6 Unexpected Cost-Cutting Strategies for Small Businesses

Being a small business owner isn’t always easy. The business will always have up and down periods. Sometimes customers line up, and the company may not be able to keep up with the demand, but other times it may be very quiet. During these low times, you may not have enough income to keep your company as supported as you may like. At such times, cut back on your spending rather than take out more loans. You need to be thrifty to keep your venture afloat. These are six unexpected cost-cutting strategies small businesses will benefit from.

Unexpected Cost-Cutting
1. Automate

Why do tedious tasks yourself when you can have a machine do them for pennies? Automation is the future of business. It can be very annoying to do repetitive, mundane tasks manually. Plus, someone could make an error which could cost your company even more money. To prevent this, you should invest in automation. Small businesses need to focus on the bigger picture items to grow and be successful. By implementing automation into your company, tasks like sending out reminders, getting notifications, sorting through invoices, etc., could be done in seconds. Employing automation is much cheaper than having employees do this work. Many companies, like Simply Flows, offer a free trial version of their product and then reasonable plans to choose from. Using automation will help your small business not have to worry about tedious tasks and save you money in the process.

2. Hire Freelancers  

Instead of hiring full-time employees or expensive consultants, hire freelancers for your standalone or independent projects. The reason why freelancers will save you money is because they have no overhead fees. All you have to pay them is their designated fee for the work they perform. No health insurance, retirement, or time-off expenses to worry about. Instead, only pay them for the work they have completed. Obviously, a contract should be drawn between your company and the freelancer defining your expectations, but this is a significant cost-cutting strategy, given that labor costs are usually the biggest expenses for a business. Using freelancers is a great way to help your organization save money.

3. Right-Size

Having ample office space for a small number of people and the occasional meeting with a customer is not efficient. It is not smart to pay rent, utilities, insurance, etc. if you do not properly utilize the amount of space you have. Downsizing could be your unexpected cost-cutting strategy. Plus, you can arrange people in this smaller office to sit where it would promote the most efficient results. For example, if someone is constantly going to the filing cabinet to get excess paper or other products, it would be beneficial to place them by the filing cabinet rather than the printer. This strategic placement in a right-sized office would save money and promote productivity.

Also, consider running a fully virtual company, i.e., not having an office at all. Then, you would not have to pay for rent, furniture, or property insurance. Even before the pandemic, many companies were starting as virtual. That way, they could hire people from anywhere without being restrained to a physical location. People, on the other hand, would have the benefit of working from their homes, shared spaces, or the beach, if they wanted to, without being forced into crazy commutes and unpleasant cubicles. Both right-sizing and going virtual are viable options to save you money.

4. Cutting Operating Expenses
Unexpected Cost-Cutting

Operating expenses can go through the roof if not appropriately managed. Bills can begin to pile up, and small businesses may have no way to pay them if they do not have the income. It is essential to do whatever possible to cut back on these expenses. For example, electricity costs a lot in the industry. If you forget to turn off machines or lights, this could result in higher fees for your organization. Possible ways to cut these operating costs would be investing in solar energy or more cost-efficient lighting.

Additionally, consider reviewing and renegotiating the professional services you pay for. A small business may work with a few agencies for their bookkeeping, accounting, marketing, hiring, etc., and each may be willing to lower their fees if you renegotiate them. If this did not work, you could transfer to another agency with lower fares.

5. Do Your Own Advertising

Another unexpected cost-cutting strategy is that small businesses can do their own advertising. Rather than hiring someone that charges a lot to create digital advertisement materials, you can do this yourself. There are various free applications to get the job done. For example, companies can use Canva to create all sorts of materials for posts and ads – images, infographics, banners, postcards, etc.  If a small business does not know where to place its ads, it can utilize programmatic advertising. Programmatic advertising is the placement of ads on websites and social media through AI. This is much cheaper than hiring someone to do this process for you. To cut costs, small businesses could make their own ads and do the ad placement themselves or through programmatic advertising.

6. Buy a Smart Thermostat 

Would you be able to do work in a place that was overly hot or cold? I doubt it. Being in a comfortable setting contributes significantly to employee productivity and job satisfaction. Investing in a smart thermostat will surely pay back. These thermostats learn the company’s climate preferences and automatically adjust to create a comfortable temperature. Over time, this investment would cut back on heating and cooling costs. People would no longer have to constantly adjust (or argue over) the temperature settings in the office. Plus, a comfortable workplace contributes to workers being more relaxed and productive.

Small businesses need to cut costs to remain afloat, especially during low points for their organization. Saving money will help with the financials. Furthermore, these strategies can lead to more efficient and productive workplace. Also, being efficient means more time and attention towards customers and your products. Strategizing and determining the best ways to save money is vital to small businesses. These unexpected cost-cutting strategies will help your organization not only thrive but be more successful than the competitors.

Learn how to automate your small business and cut costs by checking out Simply Flows product.

Best Time-Saving Tips for Success in Business

Throughout the workday, there are various tedious tasks a person has to do that consume a large amount of their time. A lot of other, high-value, tasks don’t get completed because there isn’t enough time in the day. Not to mention that people feel burnt-out from doing such mundane work. It is essential to find ways to save time because time is the only non renewable resource. Here are the best time-saving tips for success in business. They will help your organization be more productive and, ultimately, more successful.

Time is the only non renewable resource and we have very little of it. Therefore, wasting it on low-value work is unacceptable.

Time-Saving Benefits

Time savings can help increase productivity within a company. You open yourself up to getting more work done throughout the day by eliminating minuscule tasks. This, in turn, can lead to higher productivity and professional satisfaction in the workplace. People like to see that what they are doing is making a difference. Getting rid of low-value tasks means more time dedicated to growing the business, taking better care of the customers, and investing in employees’ professional development. This, in turn, would lead to higher customer loyalty and job satisfaction. Last but not least, saving time would contribute to increasing the organization’s value, revenues, and opportunities.

Time-Saving Tips

So, how does one increase time savings? There are various ways that a company can cut down on its inefficiencies. To start, a person has to stay organized. If someone’s files are all over, there is no way to get their work done efficiently. They would just be searching for what they need, which would take up a large portion of their day. It is essential to focus your attention to ensure you are doing high-quality work without making mistakes. Getting a job done before deadlines is crucial, so keeping an eye on the time and hitting those deadlines can increase time savings. To add, one other way to help save time is to avoid multitasking. Although it can be tempting to try and get everything done at once, it could be a distraction. Using these tips, one can become better at implementing time-saving techniques into their routine.

time-saving tips for success

Automation: The Biggest Helper 

The best way to increase time savings is through automation. Automation can eliminate tedious tasks, so that you do not have to waste time doing them yourself. You could create workflows for repetitive data entry and other manual data processing tasks. Then, you can focus your attention on your customers, for example, while the software does the tedious work. Something else, investing in automation to do your payroll is a huge time-saver. You get back that person whose only job is to work on the payroll tasks all day long. Business would grow, revenues would increase, and customers would be happier once you employ automation – the most significant time-saving helper a company can get. 

Using the above time-saving tips for success, you can help your company cut back on inefficiencies and make more money. Automation is the biggest helper when it comes to saving time in a business. Automated workflows can eliminate tedious tasks and give you time back to grow your company and make it even more successful.

Simply Flows can save you an immense amount of time, check out our product.

How Non-Technical Startups can Utilize Technology with no Budget

Starting your own company can be one of the most exciting moments of your life. It is an amazing feeling when you find something you are passionate about and push to make it become a reality. However, startups require a lot of money to get off the ground. It can be difficult to get investors to believe in your idea right away and even if they do, getting funding takes quite a bit of time. Initially, you will have to bootstrap your idea. This can become very costly if you do not budget correctly. Therefore, you should always try to save money whenever possible. Non-technical startups can still utilize technology even without any budget, as long as they avoid money suckers.

non-technical startups

Biggest Spending Mistakes

Many small businesses are run by first-time owners. To succeed, they need to be extremely cost-conscious. Some of the biggest mistakes a startup can make are:

  • Hiring staff you don’t need (yet).
  • Spending money on unnecessary products.
  • Overspending to the point where you take on debt. 
    • You need to have backup savings in case any problems arise.

It is essential to be cognizant regarding your spending. Even more so at the beginning, when revenues are not yet consistently coming. But even down the road, avoiding these major spending mistakes is vital for your success.

How to Avoid Overspending 

non-technical startups people

Rather than hiring too many people, it would be more beneficial to focus on 2-5 vital employees who will help develop your idea. It is crucial to find knowledgeable, experienced, self-driven, and flexible people whose values align with your own. Additionally, there is no point in hiring full-time employees when part-time ones are all you need.

When it comes to buying products, you should only get what is necessary. It is also important to create a budget and stick to it. Keeping your organization lean and spending only the minimum is vital when just starting. Also, always set aside some savings. Chances are something will go wrong (late, unexpected) and you will need that money. Having an emergency fund is always a good idea. Avoiding overspending early on will help your startup run longer and successfully.

No Money, No Problem

It takes a decent amount of time for startups to become recognized. Spending money can help with the promotion of your products but can burn a hole in your pocket. These are three of the best ways to succeed as a non-technical startup without spending a large sum of money.

1. Self-Teaching

Small business owners do not have to go through intense and expensive training programs to obtain new skills. In fact, there are many online resources that they can use to learn the many necessary skills of a startup owner. There are tons of online resources for digital marketing, accounting and finance, hiring, and other skills for running the business in the form of blog posts, podcasts, white papers, etc. This will not only expand a person’s knowledge, but it will save them money as well. Rather than using costly consultants to help them, non-technical startup owners can teach themselves how to do something that will benefit their company. Later on that knowledge and experience will pay back because it will help them hire the right people for their organization.

2. Getting Help from Mentors

Seek out experienced professionals among your network. Mentors can be a massive help to the development of your company and product. You can ask them for help, advice, guidance, and new ways to position yourself strategically in the market. They could also tell you where your startup could improve, whether in the advertising strategy or the product itself. For example, if you need help with your marketing strategy, reaching out to a marketing professional would be beneficial. There are many programs offering free mentorship. Most times you’ll be able to get the help your startup needs without spending any money at all.

3. Using Free Tools 

Hiring a team of professionals would be very costly. Plus, you may not be able to fully utilize them at the beginning. You would be overpaying for services that you could get online for free. People have created a lot of tools to help others with their work. Many of these tools offer a free tier, which is more than sufficient for the needs of a startup. Once your company and its needs grow, you can upgrade to a higher (paid) tier. Plus, there are so many low-code and no-code applications, especially designed for non-technical startups. You could easily create a prototype of your product without worrying about coding it yourself. There must be an easy no-code app which would do it for you. This is a massive benefit for non-technical startups and a great way for them to save a lot of money.

As you can see, there are many ways for you to be successful as a non-technical startup. Knowing how to be proactive and avoiding major spending traps will help your business. You will be more competitive if you put in the work and use the most cost-efficient procedures and technology. A product that would be beneficial to startups would be Simply Flows because it can automate your busywork. Rather than hiring someone to do the job, you could utilize this product to do it for you. Click here to find out more on how Simply Flows can help your small business thrive.

The Best Productivity Tools for Business Interns

Most of us have been interns at some point in our lives. As an intern, you have to learn the ins and outs of a company in a very short period. Intern’s tasks can be very random and not always the most organized. It can be tough to stay on top of the non-streamlined work given to interns. Since many tasks are not set in stone, there could be confusion and miscommunication between the intern and their manager. To avoid such issues and to be efficient and productive, you can use many different tools. These are five of the best productivity tools for business interns.

productivity tools for business interns
1. Hootsuite

Companies give interns lots of busy work, such as making and managing posts. Hootsuite helps simplify the process of posting. Rather than switching between multiple apps and posting on each of them, Hootsuite keeps all social media in one place. This is a great productivity tool for business interns because you can schedule posts for weeks at a time so that you never forget to post. Also, the app aggregates your posts’ performance statistics from all social media accounts. It tells you what posts are doing well and which ones are not. Hootsuite is beneficial because it automates your posting schedule and gives you analytics to let you know if you should stick to your strategy or make changes.

2. Canva 

One of my favorite tools to use as an intern is Canva. Canva is an app that allows you to create original art or edit photos using different templates. You can easily move, resize, or edit images to your liking and needs. If you had to create an image for emails, a new company logo, an icon, or a banner for social media, Canva is your go-to tool. This is one of the best productivity tools for business interns because of all the features. For example, one of the best features of Canva is its design tab. You are several templates to choose from and can make things from videos to business cards with the click of a button. You are given the creative freedom, as a business intern, to make items quickly and with ease, even if you are not a graphic designer. There is both a free and paid version for the application. People who want access to more features can get the paid version, but as an intern, Canva has a lot to offer with just the free version.

3. Trello

Trello is an excellent app for both project tracking and team collaboration. Through Trello, people can see their weekly tasks and update them according to their completion status, assignment, priority, etc. Interns can organize their workload into a manageable schedule to meet their deadlines. Trello allows other coworkers to see your schedule so that they know when you are busy. Managers can assign tasks to team members and manage workloads, deadlines, and project goals in Trello. This is a beneficial application that increases productivity. It helps you manage and schedule your tasks and communicate what you are currently working on with your team.

4. Grammarly
productivity tools for business interns

Grammarly is an essential productivity tool for business interns. Sometimes, you may not have time to go over all your grammatical and spelling errors when writing something. That’s what Grammarly is for. This application catches the majority of mistakes that you have made in a piece of writing. Whether it is a simple comma error or a passage with passive voice, Grammarly tells you where the issues are and gives you suggestions on how to fix them. This is vital for business interns, so emails, letters, presentation slides, and other documents look and sound professional. 

5. PomoDone 

PomoDone is very helpful with time management. You use a clock to determine how much time you spend on specific assignments. For example, you can schedule yourself to work for 45 minutes straight, then take a 15-minute break to recharge. This will motivate you to focus on your current task and get as much done as possible before the break. It will also prevent you from getting distracted from your tasks since you know you will be stepping away from your work in a short time. PomoDone is a valuable productivity tool for business interns.

Knowing these tools will not only give you a leg up at your internship but at a future job as well. Increasing your productivity as an intern will leave a significant mark on the company. They will be impressed with your work, which will contribute to you performing well in future jobs. Having systems for organizing, correcting, and editing work is vital in the business world, and understanding how to use them can help you be more competitive as a company.

Simply Flows is an application created to help with workplace productivity and efficiency. Click here to read another one of our blogs about productivity in the workplace.

Work Smarter, Not Harder: 6 Ways to Simplify your Life

You’ve probably heard the saying “work smarter, not harder” more than once in your life. Not only can this saying be applied to work activities, but to everyday ones as well. There are many surprising and easy ways that you can simplify your life. If you follow these six tips, you will work smarter, not harder. Following this mindset will help you save time and money. Additionally, it will help increase your productivity and efficiency and make you more motivated to get work done in a simple manner. Working smarter, not harder, is a practical philosophy that makes both work and life easier and more enjoyable.

work smarter, not harder
1. Take More Breaks 

One surprising way to work smarter, not harder, is to take more breaks during the day. Whether you are working on an important project due for work or just doing chores, it is crucial to recharge. People can become exhausted by focusing on one thing for too long. This can result in poorer quality of work and problems concentrating. By taking breaks, you are allowing your brain to reset. You can refresh your mind and focus on the task at hand after a break of around 15-20 minutes. 

2. Check Your Email When you Wake up

It is important to check your email first thing in the morning before you officially start the day. The reason for this is that you want to be sure you’re on the same page as everyone else on your team. If you begin your tasks without checking your email, you may miss essential information. For example, priorities may have changed due to a critical problem with a customer. Checking emails when you wake up also helps you prepare for the day before it even starts. Rather than sorting through everything at once, you can check your emails first thing in the morning and be mentally prepared to get started with the day.

3. Stop Multitasking

Focusing on many different tasks at once can slow brain functioning down. When multitasking, your brain is confused about what it is supposed to be doing at the given time. It makes it more challenging to concentrate, and you are quicker to get tired. Paying attention to one thing for a prolonged time period will yield much better results than switching between different ones. Also, by focusing on one task, you are less likely to make errors in your work. This allows a person to be more productive and work for more extended periods without getting drained.

4. Track Where you are Wasting Time

Sometimes you may get sidetracked throughout the day and do not spend much time doing actual work. It would be smart to note when you get distracted or are less productive during the day to prevent this. Taking note of this can help you determine when and why you are spending time on trivial tasks. By pointing out these issues, you can then figure out ways to fix them. For example, browsing through your social media feed is usually a huge time sucker. Identifying and remedying this issue will help you become more efficient in everything you do.

5. Properly Position People Around the Office 

Another smart way to be efficient is by properly positioning people in the office. If a person uses the copier more throughout the day and is seated very far away from it, this could take up valuable work time. By moving the person closer to the copier, you would be shortening their ‘trip’. Locating people closer to the items they use during the day would make them spend less time moving around the office. Productivity would increase, and downtime would decrease, helping the company’s bottom line.

6. Automation 
work smarter, not harder - automate your tasks
Automation is an excellent example of how to truly take advantage of working smarter, not harder.
  • Have a tedious task that you do not like doing throughout the day? Automate it.
  • Do you have to copy and paste large amounts of data from one place to another? Automate it.
  • Have to send out a check-up email every few days to your employees? Automate it.
Utilizing automation in the workplace will make your life so much easier. It will reduce errors, give you back time in your day, and increase efficiency. Automation is one of the best ways to be more productive by removing repetitive manual tasks from your life.

Adopting the motto ‘work smarter, not harder’ can genuinely change how you accomplish work at the office, home, school, the charity you volunteer at, and so on. It will give you back time in the day and make your life more efficient. Following these tips is just a start on how we can simplify our lives. Always prioritize this lifestyle and ensure that you are doing everything in your power to make your life easier while also not sacrificing your quality of work and performance.

Simply Flows can help you determine the best ways to work smarter, not harder.

Productivity vs. Efficiency: Which is More Important?

When working, you know that it is important to be both productive and efficient. However, do you know the difference between productivity vs. efficiency? It is essential to understand that they do not mean the same thing. Knowing the difference between productivity and efficiency can help you better understand them and decide what occasions call for one vs. the other.

productivity vs. efficiency
What are Productivity and Efficiency?

Before we delve into differences and similarities, let’s first define the two. Efficiency is the production of something without wasting a large number of products or time. It ensures that you produce high-quality products while only utilizing the necessary resources. Productivity is the measurement of how efficiently inputs, such as products and other components, can create multiple outputs for a company.  In simpler terms, productivity determines how to create a product with little input wastes.

Differences 

Although some people use productivity and efficiency interchangeably, the two are not synonymous. The effort put into a project is efficiency.  A business tries to use the least amount of resources to get what they need done. Productivity is the physical amount of work that you can complete. It focuses on getting the job done with the current resources at the company’s disposal. Efficiency focuses more on the resources used to make a product, and productivity is more about how much work gets done in a period of time. Efficiency is a reactive process, which means its outcome results from a person’s effort. In contrast, productivity is proactive. You put in the work to create the most items in a short time interval.

Which is More Important?
productivity vs. efficiency

Trick question! Both productivity and efficiency are vital to keeping a company strong and profitable. By adding together productivity and efficiency, you can get actual productivity within an organization. Some may say that productivity is more important than efficiency, but one can not exist without the other. If you’re making something for a company, you can do it efficiently so that it uses few resources but has a good quality. However, you also want to produce the most amount of products possible during that time. By combining productivity and efficiency, you can optimize fewer resources while still making more output for your business. Productivity vs. efficiency may have their differences, but together they create an optimal model for a company.

Knowing the differences between productivity vs. efficiency is just the first step to getting your business on track. Now, one must implement these practices into the workplace. By doing this, you will have lower operational costs, better utilization of resources, and increased profits for your company.

Check out our product to find out how you can increase efficiency and productivity within your organization.

Errors from Manual Data Entry and How to Avoid Them

Everybody makes mistakes; we’re only human. When entering data into an excel file or on paperwork, there is always a possibility for an error. Although not intentional, these errors could have severe repercussions for the person who made them and for the company. A person never means to harm but nonetheless they may cause huge problems. Let’s examine the most common types of human errors caused by manual data entry and what we can do to avoid them.

human errors caused by manual data entry
Common Types of Human Errors  

Human error is unpredictable and there are various kinds of mistakes that can happen in the workplace. One type of error is a slip. A slip is when you do something by accident or unintentionally. For example, if a person were to put a file in the wrong folder, this would be a slip. A lapse is another common type of human error. This is when you forget to do or finish a task. The severity of the potential problem is dependent on the importance of the job. In addition, mistakes are human errors where people fail at making proper decisions. When tasked with deciding between further negotiating a deal or accepting an offer, a person could choose the wrong option and make a mistake.

Reason for Errors

There are many reasons for such errors to occur. Some people may not care about the repercussions of their actions. They may become too comfortable and even overconfident and neglect caution when they are doing their work.

Another cause of human error is distractions. Offices provide endless distractions with their open floor plans, constant buzz, phones ringing, and people stopping by each other’s desks. On the other hand, working from home may not be ideal either, if you share a small space with young children, barking dogs, or loud family members.

If a person is tired, stressed, overwhelmed, or working too fast, this also leaves room for error.

Finally, one of the significant reasons for error is inadequate training. Without enough experience and training, people will make more mistakes. 

Repercussions from Errors

Human errors can be mild or very serious, depending on the gravity of the consequences. Some repercussions for milder issues could be reprimanding the employee and ensuring they see their mistake, so it does not happen again. However, more serious errors may have severe repercussions.

For example, if an accountant were to add an extra three 0’s to the end of a statement, saying they are reporting for 100,000,000 instead of 100,000, this would be a severe issue. The company could incur fines or other penalties by the authorities, and the employee may lose their job.

Reporting incorrect student data to the state may result in terminated funding for an educational organization. This is another example of how problematic human errors could be. They may have been unintentional, but may still cause a lot of trouble for the organization. 

Ways to Prevent 
human errors

To prevent errors, businesses must train their employees well. Without proper training and data integrity procedures in place, knowledge workers will make significant mistakes more often. Companies must administer refresher courses throughout the year, so people continue to follow data integrity best practices.

Enforcing impossible deadlines is a sure invitation to a lot of errors. Planning ahead and allowing enough time for employees to complete and check their work before they submit is a must.

A company must also have a plan in place for finding and fixing issues. Employees need access to tools to avoid errors altogether or make them easier to discover and fix. There are certain best practices that significantly reduce errors and improve the quality of a product or service. For example, having a backup of the data, performing regular audits, and employing automation are some examples of such practices.

And last but not least, when you know you have important data to work with, it is best not to rush, but to relax and to get a good night’s rest. Schedule your most demanding pieces of work for when you can limit the distractions to a minimum.

As stated, human errors are inevitable. You can not prevent people from messing up when doing work manually. There will always be a time when someone slips up and makes a mistake – large or small. However, there are automation tools that can help. Applications like Simply Flows can help eradicate manual data entry errors and help your company run efficiently.

5 of the Best Long-Term Stocks

Stocks have their ups and downs. Historically, some stocks have been more profitable than others. There are specific stocks that have continually done well in the market. This article will discuss some of the best long-term stocks to invest in, based on different factors.

best long-term stocks
1. Amazon (AMZN)

Amazon continues to be one of the front runners in the stock market. Since their launch in 1997, they have been a continuously growing leader in their space. Amazon has an endless amount of products available, a very efficient company structure, and a strong base of customers, which contributes to their success. They have the highest total return of 212,922%, since their IPO in 1997. $1,000 invested in Amazon stock back then would be worth over $2 million now.

2. Monster Beverage Corp. (MNST)

Monster energy drinks have a strong standing in the market. Over the past 20 years, the company has continued to grow and release new products. They expanded their customer base and even made a deal with Coca-Cola to help with production, and research and development. Furthermore, Monster’s total return is close to Amazon’s – at 212,468% and has an average annual return of 35.4%. Had you purchased MNST stocks for $1,000 in 1995, you would now have more than $2 million.

Actually, Monster is the leader if we only look at the last 20 years. Check out this chart by Statista.

3. Jack and Henry Associates (JKHY)

Jack and Henry Associates is a financial services company. They are one of the first companies to offer products and services for financial transactions, processing, and automation. The company puts a heavy focus on its core values: a passion for customer service, relationships, integrity, drive for results, and excellence. These values spell out the word “PRIDE,” further emphasizing how much they care about implementing these values into their company. Jack and Henry Associates has a total return of 212,322%, following right after Monster and Amazon. Once again, the $1,000 investment in 1985 would have grown to over $2 million now.

4. Best Buy Co. (BBY)

Best Buy is the largest consumer electronics retailer in the US. With new technology and changing consumer preferences, Best Buy has always adapted and progressed as an organization. They are a reliable business, with customers returning to their stores, contributing to their 108,511% total return. Best Buy has been performing very well on the stock market and continues to be one of the best long-term stocks. Indeed, $1,000 back in 1990 would have become over $1 million by now.

5. Ross Stores (ROST)

Many retail stores have not been able to keep up with Amazon, but Ross Stores has performed well in this competitive environment. They sell clothing and have an excellent long-term company strategy. As all brick-and-mortar stores, they were severely affected by the COVID-19 pandemic. Yet, their stock bounced back and went above its pre-pandemic levels. ROST shares have generated a total return of 81,286%. $1,000 invested in Ross in 1990 would be worth over $800K now.

Major Factors Contributing to Success

All these companies share attributes contributing to their success. They have well-defined mission statements and values to ensure their consumers’ needs are satisfied. These businesses have a solid hold over the market in their sectors and do not easily fall victim to competitors or substitutes. Due to these factors, they have remained strong over the years, placing them among some of the best long-term stocks.

Simply Flows offers unique stock data analysis tools to assist your investments.

Profitable Stocks: How to Know if it’s a Good Investment

profitable stocks

It is hard to find profitable stocks that will continue performing well on the market. There is always a risk with investing, but the more you understand the stock market and its forces, the better decisions you’ll make. It is essential to check out multiple factors to determine if a stock is profitable before investing. You want to make sure the choice you are making is in your best interest.

Company Standing 

Before getting into the technical aspects of a company, check out the basics – if the company is in the green. Look at their cash flow statements to ensure that more cash is coming in than going out. Also, look at the company’s balance sheet. It would be best if you understood an organization’s assets to know what they’re putting money towards, as well as their outstanding debts. Determining a company’s book value can also contribute to having a better understanding of a company’s standing. These basic checkpoints can help you determine whether to invest in that company or not.

Historical Prices

The most obvious factor used to determine if you’re investing in profitable stocks is price. However, you cannot just look at the selling price to know if you’re making a good investment. You must compare the business’s historical stock price to the amount they are selling for now. If there is a solid increase in the stock’s price over time, then you can tell that the company has continually performed well on the market. Comparing the historical price is also essential because it will show you if you buy the stock for a good value based on its previous cost. Price plays a significant role in determining if you are getting a good deal and if the company performs well on the market.

Earnings Per Share

There are several financial ratios used to evaluate stocks’ performance. One of them is earnings per share (EPS). EPS is the net profit a company receives divided by the number of common shares outstanding in the company. For example, say a company makes a net profit of $70 million in one quarter, with 10 million shares. If you hold one share in the company, you will make $7.00 at the end of that quarter. However, companies typically reinvest their profits back into the business, so you would not actually make this profit, at least not until the business has been liquidated. Check out this ratio to ensure that you invest in a profitable stock, not one with earnings per share in the red.

Price to Earnings 

The price-to-earnings ratio (P/E) is vital in determining if a company is overvalued or undervalued. One can calculate P/E by taking the current share price and dividing it by the total earnings per share over the past 12 months. For example, if a stock is trading for $50 and the yearly EPS is $5 a share, the price/earnings ratio will be 10. The higher the price-to-earnings ratio, the higher the quality of the investment.

Debt to Equity 

Another helpful financial ratio is the debt to equity (D/E). It is used to determine how risky is the investment. You want to find out if their debt overshadows their equity financing. Calculate D/E by dividing the company’s total liabilities by its total shareholder equity. For example, if a business has $5 million in debt and $20 million in total shareholder equity, D/E would be .25 for the organization. This would be an example of a low-risk investment because the ratio is lower than 1. However, if the D/E ratio exceeds 2, it would be a high-risk investment. Ensuring that the company you invest in does not have too high of a D/E ratio is important when making investments.

Company Strength and Performance
profitable stocks

Learning more about the industry helps with purchasing profitable stocks. There is a lot of competition in the market. It is better to invest in high performers who have stayed at the top rather than companies that may not have the best track record. When looking at companies in the energy drink industry, Monster and Red Bull have consistently dominated the market in this sector. Based on their history, they have continued to grow and remain industry leaders. Both would be beneficial investments in the energy drink sector due to their high performance. Determining high performers in the industry you wish to invest in is essential to making a good investment.

Company Leadership and Culture

Under good leadership, a company can perform well financially and thrive. Such an organization will be able to gain more revenue, make higher profits, and have a better standing in the stock market. Under good leaders, there is less employee turnover because employees wish to help the company succeed. Many studies have found a positive correlation between great company culture and strong financial performance. For example, a culture of diversity and inclusion increases job satisfaction, motivation, and enhances the decision making at the organization. This leads to increased productivity and positively affects the bottom line. 

There are many ways to determine if the stock you want to purchase would be a beneficial investment. These are just a few of the ways to know if you are investing in profitable stocks. Make sure that you do thorough research before buying and understand the risks. If you do this, then you will be able to make money in the stock market.

To learn more about what can affect the stock market and your investments, check out this article.

Six Major Differences Between Crypto and Stocks

There is an abundance of information about crypto and stocks, but do we know the difference between these two investments? People use both to make money, but there is a clear distinction between the two. Let’s explore the six significant differences and how they may impact investment decisions.

differences between crypto and stocks

It is essential to know the differences between crypto and stocks before you invest. The most important ones are: the assets, the safety of the investments, their volatility, the volumes traded, their liquidity, and the hours of operations of the different exchanges.

Assets

Crypto and stocks are both asset classes but fundamentally different. When you buy a stock, which usually represents a share of a publicly traded company, you are obtaining ownership of part of that company. Companies issue and sell stocks to raise money for growth, expansions, or new product lines. With crypto, you are buying a digital currency that you can trade. You are not obtaining physical shares in a business, you are purchasing digital coins or tokens. With stocks, there is no restriction for the number of shares within a company. Just the opposite is true for crypto, since there is a limited supply of most coins. The assets that crypto and stocks represent are not very similar to one another.

Trading Hours

The hours when trading can occur differ between the stock market and crypto. The stock market operates during regular business hours Monday-Friday and is closed on public holidays. On the other hand, you can trade crypto 24/7 – every day of the week, every hour of the day or night. Trading crypto is around the clock, whereas the stock market has time restrictions.

Liquidity

Liquidity is the ability to quickly buy or sell stocks without sacrificing the price. In general, stocks are more liquid than crypto. Since the stock market has been around for a longer while, and there are many more traders, it has higher liquidity than crypto. Liquidity differs from one cryptocurrency to another. For example, Bitcoin is more liquid than other smaller coins available on the market.

Safety
safety of crypto vs. stocks

For both crypto and stocks, there is always the concern of fraud and other safety risks. However, it is improbable for stocks to be fraudulent, since they are highly regulated. Also, public companies go through the scrutiny of quarterly reporting their financials. If a company fails to comply with the regulations, it could be delisted. Crypto is newer and largely unregulated, and therefore, more risky. There are issues with lost or stolen user identity keys as well. Safety is a more significant concern for trading crypto, which is essential to note when investing.

Volume

Stock exchanges have existed for more than two centuries. Cryptocurrency exchanges, on the other hand, have only been around for 10 years. That reflects the daily volumes traded on them. The global equity trading was $38 trillion in Q2 of 2021, while all crypto exchanges accounted for less than $150 billion daily in October, 2021.

Volatility

Volatility can be both positive and negative. There are lots of highs and lows in the market, making it unpredictable. The market is more stable with low volatility, but it takes longer to receive a financial return. Stocks are more likely to follow this ideal, especially since the market is more developed. Crypto is newer and more likely to have more sporadic highs and lows. Since the volatility is constantly changing for the crypto market, people could panic and sell their investments at a loss. Panic selling is more common with crypto due to the unpredictability and lack of stability in the market. Volatility is unforeseeable, making crypto more exposed to change than stocks.

Closing Remarks

All in all, these are the significant differences between crypto and stocks. If you want to go for a risker, new investment, you should focus on crypto. Stocks would be a safer choice with a longer return on investment. It is essential to take these differences into account so you can determine where you wish to invest.

If you want to get involved with stocks and crypto, Simply Flows could help you determine the best investments to make.