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One of the most important decisions you’ll make when launching your business online is which web hosting platform to use. This impacts virtually every facet of how your online store performs — from how fast and secure it is, to how easy it is to manage. The problem? It can be really tricky to choose the right one.
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New technology like 3D printing has already made a major impact on the manufacturing industry. But this technology is also appealing to consumers. So ELEGOO is evolving to provide options for this market. Read all about the company and its offerings in this week’s Small Business Spotlight.
Offers 3D printing and other tech products.
Co-founder and CMO Kevin Wang told Small Business Trends, “We specialize in R&D, manufacturing, and sales of 3D printers, laser engravers, STEM kits, and other smart technology products. The key products including LCD 3D printers, FDM 3D printers and Laser Engravers. This November, we launched our first-ever industrial FDM 3D printer – OrangeStorm Giga.”
Offering a user-friendly experience and evolving to meet customers’ needs.
Wang says, “We prioritize automation and intelligence, offering convenient, joyful, and personalized user experiences with rapid product upgrades. A series of updated and iterated products launched in June, September and November 2023 respectively.
“And we are customer-centric and aim to lower barriers, enabling further exploration of the creative universe together. Meanwhile, we are dedicated to scenario-based solutions and building an ecosystem for everyone who desires to create, reinforce smart manufacturing, and unleash inspiration.”
After recognizing the consumer demand for 3D printers.
Originally, the business launched in 2015 as a B2B venture. However, the founders quickly realized the potential for 3D printing on a consumer level and shifted their focus.
Wang adds, “Recognizing the strong market among Makers, especially in Europe and the United States, who were enthusiastic about 3D printing, the brand decided to focus on consumer-level 3D printers. We’ve established an R&D team, developed important supply chains, and expanded sales channels such as brand e-commerce, eBay, AliExpress, agents, and channel partners.”
Gaining attention for a new offering.
Wang explains, “The OrangeStorm Giga, our first-ever industrial FDM 3D printer was launched on Kickstarter on November 4. And the printer has already gained popularity among customers, as evidenced by its impressive fundraising success with USD3.1 million raised in just one week.
“While ELEGOO has a strong presence in the consumer and hobbyist market, we also recognize the growing demand for professional-grade 3D printing solutions, especially for small business owners or creators/makers who request prototyping/production. Therefore, we introduced the OrangeStorm Giga, which allows users to unlock their imagination and bring their most ambitious projects to life.”
Launching a new product line.
Wang says, “One of the biggest risks we took was taking bold and launching a new series of upgraded 3D printers this year, including laser engraver, FDM and LCD printers and trying to step into the industrial area. If the market had not responded positively to these products or if the technological advancements had not met customer expectations, it could have resulted in significant financial losses and damage to our reputation.
“However, the risk paid off, and the new printers were well-received. ELEGOO is always exploring new ways to improve our products and services. We are constantly evaluating the needs of our customers and the market to determine the best course of action. The Orange Storm Giga, which has been exhibited at Formnext would be a good example. It doesn’t only meet the user’s printing needs for oversized models but also reduces the need to cut models into smaller sections for efficient printing.”
Focus on your target markets.
Wang explains, “[If we could do it all over again,] we would invest more resources in establishing local operations and user experience centers in target regions early on. This would have allowed us to strengthen our connections with customers and better respond to their local needs from the beginning, further enhancing our market presence.
Looking into new product enhancements.
Wang says, “If we had an extra $100,000, we would allocate it towards R&D to continue innovating and improving our products. This would help us stay at the forefront of technology and maintain a competitive edge in the market.”
They have a 3D printed receptionist.
Wang explains, “There’s a 3D Printed Godzilla model placed at our office’s reception. It has a height of around 70-80cm. Our team 3D printed over 200 pieces of components and painted and assembled them for a few days. Guests who come to our office will instantly be attracted by it and think that’s our mascot. Maybe it’s an unofficial mascot to showcase the strength of our 3D printing technology.”
*****
Image: ELEGOO
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Nobody said running a small business was easy. With a million and one things to do, it’s not difficult for small business owners to steer off the motivational track every now and then. Fortunately, help is at hand in the guise of motivation apps.
Motivation apps play a crucial role in enhancing the productivity and overall well-being of small business owners. In the fast-paced and challenging world of entrepreneurship, maintaining a high level of motivation is essential for success. These apps offer personalized tools and resources that cater to the unique needs of small business owners, helping them stay focused and driven. They can provide much-needed support in various aspects, from time management to goal setting, ensuring a balanced approach to both professional and personal life.
Benefits of motivation apps for small business owners include:
In guiding small business owners towards the most effective motivation apps, we at Small Business Trends use a criteria-based approach. Motivation is a key driver for success, and the right app can significantly impact your daily productivity and mindset. Here’s how we evaluate each motivation app:
Check out the following motivation apps that are perfect to help retain small business owners’ motivation and productivity levels.
With a name like Wonderful Day, how can businesses go wrong with this app? Wonderful Day aims to keep us motivated, every single day. It encourages us to ditch paper calendars and type in daily tasks, which are marked off when we’ve completed them. Green bubbles marks days when every task has been done, and red denotes days we’ve missed duties. The idea is that a chain of green bubbles helps keep us motivated. Wonderful Day is a free app that is available on iOS.
There’s nothing quite like an inspiring quote to get us through a tough day. Quotes is an app that claims to bring “daily inspiration and wisdom with wallpaper.” With motivational quotes delivered daily, this iOS and Windows 8.0 or later compatible app has generated a string of four-star plus ratings.
GoalsOnTrack provides a systematic approach to achieving more by doing less. The app encourages users to record their goals, the purpose of their goals, start dates, end dates, metrics, sub goals, habits and action plans. Membership costs $68 per year. GoalsOnTrack supports all the major mobile platforms, including iOS, Android and Windows.
Teams can track their progress and collaborate easily with one another through Asana. This motivation app is free to use for teams up to 15 members. More members can be added with the Asana Premium package, which costs $8.33 per month. Asana is available on iOS, Android and Windows.
Wakie helps motivate entrepreneurs and business owners by waking them up in the coolest of ways possible. Users hear their alarm, pick up their phone and then someone somewhere wakes them up. What’s more, Wakie is free and is available on iOS and Android.
Strides is an app designed to help users stay motivated and on track. The app comprises of digestible charts and flexible reminders to help users achieve their goals. Strides is totally free to use and is available on iOS.
Coach.me proudly claims to be the home for ambitious people, which helps them build their career or business, get in shape and learn a new skill. The app is available in three different packages – the habit tracker, which is free, habit coaching, which costs $15 per week, and leadership coaching, priced at $249 a month. This skills-enhancing app is available for iPhone, Android and the Web.
Momentum is an app built around building motivation and eliminating distractions, perfect for small business owners. The app has a dashboard which users choose their goals and focus, which Momentum subtly reminds them of, with the aim of assisting inspiration, focus and productivity. Users can upgrade from a free account to ‘Momentum Plus’ from $2.50 per month. Momentum is available on the Chrome Web Store.
MotivateMe is designed to provide 24/7 motivation with instant audio coaching. The app provides randomized motivational quotes to inspire you, as well as approximately 3,000 minutes of audio coaching. MotivateMe claims to be particularly effective for business owners. The app costs £0.99 to download and is available on iOS, Android and Windows.
The TED app features more than 2,000 TED talks from remarkable people, designed to help inspire, motivate and teach those who want to learn and be inspired. TED is a great tool for entrepreneurs and business owners, who can learn from other business maestros. TED is available of Android and iOS for free.
| App Name | Key Features | Pricing | Platform Availability |
|---|---|---|---|
| Wonderful Day | Daily task tracking, visual progress with green/red bubbles | Free | iOS |
| Quotes | Daily inspirational quotes, wallpaper feature | Free | iOS, Windows 8.0+ |
| GoalsOnTrack | Goal recording, action plans, habit tracking | $68/year | iOS, Android, Windows |
| Asana | Task tracking, team collaboration | Free up to 15 members, $8.33/month for premium | iOS, Android, Windows |
| Wakie | Unique alarm system with phone calls | Free | iOS, Android |
| Strides | Goal tracking, charts, reminders | Free | iOS |
| Coach Me | Habit tracking, coaching options | Free, $15/week for habit coaching, $249/month for leadership coaching | iOS, Android, Web |
| Momentum | Goal focus, productivity tools | Free, Plus from $2.50/month | Chrome Web Store |
| MotivateMe | Audio coaching, motivational quotes | £0.99 | iOS, Android, Windows |
| TED | Access to TED talks, inspirational content | Free | Android, iOS |
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Screen capture software is a powerful tool for small businesses, allowing you to easily capture and showcase documents, and share them with colleagues or clients.
Utilizing this technology for sending screenshots of online material is a fast and cost-efficient method to disseminate crucial business communications and ideas promptly.
For small business owners seeking the best screen capture software, it’s crucial to evaluate various aspects that contribute to efficient and effective digital communication. We rate each criterion on a scale of 1 to 10 (with 10 being the most important), arranged in descending order of significance.
The software should have an intuitive interface, making it easy for users to capture, edit, and share screens without a steep learning curve.
High-quality, clear screen captures, whether images or videos, are essential for professional and effective communication.
Comprehensive editing and annotation capabilities allow for customization and clarity in communication, enhancing the utility of the captured content.
The software should be compatible with various operating systems and integrate seamlessly with other commonly used tools and platforms.
Efficient file sharing capabilities and multiple export formats increase the versatility and convenience of the software.
Stable performance with minimal lag or crashes ensures a smooth user experience, especially important for capturing live content or video.
Security measures for protecting sensitive information during and after capture are crucial, especially when handling confidential business data.
The ability to customize settings, such as capture area and hotkeys, allows users to tailor the software to their specific needs.
The software should offer a balance between features and price, ensuring affordability and value for small businesses.
Accessible customer support and comprehensive resources for troubleshooting and learning enhance the overall user experience.
By focusing on these criteria, we aim to guide small business owners in choosing screen capture software that not only meets their basic needs but also enhances their ability to communicate effectively in a digital environment.
Here are 10 of the best screen capture software options for small businesses.
Thumbalizr allows you to grab a webpage and then enables you to select the image size you want to download. The sizes range from 150 to 1280 pixels wide. You can then save the image as a PNG file. Users can start with a free account and upgrade any time.
Snagit is easy-to-use screen capture software allowing you to capture images, video games, video clips and color values. The software also has a number of editing features and is backed up with ample support. Snagit costs around $50.
FastStone is a powerful and lightweight screen capture tool and screen video recorder. Your small business can capture and annotate anything on the screen. You can also record all screen activities, including speech and mouse movements. FastStone costs $19.95 for a lifetime license.
If you’re looking for sharp screenshots, FullShot allows you to capture screenshots with sharp image quality. You can capture screenshots through five options with FullShot — Screen captures, Window captures, Object captures, Region captures and Document captures. FullShot’s standard package costs $49.99.
ScreenHunter Pro is useful software if you want to add text and other features to screenshots for reports, presentations and slideshows. This all-in-one and easy-to-use screen capture and recorder tool can be downloaded for free.
Gadwin allows you to create a screenshot that’s suitable for printing or saving. Gadwin PrintScreen Professional offers advanced image editing and annotation utility. Gadwin’s capture utility is free.
If you are nervous and unsure about how to use screenshot software, EasyCapture provides tutorials and email support to make the software easy to use. Though Easy Capture only offers the basics and lacks a video capture feature. Easy Capture is free to download.
With CaptureWiz Pro you can capture still and moving images in a variety of formats, including images from videogames. Help and support is offered via email. You can download CaptureWiiz Pro for free.
Ashampoo Snap allows you to capture an entire webpage. You can also take multiple screenshots and set the time interval you require. It also includes tools for annotating your screenshots. Ashampoo Snap costs $19.99.
If you are wanting efficient and easy-to-use screenshot software to create projects such as training manuals and insightful papers, HyperSnap could be the right tool for you. You can download a version of HyperSnap for free.
To aid in your selection, here’s a comparison table detailing key features and pricing of the top 10 screen capture software products for small businesses,
| Software | Key Feature(s) | Pricing | Image Quality | Special Features |
|---|---|---|---|---|
| Thumbalizr | Custom image size selection | Free, upgrade available | Standard | Webpage capture |
| Snagit | Extensive editing features | Approx. $50 | High | Video games and video clips capture |
| FastStone | Lightweight, screen video recorder | $19.95 lifetime | High | Annotate screen captures |
| FullShot | Sharp image quality | $49.99 | High | Multiple capture options |
| ScreenHunter Pro | Text addition for presentations | Free | Standard | Easy-to-use, all-in-one tool |
| Gadwin | Advanced image editing | Free | Standard | PrintScreen Professional |
| Easy Capture | Beginner-friendly, with tutorials | Free | Basic | Tutorials and email support |
| CaptureWiz Pro | Captures still and moving images | Free | High | Variety of format support |
| Ashampoo Snap | Multiple screenshots with time intervals | $19.99 | High | Annotation tools |
| HyperSnap | Efficient for creating projects | Free | High | Ideal for training manuals |
When selecting the ideal screen capture tool for your business, consider these crucial factors to ensure that the software you choose aligns perfectly with your specific needs.
The right screen capture tool can significantly enhance your ability to effectively communicate information, document work, and collaborate with your team.
Prioritize software with user-friendly interfaces, especially if you are new to screen capturing. A straightforward and intuitive interface can greatly reduce the learning curve and enhance productivity.
Look for software that balances simplicity with functionality, allowing users to quickly capture and process images without extensive training.
Ensure the software provides the level of image sharpness required for your business needs. High-resolution capture capabilities are essential for tasks where detail is paramount, such as graphic design or detailed data presentations.
Consider the types of screens you will be capturing from and ensure the software can handle varying resolutions and sizes effectively.
Look for tools with robust editing and annotation capabilities for detailed work. Advanced editing features, such as the ability to add text, shapes, and filters, can be invaluable for enhancing clarity and emphasis in your captures.
This is particularly important if the captures are to be used in presentations, documentation, or instructional materials.
Consider both free and paid options, keeping in mind the long-term value. While free software might be appealing, it often comes with limitations in features, image quality, or user support.
Paid options typically offer more advanced features and better support, making them a worthwhile investment for businesses that rely heavily on screen capture tools.
Check for available support, especially for software with complex features. Good customer support can be crucial for troubleshooting and learning how to use the software effectively.
Additionally, look for software that offers comprehensive tutorials and learning resources, which can be invaluable for training team members and maximizing the software’s potential.
Identify any unique requirements, such as video capture or high-quality image captures. Some businesses may need additional features like video recording, GIF creation, or integration with other tools and platforms.
Ensure the software you choose can accommodate these specialized needs, providing a comprehensive solution that fits the unique aspects of your business operations.
Photo via Shutterstock
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You’ve heard all the statistics right?
Ninety percent of startups fail.
Out of all the statistics we hear every day, this is the one that all entrepreneurs remember, isn’t it?
It’s something we all worry about.
One of the main reasons why businesses fail is because they lack the capital necessary to build their business. Simply put, they don’t have enough money to keep their businesses going.
That’s why it’s so important to make sure you’re making the best uses of your resources. A large part of your success is dependent on your ability to save money.
In this post, you will learn some helpful tips that will help you save more money so you don’t become part of the 90 percent.
In today’s competitive business environment, small businesses must adopt effective cost-saving strategies to enhance their financial health and operational efficiency. We evaluated the top cost savings ideas for small businesses using the criteria outlined below. The importance of each factor is rated on a scale of one to ten, with ten being the most important. Here’s our methodology for choosing the best cost-saving ideas for small businesses:
By assessing these areas, small businesses can identify and implement practical cost-saving measures that support their growth and sustainability.
Entrepreneurs lose tons of money because they’re overpaying on their taxes. As a matter of fact, 9 out of 10 entrepreneurs are overpaying on their taxes. This is incredibly important. Managing your tax strategy the right way is essential to your efforts at saving money.
The key is to make sure you’re taking advantage of every deduction you can. Also, you need to ensure that you’re complying with tax law. This is extremely important. The last thing you need is to get into trouble with the IRS. This could end up costing you tons of money.
The best thing to do is to seek the guidance of a tax professional who can give you the advice you need to make sure you’re lowering your tax liability and staying in compliance with the IRS. Sure, it may cost you money to hire a CPA, but it can keep you from losing even more money due to costly mistakes.
What would things be like if you didn’t have to pay so many monthly bills? How would things be if you could free up that money and put it into your business?
Debt can suck up tons of money. That’s why it’s imperative that you eliminate as much debt as possible.
One of the best ways to deal with debt is to not have it in the first place. If it’s possible, you should try to bootstrap your business. This can help you avoid the burden that debt can be. If you can’t bootstrap your business, you might consider taking on an investor. Depending on your type of business, this might be a better alternative for gaining funding.
If you already have debt, there are some things you can do to reduce it.
One of the ways you can attack your debt is to find a way to make some money on the side. You are an entrepreneur, right? If you can find a way to make some extra money without taking up too much of your time, it can help you get rid of your debt.
You also want to create an effective budget for your business. When you have the right budget, it makes it easier to chip away at your debt while making sure that you’re still managing your other expenses.
Also, if you’re like 44 million other Americans, you probably have student loan debt. As you already know, student loan debt can be quite challenging for entrepreneurs. If you are trying to eliminate your student loan debt, you might want to consider refinancing or consolidating it.
You’ve heard it said that “time is money,” right? Of course you have. It’s true. Every entrepreneur knows that every hour of their time is precious. That’s why you can’t afford to waste it.
Time management is a skill that will save you tons of money if you master it. Effective time management enables you to make sure that you’re always making the best use of your time.
One of the best ways to save time is to use tools that can make you more effective. Here’s a list of tools that can help make your life easier as an entrepreneur. These tools can help you save time and be more effective at carrying out your duties.
Clyde Kim, CEO of 2Crave knows the value of using tools to free up time.
“My business keeps me pretty busy all day and night, so having the right tools helps me automate many of the functions that would take up too much of my time. If you’re building a business, it’s essential that you’re making the best of your time and there are plenty of tools out there to help you manage your days more effectively.”
You also might want to consider outsourcing. Yes, I know it may be counterintuitive. After all, how can you save money by spending it?
However, it’s something you should consider if you want to maximize your earning potential. After all, the more time you are able to put into growing your business, the more money you will make, right? There are plenty of affordable ways to outsource. If you can find room in your budget, you should consider outsourcing some of the tasks that take up your time.
Saving money means taking proactive steps to make sure you don’t lose money. Many entrepreneurs shy away from dealing with the legal side of running a business. That’s a mistake.
It’s a mistake because you need to make sure you’re protecting your business and yourself. And there’s only one real way to do this. You’re going to have to hire an attorney. Yes, I know — nobody likes dealing with attorneys. But if you deal with a reputable attorney, you will be doing yourself a huge favor.
Corporate attorneys can bring tremendous benefits to your business. The advice of an experienced attorney can help you avoid making mistakes that could open you up to a lawsuit. It can also help you stay away from accidentally breaking the law.
Yes, you will have to spend some money. But avoiding costly mistakes is well worth the expense. It only takes one silly mistake to bankrupt a business.
Supplier relationships are important. If your type of business requires you to purchase resources from various suppliers, you need to make sure that you’re buying from the right ones. Choosing the right suppliers isn’t always easy, but if you do it the right way, you can get better terms and better pricing.
Of course, it isn’t just about choosing the right supplier to work with. You also want to work on building positive relationships with your suppliers. Positive supplier relationships can result in better service and pricing. It’s a great way to make sure you’re saving money.
| Strategy | Description | Key Actions | Benefits | Challenges |
|---|---|---|---|---|
| Take Care of Taxes | Avoid overpaying taxes and ensure compliance with tax laws. | Utilize a tax professional to identify deductions and stay IRS-compliant. | Reduces tax liability, avoids legal issues. | Cost of hiring a CPA, complexity of tax laws. |
| Get Rid of Your Debt | Minimize debt to free up capital. | Bootstrap business or find investors, create a budget, possibly refinance or consolidate loans. | Frees up capital, reduces financial stress. | Difficulty in obtaining initial capital, managing a budget effectively. |
| Stop Wasting Time | Optimize time management to increase efficiency and profitability. | Use tools for automation, consider outsourcing time-consuming tasks. | Maximizes productivity, frees up time for business growth. | Costs of tools and outsourcing, finding the right balance. |
| Cover Yourself Legally | Protect the business from legal issues. | Hire a reputable attorney for legal advice and protection. | Minimizes risk of lawsuits and legal mistakes. | Costs of legal services, finding a trustworthy attorney. |
| Choose the Right Suppliers | Establish strong relationships with suppliers for better terms and pricing. | Select suppliers carefully and build positive relationships. | Better pricing and service from suppliers, cost savings. | Time and effort in selecting and maintaining relationships. |
If you’re an entrepreneur, you need to save money. The better you are at cutting costs and mitigating your expenses, the greater chance you have at succeeding.
If you implement the tips given in this article, you will be in a much better position to achieve your business goals.
Saving Money Photo via Shutterstock
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The success of rental property businesses often depends on thorough planning, effective management, and adapting to changing market conditions. With a decent credit rating, you can get started if you’ve got 20% of a property’s cost for a downpayment, plus closing costs. But before you buy, read on to learn all you need to know about starting a rental property business.
It’s essential to educate yourself continuously about real estate investing. You must also stay informed about local regulations and market trends. There are two main challenges: You’ll need to be ultra-careful about choosing the right properties and even more careful about choosing the right tenants. The last thing you want to do is pay out upfront money to renovate a property and then have tenants damage the property.
Yes, it takes money to make money. Do you have the financial stability to start a rental property business? Here is a checklist with resources:
Business Startup Checklist:
“Use a business startup checklist to ensure you’ve covered all the essential steps in launching your rental property business, from legal compliance to market research.”
Business Plan:
“Develop a detailed business plan for your rental property business. This plan should include market analysis, financial projections, and strategies for growth and risk management.”
Rental Business Ideas:
“For those looking to expand their portfolio or explore different avenues, researching rental business ideas can offer innovative ways to grow in the rental market.”
Best Rental Listing Sites:
“To effectively market your rental properties, consider listing them on some of the best rental listing sites. These platforms can significantly increase your property’s visibility to potential tenants.”
Printable Rental Agreements:
“To ensure legal compliance and clarity with your tenants, use printable rental agreements. These documents can be customized to suit your specific rental terms and conditions.”
How to Start a Property Management Company:
“If you’re considering a more hands-on approach in your rental business, learning how to start a property management company can offer insights into managing properties more effectively.”
How to Start a Business:
“Starting a rental property business requires a strategic approach. Familiarize yourself with the basics of how to start a business to lay a solid foundation for your rental property venture.”
Website Startup Guide:
“For online marketing and tenant communication, consider creating a website for your properties. A website startup guide can help you build a professional online presence.”
Common Business Structures:
“Decide on one of the common business structures for your rental property business. Each structure, from sole proprietorship to LLC, has different implications for liability and taxes.”
| Step | Description | Tools/Resources | Key Tips |
|---|---|---|---|
| Market Research | Understand the local real estate market and demand for rentals. | Market analysis tools, local property listings. | Identify areas with high rental demand and potential growth. |
| Business Plan | Create a detailed business plan outlining your strategy. | Business plan software, templates. | Include financial projections, target market, and management plan. |
| Financing | Secure financing for property acquisition. | Mortgage brokers, banks, real estate investment loans. | Explore different financing options like traditional mortgages or investment loans. |
| Property Acquisition | Purchase properties that meet your investment criteria. | Real estate agents, online property portals. | Focus on properties with potential for high rental yield and appreciation. |
| Legal Compliance | Understand and comply with local landlord-tenant laws. | Legal advisors, local housing authorities. | Ensure compliance with safety regulations, fair housing laws, etc. |
| Property Insurance | Obtain insurance to protect your properties. | Insurance providers, comparison tools. | Get adequate coverage for property damage and liability. |
| Rental Pricing | Set competitive rental prices for your properties. | Market analysis, rental rate tools. | Price competitively based on location, property features, and market rates. |
| Marketing Properties | Market your rental properties to find tenants. | Rental listing websites, social media. | Use high-quality photos and detailed descriptions in listings. |
| Tenant Screening | Implement a thorough tenant screening process. | Credit and background check services. | Check potential tenants’ credit, rental history, and background. |
| Property Management | Decide on self-management or hiring a property manager. | Property management software, local property management firms. | Consider the time and effort required for management versus outsourcing. |
You should have a stable source of income that covers your personal expenses and leaves room for property-related costs. Before you approach a lender:
Understanding local market trends helps you identify profitable areas and property types. Market research helps set competitive rental rates and predict future property values.
Analyzing the average and eventual home sale prices will help you assess the supply and demand dynamics for rental properties.
Your business plan for the residential properties you plan to acquire should factor in your real estate market analysis. Your business plan should also include your objectives and definitive financial projections.
Include the steps you’ll take for risk management and also your strategy for business operations. As you write your business plan, keep in mind that the document can be a key part of a lender’s decision to grant you a loan.
Define your short-term and long-term investment goals, such as cash flow, appreciation, or retirement income.
Evaluate rental property factors like population growth, employment trends, and local amenities that affect rental demand.
As a real estate investor, you’ll want to keep an eye on vacancy rates and rental listings to gauge supply levels. You’ll also want to balance your investments to match demand and supply dynamics in your chosen area.
You should diversify your property portfolio to spread risk across different locations and property types. Always establish an emergency fund for unexpected expenses.
Stay updated on local landlord-tenant laws to minimize legal risks.
Now, you’re ready to buy the first property for your rental property business.
Choose properties in neighborhoods with low crime rates and good schools. You can check state education websites to check out the ratings of school districts. Once you’ve narrowed down the location, view the property. Assess the property’s condition and renovation needs.
Evaluate the rental potential, considering local rental rates and property features. For example, if you hope to rent to families seeking a certain school district, does the house have enough bedrooms? Is it on a school bus route?
Research zoning laws, property taxes, and rental regulations in your area. Also, consider the cost of certain utilities, such as public water and sewer. Make sure you renovate in compliance with building codes and safety standards.
Explore financing options like conventional mortgages, FHA loans, or private investors.
Create a comprehensive budget that covers not only the purchase but also ongoing expenses such as maintenance, property management, property insurance, and taxes. Make sure you include numbers to reflect adjustments to insurance rates – rates are more expensive for unoccupied properties that are undergoing renovations, for example.
When you’re ready to advertise and show your rental properties, pay close attention to these next steps:
Getting the right tenants is one of the most important aspects of a rental property business.
Of course, rent collection must be timely, with guidelines regarding late or unpaid balances. Requests for maintenance must also be handled on a timely basis.
To help reduce emergency maintenance issues, do regular property inspections to identify issues early. Establish effective lines of communication with tenants to address concerns and maintain a positive landlord-tenant relationship.
In addition to doing routine inspections and repairs to address issues promptly:
Once you’ve got one or two properties renovated and rented, you may be ready to expand your rental portfolio. Here are some strategies to consider before you take that step.
Explore different property types (e.g., single-family homes, multi-family units, commercial properties). Consider expanding into new geographic areas with strong rental demand. For example, you may learn that a new major employer is moving into the area. Explore real estate investment trusts (REITs) or real estate crowdfunding for diversification.
Reinvest profits to acquire more properties or fund property improvements.
Should you consider paying down existing mortgage debt to increase cash flow? Remember that at tax time, you can deduct the interest you pay on a mortgage. However, using that deduction may not be enough to validate using it as a tactic to reduce taxes. You may want to talk to a tax professional before you make that type of move.
Let’s put some numbers on a hypothetical property. You purchase a three-bedroom house for $165,000, with the down payment and closing costs about $40,000. Your mortgage is for $130,000, with a monthly payment of $1,000. How much can you charge for that rental in your area? How much money will you have to put into the house before it is ready for tenants?
Depending on your area of the country, you may pay much less or much more for a property, and also, charge less or more as a rental fee.
A rental property stands out from others if it’s in a good neighborhood with a good school district. If the property stays rented, it will prove its worth.
Other features renters look for are: designated parking spot, hookups for washer and dryer and access to an outdoor area.
Initial capital requirements vary widely but generally include a down payment (typically 20-25% of the property’s value), closing costs, and initial maintenance/renovation expenses.
Rental income is generally taxable, but you can deduct expenses such as mortgage interest, property taxes, insurance, and maintenance costs. Consult with a tax professional for specific guidance.
Real estate investing carries risks, including market fluctuations, property damage, and tenant-related issues. Effective risk management and thorough research can mitigate these risks.
Image: Envato Elements
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