Someone like equity-firm director Gary Sernovitz might consider losing money in a restaurant to be part of the thrilling charm, but some people (maybe yourself) might want to invest in things that actually make them money or don't fail. Every good thing comes from an idea and every idea needs money. Here are five things that might make you money and make the world a better place!
It takes a lot of work to get any kind of medical certification and the dream is generally to open a private practice, usually in a community where the practitioner services a particular need that not many people consider optional. If you have to get braces, you get braces and the profit margins show. Before taxes, dentist offices make, on average, a 15.4% profit margin, outpatient care centers make 14.8%, and general physician practices make a solid 15.5%. Here's Modern Healthcare Magazine on more reasons why more and more people are investing in medical practitioners.
And you're also investing in an essential part of many communities and are in a place to use that profit margin to actually change people's lives.
While the brick-and-mortar establishments ebb and flow with vast amounts of money lost in between, their more mobile cousins have been shown to be more resilient. In fact, according to Josh Tang, founder of mobile food behemoth Mobi Munch, the failure rate for food trucks is only between 10 and 20 percent (compared to 60-90% for restaurants, with much geographical variety). With widely popular street vendors The Halal Guys set to become the 'Middle Eastern Chipotle' and minting out franchises and other studies predicting that food truck revenue will hit $2.7 billion by the end of 2017, it's time to hit the street with your hot cash.
With the results of last Tuesday's election still very much on our minds, people are already turning toward the private sector for the kinds of leadership and administration that people have good reason to believe a Trump White House and a Republican-controlled Congress will provide. Election results or no, both 2015 and '16 have been great years for companies geared toward that underrepresented half of the human race. Back in September, tennis superstar Venus Williams and Mellody Hobson, lesser-known investment superstar, invested big in the Finnish startup Ellevest, a digital wealth management service that focuses explicitly on the needs of female investors, taking into account factors like the longer life expectancy of women.
Also big: new health services and companies that are taking the taboo out of women's healthcare products. Companies like thinx, icon, and the flex have made a place for themselves in the marketplace by aiming directly at women and no one else. Investment, I'm sure, they'll take from anyone.
While foodie waves ebb and flow in an impossible-to-keep-track-of litany, retail is a bit easier to follow. But what's yesterday's fashion in New York and L.A. can remain popular in Midland, USA for decades! And there's no better time to get into the world of selling product like 2016: with the snap, the 'gram, and Pinterest still flowing, it's easier than ever for businesses to get oodles of free advertising that's just a click away from a purchase. And the money's there: the Dow Jones U.S. Retail Index has consistently outperformed the more glamorous S&P 500 over the past decade. People, at the very least, are always buying things.
Spot the next new thing?
While investing in faith-based organizations may seem counterintuitive, Entrepreneur magazine writes, "being not-for-profit doesn't mean your goal shouldn't be." If you want a good place to invest good money that won't just be a sinkhole for operating costs, religious organizations are known to, on average, pull ahead and into the black. Last year, religious nonprofits netted, on average, a solid 12.41% margin. Not a bad profit for a nonprofit!
Any of these industries is a solid place to start for the investing beginner, or a good place to diversify for the investing pro.
Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.