Side Hustle 101 - AR/AP | Pay Debts Like a Lannister

Side Hustle 101 Series

Starting Your Own Small Business
https://urbanomics.blogspot.com/2018/12/side-hustle-101-start-your-business.html

Running a Small Business
https://urbanomics.blogspot.com/2019/02/side-hustle-101-own-your-business.html
https://urbanomics.blogspot.com/2019/03/side-hustle-101-are-open-for-business.html
https://urbanomics.blogspot.com/2019/03/a-21-savage-look-into-business-income.html

How to Manage Small Business Risks
https://urbanomics.blogspot.com/2018/11/side-hustles-101-risk-vs-reward.html

Small Business Benefits
https://urbanomics.blogspot.com/2018/12/side-hustle-101-pay-yourself-first-with.html

Small Business Diversification
          Keep Your 9-5 Job: 

https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html

Know Your Worth: 

https://urbanomics.blogspot.com/2020/10/what-you-need-in-life-invest-like.html

Know When You're Speculating: 

https://urbanomics.blogspot.com/2020/10/oh-snapchat-whats-difference-between.html

This past week marked another significant milestone in building a side hustle that earns more than my main hustle (or 9-5 job).  Over the years, I've documented the slow build up of how to start, run, and manage a small business. A key part of this process is managing risk, something I help large corporations all across the world do. In particular I am building a business that helps me diversify my risk. 

My goal is to never be reliant on one source of income. 

My other goal is to add value to people's lives and this world.

I'm well onto my way of achieving these goals as my side hustles are getting close to eclipsing the relevance of my main hustle. Secondly, I continue to build a professional services business that is growing without a website, any marketing or overall push --- remember I have a 9-5 job. I landed my first major contract in San Antonio, Texas and this leads me to my second goal. I'm proud to be an employer --- I'm not just responsible for myself but my business has given someone a job and that speaks volumes. This person is well qualified but with the backdrop of a nation divided, my focus is on hiring people of color, veterans, women (in particular single moms), and anyone who wants to work hard while giving back to others. 

Due to the fact that I have to pay employees and vendors I wanted to quickly discuss how you manage your cash flow, prepare payroll, and make payments. First, I always remind people to understand who you're doing business with and get all terms documented in a contract. Being a risk manager, I review all my contracts and remove terms that ARE BAD FOR MY BUSINESS.

Cash Flow (Sales | Invoices | Receivables)

Sales - Review my Side Hustle series above and knowing your worth goes a long way into negotiating a sale of your product or service. My firm charges at a range where it's a win for my client, my employee, and myself.

Invoices - Next, I'm careful to invoice my customers on time and per the terms we agreed upon.

Receivables - Finally, I'm a hawk on knowing when and IF we got paid for the services we provided.

Payroll

If you have W2 employees, the best bet is to get a good payroll software here to help you ensure that you are deducting payroll taxes according to state and federal laws. If you only have 1099 or Corp2Corp relationships, you can accomplish this with requiring those relationships to invoice you according to a contractual agreement you've established.

Payables

You've seen me write before, I pay people according to the agreed upon terms "Like I'm a Lannister". Yes as in the dubious Lannister family in Game of Thrones, notoriously known for paying their debts or obligations. I keep my employees and vendors happy if I am paying them on-time and of course the right amounts. I've used a few companies this week to help me receive my cash timely and pay people time. I'll list a bunch (which include a few I use):

• Paycom
• Intuit Quickbooks
• ADP
• Paychex
• Gusto
• Your Bank

To keep things simple, for

Cash Flow and Receivables --- I channel The Notorious BIG on the song Get Money. Good contracts and tracking how much and when you're owed will ensure you'll never have to say the following lines: "Guess you could say your the one I trusted / Who would ever think that you would spread like mustard?"  

Payroll - Get help here, you're dealing with the laws. Don't be cheap on getting this right, as there are plenty of online software.

Payables - Paper or Plastic?  Believe it or not checks are the primary option for free delivery of payments to you employees or vendors. NOW you see why this area is ripe for disruption by startups. (hmmm maybe that will be my next startup company). Expect to pay a fee here to deliver payments directly to a bank account (direct deposit) --- but it reduces the risk of lost checks...and saves time.

#sidehustleseries   #paydebtslikealannister   #dontletcontractsspreadlikemustard  #paperorplastic #sanantonio  

Pfizer + BioNTech Announce Phase 3 COVID-19 Trials are 90% Effective

 Currently, the stock market is surging by over 5% in the pre-market (before it has even opened) signaling the direction of this good news. Key Points:

Pfizer - American Company

BioNTech - German Company

Industries that will benefit the most: Travel, Airlines, Hospitality, Restaurant and in general value stocks

If you recall in March, I pull all of my personal retirement funds OUT OF the stock market. Quite simply, this is a game-changer. I will be moving my retirement funds back into the market. I may be a bit pre-mature but finally there is a small light at the end of the tunnel. 

More to come but I need to make these portfolio adjustments and share the positive news.

CRONOS | ROKU | COLLECTORS UNIVERSE - 20% Increases After Earnings

ROKU - The reason I'm not active on social media is so it doesn't distract my investing. People tend to push their views on each other --- they call it their platform nowadays. I tend to allow data, research and science do the talking. For example, I wrote a post back in March about how we needed to aggressively defend against the virus. When it was clear our administration had no interest in taking the prudent steps I saw other countries taking, I didn't go Batman and start yelling on social media. I told my community to invest and go in Robin mode. Robinhood that is, we invest in things that unfortunately will benefit in this tough environment. Invest and then plant seeds in your community. 

Roku hit a low of high $50s and now just topped $250 after it reported earnings on Nov 5th. Just a few days ago this stock was touching $200, see the red highlight below. 

 

I have been speculating, guilty as charged, placing additional bets this stock wouldn't go parabolic before it reported earnings. It was a tight window and the trade worked beautifully. I saw a trend yesterday and pulled out after making over $5.5K in about a month on this stock. I'm glad I did b/c you could see this trending higher in the graph above. I put the trade on and took the trade off @ 3:59 yesterday, 1 minute before the market closed! It would not have gone well if I held on until today as the stock has gone parabolic baby!!! Not advised for rookies but how you play both sides as I actually own the stock as well and benefiting from this ride up. Here's that trade, time to find another trade to make: 

Stock                                                     Purch Date        Sold Date                   Gain   % Gain

CRONOS - Legalized marijuana was on the ballot in roughly 5 states. Again, I don't judge I just bet on the direction that the people's will is taking them. #countthevotes

Trust me people are moving to medical and personal marijuana use and less collateral damage on communities of color because they were in the past getting locked up for selling something that may not be legal. Cronos is up 20% and do to the % short (or ppl betting against this stock) there will be a party to get out of that trade leading this stock and other MJ stocks higher.

COLLECTORS UNIVERSE Thank you Warren for teaching me patience. I've owned this stock at least since 2008. Through the good and the bad I've held with strong conviction and received a healthy dividend and now I'm reaping the benefits of the growth or appreciation. Congratulations Collectors you are my first ever 10 bagger as billionaire investor Mario Gabelli often says. This stock have increased over 10 tenfold for me and proof as to why we should defy labels, boxes, and barriers!!!

 I'm investing my way out and teaching other people that look like me how to do the same. Just this year alone you could have been up over 700%, and the reason I know this is because I added this stock this year to my 401K plans and advised others who added it to their portfolios.