For many people, being able to work at home gives them the best of both worlds; they have the job security and income of a regular full-time job, without the time, expense and hassle of going to an office. The financial industry has seen an increasing number of jobs in this sector moving to become available for telecommuters. These jobs range from full-time corporate positions, to opportunities for entrepreneurs and independent contractors. In this article, we'll provide a breakdown, in no particular order, of the four highest-paying positions available in this sector.Tutorial: Starting a Small BusinessDay TraderA day trader holds positions in stocks for a very short period of time, often from minutes to hours, and makes numerous trades each day. In most cases, all open trades are closed before the end of the day.While this "job" does not offer a guaranteed salary or other benefits, it does provide those who are successful at it with potentially huge returns on capital. Some traders can post returns of 300% or more in a year, while others will see much less. Being a successful day trader requires more than a lucky guess; day trading requires specific skills and tools, available capital and emotional stamina. In order to achieve success, day traders must have:
- A long-term trading strategy and access to up-to-the-minute market information, including real-time quotes.
- The ability to correctly interpret the short-term movements of the markets.
- Continuous access to multiple live news sources, such as CNBC.
- Analytical software, which allows day traders to discover trading patterns much faster and reduce trade execution times.
This life is not for everyone. Traders must have the stomach, and the cash reserves, to weather heavy, short-term losses and be able to keep going. Some traders focus chiefly on equities, while others speculate in derivatives or foreign currencies. While successful day traders can become quite wealthy, it is virtually impossible to quantify any kind of average compensation to them, as even the best traders will see substantial fluctuations in their respective returns, from one year to the next. If you need to know you'll have a constant and steady income, this is not the career for you. (For more on day trading, Day Trading Strategies For Beginners.)
Financial WriterWhile this position is perhaps one of the least publicized in the industry, talented and experienced writers are constantly in demand. There has been an explosion of financial news, literature and websites over the last several years, as well as an increased demand for professional financial education and training. This job is perhaps one of the easiest to do from home, as all written material is easily deliverable electronically via email and web servers. There is rarely a shortage of work for a competent writer, especially one who can produce good copy under a tight deadline. Good financial writers and editors can command up to several hundred dollars per article, and there are even some jobs that can pay salaries in the range of $70,000 to $90,000 per year.
To achieve the top salary as a financial writer, you'll usually need a master's degree in management, finance, economics or journalism. Professional experience in the financial industry will set an individual apart from the competition. However, some writers have become successful just by having the ability to write professional-level copy consistently, about financial topics that are well-researched and financially sound. (To find out more profiting from your pen, see Becoming A Financial Writer.)Independent Financial PlannerAlthough not common, it is possible for independent financial planners and advisors to base their offices out of their homes, as long as their homes provide a sufficiently professional backdrop for their practices. Obviously, a client would be more interested in seeing a financial planner in a larger house, in a more affluent neighborhood with a dedicated area for the home business, than a poorly maintained apartment in a neglected area of town. In addition, some business licenses will only allow one client to be at your home at one time, so if this creates a legal issue for you, having clients come to your home may not be the best option.There are also positional issues to consider, such as parking, access for persons with handicaps, restrooms and so forth. Furthermore, a key factor in deciding whether to take this approach will be whether the advisor's family is willing to share the house with a business.At the same time, advisors who are able to make this arrangement work for them and their clients, can substantially reduce their overhead expenses as well as eliminate their commuting costs. The compensation range for successful advisors who work at home will likely mirror the compensation received by advisors with similar practices, who work anywhere else, without the high overhead expenses. (To keep reading on this subject, check out Is A Career In Financial Planning In Your Future?)Corporate Financial CareersThis last category of work-at-home jobs encompasses several different areas, including financial analysts, certified public accountants, tax researchers, computer programmers and many others. An increasing number of these jobs are being farmed out to independent contractors. Many computer-based jobs can now be done from anywhere, therefore, employers can be reluctant to justify using expensive office space to house additional employees. In fact, existing employees are often allowed to work at home, at least part time. Many corporate jobs now only require employees to come into the office once or twice a week, for meetings or presentations, and allow them to do their remaining work at home.The Bottom LineAs with other sectors of the economy, laptop computers and mobile phones are allowing the financial industry workforce to become increasingly mobile. More and more work is leaving the office to be done at home or out in the field, and this trend is likely to continue far into the future. Employees in the financial industry who are tired of the office routine, now have several highly compensated home-based alternatives from which to choose.
Many people dream of starting their own businesses, but not everyone is cut out for this line of work. Being employed by someone else offers a slew of advantages, from health insurance and matching retirement contributions to a regular schedule and the company of coworkers. If you're thinking about striking out on your own, consider carefully whether you have what it takes to be successful. Entrepreneurs: Nature or Nurture?Are good leaders made or are they born? No one knows for sure, but successful entrepreneurs tend to share these traits:DisciplineTo be successfully self-employed, you'll need to have the discipline to set work hours, meet deadlines, pursue new clients and avoid tempting distractions like your TV.FrugalityTo prevent yourself from going broke when your business is new or times are slow, you must be willing to cut back, sometimes way back, on your spending. Remaining self-employed has to be a top priority above buying new clothes or other niceties. It's a good idea to be frugal not just in slow months, but in the good ones as well to give yourself a well-padded savings account that can tide you over when your business isn't generating income.Self-ConfidenceIn order to successfully sell yourself to others, you have to be your own biggest fan. If you don't believe you're one of the best at what you do, no one else will either. Business will rarely just fall into your lap, so you'll need to be willing to promote yourself and ask for work whenever and wherever possible.Good Communication Skills Clients won't always make their expectations crystal clear. Rather than guessing what they want, you must not be afraid to ask lots of questions. It's also a good idea to ask for feedback during and after assignments to make sure you're meeting your clients' expectations.
HumilityFew clients will expect you to be perfect, but if you can't fess up and apologize when you make a mistake, you'll get crossed off their lists.Honesty and Integrity When you're self employed, your reputation is crucial. You don't have the image of a company to fall back on or make up for the occasional bad employee. You are the company and you are the employee. Everything you do needs to reflect well on your business.Superb Record-Keeping Skills It's very important to know when you sent out invoices, when you were paid, who still owes you money, how much money your business has, how much you have made and how much you need to make. Detailed, accurate records are critical to the financial health of your business and are indispensable for tax purposes.Motivation
You won't become a successful business person by watching TV all day. Even when you think you have a day to relax, don't put your assignments off until the last minute. It's better to get as much done as you can when things appear to be slow because you never know what the next day will bring. Also, forget about turning all your work in on the due date and plan to turn some work in early instead. The faster you complete an assignment, the faster you can move on to the next one, which means more money in your pocket. Beating the occasional deadline also instills confidence in your clients that you can be relied upon. It probably goes without saying that missing a deadline is not acceptable except in the most extreme circumstances.
FlexibilitySome times will be busier than others, and assignments will arise unexpectedly. You have to be willing to rearrange both your business and work schedule to accommodate your clients' requests.Ability to Set BoundariesWhile it is a good idea to maintain some degree of flexibility, you also must set boundaries and realistic expectations with your clients. These things don't need to be done explicitly, but rather will become the norm as you teach people how to treat you. Don't answer your phone or email after business hours, don't accept unreasonable deadlines or insurmountable workloads and don't let clients negotiate your invoices down or refuse to pay after the work is done.Good Health Self-employment does not offer paid sick days, so you'll have to work when you're sick, make up the hours later or accept the lost pay. You also must be able to afford your own health insurance, which may include providing health insurance for your spouse and kids, too.Ability to Create Balance For workaholic types, working at home means it's difficult to know when to stop and take a break. For those who are better at relaxing, it's equally challenging to get out of lounge mode and start working. Regardless of which category you fall into, when you work for yourself, you'll have to push yourself outside of your comfort zone to keep your work life and personal life in balance.Optimism You won't always have a lot of work and you won't get all the assignments or clients you want. You have to keep pursuing work, maintain a positive mindset and not take the rejections personally or you'll soon find yourself in a cubicle filling out a W4.The Bottom LinePersonal characteristics will have a major influence on your potential to succeed as an entrepreneur. Before taking a financial and career risk, make sure to assess whether your personality will contribute to or hinder your prosperity.
Source: investopedia.com
An entrepreneur is a person who organizes, manages and assumes the risk of a business venture or idea for the sake of profits. Entrepreneurs have awareness to spot opportunities, the creativity to innovate, the confidence to take risks and the tenacity to turn concepts into successful businesses. Entrepreneurs represent every field imaginable, and many of their ideas have helped shaped industries and the world we live in. While the list of inspirational quotes is like the universe, vast and constantly expanding, here are six seeds of wisdom from successful entrepreneurs.Mary Kay AshFounder of Mary Kay Inc."We must have a theme, a goal, a purpose in our lives. If you don't know where you are aiming, you don't have a goal."
After being passed up for a promotion after 25 years in the direct selling business, Mary Kay Ash took her $5,000 in savings and created Beauty by Mary Kay. The company was founded on the belief that women could foster their talents and realize unlimited success. Today, Mary Kay Inc. has more than 2 million Independent Beauty Consultants worldwide. In addition to founding Mary Kay Inc., Ash authored three books which all became best sellers. In 2004, she was named one of the 25 Most Influential Business Leaders of the Last 25 Years by PBS and the Wharton School of Business.
Ash's quote emphasizes the importance of identifying one's ambitions. Without defining goals, it is impossible to reach them. Ash envisioned a company in which any woman could become just as successful as she wanted to be.Sara BlakelyFounder of Spanx Shapewear"Failure is not the outcome. Failure is not trying."
As a young girl, Sara Blakely's father would ask: "What did you fail at today?" Growing up, failure was viewed as a good thing. If Sara didn't fail at something that day, her father would be duly disappointed. This enthusiasm towards trying new things, regardless of the outcome, helped Blakely avoid the paralyzing fear of failure that prevents many people from reaching beyond their comfort zones. In her 20s, and frustrated by the lack of undergarments to wear with white pants, Sara Blakely's idea for Spanx was born when she cut the feet off a pair of pantyhose. In 2012, she was the youngest self-made women to join the Forbes' billionaire list.
According to Blakely, the only real failure is to not try at all.Yvon ChouinardFounder of Patagonia "How you climb a mountain is more important than reaching the top."
As a member of the Southern California Falconry Club where he rappelled down cliffs to falcon aeries, a teenaged Yvon Chouinard laid down the roots of what would become a legendary climbing career. Dissatisfied with the climbing equipment that was available, Chouinard decided to make his own. He purchased a coal-fired forge, an anvil, tongs and hammers. He set up shop in his parents' backyard. By 1970, Chouinard Equipment became the largest climbing hardware supplier in the United States.
Since founding Patagonia, one of the world's most successful outdoor clothing and gear companies, Chouinard has been a pioneer in mixing environmentalism with sound business practices. How we play the game, whether in business or in life, can matter more than how we finish.
Thomas EdisonInventor"I have not failed. I've just found 10,000 ways that won't work."
Thomas Edison developed the phonograph, commercially practical light bulbs and the motion picture camera. He was a pioneer in applying mass production to the process of invention, and he was known for his systematic approach to research and development. He is credited with creating the first industrial research lab.
As holder of more than 1,000 U.S. patents, Thomas Edison was one of the most productive inventors in history. Edison accepted the progression that is inherent to success. He demonstrated that each step in the process is vital to meeting the goal.Albert EinsteinPhysicist"Insanity: doing the same thing over and over again and expecting different results."
Albert Einstein was a theoretical physicist who developed what is known as the world's most famous equation: E=mc². His contributions to physics include his work on special relativity, general relativity, mass-energy equivalence and the Theory of Brownian Motion. He was awarded the Noble Prize for Physics in 1921.
Able to identify the problems of physics and develop organized strategies to solve them, Einstein expressed the need to learn from both mistakes and successes through his well-known definition of insanity. Making the same mistake over and over again will result in the same failures. Conversely, even when something does work, such as a business model, it may not continue to produce the desired results over time. Adaptation is key.William RosenbergFounder of Dunkin' Donuts"Show me a person who never made a mistake, and I will show you a person who never did anything."
In the 1940s, William Rosenberg founded Industrial Luncheon Services using $1,500 in war bonds and $1,000 in borrowed seed capital. Following its success, and noticing that a significant percentage of revenues came from coffee and doughnuts, Rosenberg founded the Dunkin' Donuts franchise in 1950. Dunkin' Donuts is now represented in 32 countries with more than 10,000 locations. In 1959, Rosenberg and a group of entrepreneurs met to discuss the future of franchising and founded the International Franchise Association.
In business and in life, it is impossible to avoid all mistakes. Successes are due in part to failures, and mistakes are an inevitable part of the learning process.The Bottom LineFor thousands of years, entrepreneurs have discovered, invented, created, developed, improved and theorized. Their quotes help explain their modi operandi and the reasons they believe they have become successful. Their words of wisdom may also motivate others to set goals, embrace failure and learn from their mistakes.
In times of economic distress and reduction in consumer spending, businesses always look for ways to increase profits by either:
- Developing new products to stimulate more spending on the part of buyers, or
- Examining company expenses more closely and looking for ways to reduce those costs
During recessions or economic downswings, businesses are more likely to cut costs than convince customers, who are also looking for ways to save money, to spend more. It's a good opportunity to make owners think outside the box - and outside their company - to find financial answers to their current problems. If a new product or service won't help grow your company, then finding ways to cut costs just might. In this article, we'll take a look at several of these cost-saving measures for small businesses to help them survive - and even grow - during economic fluctuations. (To learn more about the impact of economic instability on businesses, see The Impact Of Recession On Businessesand Industries That Thrive On Recession.) 1. Assign the Purchase of Office SuppliesOne expense area that might require scrutiny is the office supplies, which include items like staplers, pens, pencils, calculators, notepads, printing paper, ink, toner, coffee and more. Aside from simply cutting back, one way to reduce the cost of office supplies is to shop around for cheaper vendors or vendors who are willing to offer discounts. If you have a good relationship with your current vendor, consider talking to your vendor to request a discount on items you buy.
Another way to curb the office supplies expense is to put in place the following buying controls:
- Specification sheet: A specification sheet includes a price range or price criteria for items. It tells the employees in charge of purchasing what an acceptable price range is for various products.
- Approved purchase orders: Allowing employees to purchase office supplies when they feel there is a need is not good practice. Instead, assign the purchasing of office supplies to a trained employee and let the duties include taking stock of office supplies. When it is time to purchase the supplies, have that employee fill out the purchase order and make sure it is approved by an authorized employee.
2. Reassess the Inventory Costing Method If you have inventory, the type of inventory costing method you use can affect your cost of goods sold and ultimately your profit. The two major types of inventory costing methods are first in, first out (FIFO) and last in, first out (LIFO). These methods are used for accounting purposes.
In the FIFO method, the first inventory to be purchased is the first to be sold. For example, suppose your business sells computers. You buy a computer in March for $150 and another similar one in April for $250. When you sell a computer for $500, you are going to state, for accounting purposes that the cost of the computer is $150 because it was the first one purchased. In the LIFO method, the last item bought is the first one sold. Using the previous example, when you sell the computer, your cost is going to be $250 instead of $150.
The type of inventory costing method you use becomes relevant during a period of rising costs because both methods have different effects on your profit.
FIFO results in a higher net income, because the costs you are subtracting from revenue are from a period when goods where cheaper. On the other hand, LIFO results in a lower net income because you are using higher costs to calculate profit. So, in our example, your net profit using FIFO would be $350, while your profit with LIFO would be $250. It is important to note that because of higher net income, FIFO will cause you to have higher tax payments than LIFO. Therefore, as a business owner, you will have to decide whether you would rather deal with higher net income and higher taxes or lower net income and lower taxes. (For related reading, see Inventory Valuation For Investors: FIFO And LIFO.)
3. Purchase Bundled ServicesPurchasing bundled services can also be beneficial to a business owner. Sometimes, companies bundle their services in a package for a lower total price than you would receive if you purchased those services separately. Types of companies that often bundle services are communication and insurance companies. A communication company might offer you internet and phone services at a cheaper rate than you would normally receive if you purchased separate services.
4. Determine Whether to Lease or BuyWhen it comes to office space and office equipment, whether to lease or buy is a question that is constantly being asked by businesses. Unfortunately, the question has no clear cut and straightforward answer because the decision has to be made based on factors specific to your business alone. (Keep reading about this in Pros And Cons of Leasing Vs Buying A Vehicle.)
Two things to consider before making the decision are cash flow and tax treatment.
- Cash Flow: In the short term, the lease option frees up cash for other purposes. In other words, you are paying less for an item than you would if you purchased it, so you have cash available for other uses.
- Tax Treatment: Leased and purchased items are eligible for different types of tax treatments. For example, an item that is leased under a fair market value or true lease may be eligible to deduct the monthly lease payments as an operating expense deduction. On the other hand, the only thing you can write off on a purchased item is its depreciation value, and this is usually based on the type of equipment.
Consult a tax expert or advisor about the tax implications of leasing or buying certain items for your business. Don't be swayed by lease offers if they really aren't in your business's best interest.
5. Implement a Last Resort?When the economy is in a downswing, the first thing some companies do is resort to layoffs. Layoffs can be stressful to both management and employees, and this can lead to reduction in productivity. Layoffs should be a last resort for any business. Other last resort options can include slashing prices and selling equipment, supplies or products that aren't necessary to your business's operations in order to outlast - and even come out stronger after - the economic turmoil.
ConclusionBefore resorting to drastic last-resort measures, business owners should try to reduce the first four costs mentioned above. Assessing your company and deciding which method to use is up to the business owner. However, owners should consult with tax and financial advisors when making important decisions like these.
Source: investopedia.com
