Cheat Sheet Q&A:
Today’s question: Non-profit vs. For profit considerations when starting a new venture
Here’s the question: My friend and I are opening a business. I would like it to be not for profit. She would like it to be for profit. Which is the best west to go? Your input is import to me.
Bottom Line: There isn't inherently a right or wrong answer generically without knowing what your venture is and your long term goals. So here are questions to answer and considerations you may weigh to aid you in your decision making process:
· Where is the initial funding for venture coming from?
· Are you and your friend the only potential stakeholders?
· Will your enterprise be self sustaining from generated revenue or will you need donations and/or grants to survive?
· What is the mission of your enterprise?
· What is your long term goal for the enterprise?
· Will your business require hiring employees or will you need volunteers?
· Do you intend on taking a salary or would you be satisfied with whatever the enterprise could bear if profitable?
It's inherently easier to grow a successful for profit enterprise than non-profit as you'd be open to financing, investors and perhaps talent that make may not be able to attract on a volunteer or lower salaried basis. On the other hand your enterprise would be tax advantaged and potentially eligible for grants/other resources not available to corporations. You also would have access to volunteers that wouldn't necessarily have to be compensated, which isn't a legal option for corporations.
Knowing what the long term vision is can be critical as a profitable company can be sold or transferred to other ownership while a non-profit would require principals willing to takeover your roles within the organization.
Keep in mind that regulatory reporting and legal compliance will be critical regardless of which direction you go but will likely be more involved if you choose to go the non-profit route. The final thought I'd mention is that for profit entities can still be charitable (and receive the tax benefits of the donations). In the 2012 tax year, US corporations donated $20 billion to charities.
Good luck & best wishes on your new venture!
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Florida's ROI for taxpayers is among the best in the country:
Bottom Line: As cynical as we may be when it comes to the managing of our tax dollars at the Federal level, as Floridians – we can take heart.
Wallet Hub studied the deployment of taxpayer dollars across all states and in Florida we were tied with Texas for the 7th best overall return on our tax investment. The best overall ROI is in Wyoming. The worst overall ROI is in Arkansas. The segment of spending that is best managed in our state? Florida ranks #2 in the US for roads and bridges. Our worst overall area of taxpayer efficiently? The volatility of real-estate taxes at #48.
The best day to use social media for business purposes is...:
Bottom Line: Timing is everything right? So that’s not entirely true but the saying stands the test of time because it contains at least some truth. With that in mind what day of the week is the most effective to engage social media for business purposes?
Adobe conducted a Social Media Intelligence Report. They studied all of the leading social media mediums used for business purposes (LinkedIn, Facebook, Twitter, etc.). They also studied all forms of engagement. Paid advertising, organic outreach, comments and engagement, etc.). So what was the end result?
- Friday is the single best day of the week for business oriented social media activity
That doesn’t mean that you should only use social media on Friday for business purposes but you can use that info strategically. For example:
- If you’re going to use social media paid advertising start a campaign on a Friday
- If you’re doing a promotion that will have a social media component – do it on Friday
- If you’re going to try to Link with business professionals you’d like to connect with on LinkedIn, seek them out on Friday
Clearly there are many ways to use that information for your benefit. Timing does indeed matter when using social media.
The results of the ACSI (American Consumer Satisfaction Index) for airlines:
Bottom Line: Overall we’re as satisfied with our flying experience today as a year ago though that’s not necessarily a good thing).
Overall Airline satisfaction stands at 69% - the same as 2013. So how did the major carriers rank?
- Jet Blue: 79% (down from 83% last year)
- Southwest: 78% (down from 81% last year)
- Delta: 71% (up from 68% last year)
- American: 66% (up from 65% last year)
- US Airways 66% (up from 64% last year)
- United 60% (down from 62% last year)
All smaller carriers averaged a 70% rating.
2014 ACSI Customer Satisfaction Travel report Pt2: Hotels
Bottom Line: We’re actually less satisfied with our average hotel stay today than a year ago. Overall hotel satisfaction dropped from 77% last year to 75% today. So how did the individual brands fair?:
- Marriott: 82 to 81
- Hilton: 80 to 78
- Hyatt: 79 to 78
- InterContinental: 78 to 78
- Starwood: 78 to 76
- Best Western: 79 to 74
- Choice: 75 to 74
- Wyndham 72 to 72
- All others: 76 to 73
So how about the individual hotel brands themselves? The lowest satisfaction occurred at the Econo Lodge with a 67% satisfaction rating. The best? The Ritz Carlton at 86%
The best site to use to sell old consumer electronics:
Bottom Line: I wouldn’t be surprised if there are a hundred or more options available to us when we’re ready to part with consumer electronics. Figuring out how to get the best prices, terms, fees and process can get old very quickly. Thankfully Consumer Reports has done if for you:
- The best overall experience: Amazon.com
- The highest overall prices paid: Glyde
- The easiest to use: NextWorth
Amazon ranked high for generally ranking above average for prices paid, turn around time & the payment method (Amazon.com gift card)
Glyde generally offers the best prices but you need to wade through their fee structure and shipping charges which vary based on the price paid to you for items.
NextWorth offers the additional advantage of being able to drop off your items at any Target location rather than shipping if you’d prefer.
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I've made my share of mistakes along the way as well. I shape my perspective from success and failure to provide you with a truly objective picture of business and money in your world. Business and investing are passions of mine. Some read Dean Koontz... I read financial reports.