5 Tips for Small Business Owners

5 Tips for Small Business Owners

RECBL - Real Estate News

So you are now a bonafide small business owner?

When it comes to being a small business owner, there are no shortages of areas to focus.​

Whether you’re a brand new entrepreneur, or a small biz veteran, updating your business best practices can help you stay current, and competitive.

According to Massachusetts Mutual Life Insurance Company (MassMutual), these five tips can help today’s small business owners:

1. Connect with experts. Surround yourself with trusted advisors who have expertise and experience in succeeding the way you define success. Surprisingly, nearly 3 out of 5 (58 percent) small business owners in MassMutuals research turn to their spouse as their trusted advisor for financial and business advice. While this is a positive sign, business owners should look to expand their pool of trusted resources beyond their spouse for diversity of expertise and experience.

2. Succession Plan. Know who your successor is - and prepare accordingly. This includes telling them! The good news is that 2 out of 3 (64 percent) business owners have a succession plan in place for their business- however, 1 out of 4 (25 percent) in line to take over a small business aren’t aware they are the chosen successor. Furthermore, nearly 3 out of 5 (58 percent) family-owned business owners intend to divide business assets up equally among all their children regardless of a child’s involvement in the business. This opens the door to a potentially difficult yet necessary conversation.

3. Understand your value. Know the true value of your business. Nearly two out of three (63 percent) say they’ve had their businesses valued in the last three years. However, 1 out of 4 (25 percent) valued their businesses themselves, which may lead to unsubstantiated valuations.

4. Diversify. Do not put all of your eggs in one basket. While nearly two out of three (64 percent) say their business is their largest asset, this doesn’t mean it should be their "everything." MassMutuals research found that 1 out of 3 small business owners have no assets for retirement outside of the business - and 1 out of 4 (25 percent) said they would have to liquidate assets (business or personal) to meet any tax or fee obligations in the settlement of their estates.

5. Personnel management. Take care of your key employees. Employee loyalty spiked as top of mind for more than half (54 percent) of the business owners in MassMutuals research. Health care, flexible work arrangements and generous salaries topped the list of benefits offered to all employees. However, 1 out of 3 (30 percent) do not offer any special benefits to those they consider key to the success of the business.

Source: MassMutual


Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.

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White-Boxing: Stripping luxury homes

White-Boxing: Stripping luxury homes

RECBL - Real Estate News

Thirty-two stories above West Hollywood, California, there is a big, empty space. A sweeping, 7,000-square-foot penthouse in the storied, iconic Sierra Towers that has been stripped down to the bare concrete bones. Listed at $58 million, with sweeping 360-degree terrace views of Los Angeles, the fact that it is empty apparently makes it more valuable.

The new strategy, which is becoming increasingly popular in luxury real estate markets like New York and Los Angeles, is called "white-boxing." Strip out all the finishings, all the amenities, even the highest of the high-end kitchens and baths, and then you can charge more for the space.

"A lot of times people will buy something, totally done, beautiful and they'll still rip everything out and start over, so this trend is more, buy it, do whatever you want to do and you don't have to pay to rip out someone else's design," said Jade Mills, with Coldwell Banker of Beverly Hills. "This is much more valuable than buying something and having to rip everything out."

Not only does it save the buyer time and money, but Mills says it actually makes buyers feel better about the tear out, which they all know is not exactly environmentally sound. They may know they're wasting what was already there, but it's already been done, so they don't have to see that. It's tabula rasa real estate at its finest.

"White-boxing is really just having a blank canvas. So you can walk in, you just see the walls, you see the interior space, but you can do whatever you want to that space" said Mills.

​It can make an older property seem new. And regardless of how iconic the building – Sierra Towers has had residents from Cher to Elton John — high-end buyers want to put their own stamp on whatever they buy.

"There is no appetite for 'off-the-rack' with this demographic; it's all about uber-customization," added Josh Greer of Hilton & Hyland, who just began marketing the full-floor penthouse with Mills. "As recently as a few years ago, it would be relatively rare for a seller to go to market with unfinished luxury space, but now there's increasing recognition that 'designer-ready' is exceedingly more attractive than 'move-in ready' to the ultra-wealthy."

And more attractive to the architects and designers who will be working on the projects.

​​"For us to take a white box and design like this, it's much easier because you get to bring the client here and really breathe the space," said Los Angeles architect Gavin Brodin. "A property is definitely more valuable stripped out."

Brodin said it is also easier to create computer-generated images, virtual renderings of potential designs, when the space is empty. He came up with some potential designs for the Sierra penthouse, so the seller can offer buyers ideas — something to look at beyond the view. He says no matter how high-end the home, most clients will rip out everything inside.

"That happens to us on nine out of 10 projects," Brodin said.

Because when you're paying $58 million or more for your new home, it's not perfect until it's personal.





Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.

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Blockchain Integration For Major Property Portals

Blockchain Integration For Major Property Portals

RECBL - Real Estate News

CryptoProperties LLC – or “CPROP” for short – is aiming to deliver “unprecedented levels of trust and transparency” in the sector by removing “unclear and disjointed processes” that generate anxiety and frustration for buyers and sellers alike, such as repetitive paperwork that lead to unexpected delays and costs.

At present, the company claims paper-driven, offline closing processes are the norm worldwide. These “inefficiencies” can cause delays and in some cases, cause transactions to fail altogether.

CPROP plans its plug-and-play platform will be used by leading property portals and brokerages websites, with users guided through every step of buying a new home.

Blockchain technology will be used at key points in the process, such as when buyers are usually required to “hold” a property with a good faith deposit during the due diligence phase. CPROP says its platform would use smart contracts to establish an escrow – providing users with “maximum protection and peace of mind.” Blockchain would also be used to authenticate documents generated during a transaction, including deed-related records to provide a back-up to government property registries.

CPROP will also offer a feature called Critical Path, which enables all parties involved in a transaction to focus on tasks that need to be completed so a deal can be closed “in the shortest period of time.”

“Ideal marriage of convenience”

When prospective homebuyers are perusing a property portal, they would be given the opportunity to start using CPROP’s service through a “Help Me Buy This Property” button. This leads them to a free onboarding process where they will be given the option to select user-rated service providers such real estate agents and lawyers, with guides and FAQs providing information and assistance every step of the way.

CPROP says real estate agents also stand to benefit from its platform because it will be configured with standardized document templates appropriate for local jurisdictions and a user-friendly task management system. As a result, the company says these professionals will have more time to focus on the activities which generate the most revenue: acquiring new clients and listings.

Other providers such as contractors, inspectors, mortgage brokers and decorators could also gain an additional sales channel through CPROP – as favorable user reviews left for them on the platform would be used by remote and international buyers to find a trustworthy, local service. Overall, the platform will provide all service providers with a cost-efficient way to gain visibility to prospective buyers they would not normally be able to reach.

The company says its plan to establish partnerships with existing portals and brokerages could amount to an “ideal marriage of convenience.” While CPROP would benefit from portals’ existing web traffic and listings, these companies would retain their relationship with buyers through the closing, positioning for additional revenue opportunities while having the chance to “differentiate their brand with a practical blockchain offering.”

The company’s initial revenue would be generated through membership fees, which are paid for using the specially created CPROP token. Other potential revenue streams for the future include archiving and retrieving data, advertising, and administrative fees when property deals are closed.

Positive reviews for demo platform

CPROP says a recently launched demo website has been “enthusiastically received” by property portals and brokerages – with the platform’s development continually shaped based on feedback the company is given. Beta testing is planned with “multiple parties” this year, paving the way for a commercial rollout in 2019.

While its initial demo is designed for the US, where real estate transactions are “complex, legally intensive and costly,” the company believes its platform can be easily adapted to other markets – and “active discussions” are underway with property portals in Europe and Asia.

One of CPROP’s leaders, Adam Koehler, has enjoyed past success as a co-founder of Dotloop, another property tech company. That company automated real estate purchase agreements – and it was sold to Zillow, a “major world player,” in 2015.The company’s ICO is planned for May 21 to June 10.


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Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.

CashBuyersLists.com                  Please like, comment and share.  Thank you.