It’s common to invest in property, stocks and other common form of investments but another highly profitable form of investment that most people overlook are websites.  The internet is seeing widespread growth all over the world and businesses of all sizes are benefiting. Have you considered growing your income by buying websites as a form of investment?

Websites, like other businesses, are investments that can be bought for the purpose of generating income for the investor. Have you looked around the web and seen people talk about buying and selling websites? If you have, than you might have just discovered a piece of booming business.

Of course, website businesses have been around for ages – 1995 is a long time ago – but the practice of buying websites has only just caught pace in the last 4 years or so. More and more people are discovering that websites can be good investments, so why should you be left out?

Should You Buy a Website?

Let’s start with a bit of some pessimism here: investing in a web business isn’t for the faint of heart. But that still goes for other businesses, don’t you think? Anyway, the point I’m making here is that if you’re not familiar with the workings of the World Wide Web, then it may not be a brilliant idea to invest in a web business. Just like if you weren’t into the food business, you’d probably not buy a restaurant.

But there’s hope, and in abundance – getting up to speed with how websites are operated, and even more importantly, MONETIZED, is no rocket science. You can go from zero to guru in just a few days or up to several weeks. That means we should now move on to focus on the reasons why buying a website can turn out to be a great investment.

A look at Investment ROIs

The main reason you might want to invest in an online business is the better ROI. Isn’t that what most business buyers always look at first? Let’s briefly compare the average returns for different investment channels:

Real estate – 3-6%
Stocks – 10%
Small and medium businesses – 33%
Cash – 4%

We expect these rates to vary widely, all depending on the market and your specialized knowledge in those channels.

For real estate, you’ll recoup your money in 20 to 30 years, though the investment still looks much safer. For small or medium businesses, you’d be lucky to get 50% ROI, as that would mean you bought the business for a 2 times multiple of its revenue. Stocks and other investments of the kind can be profitable only if you understand what you’re doing and if the market forces play well in your favor.

Return on Investment for Websites

It’s not uncommon to hear about a website selling for only a 1x multiple of its yearly earnings. Many website owners even let their babies go for a 6 months multiple of the monthly earnings. That’s because web business may take much less effort to turn profitable, or simply because they are deemed riskier business. Either way, it means that you can buy a website for much less than its equivalent (in terms of profit) brick and mortar business.
If you are buying a website at a 1x multiple, say $24,000 for a site that makes on average $2,000 a month, then at the end of just one year, you’ll have recovered all your money. Even if you bought it for $48,000, you’d still get your investment back in 2 years, which represents a 50% ROI. Bigger website properties may be sold for a 3x multiple, and the ROI would then be 33%.

What to Look for in a Website

As we’ve seen, websites are generally riskier businesses than traditional establishments – or so some want to believe. Personally, I’d like to think that the risk varies with the kind of web business you’re buying into. If the website has a strong revenue model with solid earnings over time, then the risk is very little.

Look at these other points that lower the risk:

• A positive growth trend
• Multiple income streams
• Defensible traffic (multiple traffic sources)
• A recognizable brand
• A unique selling proposition
• Automated processes/systems in place
• Few or no legal liabilities

If you find a website that ticks all of the above boxes, then you’ve found a worthy investment. The whole process of acquiring a website is obviously a whole different story – you must tread carefully and involve experts if you can to avoid being scammed.

At the end of it all, the beauty of buying a website is the amazing growth potential involved. That’s especially so if you are targeting a global audience in whatever niche you’re in. With the right strategies, your web business can scale to unimaginable levels and bring in returns you would never have dreamed of.

Joseph writes for www.valuator.com.au– they can help you value your new web investment before buying. 

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While I’m not condemning the power of saving – it is indeed very powerful – I think there’s little saving can help you do to your finances. After all, you can only save that which you have.

We all have several needs and wants and while saving can be of help, unless you’re really earning some serious income, it won’t have as much impact on your financial live as you expect.

The key to true financial freedom is to create more income sources; you shouldn’t just depend on your salary or monthly income.

Here are a few ways to earn more so that you can save effectively without having to sacrifice your needs and wants:

1. Ask for a Raise

Other methods featured in this article will require you to make one form of commitment or the other, or to get started with something you haven’t already been doing, but asking for a raise at your job would often require little additional effort on your part.

Asking for a raise is especially important if you’ve been at your job for a long time and you feel like you’re underpaid – especially if you’ve had more accomplishments than some of your peers and you feel like they’re paid more than you are.

Of course, you don’t just head over to your boss and demand a raise “because you deserve it.” Instead, let your boss realize your accomplishments as well as how your salary compares to that of your peers and why you deserve a raise.

Also, make sure you don’t spontaneously ask for a raise; your timing is important, so make sure you ask for a raise a few months before raises are awarded in your place of work.

A 5 – 10% increase in your salary that you wouldn’t have otherwise gained could mean a lot for your business.

2. Start a Consulting Business

You probably have one skill or the other that you can use to help others; it could be a professional skill or something you learned while you were young.

Take a look around you to see if there are people who need help with your skill and also survey to see if they will be willing to pay if they could get help; once you have enough data to support your decision, start a consulting business as soon as you can. If all things go right, you might even have to quit your job to focus on your consulting business.

3. Start a Website

With the massive growth of the internet and its worldwide adaptation for business and commerce, one of the smartest ways to earn additional income online is by starting a website.

You could either start a e-commerce website, a blog, a small website to sell your product/services or any other form of website that can help you earn more.

Starting a website isn’t as complicated as it seems and a good place to start learning how to start a website is with the tutorials at Make a Website.

4. Start a Side Job

Depending on your availability and schedule, taking a side job might  be something you want to consider. Perhaps, there’s something you can do during the weekends to keep yourself busy and earn some extra cash?

5. Start Profiting from Your Hobby

What is it that you’re very good at that you can use to help others around you, for cash?

Whether you know it or not, there’s at least one hobby you have that you can profit from; for example, if you’re good at catering you could start a small catering business that caters to your friends/neighbors and their friends.

There are several ways to know if you can profit from your hobby:

• You could survey your friends to see if they’ll be willing to pay someone who can do what you do if the person can be of some help to them
• You can use the internet to see if anyone already offers this kind of service; if someone already does, it’s most likely profitable
• You could start making an offer to people to gauge interest; you don’t really need to have any intention to profit from your hobby right now but nothing is more effective than trying to offer your services to see if there’s any real interest

6. Sell the Things You Don’t Need

The things you don’t need that are junk to you are probably useful to others; also, they are most probably using space in your home that could otherwise be used for other things.

By selling these things, not only will you be relieved that you’ve gotten rid of them but you’ll also have the extra cash that you can save or spend on other things.

Joseph is a professional writer that helps people get results from guest blogging through his blog.

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To save you from completely losing your mind, here are a few key mortgage and home buying terms you should know going into the process.

ARM: Adjustable-rate mortgage

Also known as a variable rate mortgage or a tracker mortgage, an ARM is a mortgage loan offered with the understanding that the lender will adjust the rate annually, based on whichever index the mortgage loan is tied to.

When you first sign up for an ARM, you will be given a “teaser rate,” which will be significantly lower than fixed mortgage rates. The risk comes in as the years pass – borrowers win when rates go down but lose when rates go up.

FRM: Fixed-rate mortgage

For the risk averse, there’s always a fixed-rate mortgage. Unlike an ARM, you’ll always make the same monthly payment on an FRM and the interest rate will remain unchanged. The upside to fixed mortgages is there are no big surprises at the end of the year, but you might end up kicking yourself down the road if ARM rates stay low.

DTI: Debt-To-Income Ratio

Your debt-to-income ratio is the percentage of your income that goes to paying debt. When buying a home there are two figures to consider – your front-end DTI ratio and your back-end DTI ratio. Your front-end ratio covers the percentage of your income that would go towards all of your housing costs, while your back-end ratio covers your housing costs plus other debts, like credit cards, car notes and student loans. Lenders prefer borrowers have a front-end ratio under 28 percent and a back-end ratio under 36 percent.

PITI: Principal, Interest, Tax and Insurance

Your mortgage payment will consist of four factors – the loan principal, accrued interest, local taxes and homeowner’s insurance. Principal contributes to your equity while interest covers the cost of borrowing. Taxes are determined by state and local government based on the value of your property and local tax rates. Homeowner’s insurance covers a home and its contents from loss and accidents.

PMI: Private mortgage insurance

If your down payment on your home is less than 20 percent of the cost of your home, lenders may require you to sign up for private mortgage insurance. The insurance covers lenders in the case of borrower default. The bad news is that PMI can cost borrowers hundreds of extra dollars a month, but the good news is, once you own up to 20 percent equity in your home, the lender is required, by law, to cancel the insurance.

HAMP: Home Affordable Modification Program & HARP: Home Affordable Refinance Program

HAMP and HARP are part of the government’s Making Home Affordable program. Under HAMP, borrowers who are struggling financially can modify their loan to make their monthly payments more affordable. HARP allows borrowers to refinance their homes at a lower interest rate, even if their mortgage is “underwater.” The term underwater refers to the situation when a borrower owes more on their home loan than their property is currently worth. Millions of homes fell “underwater” after the 2008 housing market crash, which largely contributed to the creation of the HAMP and HARP programs.

Arit John is a reporter at loans.org, a website dedicated to helping consumers sift through the ambiguous details of the financial industry. Loans.org aims to educate the public by providing free access to relevant and unbiased financial information in addition to allowing visitors to apply for loans through the use of free online applications.  She can be reached via email at arit@loans.org.

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• It is better to think long and hard before making a decision.

• It is best not to pay too much for any property.

The first rule spells out just how important it is to carefully consider all aspects of a real estate investment before investing your hard-earned money. The second rule of investment however is pretty straight forward – don’t pay too much for a property. That is to say you must not invest every single penny while starting a business even if you are sure about its profitable outcome. Similarly, it is important to look at the P/E (Price to Earnings) ratio while investing in real estate. Instead of selling properties for profit, my experience tells me that it is better to let because property prices may fluctuate in the short run but in the long run, property prices are significantly influenced by rental values. Also by looking at the P/E ratio of your investment property, you can learn about your existing property’s “intrinsic” value.

Low P/E means you have gotten a good deal and if your P/E is high, you better not consider buying such a property. Real estate is not a liquid asset so instead of repenting later, my advice for all the potential and newbie investors is to invest wisely in real estate only after conducting a thorough research. You must also have good reasons to invest in real estate.

If you are investing in real estate for all the right reasons and you have evaluated your risks as well, you are likely to make a good investment.

How to Wisely Invest in Real Estate?

1.    Speculation vs. Investment

Buying risky property with high P/E and expecting that somehow the prices will go up, even though chances are they might not, is speculation. However, buying property after thoroughly evaluating it to collect high income either in the form of capital appreciation or rental amount is investing. Investing is a safer and smarter way to go ahead in real estate business.

2.    Thinking Property will Always Go up in Value

Most of the newbie investors buy property because they believe the value of properties has to go up and it will. In my experience, this is the worst reason to do so and the most dangerous one as well. Investing in real estate on mere hopes to see a spike in prices is speculation. For example, if you have plans to invest in Abu Dhabi real estate sector, you must invest in the top performing areas instead of risking your money in any new community just because you have hopes that it will start performing well in the near future. Try to avoid speculative real estate investment.

3.    Get Started with Residential Property

Residential property is always easier to purchase and manage as compared to commercial property. Therefore, if you are a newbie investor rather than trying your luck in the commercial sector, it is better to first gain some experience in the residential sector. Start your investment career with this type of property purchase and learn how to stay on top of things.

4.    Don’t Believe Everything you Listen or Read

Sellers and real estate agents ultimately want you to buy the property they are selling. Therefore, they paint a rosy picture in front of you and do not present the actual scenario. You must meet different professionals and take advice from people around you to find out the performance of the particular area where you are planning to invest. Once you get a clear picture, it will be easier for you to make a decision.

The Bottom Line

There are no get-rich-quick schemes in real estate investment market. In order to make a profitable investment, keep your eyes open and evaluate your options from each and every angle to make the most of your investment.

Peter Birganza is the Marketing Analyst at Bayut.com. He has been sharing his expertise for Bayut.com on Abu Dhabi properties for many years.

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The ability to search for information on companies and their founders online is a fantastic tool for investors that should absolutely be taken advantage of. Here, we’ll cite five great reasons to run a thorough search on a company’s internet reputation before making a decision on whether or not to invest in that company.

You want to know the founders and what they stand for.

Have the founders had any negative press that comes up in search results? What did they do before they started this business? Does anyone in the company have a negative voice or negative interactions in forums that could give the company a bad reputation?

Find out if there is any negative legal history associated with the company.

It’s always important to understand if the company or founders have been associated with any litigation. Usually this information is public knowledge and is available online.

Note that sometimes there will be peripheral involvement in a case (perhaps they were a witness), and there may be no cause for concern. Regardless, understanding what legal issues the company may have been associated with will give insight into ethics and values in many cases, and into whether the money you invest could ever have the potential to be invested in legal proceedings.

Check to see if the company has been involved in legal proceedings before investing.

A negative online reputation can equate to loss of business.

A report from Fleishman-Hillard indicates that “89% of consumers turn to Google, Bing, or another search engine to find information on products, services or businesses prior to making purchases.” If a company has negative press about it that is high in search results, potential customers can be turned off, and might turn to a competitor instead.

You want to see if there are any news articles on the business.

News articles written from an unbiased reporter can be affirming for you that you are making the right decision – or just the opposite, can have you turned off of your potential investment. Some people say any press is good press, but that will ultimately be your decision! Regardless, it would be great to see if the business you are investing in has reporters interested.

A glowing reputation might actually have you considering investing more.

If a company seems to have a strong sales trajectory, seeing that they have a positive online reputation and that customers and employees are pleased with the business might incent you to invest more money in the company. It might otherwise simply serve as affirmation that you are making the right decision, because you have a fuller spectrum of knowledge about the business.

 Before you invest your hard-earned money in a business, research their reputation online

In general, it’s always a good idea to research companies online to see what kind of reputations they have before you finalize an investment decision. Be sure always to look beyond just the first page of search results when doing your research with a search engine. Very often businesses with negative online press will employ tactics to suppress negative links beyond the first page or two of search engine results, as the majority of people don’t look much beyond that.

Cara Aley is a freelance writer who covers a wide variety of topics from managing your internet reputation to health and wellness. Cara has a BA in English from Stanford University, and has spent most of her career in digital marketing and project management, but most recently co-founded a social venture with her brothers.

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Perhaps you are unsure of how to get started. Let’s explore the steps involved in picking the right asset allocation for you.

Know Your Goals

The first step in good asset allocation planning is determining your goals. As a young person, you probably have a very long-term investment time horizon. It will be many years before you need to pull money out of your retirement accounts. A long-term outlook means more tolerance for risk and a more aggressive approach to investing. You will be able to ride out any short-term market fluctuations and stay on track to achieve your goals over time.

So, which allocation should you choose? Let’s look at a sample portfolio for an investor in their mid-20s. Keep in mind that this is just an example. Every person has different needs. Don’t be afraid to consult a financial advisor if necessary. Base your asset mix on your age and personal risk tolerance. You don’t want your investments keeping you up at night!

Aggressive Asset Allocation Model Portfolio

In this example, our investor holds multiple assets in their portfolio. As you can see, stocks make up most of the mix. This investor has determined that the long-term growth potential for stocks outweighs the risks. Alternative assets, commodities, and Real Estate Investment Trusts (REITs) round out the portfolio and provide potential for capital appreciation. Since this investor is young, bonds and cash are just a small part.

Pick Your Investments

Once you figure out your allocation, the next step is to pick your investments. This depends on your account type. For example, if you have a 401(k) you will be stuck with your company’s investment options. These are usually limited, although you should be able to put together a basic portfolio. If you are using an Individual Retirement Account (IRA) or a brokerage account, you will have more investments to choose. I recommend constructing your portfolio using low fee index Exchange Traded Funds (ETFs).

ETF List For Sample Portfolio

Stocks – IVV, EEM, EFA
REITS – VNQ
Commodities – DBC
Alternatives – HDG
Bonds – AGG

This list is just to get you started, do your research and find the right ETFs for you.

Rebalancing

So, you have picked an allocation and constructed a portfolio. Now what? Can you just sit back and do nothing? No, although asset allocation does not require active investing, it does require balancing. Rebalancing involves trimming or adding to you existing asset classes. Do this in order to make sure that your portfolio allocation is still in line with your long-term objectives.

Rebalance your accounts quarterly, every three months. For example, let’s say you set your allocation to hold 75% stock. A recent market run up has increased that to 80%. During your next rebalance, you would trim 5% out of your stock holdings and use those proceeds to reinvest into your other asset classes.

Adjust Over Time

As you get older, you will need to adjust your strategy and make it more conservative. This usually involves moving from riskier assets like stock into more stable, fixed income investments like bonds. Re-evaluate your long-term goals every five years or so and shift to safer investments as you age.

Asset allocation is not a perfect investment strategy and it has its critics. Although it is not faultless, it is a good way for young investors to maximize portfolio returns while reducing risk. Used correctly, it can help you achieve your long-term retirement goals.

Mario Favela is a freelance content writer living in Austin, Texas. He writes about business and investing at his blog Gator Finance.

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Using alternative energy sources is more efficient, better for the environment, and provides tax breaks to users. It can create more jobs, which will help the economy grow and prosper. At times, renewable energy is even considered more reliable than today’s main form of energy – generators.

With all the benefits out there, you simply won’t want to miss your chance at investing in the following alternative energy stocks:

First Solar – FSLR

First Solar is currently the world’s largest provider of integrated solar solutions. Established in 1999, First Solar’s mission is to ensure clean, affordable solar energy to consumers.

This year, First Solar will face competition with General Electric, as they plan on entering the world of solar power. This competition will drive First Solar’s stock prices up (and also GE’s), making it a perfect time to buy. First Solar has product advantage as well – they created thin-film panels that are not affected by heat and humidity, like the more common silicon panels are.

SunPower – SPWR

Founded in 1985, SunPower was the first to break into the world of solar energy. Always on the lookout for ways to improve and advance, SunPower consistently provides solar cells and solar panels to its users. Cost per watt is high, but management is striving to bring this down by the end of the year, making SunPower a great investment long-term.

BioFuel Energy – BIOF

Biofuel is a type of renewable energy made from crops and organic matter that aims to replace fossil fuels. BioFuel Energy Corporation is one of North America’s leading low-cost ethanol producers. Currently producing 230 million gallons of ethanol per year and establishing a relationship with one of the world’s leading agricultural corporations (Cargill), BioFuel Energy is continuing to grow and constantly striving to advance.

Ocean Power Technologies – OPTT

Ocean Power Technologies generates electricity via the renewable energy of the ocean’s waves. Back in July, the company announced it was teaming up with Lockheed Martin to develop one of the largest wave-energy projects to date, taking place in Australia. Coupled with six other on-going projects, and the fact that OPTT stock is trading below net cash, makes now the perfect time to buy Ocean Power Technologies stock.

Trina Solar Ltd. – TSL

Founded in 1997, Trina Solar is a Chinese solar energy company that provides power for both residential and commercial entities. It’s currently the fourth largest solar panel company in the world. Consistently leading the industry with proven low costs, Trina Solar is expected to experience more growth over the next five years than any other company. Tremendous growth, paired with some of the lowest costs in the industry, are what make Trina Solar one of the best alternative energy stocks available.

Sarah Brooks is a freelance writer covering a wide variety of topics from personal finance and stocks to food and nutrition. She resides in Glendale, Arizona, with her husband and daughter. 

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1. Work To Develop Multiple Streams of PASSIVE Income

Developing multiple streams of passive income means working smarter not harder.  The difficulty comes from people trying to re-invent the wheel.  One of my favorite ways of creating passive income as a small business is by providing digital and physical products I developed for consumers to purchase where, how, and when they want to online.  The secret to creating passive income is YOU because you already have the knowledge, you have a solution to a problem people know they have, and you don’t have to be a techie, have a list, or a lot of income to develop a passive stream of income.  Of course that isn’t the only way, you can become an affiliate of products/services you believe in, you can get involved in Multi-Level or Network Marketing, or you can invest in stocks, bonds, trades or even real estate.  So when you hear the rich get richer and the poor get poorer the ultimate way they find fulfillment in their finances is they earn more and work less, and now you can to.

2. Invest for the Future

There are two ways to invest- people at work or money at work.  Make your money work for you.  People at work make a living; money at work creates a fortune.  Money at work is why the rich get richer.  Invest money confidently, competently, and conservatively.  Money is a touchy and private subject, invest in companies you trust, consult with professionals you know, and talk about the pros and cons as well as length and return of investment before making a decision to invest.

3. Live Below Your Means

This suggestion is contradictory to what most of us believe, because we are accustomed to credit cards, loans, and other debt digging forms of payment.  The third key to finding more fulfillment in your finances is to reduce non-essential expenses.  Avoid unnecessary debt.  Living below your means is a way to give you a measure of control and help you achieve financial freedom.  The payments for your mortgage, car, credit cards, and any other debt you have accumulated should be less than 37% of your gross monthly earnings.  Sock away 10% or more of your pretax income each month.  Question every purchase.  Utilize the drives, needs, and awards that motivate you in order to live below your means and incorporate financial discipline into your life.  This discipline throughout time will carry over into other aspects of your life and you will find you are happier, healthier, and wealthier.

4. Improve Your Credit Score

5. Strive to Achieve Great Results with Fewer Resources

The person who can do this will always be in demand.  Don’t throw money at every problem-throw creativity and brain power instead.  One of your greatest assets is using the resources you do have to be resourceful because if you can solve a problem with a checkbook you really don’t have a problem to begin with.  Creativity allows inspiration to happen at the deepest levels increasing productivity, profitability, and credibility.

6. Embrace Lifelong Education

High Achievers go out of their way to pursue educational opportunities.  Education does not necessarily mean formal or schooling, it means books, events, or other resources used to gather information on a subject that matters to you.  Motivated people are learners, learners are earners.  The investments you make in your own education can pay off handsomely, both financially and in the quality of your life.  It’s important to recognize all skills are learnable, all business skills are learnable, all investment skills are learnable, and you can master all of these skills. You can learn anything you need to learn to achieve any goal you have in life.  Identify your weakest skill and work on it every day until you’ve mastered it.  If you commit to strengthening your weakest and most needed skills-and if you do that for the rest of your life-you’ll become one of the most competent, intelligent, sought-after, and highest paid people in the country.

There are many ways that you can find fulfillment in your finances but most importantly finding fulfillment doesn’t mean having money, cars, fancy houses, luxury vacations, etc…It means being able to contribute and give back to the community.  One of the most important things we learn as a leader is we have the ability to pay it forward vs. paying it back allowing others the opportunity to finish rich too.  You’ll never have a problem finding fulfillment in your finances by following these 6 simple steps.

Melissa Krivachek is President of Briella Arion is deeply & passionately committed to the growth & effectiveness of leaders, teams, and organizations. Melissa is a High Caliber Leadership, Sales, and Personal Growth Expert, Author, Speaker, Coach, and Life Enthusiast! To IGNITE your Purpose, Presence, Passion, & Profit visit Briellaarion.com or Ignite-Leadership.com. 

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This is because such valuations are, by their very nature, an inexact science. Ultimately, a business is worth only what someone will pay for it, and not a penny more. That said, taking the following factors into account will help to guide your valuation process.

Examine the accounts

The obvious starting point for anyone wishing to value a business is the historical accounts. Whilst there are a number of different techniques for determining a value from company accounts, the most widely used is the profit multiplier method.

Simply put, this involves multiplying adjusted net profit by a pre-selected amount, the level of which varies according to business sector. Adjusted net profit is simply a figure for profit before tax, which also takes into account any contributions which the owner may have been making to the business.

For example, many entrepreneurs pay themselves a salary below the market rate in order to boost their profits in the early years of a business. Adjusted net profit takes this into account, assuming a market rate of salary for the owner.

This figure is then multiplied by a ratio ranging usually from one to five, depending on accepted practice within the sector concerned.

If using this method, it is important to ensure that the adjusted net profit figure being used is not unusual for the business, and does not omit important details from the business’s accounts which will affect the valuation. For example, if adjusted net profit has largely remained within a narrow band of values over a many years, but rose or fell dramatically in the last financial year, then consider whether this is an aberration arising from short-term factors or the start of a lasting trend.

Similarly, if the business has copious cash reserves, this should also be taken into account when determining valuation.

Intangible value

Of course, raw financial data can only tell one so much about the appropriate valuation of a business. Two companies operating in the same sector can be generating similar profit levels, but may have sharply divergent potential for future growth.

Potential for growing profit, as well as existing profit, will be important to any prospective buyer. It is important to factor in such intangible considerations, particularly as they concern the strategic position of the business, its customer base and the skills and experience of members of staff.

A business’s strategic position may be affected by its geographic location, as well as its unique selling point and the level of competition in the marketplace. If you can prove to the buyer that your business generates a high level of repeat business – that a significant portion of your custom are regular, loyal customers – that adds a durable quality to your business sheet.

Similarly, the skills and experience of existing staff, particularly if they are bound into the business through long-term contracts or confidentiality agreements, must be taken into account. None of these factors will be evident from the bottom line, but can have a significant effect on valuation.

Personal considerations

Last but not least, any valuation should reflect your personal investment. If you’ve spent a significant amount of time and money establishing the business, any buyer will be able to avoid such expense by ‘piggybacking’ on your hard work.

This should be factored into the value of the company.

You will no doubt have some level of emotional attachment to your company. This is normal. However, it’s vital that you don’t allow your sentimental attachment to cloud your judgment when it comes to valuing the business.

Remember that a business is only worth what a buyer will pay for it, and that if you want to sell, you may need to be hard-headed about the amount you are willing to receive.

BusinessesForSale.com is a global leader in buying and selling businesses online. Our primary aim is connecting entrepreneurs, business intermediaries and marketplaces within the B2B and B2C arenas.

This article originally appeared on Under30CEO

It’s not about being cheap. It’s about setting yourself up for success. I started early, with a ROTH IRA when I was still in high school. I actually started with Certificates of Deposit when they still paid a good return, but that is no longer the case. But there are a few things, four to be exact that you should do now, as you get your first job to be sitting comfortably when you reach 30.

Pay Yourself First (cliche)

Yes, it is cliche and yes it makes sense, but so few people do this one. Depending on where you look, this comes in many different definitions, but here is mine: This means you putting a portion of your paycheck away … in some form. Whether that is a savings account, ROTH IRA, a Traditional IRA or a 401k, save something.

Join Your 401(k)

What is a “four-oh-wonk” as Phoebe said on FRIENDS? It s a tax-deferred – meaning you pay taxes when you withdrawal the money after you retire – retirement account through your employer. There are two benefits to this investment at any age, especially a young age. Since you are likely to be in a lower tax bracket, having your money taken out and put into this investment account lowers your gross pay, and thus the level of your taxation on your overall check. (Example: I live in New York State and my last check I put in $203.08 into my 401(k), but it only reduced my actual check by $143.00) Secondly, your company likely matches a certain percentage of your contributions. It is free money! (Example: Let’s say your company matches 10 percent of what you put in. So, in your first year, you put in $1,000. That means they will add another $100 on top of that!)

Make Things Automatic

When paying yourself first, do so automatically. Nearly every bank these days has the ability to set up automatic payments and transfers. Once you know what you’re going to be bringing in, set it up so your investing, whether it is savings or an IRA, happens automatically and without you having to think about it or make a choice about it each day.

Be Aggressive

There will be bad days. I remember days over the past four years where I would log into my various accounts (I have two 401(k)s, a ROTH IRA, a Traditional IRA and a Money Market) and see that I had lost thousands of dollars. Not hundreds. Thousands. My point however, is you are young and so you have all the time in the world to make back that money. Buy a lot now and you’ll thank yourself later.

Investing doesn’t have to be stressful and all these tips are based on ease. You don’t need to be a finance expert to open any of these accounts and you don’t manage these like a stock broker. They are very passive, but they will pay off. Time will be your friend.

Richard Dedor is a writer, speaker and personal coach dedicated to helping each person achieve their dreams. He ran for political office at age 18 and has written one book, Anything is Possible. You can find him at his blog Believe in Possible and on Twitter @RichardDedor.