The Qualified Business Income Deduction (QBI) is a great benefit for small business owners, providing the opportunity to deduct up to 20% of their earnings.

This deduction can be used to reduce your taxable income and thus lower your overall tax liability. Here’s a breakdown of exactly how the QBI works:

  • Eligibility: The QBI applies to sole proprietorships, partnerships, S corporations, certain trusts, and estates.
  • Income Limits: The deduction is limited to businesses with taxable income under $170,050 for single filers or $340,100 for joint filers.
  • Types of Income: The QBI applies to business income from activities such as trade or business activities in which individuals are not materially participating.
  • Amounts Deducted: Businesses are able to deduct up to 20% of their earnings, with certain exceptions such as certain publicly traded partnerships.

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Which Business Types Can Claim the QBI Deduction?

The QBI deduction is for any specified service trade or business (SSTB) with taxable income under the specified limits. Let’s take a look at the business types that can claim this deduction:

Sole Proprietorships

A sole proprietorship is a business owned and operated by one individual. This type of business does not require registration and can be established in most states with little to no paperwork.

Partnerships

Partnerships are businesses owned by two or more individuals. This type of business is generally easier to set up and manage than a corporation.

S Corporations

An S Corporation is a type of business entity that offers limited liability protection to its owners, as well as certain tax benefits.

Certain Trusts and Estates

A trust is an entity that controls and manages assets for the benefit of a third party. An estate is the legal entity created when an individual dies, which includes their assets and liabilities.

Business Entity Can they claim QBI Deduction? Notes
Sole Proprietorship Yes The deduction is claimed on the individual owner’s tax return.
Partnership Yes Each partner can claim their share of the QBI deduction on their individual tax returns.
S Corporation Yes The shareholders can claim their share of the QBI deduction on their individual tax returns.
Certain Trusts and Estates Yes QBI deductions can be taken on the trust or estate’s return if the income is retained, or on the beneficiary’s return if the income is distributed.

Tax Limits and Taxable Income

Your personal tax return determines whether you’re eligible for the QBI deduction, as well as how much of it you can claim.

The tax limits and taxable income limits vary based on filing status and other factors. Here are two tables on taxable income limits for 2022 and 2023:

Filing status Overall Taxable Income Limitation Available deduction
Single Less than $170,050 20%
Single $170,050 to 220,050 Partial deduction for SSTBs
Single More than $220,050 No deduction for SSTBs
Married Filing Jointly Less than $340,100 20% deduction
Married Filing Jointly $340,100 to $440,100 Partial deduction for SSTBs
Married Filing Jointly More than $440,100 No deduction for SSTBs
Filing status Overall Taxable Income Limitation Available deduction
Single Less than $182,100 20%
Single $182,100 to 232,100 Partial deduction for SSTBs
Single More than $232,100 No deduction for SSTBs
Married Filing Jointly Less than $364,200 20% deduction
Married Filing Jointly $364,200 to $464,200 Partial deduction for SSTBs
Married Filing Jointly More than $464,200 No deduction for SSTBs

What is Not Included in Qualified Business Income?

Qualified Business Income is a valuable deduction that may reduce the amount of taxes owed when filing.

However, there are certain items and types of income which may not qualify for this deduction. These include:

  • Income from passive activities – Passive activities refer to those where the taxpayer does not materially participate in the business such as rental income or investments.
  • Non-trade or non-business related income – This includes items such as interest or dividend income, capital gains, alimony received, certain gambling winnings, and other non-business related sources.
  • Reasonable compensation – Reasonable compensation from an S Corporation is excluded from QBI, but allocated expenses such as health insurance and retirement contributions can be deducted from QBI to offset tax liability.
  • Guaranteed payments for services rendered – If a partner provides services to a partnership or LLC, any guaranteed payments they receive are considered to be W-2 income and do not qualify for the QBI deduction.
  • Capital gains – Capital gains are profits made on the sale of investments such as stocks and bonds. These profits also do not qualify for the QBI deduction.

What is Not Included in Qualified Business Income?

Limitations of the QBI Deduction

The QBI deduction may offer considerable tax savings to businesses, but there are certain limitations that can restrict the amount of savings realized through this deduction. Below are a few of the major limitations:

Wage limitation

Higher earners, meaning those with incomes over $170,050 for single individuals or $340,100 for married filing jointly, may be subject to wage limitation restrictions which can reduce or eliminate QBI deduction eligibility.

20% cap

Generally speaking, the QBI deduction does not exceed 20% of qualified business income. While this is generally beneficial for businesses and self-employed individuals, it also means there’s a limit to the amount that can be deducted from taxable income.

Be sure to research how to file self-employment taxes as well as the best tax software for self-employed to make sure you’re paying your correct self-employment tax. Your state might not have one.

Aggregation requirements

The IRS requires certain trades or businesses to combine their incomes when taking advantage of the QBI deduction in an effort to prevent overstating deductions.

This includes multiple entities owned by one joint return filer as well as a partnership and S corporation owned by the same individual.

Employment rules

Employers offering employee benefits such as health insurance and retirement plans may have more complex rules around who qualifies for deductible wages as they relate to the QBI deduction.

Understanding these rules is vital in order to make sure eligible employees are given access to these benefits while staying compliant with IRS regulations.

How is the QBI Deduction Calculated?

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image: keepertax
Calculating the Qualified Business Income (QBI) deduction is not a particularly difficult process, but it’s important to make sure the calculation is done accurately in order to maximize savings. Here’s an overview of how it can be calculated:

Determine net income

The first step is to calculate the net income of the business by subtracting allowable deductions from gross income. This includes costs such as labor, cost of goods sold, and any other expenses related to running the business. Make sure to learn about the standard deduction 2022.

Subtract for depreciation, amortization, and depletion

Once net income has been determined, specific items such as depreciation and amortization need to be subtracted from this amount in order to arrive at a new figure referred to as “Qualified Business Income.”

Calculate taxable income without QBI deduction

To get total taxable income without taking advantage of the QBI deduction, subtract QBI from net income, then determine taxable income using normal methods.

Calculate taxable income with QBI deduction

To calculate taxable income with the QBI deduction applied, simply subtract 20% of qualified business income from total taxable income before adding on taxes owed on other forms of non-business related incomes such as capital gains or alimony received.

How to Claim the Qualified Business Income Deduction

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Claiming the Qualified Business Income (QBI) deduction can significantly reduce your tax burden, but it requires careful attention to detail and adherence to IRS guidelines. Here’s a step-by-step guide to help you navigate the process:

Step 1. Start with Form 1040

Start with Form 1040, the backbone of your tax return. This form captures your overall income, including wages, dividends, and, of course, business income.

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Filling out Form 1040 helps determine your base taxable income before taking the QBI deduction into consideration. It’s essential to accurately report all income streams here, as they collectively determine your eligibility for the QBI deduction.

Here’s a breakdown of its key points:

  1. Purpose of Form 1040: Form 1040 is used to calculate your base taxable income. This is the starting point before applying any specific deductions, including the QBI.
  2. Accuracy in Reporting All Income: The form requires you to report all income streams, not just business income. The comprehensive income reported on Form 1040 impacts your eligibility for the QBI deduction.
  3. Inclusion of Various Income Types: Besides your business income, it’s crucial to include all other income types. This can include capital gains (profits from the sale of property or investments), alimony received (if applicable), and any other income sources. These additional income streams contribute to your overall taxable income, which is a factor in determining your eligibility and the amount you can claim for the QBI deduction.

Step 2. Fill out Schedules C & SE

Depending on the type of business you own, you may need to fill out additional forms such as Schedules C and SE which detail your income from self-employment and any related expenses. Schedule C

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is used to report income from an unincorporated business, while Schedule SE

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is used for self-employment earnings. Make sure nondeductible expenses such as home office expenses aren’t included on these forms.

Key Considerations

  • Non-Deductible Expenses: Be mindful of expenses that are not deductible on these forms. For instance, personal home office expenses must meet specific IRS criteria to be deductible. Make sure to differentiate between personal and business expenses clearly.
  • Accuracy is Crucial: Inaccuracies in reporting income or expenses on Schedules C and SE can lead to errors in your QBI deduction calculation. Ensure that all entries are accurate and backed by documentation.
  • Consulting a Professional: Given the complexities of tax laws and the potential for nuanced situations in your business finances, consulting with a tax professional can be very beneficial. They can provide guidance on what can and cannot be deducted and help ensure that your forms are filled out correctly.

By thoroughly and accurately completing Schedules C and SE, you lay the groundwork for calculating your QBI deduction correctly. This step is crucial in ensuring you take full advantage of the tax benefits available to you as a self-employed individual. Remember, the more precise your inputs on these forms, the more accurate your QBI deduction calculation will be.

Step 3. Calculate net income

Once all relevant forms have been filled out, total net income can be calculated by subtracting allowable deductions from gross income on Schedule C or SE. You’ll want to make sure you include all relevant deductions, such as labor costs and cost of goods sold.

Guide to ensure accuracy in calculating net income

Calculating your net income is a pivotal step in claiming the Qualified Business Income Deduction. Here’s a detailed guide to ensure accuracy in this process:

Understanding Gross Income

  • Definition: Gross income is the total amount your business earned before any deductions are applied. This includes all revenue streams such as sales, services, returns, allowances, and any other income.
  • Where to Find It: On Schedule C, your gross income is reported at the top of the form, reflecting the total income from your business operations.

Identifying Allowable Deductions

  • Types of Deductions: Allowable deductions encompass a range of business expenses. These can include labor costs (like wages paid to employees), cost of goods sold (COGS), office supplies, travel expenses, advertising costs, and other necessary business expenses.
  • Criteria for Deductions: To be deductible, expenses must be both ordinary (common and accepted in your field of business) and necessary (helpful and appropriate for your business). Ensure each expense meets these criteria.

Calculating Net Income

  • Subtracting Deductions from Gross Income: On Schedule C, subtract your total business expenses from your gross income. This calculation yields your net business income, which is the figure you’ll use for further QBI calculations.
  • Importance of Accuracy: It’s crucial to be thorough and precise in this calculation. Underreporting income or overstating deductions can lead to inaccuracies in your QBI deduction and potentially invite scrutiny from the IRS.

Special Considerations

  • Personal vs. Business Expenses: Be vigilant in separating personal expenses from business expenses. Only business-related expenses should be included in your calculations.
  • Documentation: Keep detailed records and receipts of all expenses. This documentation is essential not only for accurate calculation but also as proof in case of an IRS audit.
  • Professional Advice: Consulting a tax professional can be very helpful, especially if your business has complex expenses or you’re unsure about specific deductions.

Review and Double-Check

  • Revisit Calculations: After calculating your net income, review it to ensure all figures are accurate and all relevant expenses have been included.
  • Cross-Referencing: Compare your net income with your financial records and bank statements to ensure consistency.

Step 4. Complete Form 8995

Form 8995

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Details qualified business income and will help calculate eligibility for the QBI deduction and how much can be deducted. To fill out the form, you’ll need to enter total net income from Step 3, as well as any special deductions such as depreciation, amortization, or depletion.

Step 5. File tax return

Finally, after all of the required forms are completed, you can file your tax return. Here is a breakdown of the key steps to take:

A. Finalizing Your Tax Forms

  • Complete All Necessary Forms: Ensure that all forms related to your business income, including Schedule C, Schedule SE, and Form 8995 for the QBI deduction, are thoroughly completed.
  • Review for Accuracy: Double-check all entries on these forms for accuracy. Ensure that income, deductions, and the QBI calculation are correctly reported.

B. Assembling Your Tax Return

  • Attach Form 8995: Form 8995, which details your QBI deduction, should be attached to your tax return. This form is vital as it communicates to the IRS that you are claiming the QBI deduction.
  • Organize Supporting Documentation: While not required to be submitted, it’s essential to have all relevant documentation organized and readily available. This includes records of income, expenses, and any calculations related to your QBI deduction.

C. Filing the Tax Return

  • Choose Your Filing Method: You can file your taxes electronically or by mail. Electronic filing is generally faster, more secure, and offers quicker confirmation that the IRS has received your return.
  • Use Trusted Tax Software or a Professional: If you choose to file electronically, you can use IRS-approved tax software. For added confidence, consider using a qualified tax professional who can ensure that your return is accurate and compliant with the latest tax laws and regulations.

D. Seeking Professional Advice

  • Consult a Tax Professional: Tax laws are complex and frequently change. Consulting a tax professional can provide you with tailored advice and peace of mind, ensuring that your tax return, including the QBI deduction, is prepared correctly.
  • Tax Planning for the Future: A tax professional can also assist in tax planning for future years, helping you make informed decisions to increase your QBI deduction in the following years.

E. After Filing

  • Keep Records: Retain copies of your tax return and all supporting documents for at least three years. These records are crucial in the event of an IRS audit.
  • Monitor for IRS Communication: After filing, watch for any communication from the IRS. If there are questions or additional information is required, respond promptly to avoid delays or complications.

F. Understanding Your Tax Liability

  • Review Your Return for Insights: Once your return is filed, review it to understand your tax liability and how the QBI deduction impacted your taxes.
  • Plan for Next Year: Use this information to plan for the next tax year, considering any changes in your business that might affect your QBI deduction.

QBI Deduction Example

Let’s look at a concrete example of how the qualified business income deduction (QBI) works in practice. Imagine a married filing jointly couple who earned $200,000 in taxable income from their business. Assuming all other criteria are met, they will be eligible for the QBI deduction and can deduct up to 20% of their earnings, or $40,000. This means the couple would only end up paying taxes on the remaining $160,000.

The Bottom Line

The qualified business income deduction is a complex tax break that has the potential to save you a lot of money, but it comes with a lot of rules and restrictions.

This article has provided an overview of the QBI deduction and some of the key considerations you need to take into account when determining if you’re eligible.

By doing your research and staying up to date on tax laws, you can make sure that you are taking full advantage of this valuable deduction. When in doubt, consult with a tax professional or follow the free tax advice the IRS provides on its website.

QBI deduction reduce

What does the QBI deduction reduce?

The qualified business income deduction (QBI) reduces taxable income and can help lower the overall amount you have to pay in taxes. By reducing your taxable income, the QBI deduction can effectively reduce your tax liability.

Can you claim qualified business income deductions on your rental property?

Yes, it is possible to claim the qualified business income deduction (QBI) on rental properties if they meet certain criteria.

To qualify for the QBI deduction, the property must be used in a trade or business and generate income. The rental activity must also be performed with some regularity and consistency, meaning that it is not just an occasional or incidental activity.

Finally, you must be actively involved in managing the rental property in order to be eligible for the deduction.

Is interest income included in the qualified business income tax deduction?

No, interest income is not eligible for the qualified business income deduction (QBI). The QBI deduction is intended to reduce the taxable income of businesses that meet certain criteria, such as being engaged in a trade or business with regularity and consistency and actively managed by the taxpayer.

Interest income, however, does not qualify as business income under this criteria and cannot be included in the QBI deduction.

qualified business income deduction

Who Cannot take the QBI deduction?

Generally, anyone who meets the criteria outlined above can take the QBI. This includes individuals, trusts, and estates as well as pass-through businesses such as partnerships and LLCs.

However, there are certain taxpayers who are not eligible to receive the QBI deduction. These include specified service trades or businesses (SSTBs), qualified joint ventures, C corporations, certain single-member LLCs, and taxpayers excluded from claiming this deduction under the foreign or possession of income provisions.

Who qualifies for the 20% pass-through deduction?

In order to qualify for the 20% pass-through deduction, you must meet several criteria, including the following:

  • Business Structure: Only entities structured as a sole proprietorship, partnership, S corporation, or an LLC treated as a sole proprietorship or partnership for tax purposes qualify. C corporations do not qualify for the deduction.
  • Qualified Business Income: To qualify, the income must be from a U.S. trade or business. Qualified business income includes the net amount of income, gain, deduction, and loss from any qualified trade or business. Importantly, it doesn’t include investment-related income, wages, or reasonable compensation received by shareholders of S corporations or partners in a partnership.
  • Taxpayer’s Taxable Income: The taxpayer’s taxable income must not exceed certain thresholds, which for the tax year 2021, is $164,900 for single filers and $329,800 for joint filers. If taxable income is above these thresholds, the amount of the QBI deduction may be limited or phased out. These thresholds are adjusted annually for inflation.
  • Type of Business: For taxpayers with income above the threshold, the deduction may be limited or not available at all if the business is a specified service trade or business (SSTB). SSTBs include businesses in the fields of law, health, consulting, athletics, financial services, and any business where the principal asset is the reputation or skill of one or more of its employees or owners.
  • W-2 Wages and Capital Limitations: For taxpayers with taxable income above the threshold, the deduction is subject to a limit that’s the greater of 50% of W-2 wages paid by the business or 25% of W-2 wages plus 2.5% of the unadjusted basis immediately after acquisition of all qualified property (tangible property subject to depreciation used in the business).

As the above points illustrate, the 20% pass-through deduction is complex and depends on various factors. It’s recommended that individuals consult with a tax professional to ensure they fully understand these rules and how they apply to their specific circumstances.

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19 Recession Proof Businesses

19 Recession Proof Businesses

by | Dec 8, 2023 | Blog

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Recent world events have been leading us towards a recession for a while now and economic predictions suggest it will arrive sooner rather than later. This is bad news for a lot of businesses, but not all business ideas are at risk of an economic downturn.

To be recession proof means that your business continues to thrive even while other industries are cutting costs or laying people off. It also means preparing for a recession.

19 Amazing Recession Proof Business Ideas

A recession proof business can be very profitable for people both during the good times and the bad. No matter what state the economy or the stock market is in, certain business ideas such as those listed below all stand a great chance of continuing to prosper amidst all the other financial doom and gloom.

There are even many famous or historically successful businesses that were started during recessions. Disney was founded at the beginning of the Great Depression in the late 1920s, while the Hewlett and Packard electronics company started work in the next recession that followed in the late 1930s.

The best recession proof businesses listed below have much less to fear from rising interest rates and a fluctuating GDP than most other businesses, with many having the potential to actually do even more business than usual.

1. Food and Beverage Business

The food and beverage industry is one of the most recession proof industries due to the fact that everyone still needs food and drinks to live. It is not a luxury that can be put aside during difficult times, so businesses in this sector can continue to do well even during a recession.

The food retail industry includes all foodstuffs sold at grocery and convenience stores, drug stores, mass merchandisers and foodservice facilities. Between 1992 and 2019, the total sales of these food retail services in the US topped $6.22 trillion, so there is clearly money to made in this industry.

Let’s look at some particular food business ideas and why they are able to thrive during a recession.

Candy Sales: Comfort foods might be considered a luxury by some, but their relatively inexpensive cost for the brief pleasure they provide for consumers keeps their popularity high even during hard times. One of the most famous treats in the entire candy industry, Mars Bars, was even invented during the Great Depression of the 1930s.

Grocery stores: The smaller grocery and convenience stores can often see an upturn in customer numbers during a recession as some people try to reduce their spending by shopping at smaller stores instead of the large superstores.

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Food Delivery: There is a large number of people who simply don’t like cooking, but eating out regularly may not be financially sensible during a recession. This particular customer demographic can help food delivery services do well during an economic downturn.

A Vending Machine Business: This business model is all about providing the daily necessities of life including snacks and beverages. Another benefit of a vending machine is that it can be moved to a high traffic area should sales decrease in its original spot.

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Fast Food: The fast food industry attracts a lot of stock investors not only because of its tendency to boom during good times, but also because of its historic sturdiness during economic downturns.

Dollar Stores: Many people will rethink their shopping habits during a recession, and that’s how business owners like those running a dollar store offering cheaper alternatives will thrive.

2. Healthcare Services

The healthcare industry continues to grow even during recessions due to a combination of rising demand and the constant advancement of science and medicine.

There will always be a need for certain healthcare services, with some in particular tending to increase in demand during harder times.

Here are three recession proof healthcare services to consider.

Working with Seniors: Aging populations always require care regardless of the economic situation. This is especially true today as the ‘baby boomer’ generation moves into old age. There are a lot of older people today who own property, are financially comfortable, and can easily afford the care they need during their golden years.

Contraceptives: This is another healthcare service that is always in demand, but especially so during a recession. This is because recessions often put a couple’s plans to start a family on hold. The many contraceptives services available will help them to plan their family according to the state of their finances.

Pharmaceuticals: Most demand for pharmaceutical healthcare is relatively inflexible. Such necessary treatments are not particularly price sensitive, nor can they often be put off until a more financially stable time.

3. Pet Care Business

With total sales of over $103 billion in 2020, the US pet industry is currently breaking records with its rising popularity. That number, published by the American Pet Products Association, was an increase of 6.7% on the 2019 figures.

Growth is currently predicted to continue at a rate of 5.8% through 2021, though the historical average yearly growth of 3% to 4% still makes the US pet industry an interesting business proposition, even during a recession.

The following pet care services will always be in demand.

Veterinary Services: The beloved pets of Americans still need care regardless of what the economy is doing, so veterinary services generally remain unaffected by recessions.

Grooming Services: Pet ownership has greatly increased thanks to the millennial generation who are buying more pet animals than previous generations. Market research company Mintel discovered 40% of Americans aged between 30 and 49 are highly interested in pet care such as grooming services.

dog grooming business, recession proof businesses

Essential Pet Products: The same research revealed that over half of Americans in their 30s own a type of cat, with three-quarters of the same age group owning dogs. As pet ownership increases, essential pet care products will only rise in demand.

4. Renovation and Repair Industry including Plumber, Utility Services, and Auto Repair Services

The home renovation and repair industry includes a number of essential services that remain recession proof. With home improvement expenditure in the US well over $400 billion each year, it is a industry with lots of potential for success.

Here are some good business ideas that continue to be in demand even during recessions.

Plumbing: When there is a plumbing emergency at home or work, it is just not possible to wait for a more financially stable period to get it fixed.

Auto Repair Services: Many people are reliant on their cars and trucks to get from home to work and cannot afford to be without a vehicle, so auto mechanics will continue to be in demand during a recession.

Equipment Repair and Maintenance Services:Any business reliant on particular equipment will need access to a repair and maintenance service. For example, office workers are not usually equipped with the skills to repair a printer, so they will need to call in the right people if they have a problem.

Home Repair: Most people are also not skilled at home repairs so when an issue arises, experts with the skill and knowledge will be required regardless of the state of the economy.

Utilities: Home utilities such as water, gas and electricity are absolutely necessary at all times, so businesses who work in these areas can still thrive during hard times.

 

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5. Real Estate and Property Management

Recessions can actually be good for the real estate and property management sector, as it is often the best time to invest in property.

As real estate includes any property consisting of land and the buildings on it, ultimately it is an industry with an essential and very valuable product.

The MSCI’s statistics for 2019/20 showed the US real estate industry to be worth $9.6 trillion, so there is serious money to be made selling a home or business premises even during a recession.

Property Stagers: Professional property stagers help a seller make a quick sale and maximize their property price. This is why it is such a valuable job that will always be in demand.

Real Estate Agencies: The knowledge, network and experience required in the job of selling properties is not something ordinary folks have, so real estate agencies are in a good position to continue doing well during a recession.

A Rental Agent Business: Recessions can be a good time for the wealthy to invest in properties, but the not so wealthy still somewhere to live. Rental agents should always be able to find a sizable amount of tenants needing a home and businesses needing office space to cater to.

6. Baby Products Business

While many people make adjustments to their spending during a recession, spending on their children is not where they tend make the sacrifices. Historically, products for babies continue to sell well during economic downturns as families look to reduce spending in other areas.

Entrepreneurs moving into the baby products business could be very successful, as the industry is projected to massively increase in value over the next few years.

The baby care products market was estimated to be worth over $67 billion in 2020, with that set to rise to well over $88 billion by 2026.

7. Child Care

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Similarly to the baby products business, the child care market has also grown in size and is set to continue. In 2019 the US child care industry was valued at $54.3 billion, and is projected to rise at a compound annual growth rate of 3.9% up to 2027.

As more and more mothers are empowered to continue their careers after child birth, the child care market will only increase in value.

8. Financial and Accounting Services

Accountancy and other financial information services will always be in demand during a recession. This is especially true nowadays as more and more complex laws and regulations are introduced each year.

It can be a very lucrative industry too, with the revenue of the US accounting industry forecast to have generated over $110 billion dollars during 2020 alone.

This sector endures because it is crucial for businesses to have their finances in order regardless of the state of the economy, so there are numerous financial and accounting services which continue to do well during hard times.

Tax Prep: The consequences of not declaring the right tax information is a serious matter, so businesses and wealthy individuals cannot afford to take risks with their tax prep.

Accounting Services: Astute business owners hire professional accounting services even during a recession as they can save the business money by ensuring everything is in order.

Financial Planning: Many wealthy individuals and organizations may seem content during a recession, but their fortunes can quickly diminish without proper financial planning using all available information.

Bookkeeping: Few business owners and entrepreneurs have sufficient bookkeeping skills and spare time to record their financial information correctly. It can be an exhaustingly time-consuming task for those lacking in bookkeeping experience, so hiring a specialist bookkeeper will continue to be a popular option.

9. Freelancing including Virtual Assistant, Writer and More

Freelancing has the potential to be one of the most recession-proof businesses in the world, even compared directly to many of the others on this list. Companies can save a lot of money by outsourcing certain tasks and activities to freelancers. This lets them pay for those tasks individually as and when they are needed rather than hiring a permanent employee.

Being a writer might conjure images of people writing editorials for the New York Times or the table of contents in a novel, but it is much more to do with creating content for all the business websites that need regular new content to stay relevant and improve their search engine ranking. Content creation, news articles, and other kinds of information content require a skilled writer.

Another popular option is that of a freelance virtual assistant who provides a variety of administrative services to different businesses and organizations from their own home.

10. Cleaning Companies

The state of the economy has absolutely no bearing on the many rules and regulations that commercial and public spaces are required to adhere to for hygiene and safety reasons.

For this reason alone, a cleaning service is recession proof and will continue to do good business during an economic downturn.

The list of organizations that require regular cleaning services include any and all medical and care facilities, stores and shopping centers, beauty salons and spas, restaurants and other hospitality venues, plus all recreational facilities and public spaces where people gather.

11. Tattoo Parlors

An interesting twist when compiling a list of recession proof businesses is the inclusion of the tattoo parlor.

It doesn’t seem to make sense on the face of it as tattoos must surely be considered a luxury item, but the fact remains that tattoo parlors continue to do well even during a recession.

It is probably because of the relative inexpensiveness of a tattoo compared to how long it lasts, plus getting ‘inked’ has been growing in popularity as each generation of people emerges.

12. Businesses Providing Retail Therapy

There are many items which are consumer staples such as toiletries whose sales remain steady during a recession. There are also several other types of retail which also does well even when the condition of the economy suggests people should be buying less.

Here are three more recession proof business ideas in the retail sector.

Luxury Retail: The consumers of this retail market are already wealthy and financially secure to begin with and will usually only be marginally affected by a recession. Businesses serving these customers can expect their sales to remain fairly consistent.

Discount Stores: At the other end of the financial spectrum are those people who are massively affected by recessions and need to make a lot of changes to their buying habits. A recession will typically see an influx of new customers to discount stores.

Pawn Shops: People who sell items to pawn shops often see them as an excellent short-term loan option, while buyers of pawn shop goods are attracted to the cheaper goods. Both of these types of customers ensures pawn shops do very well during recessions.

13. Courier Services

Courier services are a lot less vulnerable to economic slumps as there will always be a need to send packages locally, nationally and internationally.

A recession can even see courier services acquire new customers as businesses who usually deliver their own goods cut back on costs by outsourcing to one courier or another.

14. Beauty Business

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The enduring success of the beauty industry as a recession proof business is actually far less to do with vanity than might be expected.

The ‘Lipstick Effect’ is a phenomenon where consumers continue to spend their money on small indulgences during recessions to compensate for the larger sacrifices they make. The name comes from the fact that it is especially applicable to the beauty industry.

Here are a couple of beauty businesses which continue to do well during a recession.

Nails: Manicures are inexpensive luxuries and their popularity doesn’t diminish during periods of financial difficulty.

Hair salons: Hairdressing has long been recognized as one of the very last expenditures people are willing to sacrifice to save money.

15. Technology Support

Computer and information technology jobs are expected to boom over the next few years.

The advancement of Big Data, cloud computing and security for the likes of credit cards means that technology support is a job with high recession resistance.

16. Funeral Services

The only certainties in life are… well, you know how it goes.

Recession or not, the need for a dignified last resting place after we reach the inevitable destination of all who journey through life will always be there.

Whether it is burial or cremation, the job of a funeral service will always be in demand regardless of the economy.

17. Staffing Agencies

There continues to be a lot to do for staffing agencies even when many companies are cutting costs and laying off staff.

Those cuts will be coming from industries heavily affected by a recession, but as you can see from this list, there are a lot of industries who thrive in such times and will continue to need more staff.

18. Education Businesses

Education and training courses are always in demand so a business providing such can continue to be successful during a recession.

A lot of people will be losing jobs and trying to retrain in another area which immediately boosts the amount of consumers available.

By providing education and training courses, either on site or at home, these kinds of businesses can actually thrive off a recession while simultaneously helping the country get back on its economic feet.

19. Digital Marketing

Digital Marketing Agency

No matter what the economy is doing, digital marketing such as SEO, SEM, social media campaigns and email marketing will always be one of the most cost-effective ways reach new customers.

A recession will only magnify the low investment needed to generate more leads and conversions via a sound SEO strategy.

Digital marketing also provides a wealth of other benefits besides bringing in more customers. It is very flexible which allows a business to adapt to changing circumstances.

An Overview of the Best Recession Proof Businesses

Business Reasons for Recession-Proof
Food and Beverage Business Essential need for food and drinks
Healthcare Services Rising demand and constant advancement of science and medicine
Pet Care Business Increasing popularity and rising pet ownership
Renovation and Repair Industry including Plumber, Utility Services, and Auto Repair Services Essential services for home and vehicle maintenance
Real Estate and Property Management Recession is a good time to invest in property
Baby Products Business Spending on children remains steady during recessions
Child Care Increasing demand as more mothers continue careers
Financial and Accounting Services Crucial for businesses regardless of economic state
Freelancing including Virtual Assistant, Writer and More Cost-effective outsourcing during economic downturns
Cleaning Companies Hygiene and safety regulations remain constant
Tattoo Parlors Relative inexpensiveness and growing popularity
Businesses Providing Retail Therapy Luxury retail, discount stores, and pawn shops
Courier Services Always a need for package delivery
Beauty Business Lipstick Effect” and small indulgences during recessions
Technology Support Job growth in computer and information technology
Funeral Services Demand for dignified last resting place
Staffing Agencies Industries that thrive during recessions need more staff
Education Businesses Increased demand for education and training courses
Digital Marketing Cost-effective and flexible marketing strategies

Is a recession a good time to start a business?

A recession can indeed be an excellent time to start a business as the costs can be much lower than starting one during a boom period.

Established suppliers, manufacturers and vendors that you may need to work with to start your business will be more likely to negotiate on their rates during a recession.

If you can get a business idea like those listed above up and running during an economic downturn, then you will have a great chance of achieving even more success once the economy recovers. Getting started during a recession will also set your business up well for the long haul.

Also importantly, during a recession, there’s often less competition, allowing your business to stand out more easily. This period can also be a time of innovation, as challenging times often spur creativity and unique solutions, which can be the lifeblood of new businesses.

What are the most recession proof businesses for Americans?

Healthcare will always be a recession proof industry as we simply cannot do without it. There are several different paths you can take, from providing care for seniors to supplying pharmaceuticals. If you can get a healthcare business up and running, then you will always have customers.

A cleaning business will also always have customers as there are so many laws and regulations that require organizations and public spaces to be kept clean for health and safety reasons. This goes for all kinds of business premises and areas open to the public so that this business idea can be very lucrative even during a recession.

With so many businesses operating online, the importance of digital marketing is only going to increase. Starting this kind of business opens up many opportunities that will still be there during a recession.

Additionally, the flexibility and adaptability of digital marketing make it resilient to economic downturns, as businesses seek cost-effective ways to reach and engage customers in challenging times. This adaptability allows digital marketing businesses to pivot strategies quickly, meeting the evolving needs of clients even when the economic landscape shifts dramatically.

What products sell well during a recession?

During a recession, consumer spending habits tend to shift towards essential items and affordable luxuries. Here’s a breakdown of the types of products that typically see sustained or increased demand:

  • Staple Items:
    • Food and Beverages: Essential food items and basic beverages continue to be in demand as they are daily necessities.
    • Toiletries: Products like soap, toothpaste, and toilet paper are indispensable, maintaining steady sales even during economic downturns.
  • Utilities:
    • Gas, Electricity, and Water: These are fundamental utilities that households and businesses cannot function without, making them recession-resistant.
    • Telecommunication Services: With the increasing reliance on digital communication, services like internet and mobile connectivity also fall into this essential category.
  • Affordable Luxuries:
    • Premium Cosmetics: Consumers often still seek small indulgences during tough economic times. Affordable luxury items like premium cosmetics can experience a surge as people look for ways to treat themselves on a smaller budget.
    • Entertainment Subscriptions: Services like streaming platforms may see increased usage as people spend more time at home and look for cost-effective entertainment.
  • Economical Alternatives:
    • Discounted or Value Products: Products that offer value for money, including generic or store brands, often see an uptick as consumers become more price-conscious.
    • DIY and Home Cooking Supplies: With more people looking to save money by doing things themselves, products related to home repair, gardening, and cooking can become more popular.

In essence, during recessions, products and services that cater to basic needs, offer value for money, or provide affordable indulgence tend to maintain stability or even grow in demand. This shift in consumer behavior reflects the focus on essential living and the search for economic ways to maintain lifestyle quality.

How do you create a recession proof business?

Here are five steps you can take to make your company recession proof for job security.

  1. Choose the right business:
    • Needs vs. Wants: Begin by focusing on businesses that cater to people’s fundamental needs rather than their wants. Essential services or products, such as food, healthcare, or utilities, are often less impacted during economic downturns.
    • Recession-resistant sectors: Certain industries tend to be more resilient during economic slumps. Examples include repair services (people tend to fix things instead of buying new), discount stores, and education (many seek additional skills or certifications during unemployment).
  2. Be adaptable:
    • Stay informed: Keep an eye on market trends, changes in consumer behavior, and any shifts in the economic landscape.
    • Versatility in offerings: Diversify your products or services. Don’t rely on a single income stream. This spreads risk and allows you to cater to varying customer needs.
    • Lean operations: Adopt a lean business model. Minimize waste in your processes, be it in production, services, or management, to allow for more flexibility and rapid adjustments.
  3. Negotiate with vendors:
    • Build strong relationships: Before negotiation becomes necessary, build trustworthy relationships with your suppliers. Being a loyal and reliable partner can pay off during hard times.
    • Seek bulk deals or long-term contracts: By committing to longer-term relationships or larger purchases, you might be able to secure more favorable terms or discounts.
    • Explore alternative suppliers: Don’t be reliant on a single vendor. Having alternatives can provide negotiation leverage and ensure continuity if one vendor faces difficulties.
  4. Cash flow management:
    • Budget wisely: Regularly review and adjust your budgets. Prioritize essential expenditures and cut back on non-essential costs.
    • Emergency funds: Create a reserve of funds that can cover operational costs for several months. This cushion can be invaluable when revenues dip.
    • Monitor receivables: Ensure timely collection of payments. Consider offering discounts for early payments or imposing penalties for late ones.
  5. Listen to your customers:
    • Engage regularly: Use surveys, feedback forms, or direct communication to understand their evolving needs and concerns.
    • Adapt offerings: If customers are seeking more cost-effective solutions, consider introducing budget-friendly options or payment plans.
    • Strengthen loyalty: Offer loyalty programs or incentives to retain your customer base. Happy, loyal customers can provide stable revenue even in unstable times.

Which type of business is not recession proof?

There are some business ideas which are very prone to performing badly during a recession. These at risk business ideas include:

Mid-market brands

Mid-market brands often occupy a challenging position in the market landscape.

While they might offer a better quality or unique selling proposition compared to budget options, they still face fierce competition from these cheaper alternatives. This is particularly evident during economic downturns when consumers become highly price-sensitive.

Many such brands operate with significant debt, owing to expansion strategies or capital-intensive operations, which makes them vulnerable during economic slumps.

Moreover, their market positioning often restricts them from rapidly diversifying into other segments or niches, limiting their adaptability during tough times.

Bespoke startups

Startups that cater to niche markets or offer specialized services/products can experience soaring success during economic booms. Their unique propositions often attract a dedicated customer base, and they might enjoy limited competition.

However, the flip side is their vulnerability during economic recessions. If their core product or service isn’t essential or inherently recession-resistant, these startups can face severe challenges. Their niche focus might hinder quick pivoting, and they may lack the financial reserves of more established businesses to weather prolonged downturns.

Mid-range restaurants

The food industry is diverse, with different segments reacting differently to economic cycles. Fast food joints, delivery services, and budget snack brands often see a surge in demand during recessions.

People look for cost-effective, convenient options, and these businesses cater perfectly to that demand. In contrast, mid-range restaurants, which strike a balance between quality and affordability, can face challenges. Their primary customer base, often consisting of middle-income earners, might cut back on dining out to save money, instead choosing to prepare meals at home.

This shift in consumer behavior can lead to decreased footfalls and revenues, posing a significant threat to the survival of these restaurants, especially those without a strong takeout or delivery infrastructure.

In essence, while every business type has its strengths, vulnerabilities become glaringly evident during economic downturns. Businesses must recognize these vulnerabilities and strategize proactively to minimize risks and ensure sustainability.

Image: Depositphotos



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The 10 Best Apps for YouTube Creators

The 10 Best Apps for YouTube Creators

by | Dec 8, 2023 | Blog

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Efficiently managing and boosting your YouTube channel greatly depends on using the right applications. These apps can streamline the process of learning how to use video marketing by making tasks smoother, improving content quality, and engaging your audience effectively. In this article, we’ll explore the top ten apps for YouTube that are a perfect fit for creators.

The Official YouTube App

When it comes to YouTube business ideas, the official YouTube app serves as a cornerstone. It offers essential features like video uploading, analytics, and interaction with viewers.

This app becomes your control center, helping you stay updated on comments, track video performance, and maintain your channel’s momentum. For businesses, it may even help you discover educational content or learn how to find influencers on YouTube using the app’s easy search and browse functions. Familiarizing yourself with its functionalities is the first step toward effective channel management.

Beyond the YouTube App: Why Additional Apps Matter

While the YouTube app covers the basics, a slew of additional apps can elevate your channel management game. These video and live streaming apps specialize in analytics, keyword research, and video editing. They provide insights into audience behavior, help you discover trending topics, and allow you to craft polished videos.

By expanding your toolkit, you empower yourself to enhance content and engagement, leading to substantial channel growth.

Categories of Apps for YouTube Creators

As a YouTube creator, you’ll find a wealth of apps to enhance your content and audience engagement. Let’s explore different app categories for creators…

YouTube Video Editing Apps

Crafting captivating videos is key, and a video editing app offers tools to finesse your content, add effects, and ensure professional quality. These apps empower creators to enhance visuals, improve pacing, and create engaging narratives.

Thumbnail Creation Apps

First impressions matter. Thumbnail creation apps enable you to design eye-catching thumbnails that entice viewers to click and watch your videos. With customizable templates and graphics, you can create thumbnails that reflect your video’s essence and spark curiosity.

Analytics and SEO Apps

Understanding your video’s performance and optimizing its visibility is crucial. Analytics apps provide insights, while YouTube SEO apps guide you in using keywords effectively. These apps help creators track audience engagement, identify content trends, and refine their strategies for better reach.

Video Templates

For creators seeking efficient video production, templates offer pre-designed layouts that maintain a polished look, saving time without compromising quality. These templates provide a consistent visual style, making it easy to churn out content while adhering to your channel’s branding.

Screen Recorder Apps

Creating tutorials or gameplay content? Screen recorder apps enable you to capture your screen’s action, making it easy to explain and demonstrate concepts. These apps are invaluable for creators who want to share step-by-step guides, software demonstrations, or immersive gameplay experiences.

Royalty-Free Music Apps

Adding music enhances videos, but copyright issues can arise. Royalty-free music apps grant access to a library of tracks that elevate your content while sidestepping legal concerns. These apps offer a wide range of music genres, ensuring you find the perfect soundtrack without worrying about copyright strikes.

Selecting the Best Apps to Complement Your YouTube Experience: Our Methodology

For those utilizing YouTube as a platform, the right apps can make a significant difference in content quality, audience engagement, and overall channel management. To evaluate the top apps for YouTube, we employed an objective methodology. The factors we considered are outlined below and rated by their importance on a scale of one to ten, where ten is most important and one is least important. Here are the key factors we considered when building our list:

  1. Video Editing Capabilities (Importance Scale: 10/10)
    • Advanced editing features like cutting, merging, and overlaying.
    • Effects, filters, and transitions to enhance video quality.
  2. Ease of Use (Importance Scale: 9/10)
    • User-friendly interface suitable for beginners.
    • Quick learning curve.
  3. Cost-Effectiveness (Importance Scale: 8/10)
    • Reasonable pricing for the features offered.
    • Free or trial versions with essential functionalities.
  4. Integration with YouTube (Importance Scale: 9/10)
    • Seamless uploading and syncing with YouTube.
    • Features for managing YouTube analytics and comments.
  5. Audio Tools (Importance Scale: 7/10)
    • Quality audio editing features.
    • Access to royalty-free music and sound effects.
  6. Thumbnail and Graphics Creation (Importance Scale: 8/10)
    • Tools to create eye-catching thumbnails and graphics.
    • Customization options to align with branding.
  7. Analytics and SEO Tools (Importance Scale: 8/10)
    • Insights into video performance and audience demographics.
    • SEO tools for optimizing video titles, descriptions, and tags.
  8. Collaboration Features (Importance Scale: 6/10)
    • Facilities for team collaboration and project sharing.
  9. Mobile Compatibility (Importance Scale: 7/10)
    • Mobile app availability for on-the-go editing and management.
  10. Support and Resources (Importance Scale: 6/10)
    • Access to customer support.
    • Availability of tutorials and learning materials.

Based on these criteria, we’ve scoured the app landscape tailored for YouTube. Our findings include tools for creators seeking to enhance video production, channels looking for growth analytics, and viewers wanting an enhanced viewing experience. Whether you aim to produce viral content or simply enjoy content seamlessly, our recommendations aim to bolster your YouTube journey.

The 10 Best Apps for YouTube Creators

Elevate your YouTube game with these top 10 apps. From analytics to editing, these tools are essential for boosting your channel’s impact and engagement.

1. VidIQ

apps for youtube

VidIQ offers in-depth analytics, keyword research, and competitor insights, aiding creators in optimizing video content for higher discoverability and audience engagement.

2. TubeBuddy

apps for youtube

TubeBuddy provides tools for video SEO, bulk processing, and audience management, helping creators enhance video performance, streamline tasks, and build their subscriber base.

3. Canva

apps for youtube

Canva simplifies graphic design with customizable templates, empowering creators to craft eye-catching thumbnails, channel art, and visuals that attract and resonate with viewers.

4. Filmic Pro

apps for youtube

Filmic Pro elevates mobile video production with advanced controls, enabling creators to capture high-quality footage with professional-level settings on their smartphones.

5. Flixpress

Flixpress offers ready-made video templates for intros, animations, and outros, enabling creators to produce engaging, branded content without extensive editing skills. These templates make it easy to use, with a quick learning curve for beginners.

6. Adobe Premiere Rush

apps for youtube

Adobe Premiere Rush offers comprehensive desktop and mobile free video editing, giving creators the power to refine their content with advanced transitions, effects, and audio adjustments.

7. Social Blade

apps for youtube

Social Blade supplies creators with vital YouTube analytics, helping them track growth, predict trends, and fine-tune strategies for maximum channel impact.

8. Soundstripe

apps for youtube

Soundstripe provides a library of royalty-free music, enhancing videos with high-quality audio while avoiding copyright issues that can arise from using copyrighted music.

9. Thumbnail Blaster

apps for youtube

Thumbnail Blaster enables creators to design click-worthy thumbnails using AI, increasing video click-through rates and boosting overall viewership.

10. Movavi

apps for youtube

Movavi offers user-friendly video editing software with a range of features, allowing creators to edit and enhance videos easily, even if they’re new to video editing.

App Name Primary Features / Offerings Best For
VidIQ – In-depth analytics
– Keyword research
– Competitor insights		 Improving video discoverability and understanding audience engagement.
TubeBuddy – Video SEO tools
– Bulk processing
– Audience management		 Optimizing video performance and growing a subscriber base.
Canva – Graphic design templates
– Customizable designs		 Creating visually appealing thumbnails, channel art, and other graphics.
Filmic Pro – Advanced mobile video controls
– Professional-level settings		 Mobile video creators looking to produce high-quality content.
Flixpress – Ready-made video templates
– Intros, animations, outros		 Those who want branded video content without needing advanced editing skills.
Adobe Premiere Rush – Desktop & mobile editing
– Advanced transitions & effects
– Audio adjustments		 Comprehensive video editing across platforms with a touch of professionalism.
Social Blade – YouTube analytics
– Growth tracking
– Trend predictions		 Analyzing channel performance, anticipating growth, and refining content strategies.
Soundstripe – Royalty-free music library Creators needing high-quality music without copyright issues.
Thumbnail Blaster – AI-powered thumbnail designs Maximizing click-through rates with enticing video thumbnails.
Movavi – User-friendly video editing
– Wide feature range		 Novices and intermediates looking to produce polished videos without a steep learning curve.

Maximizing Your YouTube Channel with the Right Apps

As a YouTube creator, harnessing the potential of specialized apps can significantly amplify your channel’s impact. These apps offer tools for seamless video editing, attention-grabbing thumbnails, enhanced analytics insights, and effective SEO strategies.

Moreover, utilizing video templates, screen recorders, and royalty-free music apps can elevate your content quality and viewer interaction, propelling your channel to new heights of success. Here are some tips to help you select the right apps to bring your YouTube content to the next level:

  • Determine Your Needs:
    • Pinpoint gaps in your current workflow. Do you struggle with thumbnail design, analytics interpretation, or video editing?
    • Choose apps that align with your specific needs and goals for your channel.
  • Check Reviews and Ratings:
    • Research user reviews on app stores or relevant forums to get insights into the app’s performance and user experience.
    • Look for apps with high ratings and positive feedback, but also take note of common complaints or issues.
  • Consider the Learning Curve:
    • Is the app user-friendly, or does it require a steep learning curve?
    • Opt for intuitive tools if you’re not keen on spending extensive time learning new software.
  • Cost vs. Value:
    • While some apps offer free versions, they might have limitations. Assess whether it’s worth investing in a premium version based on the features you need.
    • Compare the price of the app with its offered functionalities and the potential value it can add to your channel.
  • Integration Capabilities:
    • Some apps can seamlessly integrate with other tools you may be using, creating a smoother workflow.
    • Check if the app can connect with YouTube directly or if it’s compatible with other software you regularly use.
  • Regular Updates & Support:
    • Choose apps that are regularly updated to keep up with changing YouTube algorithms and user preferences.
    • Ensure there’s reliable customer support to help address any issues or queries.
  • Security & Privacy:
    • Research how the app handles your data. Prioritize apps that respect user privacy and have secure data protection measures in place.
    • Be wary of apps that request unnecessary permissions.
  • Trial Periods:
    • Opt for apps that offer trial periods or demo versions. This allows you to test the app’s functionalities before committing to a purchase.
    • Use the trial period to gauge the app’s efficiency and relevance to your needs.
  • Seek Recommendations:
    • Connect with fellow YouTubers or join online communities to ask for software recommendations.
    • Peer experiences can provide valuable insights into the app’s real-world performance.
  • Scalability:
    • Consider if the app can cater to your needs as your channel grows. Can it handle more data, videos, or advanced requirements in the future?
  • Compatibility:
    • Ensure the app is compatible with your operating system, whether you’re on Windows, macOS, Android, iOS, or other platforms.
    • Check hardware requirements to ensure smooth performance.

Incorporating the right apps into your YouTube workflow can significantly streamline processes and elevate the quality of your content. However, it’s essential to take the time to research and select the best tools that align with your channel’s unique needs and long-term goals.

FAQs: Apps for YouTube

What’s the Role of the YouTube Studio App for YouTube Creators?

The YouTube Studio app is a powerhouse for creators, offering video management, analytics, and engagement features. It’s your command center for monitoring comments, tracking video performance, and connecting with your audience directly from your mobile device.

What Are Some of the Best Video Editing Apps for Mobile?

VidIQ and TubeBuddy are excellent for analytics, while Canva excels in creating graphics. These apps streamline tasks and enhance your video content. Filmic Pro provides advanced video recording, Flixpress offers customizable templates, and Adobe Premiere Rush gives comprehensive editing capabilities.

Can I Edit Videos Efficiently Using Only YouTube Studio?

While YouTube Studio enables basic video edits, dedicated video editing software like Adobe Premiere Rush or Movavi offers more advanced features. These tools provide better control over transitions, and effects, and help create better-quality YouTube videos.

How Can Video Editing Tools Improve the Quality of My YouTube Videos?

Video editing tools empower you to trim, add effects, and refine your footage. This results in professional-looking videos with smoother transitions, enhanced visuals, and polished content that captures and retains viewers’ attention.

What Is the Best Video Editing Software for Creating Professional YouTube Videos?

Apps like Adobe Premiere Rush, Filmic Pro, and Canva offer professional-grade editing features. They let you refine every detail of your videos, from color correction to advanced effects, ensuring your content stands out and reflects your unique style as a creator. These apps can benefit nearly everyone who uses video marketing, from those looking to advertise your business on YouTube to creators trying to getting YouTube subscribers to monetize their content.

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Page Not Found – Small Business Trends

Page Not Found – Small Business Trends

by | Dec 8, 2023 | Blog

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how to make money with a pickup truck

The keys to your pickup truck may be your key to making more money.

High gas prices are causing consumers to swap for smaller vehicles. More and more, the average person doesn’t have a vehicle that can move items of substantial size and weight.

Independent contractors can make money with a truck. We’ll give you 16 services you can provide, and 6 of the best Apps on how to make money with your vehicle so you can get started with this side hustle.

Here’s the conclusion – if you have your own pickup truck, you can make money hauling stuff.

16 Ways to Make Money with a Truck, or with a Pickup Truck and Trailer

Not all pickup trucks are good work trucks and equally suited to certain tasks. For example, they come in sizes by vehicle weight, engine size, and bed length.

Size Matters

ways to make money with a pickup truck

For example, a half-ton truck may have a small, six-cylinder engine of about 3.0 size. Or a half-ton pickup truck may have an eight-cylinder engine of 5.0 size or larger. Engine size dictates how much a vehicle can tow (trailer weight plus load).

Compared to a half-ton pickup truck, a one-ton pickup truck has a more beefed-up chassis. A one-ton would be able to handle a load of gravel or mulch; a half-ton may be challenged by too heavy a load. There are box trucks, which are enclosed with tall cargo areas.

Trailers By Type

Trailers are specific to the task. There are landscape-style trailers with low sides in various lengths. There are enclosed trailers (also called cargo trailers) which are completely enclosed. And there are dump trailers, open to the elements.

Your requirements are that you are a truck owner with a valid driver’s license and vehicle insurance. If you’re going to use a truck and trailer, you’ll need a tow hitch, wiring to provide lights to the trailer, and electric brakes (to haul anything that weighs more than 3,000 pounds.

As an independent contractor, you can set your own hours. How much extra cash you earn depends on how much time you can devote to this as a small business – a few hours or 24-hour service. Check with your insurance company before you begin to make money with your truck.

1. Delivery Services for Food

Don’t think small on this one. If you’re thinking of food services delivering individual meals, you’ll have plenty of competition from Uber and similar App users, which regularly deliver food. The food delivery services you want to do are less about meals, and more about food supplies.

Restaurants need to deliver meals, true. But they also need to receive supplies, and not just food staples. They need take-out cartons, bulk supplies such as sugar and flour, cleaning materials and office supplies.

If a local restaurant is getting supplies delivered by tractor trailer, they are paying high fees on freight charges. Reach out to local restaurants with an informational flyer describing the delivery service you can provide with your truck, or with your truck and trailer.

For this type of work, your truck should be equipment with a cap that is watertight against the elements. If you plan to deliver supplies that need refrigeration, your best bet is a refrigerated box truck or van.

2. Delivery Service for Landscaping Business and Construction Supplies

To cover a yard area with mulch, gravel or paving stones, the average homeowner would have to make numerous trips with a small vehicle. They would also have to buy individual bags of mulch or gravel, which is much more expensive to buy that way.

The cheapest way to buy mulch or gravel is “by the scoop.” A scoop is typically a bucket load of a small tractor or skid steer. A scoop can be loaded into a truck with an open bed, or onto an open trailer. A dump trailer – although more expensive than a regular trailer – makes this type of delivery much easier. If you’re using your truck bed, check your owner’s manual to see how much weight your truck can haul that way.

With an open truck bed or trailer, you’ll need a tarp to cover the load. If you’re using an open bed truck, first lay down a tarp that covers the floor and extends up the sides. After you shovel some of the material out of the truck bed, you may be able to get the rest out by pulling out the bottom tarp.

In other words, make money while saving up for that dump trailer. In addition to providing this type of service for homeowners, you may be able to partner with large and small businesses that offer landscaping services to make deliveries to the jobsite.

With a large enough trailer, you can also deliver yard features such as sheds, gazebos, stock tanks and molder plastic pond liners, as needed by homeowners and/or landscaping companies.

3. Deliveries for Local Businesses

ways to make money with a pickup truck

The last thing a busy owners of construction companies want to do is pick up construction material. Truck owners can really capitalize on this need.

Keep in mind, though, that a minimum length involved in most lumber orders is 8 feet, such as for 2 x 4s and plywood. Some construction materials, such as drywall or bags of cement, must be kept dry – during pickup and delivery and at the job site.

That’s why using an enclosed trailer for construction materials is a great option. It’s not a truck, so you can drop it off loaded at the job site. The contractor can work out of your trailer as needed.

You can pick up a used 12-foot enclosed trailer for about $1500, but for construction site deliveries you may want to go to a 16-foot model with dual axles. There are many ways to get flat tires at construction sites. The dual axles give you two tires on each side. With a single axle, a flat tire is a disaster.

Also, add load stabilizers to your trailer – similar to what’s used on towable campers. When the trailer is not hooked to a vehicle, and someone walks into the back, the person’s weight can pop up the front of the trailer.

Here are a few ideas about local companies that pickup truck owners can target with other hauling services to deliver packages and other items, or offer shipping services:

  • Pharmacies
  • Florists
  • Auto Parts and Tire Distributors
  • Furniture stores
  • Community yard sales (pass out your business cards)

4.Deliveries Made by Towing

This is not the same as becoming a towing company, with a specialized truck to haul disabled or damaged vehicles. This is using your truck to tow other

You can make good money using your pickup truck as a towing service to haul items such as boats and rv’s. Make sure you check your tow weight capacity.

Towable RVs need to be inspected annually. That’s a big chunk of time out of the owner’s day. You can take the RV to the dealership or inspection garage, and pick it up when it’s finished. You can also move RVs from one dealer location to another, as part of your towing services.

Take your business information to area rv dealers.

5.Junk Removal Business and Moving Services

Junk removal services are needed by home owners and also by a special local business – the real estate company. Residential and commercial properties are much more likely to sell when junk – old couches, metal desks, etc. – has been removed.

To make money with your truck this way – by affiliation with a real estate company – you’ll need to be bonded. That may cost about $1,000 a year. That protect the real estate company against any damages you cause to the property that’s for sale. Typically, there is one agent who handles cleanouts of foreclosure properties, and you’ll have to bid against other junk removal companies.

You can take appliances and other metal items to a scrap metal dealer, and earn extra cash.

Many people who are moving do as much as they can using their personal vehicles. But there’s always a need for a moving service for the large items such as mattresses and furniture. If you have an enclosed trailer, you can offer to drop it off at the residence, where the customer can fill it as time allows.

6.Snow Plowing Services

ways to make money with a pickup truck, snowpolow

It is tough to compete against snow plow companies with huge fleets, but you can provide snow plow services as a subcontractor for those companies.

A large truck with a plow may not fit into all the places that need to be cleaned of snow. Some snow plows are 8 feet wide. You can find a niche within those companies with smaller medium duty trucks and a six-foot plow.

Snow plowing is hard on a truck’s front end, due to the weight of the plow and the wear and tear on brakes and wheel bearings. You’ll also need special wiring to operate the plow controls, up, down and angle.

For a small truck you may take a look at what’s called a “homeowner” plow, which is made of tough molder plastic. They are much lighter and can attach to a truck via a receiver hitch (which is mounted on the front of the truck). Hook up is simple. But most homeowner plows do not have electronic controls. You may have to manually change the plow angle as needed.

Factor in the cost of gas money. Check with your insurance provider to see if you need to upgrade your coverage.

7. Mobile Billboard Advertising

Offer your pick-up truck as a moving billboard for local businesses. You can partner with advertising agencies or directly with businesses to display their banners or wraps on your truck. This method can generate income based on the size of the ad and the areas you cover. It’s a passive way to earn money while you drive around for other tasks.

8. Event Logistics and Support

Your truck can be used for transporting equipment and supplies for events like weddings, concerts, or local fairs. This includes setting up tents, chairs, stages, and other event necessities. You may need to work weekends or evenings, but these events often pay well for reliable and timely service.

9. Rental to Film and Production Companies

Production companies often need vehicles for shoots, especially for rural or outdoor scenes. Offer your pick-up truck for rent to film, television, and photography production companies. This can be particularly lucrative if you’re located near areas where filming is common.

10. Agricultural Support Services

If you’re in a rural area, offer your services to local farms. This can include transporting produce to markets, delivering farming supplies, or even helping with the movement of small livestock. Building a good relationship with the local farming community can provide consistent work, especially during harvest seasons.

11. Yard Waste and Recycling Services

Offer to haul yard waste or recyclables for homeowners who don’t have the means to do it themselves. This service can be particularly in demand during spring cleanups or after major storms. You can charge per job or set up a regular service for loyal customers.

12. Mobile Car Wash and Detailing Service

Transform your truck into a mobile car wash and detailing service. You can travel to your client’s location to provide services, which is convenient for them and profitable for you. Invest in portable washing and detailing equipment, and offer various packages based on the services provided.

13. Seasonal Decoration Services

Provide services for putting up and taking down holiday decorations. This includes lights, lawn ornaments, and other seasonal displays. Homeowners and businesses alike might be interested in this service, especially those who lack the time or ability to do it themselves.

14. Pet Transport Services

Offer a pet transport service, especially for larger animals that might not fit in a standard car. This can include trips to the vet, grooming appointments, or even longer journeys. Ensure you have the necessary equipment to transport pets safely and comfortably.

15. Local Tour Services

If you live in an area with tourist attractions, consider offering guided tours. Equip your truck with comfortable seating and provide informative, personalized tours around local landmarks, scenic routes, or historical sites. This can be especially popular in natural or rural tourist areas.

16. Courier and Expedited Shipping Services

Offer courier and expedited shipping services for urgent deliveries. This can include important documents, time-sensitive packages, or last-minute deliveries that larger courier companies might not be able to accommodate quickly.

Apps for How to Make Money with a Pickup Truck

Here’s where it gets very cool. Once you download one of the six Apps we suggest, you’ll be connected with a peer to peer network. People who need delivery or shipping service are connected with truck drivers. You can set your own prices.

ways to make money with a pickup truck

Here are all the details you’ll need to know about the best Apps to choose:

Platform Overview Requirements & Features Considerations
Amazon Flex An app-based platform that allows you to deliver packages for Amazon. – Truck bed must be covered to protect items.
– Busy side hustle opportunity.		 Must ensure items remain dry during delivery.
GoShare App platform focused on helping people move large items, like furniture and appliances. – Ideal for “odd jobs” or one-time needs.
– GigSmart is a similar platform to consider.		 Often, these are not recurrent tasks but rather one-time needs.
Door Dash, Postmates, etc. Delivery platforms connecting consumers ordering from stores/warehouses to delivery drivers. – Pickup and delivery of various items for customers. Reliability and speed are essential to maintain customer satisfaction.
Uber and Lyft Primarily known for transporting people but also used for food deliveries. – Requires a four-door vehicle.
– Popular and widely recognized platforms.		 While primarily for passenger transport, having a truck can be beneficial for larger groups or items. Ensure vehicle meets all platform standards.
LoadUP Focuses on junk removal, connecting you with people needing old items removed. – Junk removal tasks.
– Opportunities to remove sellable or usable items
– Exclusive coverage within your zip code when you sign up.		 While primarily for junk, there might be opportunities to salvage or repurpose items.
Turbo A platform where you can rent out your truck to those in need. – Rent your vehicle to users
– Passive income as you earn without actively working.		 Requires special insurance. It’s crucial to vet users and possibly do background checks to mitigate risks of damage or misuse of your vehicle.

Costs Associated with a Pickup Truck Business

ways to make money with a pickup truck, costs, pickup truck business

Initial and Recurring Vehicle Costs

  • Truck Purchase: The initial cost of buying the truck, which can vary depending on whether it’s new, used, or leased.
  • Depreciation: Over time, the value of your truck will decrease, especially with heavy use.
  • Maintenance: Regular upkeep is crucial for the longevity and safety of your vehicle. This includes:
    • Oil Changes: Necessary for the smooth operation of the vehicle.
    • Tires: Depending on usage, tires may need to be replaced periodically.
    • Inspection: Regular inspections ensure the vehicle adheres to safety and emission standards.
    • Repairs: From minor fixes to major overhauls, unexpected repairs can emerge at any time.

Equipment Costs

  • Gloves: Essential for safe handling of goods and protection against cuts or abrasions.
  • Wheeled Dollies: Useful for moving heavy items without physical strain.
  • Steel-Toed Boots: Provides foot protection, especially when handling heavy objects.
  • Straps and Ropes: For securing items during transport.
  • Blankets/Pads: To protect delicate items from scratches or dents.

Insurance Costs

  • Vehicle Insurance: A must-have for any vehicle, covering potential damages to your truck in case of accidents.
  • Liability Insurance: Protects against claims resulting from injuries and damages to other people or property.
  • Cargo Insurance: Covers damages to the goods you’re transporting.
  • Specialized Business Insurance: Depending on the nature of your services, you might need more specific insurance coverage. It’s always a good idea to:
    • Consult with an Insurance Agent: Speak to your insurance carrier about the specifics of your business to ensure you have the right coverage.

How Much Money Can You Make with a Pickup Truck?

Making money with a truck is an open-ended proposition. You’ll make your own schedule, delivering food supplies, mulch, couches and/or refrigeratiors – your choice. How much extra money you make depends on your time availability, and whether it’s a full-time job or a side hustle.

For routine delivery jobs, you can expect to earn from $15 to $20 per hour for small items such as packages. For the bigger stuff, you can expect to earn about $40 an hour.

Image: Depositphotos

This article, “How to Make Money with a Pickup Truck” was first published on Small Business Trends

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How to Open a Beauty Supply Store

How to Open a Beauty Supply Store

by | Dec 8, 2023 | Blog

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Wondering how to open a beauty supply store? There are more than 40,000 beauty supply stores in the United States. There’s a reason for the strength of that industry.

Start-up costs are truly up to you, as much or as little as you choose. And the beauty supply store business, both as a physical location and an online seller, is predicted to increase as an industry.

We’re going to tell you how to open a beauty supply store, at a physical location and online.

What is a Beauty Supply Store?

A beauty supply store may sell a wide range of products, including hair care, cosmetics, nail care, fragrances, skincare, and more.

A beauty supply store may sell to salons, licensed professionals, and individual consumers.

How to Start a Beauty Supply Store Business: 14 Crucial Steps

Whether you operate from a brick-and-mortar location or an online location, you’ll face stiff competition in the beauty products market.

Your beauty supply store will be competing with salons, box stores, specialty stores and even infomercials. How do beauty supply businesses make it in the beauty products competition?

The keys to success are starting with research, followed by careful planning, to keep your costs low. And having a retail customer experience will put you that much ahead of the game. We’ll start with tips for opening an actual store.

how to open a beauty supply store

1. Come Up with a Mission Statement

A mission statement describes what your business is and why you chose to sell beauty supply products.

Do you want to empower customers, help them learn which beauty brands are their best options? Do you want customers to leave your retail store with beauty products specifically chosen for them?

What standards have you used to select the products that will be available in your store? How did your personal values figure into those decisions?

2. Decide on a Niche and Beauty Brand

Most successful beauty products businesses sell a wide range of products. But a niche can exist within those sprawling products. Choosing a niche can help keep down costs.

For example, do you want to focus on anti-aging products? Currently, anti-aging products, especially creams and lotions, are leading sellers in the beauty products business. Do you want to sell baby care products?

3. Know Your Target Market

As in many businesses, you are selling to all adults – not just women – with purchasing power. Your market will depend on your local and regional demographics, including age categories across all genders.

In addition to age, the climate of your area could have an impact. Chapped hands during the long winter? Need for sunscreen and skincare products during months of hot weather?

Knowing your customers is an important part of your research before you start a beauty supply store.

4. Research Local Beauty Supply Stores and Check Out the Competition

Don’t limit yourself to researching other local beauty supply stores. Yes, they are your competition.

Remember that your competition also comes from television and online advertising (infomercials), box stores, discount stores and specialty stores.

After you learn what all these suppliers have, choose the brand of products that will set your store apart from the competition while keeping your costs down.

5. Write a Business Plan

The beauty supply store business was impacted by the pandemic as salons were deemed nonessential and forced to close. Yet that’s when consumers turned to beauty supply stores.

Accept that there may be times when your store is closed. Including the capability for online orders and shipping in your business plans is crucial to your success.

Your business plan should also include plans for operations and future growth. The majority of people who start a beauty supply business don’t go the sole proprietor route. They choose to form an LLC, which protects you from personal liability involving any issues with the products you sell. Or they may form an S corporation, where owners can join by buying stock in the company.

6. Research Licensing, Permits and Fees

Here are the basics you’ll need: business license, taxpayer ID/Employer Identification number, employee handbook and employment agreement forms, an operating agreement (if you’re an LLC).

Be cautious if you plan to operate in a mall-type setting. Some of these have “no competition” standards which would preclude you from opening if your store is deemed to compete with an already existing store. For example, there’s a discount store with a row or two of beauty products. Research regulations or agreements involving a group of stores before you try to establish your store there.

7. Decide on a Budget

Remember that every beauty supply store started from scratch. You can too.

You can keep your costs low when you start by limiting the amount of stock you order for your store. That way you can concentrate on your branding, and see what’s selling and why. You can analyze your customer base, which may be different from the market you targeted.

You can lease or buy your store.

8. Decide on a Location – A Large Mall or Shopping Center?

As we stated, some large malls or shopping centers may have regulations on the type of store and the numbers of them that they’ll allow there.

It makes sense. You wouldn’t want to open a beauty supply business in a large mall or shopping center and have another beauty supply business open at the same location.

When you’re considering a location, answer this question: What will my hours of operation be? If you’re at a mall or shopping center, your Open for Business times will most likely be the same as their hours.

The location you choose for your store should be well-positioned, easily visible in a well-traveled area.

9. Hire Amazing Staff

Put a big star next to this topic. This is crucial.

Anticipate that each of your customers will want to ask a question about products. You’ll need staff who are knowledgeable, people persons who genuinely love the beauty business.

A large beauty store may need a number of employees, who finalize payments using a cash register or contactless system. They may also work out on the shop floor. Remember that customers have options. Customers can buy beauty supplies from a number of outlets. But they’ve chosen a beauty supply store because they expect to interact with knowledgeable people.

10. Look Into Insurance Policies

The types of insurance you’ll need include: basic/general, liability and health (personal) insurance. If you have employees you’ll need workers’ compensation insurance.

An insurance broker can steer you to the policies that business owners need.

11. Research Inventory

Most buy inventory from a beauty supply distributor. Some individual manufacturers may send you samples. That will help you reduce costs.

What to buy, and when? How can you keep costs down? You’ll need to plan a few months out to make sure you have stock as needed, especially seasonal products.

As you research products, check the profit margin on each. The average for the industry is 40%, but some profit margins are higher for beauty supplies.

Obviously, inventory will be one of your biggest costs. Right behind that is setting up your store.

12. Make Your Beauty Supply Store Presentable

This is not an area to cut costs. You want your customers to enjoy shopping in your store, finding it easy and pleasant. Here are some general rules to follow:

  • Revolving main focus display – For example, is it prom time? Arrange appropriate cosmetics and hair care at the display. Summer is here? Lotions for skin should be front and center. School shopping? Time for accessories.
  • End caps – End caps, which are the displays at the end of aisles, should also revolve as places to direct customers focus.
  • Try and Buy Settings – Trying new products is a key part of shopping at beauty stores. Provide small samples that customers can try and keep, using those items to set up a sale.

Creating an In-Store Experience

Beyond a visually appealing store, focus on creating an immersive in-store experience. Offer personalized consultations, product demonstrations, and interactive displays. Train your staff to provide exceptional customer service, making each visit memorable. This approach not only attracts customers but also encourages repeat visits.

13. Consider Investing in Point of Sale Software

Truly, this is not just a consideration when you’re weighing costs. Point of Sale software can do much more than tabulate a sale.

Choose software that can accept various methods of payment and also calculate inventory amounts as items are sold.

14. Market Your Business and Build Up a Customer Base

In addition to quality and pricing, you must excel at customer service. Customer service is the way to build up your customer base.

You can also:

  • Send introductory letters to business leaders
  • Place ads in various media and social media
  • Use a website to announce discounts and sale themes
  • Offer special promotions, such as prom specials, makeovers, seniors’ days and discounts for referrals.

Don’t be afraid to take your show on the road. Get a booth at any type of area show or convention. Offer toiletry bags, or theme gift bags.

How to Open a Beauty Supply Business Online: 15 Top Tips

1. Create a Mission Statement

An online beauty store is an eCommerce store. As such, its mission statement will mirror a mission statement for a physical store.

However, there’s a key difference. You want to take steps to make it easier for shoppers to order products and have them delivered to their homes. In your mission statement for your business, explain why you want to do that.

2. Decide on a Niche and Beauty Supply Products

niche, how to open a beauty supply store

Selling online means that you have to consider the items you sell in another way – how easy can the items be shipped?

Many beauty items, especially hair products, are liquid. They can break or freeze during shipping. As your choosing the brands to carry, ask the suppliers questions about the best practices for shipping the product. Make choices with an eye to establishing your brand identity and the focus of your business.

Understanding the Beauty Industry Trends

The beauty industry is dynamic, with evolving trends shaping consumer demands. Staying abreast of these trends is crucial for a beauty supply store’s success.

This includes keeping an eye on emerging product types, such as organic and cruelty-free options, and technological innovations like augmented reality for virtual makeup trials.

Adapting your product range to include trending items and capitalizing on popular beauty movements can position your store as a go-to destination for the latest in beauty.

3. Know Your Target Market

Your customers are people who are seeking convenience, and that’s where to tailor your marking efforts.

Many salons order from large distributors. Although it’s hard to compete with operations of that size, you can level the playing field with superior customer service.

4. Research Your Competitors

What are the brands that your competition sells? Are there certain lines of cosmetics or hair products that are commonly sold? Can you stand out by offering a different type of similar product?

5. Research Online Business Models

Having an online presence for your beauty supply store is vital. Not only does it allow you to reach a wider audience, but it also provides multiple revenue streams that complement your brick-and-mortar establishment.

As you think about setting up your online store, consider which business model aligns with your goals, resources, and vision for your business. Below is a breakdown of some popular online business models that entrepreneurs often consider:

Business Model Overview Pros Cons
Dropshipping List products without inventory. Purchase from third-party when ordered and have them ship directly to the customer. – Lower startup costs
– Reduced risk of overstocking.
– Variety of products without major investment.		 – Lower profit margins.
– Potential shipping/supplier issues.
– Less control over product quality and fulfillment.
Wholesaling from a Warehouse Purchase in bulk, store in a warehouse, and ship from there upon orders. – Better control over inventory and shipping.
– Higher profit margins.
– Exclusive deals or bulk discounts possible.		 – Higher upfront costs.
– Risk of unsold stock.
– Need for efficient inventory management.
Manufacturing Produce your own line of products and sell them. – Control over product quality and branding.
– Potentially higher profits if product becomes popular.
– Unique selling proposition with exclusive products.		 – Significant startup costs.
– Complexities with quality control and regulations.
– Scaling challenges.
White Label Rebrand products from manufacturers and sell under your brand. – Faster market entry than manufacturing.
– Offer products without manufacturing complexities.
– Control over branding and pricing.		 – Dependence on the original manufacturer for quality.
– Potentially lower profit margins.
– Possible market saturation with similar white-label products.

6. Write a Business Plan

how to open a beauty supply store, business plan

Your business plan should include the type of products you will sell and how you’ll ship them. It should also include information about plans for future growth.

7. Decide on a Starting Budget and Consider Business Costs

You can keep costs down as you begin your online beauty store by focusing on one type of product. That’s important as you establish your brand and work to build traffic to your website.

8. Buy the Perfect Domain Name for Your Beauty Supply Business

The perfect name for your website sets the stage. You’ll use it everywhere, not just on the website. It will be a marketing tool. Buying a domain name may be one of your significant start-up costs, but you’ll be paid back tenfold.

It will be on boxes, business cards, Facebook and invoices.

Your chosen name should lend itself to a logo, as an aid to marketing.

9. Decide on a Beauty Supply Store Theme and Logo

how to open a beauty supply store

The store theme and logo should tie to your business name. Don’t limit the potential growth of your beauty business by focusing on one aspect of the industry.

For example, using a logo depicting nail care tells people that those are the products they can expect to find from your business. Unless you do want to focus on one aspect of the industry, keep it more general.

10. Sort Out the Legal Stuff and Register Your Business

In the beauty supply industry, the majority of people opt to form a limited liability company. That’s because an LLC protects an owner or owners from personal liability.

11. Purchase Business Insurance

You’ll need general business insurance and general liability insurance, as a minimum. Other required insurance depends on how you’re doing business – such as whether you’re owning or leasing, or hiring employees, for example.

12. Research eCommerce Platforms

You’ll be amazed at what an eCommerce platform can do for you. eCommerce platforms are software that helps sellers manage their business. They often include accounting and inventory management.

Some of the leaders in the industry are Zoho Commerce, Shopify and Big Commerce.

13. Create an Amazing eCommerce Website

This is an important step in marketing your business – so important that outsourcing is a great choice. The best sites are those which make it easy to find products, order them and pay for them. The best sites are worthless if they’re not linked to search engines.

Navigation

A search is a key part of navigation. You should have a menu with a table of contents that makes it easy to find products by searching with keywords.

Homepage

The home page includes your business location and contact information for customer service. You should include a contact page, and also options for contacting you by phone or email.

About Page

This page is about you, your employees and the type of products you sell.

Content and Blog Posts

Descriptions of products and blog posts should be short. Whenever you find an article about a product or technique that you like, provide a link to the article. An article can answer a question, or create buzz about a new product.

Site Authority

This is the strength of a domain. In short, it’s an “authority” that gives your business a preferable position from someone using a search engine.

14. Market Your Site

For your beauty supply store to thrive in the digital landscape, you need to have more than just an online presence; you need effective marketing strategies to gain visibility and attract customers.

Social Media

Harness the power of platforms like Instagram, Facebook, Pinterest, and TikTok. When you come across an interesting article or relevant beauty news, share it on these platforms to engage your audience.

Establishing an ongoing blog where you provide beauty tips, product reviews, and industry insights can boost your brand credibility. Moreover, actively commenting on other industry-related blogs can increase your brand’s visibility and encourage traffic back to your site.

Remember to always include your business name for brand consistency.

Search Engine Optimization (SEO)

While mastering the art of SEO can be a daunting task, it’s a crucial one if you want your store to appear in relevant search results. SEO ensures that your business stands out when potential customers search for beauty products or services like yours.

While you can learn the basics and implement them, employing a professional can ensure you optimize every aspect of your site, from meta tags to content, enhancing your store’s search engine ranking

Content Marketing

Engage your target audience by creating and sharing insightful online material. In the beauty industry, tutorials demonstrating how to use a product are immensely popular and can establish your brand as a knowledgeable leader in the space.

Craft blogs, videos, and infographics that provide value to your audience, and they’ll likely return to your store for more insights and, importantly, products.

Influencer Marketing

how to open a besuty supply store

Influencers can significantly amplify your brand’s reach. These are individuals with a substantial online following who can sway their audience’s purchasing decisions.

By collaborating with influencers who resonate with your brand’s ethos, you can craft authentic content—whether it’s blogs, social media posts, or videos—that guides their vast number of followers directly to your store.

Digital Marketing Strategies for Beauty Supply Stores

In today’s digital age, effective online marketing is key to reaching a wider audience. Develop a strong social media presence, optimize your website for search engines, and consider email marketing to keep your customers informed and engaged.

Utilize analytics to track the performance of your digital campaigns and adjust your strategies for maximum impact.

15. Build Up Your Customer Base and Start Making Sales

Growing and retaining a customer base is pivotal for the success of your beauty supply store. Here’s how you can continuously attract and engage potential and existing customers:

  • Engaging Promotions: Offer timely discounts, bundle deals, or buy-one-get-one offers. Seasonal promotions, such as holiday discounts or summer sales, can attract a flurry of customers.
  • Loyalty Programs: Introduce a loyalty or rewards program. Customers can earn points for every purchase, which can be redeemed for products or discounts in the future. This encourages repeat purchases.
  • New Product Launches: Regularly introduce new products or limited-edition items to keep your inventory fresh and intriguing for your customers.
  • Educational Content: Share articles, blogs, or tutorials highlighting the benefits of your products, how-to-use guides, or the latest beauty trends.
  • Customer Reviews and Testimonials: Encourage satisfied customers to leave reviews. Displaying these reviews on your website can act as a trust signal for potential buyers.
  • Referral Programs: Offer incentives for existing customers to refer friends and family to your store. It’s a win-win situation; your customers get rewards, and you get new customers.
  • Engaging Email Campaigns: Send out newsletters with updates, promotions, and beauty tips. Segment your email list to provide personalized content and offers based on purchasing behavior.
  • Interactive Social Media Polls and Quizzes: Engage your audience by hosting polls about their favorite products, quizzes to determine the right products for them, or Q&A sessions about beauty concerns.
  • Flash Sales: These are limited-time offers that create a sense of urgency. Flash sales can rapidly drive traffic and conversions, clearing out old inventory or introducing new products.
  • Exclusive Members’ Events: Organize special events or sales exclusive to members or loyal customers, fostering a sense of community and exclusivity.

Community Engagement and Building Brand Loyalty

Engage with your local community to build brand loyalty. Participate in community events, collaborate with local businesses, and support charitable causes. This not only helps in building a positive brand image but also fosters a loyal customer base that advocates for your store.

Adapting to Changing Consumer Behaviors

The beauty industry is influenced by changing consumer behaviors and preferences. Stay flexible and adapt your business model as needed. Keep an eye on emerging trends and be ready to pivot your strategies to meet the evolving demands of your customers.

Is owning a beauty supply store profitable?

The amount of profit for a beauty store is tied to its size. A smaller store may make $5,000 while a larger store can net $200,000 and up.

How much does it cost to start an online beauty supply store?

This also varies as to the size of your line – the amount of inventory you’ll hold. A typical start up cost for a small operation is from $2,000-5,000.

Can I open a beauty supply store with no money?

Good question, and it’s been done. If you’ve been involved in the business with a proven track record, you may find it easy to raise capital. You can raise capital by tapping your friends, family and business associates. Or you can raise capital by going to a lender.

You don’t need a wealth of capital to start. A well-written business plan will be a valuable asset for a person. Suppliers may extend credit.

How much does a beauty supply store owner make?

Both a store owner and an online seller should begin to turn a profit in 4 to 6 months. How much depends on overhead – whether you own or lease, and the cost of your insurances, utilities and staff.

At a minimum, online or in-store, a beauty supply store owner should net from $35,000 to $70,000 annually. The amount you make in a physical location can be tied to where you are – in a big city location you can make from $100,000 to $300,000 annually.

You can make as much as a beauty supply store with online sales. Remember, when the actual stores are closed, you are still taking orders online.

Image: Depositphotos

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CUSTOMER RETENTION STATISTICS – The Ultimate Collection for Small Business

CUSTOMER RETENTION STATISTICS – The Ultimate Collection for Small Business

by | Dec 8, 2023 | Blog

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We’ve collected these customer retention statistics for small businesses from a variety of sources. Enjoy the list and see if any catch your attention that might be especially relevent to your company.

What is Customer Retention?

Customer retention refers to the strategic efforts a business makes to keep existing customers engaged and loyal over time. It’s about nurturing positive relationships with customers to encourage repeat purchases, foster brand advocacy, and reduce customer churn.

This involves consistently providing exceptional experiences, personalized services, and addressing customer needs proactively. Effective customer retention strategies aim to create a loyal customer base that contributes to long-term revenue and maximizes customer lifetime value.

By understanding and meeting the evolving preferences and expectations of their existing customers, businesses work to build a stable and loyal clientele.

Last updated: October 16, 2016

CUSTOMER RETENTION STATISTICS

customer retention statistics

 

CUSTOMER RETENTION AND MARKETING

  • 80 percent of businesses surveyed rely on email marketing for customer retention.
  • 56 percent of survey respondents considered email marketing to be the most effective method of reaching customer retention goals.
  • 36 percent of U.S. retail professionals said organic search drives customer retention.
  • 43 percent of U.S. retail professionals said paid search drives customer retention.
  • 44 percent of U.S. retail professionals said social media drives customer retention.
  • 37 percent of U.S. retail professionals said retargeting drives customer retention.
  • 21 percent of U.S. retail professionals said affiliates drive customer retention.
  • 18 percent of U.S. retail professionals said referral marketing drives customer retention.
  • 8 percent of U.S. retail professionals said mobile marketing drives customer retention.

CUSTOMER RETENTION AND THE COST OF SALES

customer retention statistics

 

  • It costs 5 percent more to acquire a new customer than it does to keep a current one.
  • It costs 16x more to bring a new customer up to the same level as a current one.
  • 82 percent of companies agree that retention is cheaper to execute than acquisition.
  • A mere two percent increase in customer retention can lower costs by as much as 10 percent.

CUSTOMER RETENTION AND CUSTOMER SERVICE

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  • 82 percent of consumers in the United States said they stopped doing business with a company due to a poor customer experience.
  • Companies lose 71 percent of consumers due to poor customer service.
  • 68 percent of customers leave you because they perceive you are indifferent to them.
  • 60 to 70 percent of customers will do business with a company again if it deals with a customer service issue fairly even if the result is not in their favor.
  • 47 percent of customers would take their business to a competitor within a day of experiencing poor customer service.
  • 66 percent of consumers who switched brands did so because of poor service.

CUSTOMER RETENTION AND YOUR BOTTOM LINE

customer retention statistics

  • The average repeat customer spends 67 percent more in months 31-36 of their relationship with a business than they do in months 0-6.
  • A five percent increase in customer retention can lead to an increase in profits of between 25 and 95 percent.
  • Lowering your customer churn rate by five percent can increase your profitability by 25 to 125 percent.
  • Repeat customers spend 33 percent more than new customers.
  • A 10 percent increase in customer retention levels results in a 30 percent increase in the value of the company.

Customer Retention Statistics Summary

Customer Retention Statistics Percentage
Probability of selling to existing customer 60-70%
Probability of selling to new prospect 5-20%
Future profits from 20% of existing customers 80%
Business from existing customers 65%
Executives prioritizing customer retention 32%
Annual customer churn rate 15%
First-time customers not returning 11-20%
Businesses using email marketing 80%
Most effective method for customer retention Email marketing (56%)
Organic search driving customer retention 36%
Paid search driving customer retention 43%
Social media driving customer retention 44%
Retargeting driving customer retention 37%
Affiliates driving customer retention 21%
Referral marketing driving customer retention 18%
Mobile marketing driving customer retention 8%
Cost to acquire a new customer compared to keeping a current one 5% more
Cost to bring a new customer to the level of a current one 16x more
Companies agreeing retention is cheaper than acquisition 82%
Increase in customer retention leading to increased profits 25-95%
Lowering customer churn rate leading to increased profitability 25-125%
Repeat customers spending more than new customers 33%
Increase in customer retention levels leading to increased company value 30%

The Importance of Customer Retention

Customer retention is a critical aspect of any successful business strategy. While acquiring new customers is essential for growth, retaining existing customers is equally crucial for sustained business success and long-term sustainability.

  • Sustained Revenue and Profitability
  • Cost-Effectiveness
  • Brand Advocacy and Word-of-Mouth Marketing
  • Increased Customer Lifetime Value (CLV)
  • Competitive Edge
  • Insights for Improvement
  • Stability in Turbulent Times
  • Building Trust and Relationships
  • Nurturing Customer Loyalty Programs
  • A Platform for Growth

Sustained Revenue and Profitability

Retaining existing customers ensures a steady flow of income, as they are more likely to make repeat purchases and are generally less sensitive to price changes. These customers also tend to buy more over time, as they develop trust and loyalty towards your brand. Cultivating this loyalty not only stabilizes your revenue stream but also provides a predictable financial landscape for planning future growth strategies.

Cost-Effectiveness

Acquiring new customers involves marketing, advertising, and promotional efforts, which can be costly. Studies suggest that it can be five to 25 times more expensive to acquire a new customer than to retain an existing one. By investing in customer retention, businesses can maximize the value of their existing customer base, making it a more cost-effective strategy in the long run.

Brand Advocacy and Word-of-Mouth Marketing

Satisfied customers often become brand advocates, sharing their positive experiences with others. This word-of-mouth marketing is incredibly valuable as it comes with the trust and credibility of personal recommendations. It’s a powerful tool that can drive new customer acquisitions more effectively than traditional marketing methods.

Increased Customer Lifetime Value (CLV)

Focusing on customer retention strategies, such as loyalty programs or personalized customer service, can significantly increase the CLV. This metric represents the total revenue a business can expect from a single customer over the course of their relationship, making it a crucial indicator of long-term business success.

Competitive Edge

In a crowded marketplace, the ability to retain customers can be a key differentiator. A business that nurtures and maintains customer relationships is more likely to withstand market competition and changing consumer trends, setting it apart from competitors that continually need to invest in new customer acquisition.

Insights for Improvement

Engaging with and retaining customers provides a wealth of insights into customer preferences, behaviors, and feedback. This information is invaluable for continuous improvement of products and services. It allows businesses to make data-driven decisions that are more likely to meet customer expectations and needs.

Stability in Turbulent Times

During economic downturns or market shifts, a loyal customer base acts as a buffer. These customers provide a reliable revenue stream, allowing the business to maintain stability and weather challenging periods more effectively.

Building Trust and Relationships

Trust is the foundation of customer retention. Consistently delivering on promises, providing high-quality products and services, and engaging in transparent communication help in building strong, long-lasting customer relationships. This trust translates into customer loyalty and retention.

Nurturing Customer Loyalty Programs

Implementing loyalty programs is an effective way to reward repeat customers and encourage continued business. These programs can offer discounts, exclusive access, or other perks that not only incentivize purchases but also enhance the customer experience.

A Platform for Growth

A strong base of loyal customers provides a stable platform from which a business can explore new markets, innovate products, and expand services. With a reliable revenue stream from existing customers, businesses can allocate resources toward growth opportunities with greater confidence.

 

The significance of customer retention extends across various facets of your business, from enhancing your bottom line to influencing your marketing strategies, including SEO. It also plays a pivotal role in optimizing your sales costs and elevating the quality of your customer service. For more insights into customer retention, explore the resources linked below:

Retain Customers Photo via Shutterstock



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