Investing is vital for financial freedom. For small business owners, commercial real estate offers some unique benefits beyond stocks and bonds and mutual funds. Deciding whether to take the leap into commercial real estate is not a simple one and should be approached with due diligence and learning about the local market in your area. But the benefits can take your business and your portfolio to the next level.
If the thought of commercial property ownership has been floating through your mind, here are five things to consider:
Stability: Commercial property ownership can provide a steady stream of income for investors. Renting to other businesses can cover your cost of office or warehouse space, and incoming rent provides stability independent of your other revenue streams. This can carry a small business through tough times and provide a buffer to downturns in your primary business.
Tax Benefits: The interest on your commercial loan is tax deductible. This can offset the taxes your business owes at the end of the year. Depreciations on the property are tax deductible. If the commercial property investment is a retirement asset, the Capital Gains tax may be lower than the tax rates on other retirement assets.
Diversity: Commercial real estate typically does not experience the same volatility as stocks and bonds. Investing in commercial property can provide protection when the stock market is unpredictable.
A Hedge Against Inflation: A report by TIAA Cref showed that commercial investors fare better during times of inflation. Historically commercial investing returns out-paced inflation over a five year holding period.
Succession: Some business owners use commercial property as a succession plan, giving your company a guaranteed asset at the end of it’s life.
Big investments can bring big rewards, but it’s always necessary to do your homework and weigh all the factors.
At KKS Audit Financial Services, we partner with businesses to help guide them through the world of business finance. We have helped many clients feel more secure in their financial goals, systems and processes, and stand with you as we move through this journey towards better financial habits. Contact us today if you feel ready to take the first step toward true financial freedom.
]]>Choosing to start your own business is a personal endeavor. It involves analyzing your own strengths and weaknesses, admitting gaps in knowledge, and taking risks. But when it comes to the work I do and why I do it, the “personal” goes beyond me and my company.
What really drives me in this work are the clients and the community. The relationships and connections are byproducts of working together and building a foundation for security. When that foundation opens doors, secures a nest egg, or provides opportunities for those within the community, the change is transformational.
For most of us our money mindset is formed when we’re young - too young to understand what “money mindset” even means. We picked up on the emotional language around money in our childhood homes. Some will remember the stress over paying bills, the fights over spending. Others grew up with a code of silence about money. The topic forbidden and the mystery that invokes informs a child’s perception on money. This can settle into our subconscious just as much as the fights and stress do for others. Usually we don’t even realize how our thinking about money affects us until it show up in the form of debt, or as an obstacle to higher education or starting a business.
This is common. Normal, in fact. Yet so many of us take it as a personal failing. If we’ve never been taught or guided, why do we blame ourselves? If our parents and grandparents were never given the knowledge or the access, why do we feel shame? Why do we assume it’s intuitive for everyone, that the playing field is even? Would we blame someone for not knowing how to swim if they were never around water?
This is why it’s personal. Money - and all it entails - is personal to each of us. We all come with our own history, memories, and emotions connected to money. We all have things we have to learn and unlearn regarding finances. I know because I’ve been there. I understand what it is to be stuck financially, to feel overwhelmed and unsure. I can relate to the worry lines etched on the faces of the people I meet. I know the weight of carrying that around. And I know the relief of being unburdened.
This is why my business is very personal to me. When I see my clients walking lighter, their worry lines turned into smiles, I see hope and promise. I feel the shift in their attitude and the evolution in their mindset. It’s an amazing thing to behold and something I’m honored to be a part of with my clients.
It’s watching a young mom go from financial insecurity to confident and sure. It’s helping a new business owner find solid ground and hire more people. It’s teaching someone in the community how to save for retirement. Seeing the peace and calm in their eyes where stress and fear used to reside. It’s knowing that each person who gains financial literacy passes it down to their children, and their children’s children. It’s watching, in real time, as misconceptions and misunderstandings about finance fall away.
It has never been about just numbers or strategy. Those are the tools we use to craft a new financial future. Vital tools, but not the reason for what I do. It’s about what those tools help build. It’s more than investing or financial planning or improved credit scores.
It’s about empowerment.
Freedom,
Options.
Security,
Peace of mind.
It’s seeing transformation happen and generational cycles fall away.
This is why it’s never just about business. For me, it’s always personal.
At KKS Financial, we partner with individuals and families to help guide them through the world of personal finance. We have made mistakes, too, and are here to be vulnerable with you as we move through this journey towards better financial habits. Contact us today if you feel ready to take the first step toward true financial freedom.
]]>It’s easy to wake up in the morning and say,
“I have to go to work today.”
“I have to go to the gym.”
“I have to make breakfast for my family.”
We’re tired. We’re worn out from work, kids, responsibilities and life. We lean on negative recycled thoughts because we’re comfortable in that space. But guess what? You don’t HAVE to do anything!
Your mind is what can set your day, and your life, on a path of strength and capability. Setting your mind in a positive place is as easy as changing one word: HAVE. Change that word to GET, and see how these recycled negative thoughts improve:
“I GET to go to work today!”
“I GET to go to the gym today!”
“I GET to make breakfast for my family!”
There are people all over the world who are restricted from doing what they want to. Not everyone gets to go to work. Not everyone can afford the gym. Not everyone has a family to cook for. Changing that perspective from negative to positive can have a ripple effect through the rest of your day! If you’re coming from a place of gratitude every morning, you can improve your mood, lower your anxiety, and approach your family and co-workers from a happier place.
Start this process by writing down your negative recycled thoughts. What do you say to yourself over and over? What are those default thoughts? Identifying these recycled negative thoughts and writing them down will help you be aware when they pop up in your mind, so you can use your No Lack positive mindset to defeat them!
With your positive mindset, you can begin to build your own confidence. Instead of breaking down every time you’re faced with a challenge, think of the problem as a circ*mstance. Think to yourself, “This is just a circ*mstance that I can get through. I will find a solution.”
Then, look at yourself in the mirror and say this OUT LOUD: “I don’t lack!” Throw your shoulders back and put your hands on your hips, standing with confidence and say it again: “I don’t lack!” You can DO THIS. You are intelligent, capable, and have a positive mindset of success to get you through this circ*mstance.
Show up for yourself by changing just one recycled negative thought at a time. Work on it every time you are in a circ*mstance where it arrives. And watch Kisha’s video here to get a better understanding of what No Lack means!
]]>The moment you turned 18, you probably had a flood of credit card applications get mailed to you. Hopefully, someone taught you better than to apply to them all (and if not, we can help with that)! But what happened when you started your business? Did you get a flood of credit card applications magically at your door? Probably not.
Business credit works the same as personal credit (you borrow money, you are charged interest, you pay it back), but the term can also refer to the creditworthiness of the borrower themself. And, just like with personal credit, business credit will come with a credit score and report.
Business Credit matters a lot when you’re looking to finance your business. If you have a poor score, banks won’t want to loan you money and individuals are less likely to invest. Getting your business off the ground can be challenging if you need some serious capital to get it started. And if you’re thinking of just using your personal credit, that could cause you to be wholly responsible for the debt and the debt collectors can come after your personal assets.
If you’ve never taken a line of business credit, don’t be scared! If managed responsibly, business credit can have a very positive impact on your business! It can open up all kinds of financial doors, giving you the opportunities you need to grow.
But how do you get business credit?
1. Choose a business structure. Business credit is easier to get if you are a corporation or an LLC, instead of a sole proprietor. Follow your state’s guidelines on how to register your business.
2. Open business accounts. Open a bank account in the name of your business, and then take out a credit card or business loan in the name as well.
3. Use your Credit--Wisely! Don’t take out too many cards or loans at once. Start small and develop good habits by keeping your balance low and paying it off quickly. Remember, when using a credit card, you need to ask yourself: “I have $20,000 in credit, but do I have $20,000 to pay it off?” If the answer is no, then you actually DON’T have $20,000 and you need to only use the amount of credit you can securely afford.
4. Check your score every quarter. You can’t often get free scores like you can with personal credit, but go ahead and pick a company to become a member with so you can monitor your score. This is an investment in your business, as you’ll need a good score to grow.
Think of getting business credit as an opportunity to start your business off on the right foot. Making good choices, forming good spending habits and seeing your score increase quarter over quarter will improve your money mindset and put you in a positive, confident place.
At KKS Audit Financial Services, we partner with businesses to help guide them through the world of business finance. We have helped many clients feel more secure in their financial goals, systems and processes, and stand with you as we move through this journey towards better financial habits. Contact us today if you feel ready to take the first step toward true financial freedom.
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I left my job as a supervisor at a transportation and logistics company in February 2021. After working there for 15 years, I was restless to start building a business of my own. For seven years, I'd been slowly growing my own financial advising company, and when leadership roles shifted and I was faced with conflicting management styles at my full-time job, I finally decided it was time to dedicate myself to my own company instead.
I knew I'd be facing some challenges, but there were 10 things I didn't realize and quickly learned when I quit my job without a plan.
1. I didn't expect to feel so happy
Don't get me wrong; I was comfortable at my old job, but over time, I became deeply unhappy. I was used to the regular paycheck and routine, but between changed leadership and a waning passion for the work, I knew it was time to leave. When I did, I felt incredible joy.
2. I didn't understand how much time and energy it would take to run a business
Despite doing financial services as a side hustle for seven years, I had to go back to square one. I hired three part-time employees, developed my own SOPs, and created a business plan. I realized that my success was dependent on me, and me alone.
3. I didn't realize how much I'd enjoy taking my side hustle to center stage
Over the past seven years, I had to keep my day job and side hustle separate from each other. After quitting, I was able to completely dedicate myself to my small business. The more I worked on centering my business in my life, the more alive I felt.
4. I learned to go above and beyond for my clients
I had to learn how to network, be more creative, and manage my time. As I've grown into a business owner, I've realized that showing up for my business means educating my clients. I have to put myself in a vulnerable place and share with my clients my own financial struggles, so that I can educate them from an honest place.
5. I didn't know I'd need a team to help me excel
When I left my job, I realized I'd need a strong team to help take my business to the next level. I hired a marketing agency, I met with other financial advisors, and I leaned on mentors to help build my business.
I even got a therapist — two of them, in fact. Caring for my mental health helped me transform my mindset because I'd been conditioned for so long to feel comfortable in unhappiness.
6. I was shocked I didn't miss the regular paycheck
I took about two weeks off after I quit because once the anxiety lifted, I felt exhausted. When those two weeks were up and I didn't get my regular paycheck, it pushed me to put in the work and get things going for my business. Still, I didn't miss my old paycheck at all because I was finally focusing on work I enjoyed.
7. I never knew how much branding and social media marketing would matter
I kept telling myself, "You're going to have to get creative, Kisha!" At first, I didn't know how to building my business online, so I studied everything I could find on social media marketing and branding and leaned on my team to help.
8. I didn't realize how much change I could bring to my own community with my business
At KKS, I started working with people who needed help with personal finances. Meeting with adults who knew little about managing money, I decided to not just help them create a budget and savings, but also to teach them the how and why of finance. In doing so, I'm helping to break generational cycles of bad money mindsets.
9. I didn't know how much my confidence would improve
I was the only minority woman in a leadership role at my old job, and it was all consuming. From running my business full-time, I've learned to set healthy boundaries and know when it's time to take a step back, whether from a situation or a bad client.
]]>The term money mindset can bring up a lot of different emotions for people. Some feel scared, some feel insecure, some feel overwhelmed. You also have those who feel confident, excited and challenged. Which of these camps do you fall under?
Most likely, you fall under the first category. (Otherwise, why would you be reading this blog?) According to Standard & Poor’s Financial Literacy Report, Americans only rank 14th across the globe in financial literacy. Americans have little knowledge of how to budget their money, are in incredible debt from credit cards and student loans, and generally don’t know how to stop bad financial habits--or even understand how they began in the first place. This has formed our money mindset, or the overall beliefs and attitudes we have about our money.
Many of our clients come to us and say something like,
“I’m terrible at managing my money.”
“I can’t seem to keep track of my money.”
“I hate dealing with money.”
These negative statements can greatly impact not only how we feel about changing our habits, but how we feel about ourselves. To get better at anything, we first have to believe we can. But how do we get from a negative to a positive money mindset?
1. Flip the Script
It sounds like a simple concept: stop saying bad things to yourself and start saying good ones. It’s a lot harder than it sounds, but it starts by recognizing when you are saying negative statements to yourself or out loud. Be aware of when you’re saying something negative when you’re talking about money.
Then ask yourself, what can I say instead? For instance, if you’re creating a budget and you find yourself getting frustrated and saying “I really suck at this,” take a moment and recall what you just said. Be aware of what you just said, and make a note of it. Then say something like, “I’m new at this, but I’m working hard to get better at it.”
Negative self-talk has a real impact on the outcome of our accomplishments. If you say you suck at something, you start to believe it and that mindset becomes your reality. The same can be said for positive self-talk!
2. Give Yourself Some Grace
Learning how to balance and budget your personal finances takes time. You’re unlearning learned behavior, which is tough to do. Bad habits are hard to break, but if you’re working towards breaking them, then pat yourself on the back! You’re doing the work and trying to be better, which is admirable. So tell yourself that! Say, “I’m working to be better with my money so I can be more responsible and resourceful.”
Understand that it will take time to become better, though. It doesn’t happen overnight and there will be setbacks. Even when working with KKS, you’ll make mistakes. But guess what? It’s all a part of the learning process! No matter how old you are, or what your journey has been up to this point, it’s going to take time. So be gentle with yourself, give yourself some grace, and when you have a set back, learn from it and move forward.
3. Think About Your Life and How Your Mindset Developed
Knowing how your mindset developed can be a powerful tool. Maya Angelou said, “If you don’t know where you’ve come from, then you can’t know where you’re going.” To lessen your anxiety about money, give some serious thought about how money was managed when you were growing up, and how it may have imprinted in your brain. Here are some questions you should ask yourself to better understand it:
“Did my parents talk openly about money?”
“Did my parents fight about money?”
“Was money a source of stress in our family?”
“Did my parents teach me about saving my money when I had my own?”
“What is something my parents did with money that I want to do differently?”
“What is something I want to do that’s the same?”
Write down your answers and marinate over them. The conclusions you come to may surprise you, and open your eyes to your own money mindset.
At KKS Financial, we partner with individuals and families to help guide them through the world of personal finance. We have made mistakes, too, and are here to be vulnerable with you as we move through this journey towards better financial habits. Contact us today if you feel ready to take the first step toward true financial freedom.
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