In May 2021, lumber prices reached an all-time high. While this sharp increase had an impact across many different industries, forestry and lumber businesses were particularly affected. You may be wondering: what exactly is going on with the price of lumber?

Why are lumber prices so high? When will lumber prices go down? When will lumber prices return to normal? Let’s examine these questions a bit more closely.

What Is Really Happening With Lumber Pricing?

There are a few factors contributing to the rapid climb of lumber prices. While many assume increased lumber prices are a sign of general inflation, the issue is more nuanced.

For instance, the Covid-19 pandemic contributed to an increase in demand for lumber. Many people working from home found themselves with more time on their hands, and plenty of folks used that time for home renovation projects.

Not to mention, there is simply more incentive to improve your living space if you’re spending more time at home!

The pandemic and transition to the home office also persuaded many people to buy their first home. The subsequent uptick in the construction of single-family homes to fill this new demand placed additional stress on the forestry and lumber industry, causing prices to rise.

A shortage of truck drivers is yet another variable contributing to the 2021 increase in lumber prices. Truck drivers are an integral part of the forestry and lumber supply chain, as they are responsible not only for transporting raw lumber to mills but also for delivering finished wood to lumber yards.

To make matters worse, mills often have trouble attracting workers at the best of times, and, at the onset of the pandemic, many were forced to shut down entirely. As you might expect, all of this had a tremendous impact on the forestry business.

Essentially, the rise in timber prices affecting the forestry business in 2021 comes down to a supply and demand issue brought about by unpredictable and largely unpreventable circumstances. That said, there are signs that things are normalizing.

When Will Lumber Prices Return to Normal?

If you’re wondering what is happening with timber prices today, you might be pleased to know that things appear to be stabilizing.

Lumber Prices 2021 Chart

Graph from: https://markets.businessinsider.com/

As you can see, framing lumber prices are down substantially from their peak in May 2021.

Although it’s too early to say for sure, we can remain cautiously optimistic that the price of lumber will remain at a normal.

How Lumber Prices Affect The Forestry And Lumber Industry

It would be logical to assume that the forestry and lumber industry would benefit from soaring timber prices. However, the reality is slightly more complex.

High demand for lumber is only beneficial for landowners and the forestry and lumber industry at large if this demand can be sufficiently met. The lumber shortage of 2021 isn’t due to a lack of trees, so to speak, but rather the inability of lumber mills to satisfy demand.

The combination of mills being caught off guard and some having to shut down due to the pandemic meant that, although mills were operating at capacity, it still wasn’t enough.

Increasing capacity requires new machinery, recruiting and training new staff.

Things like small business loans can help to ramp up production, but time is still an issue – building new mills takes over a year in permits and construction before they can be operational.

So, while the forestry and lumber industry did what it could to capitalize on a dizzying demand for lumber – and while it certainly wasn’t bad news for the industry – the trickle-down benefits to mill owners and landowners was not exactly the boon one might imagine.

Largest Producer Of Wood In The World: Wood Production By Country

Let’s examine the countries most affected by the increase of lumber pricing by taking a glance at wood production by country. According to the Government of Canada website, the largest producer of wood in the world is China, with 12.6% of total wood exports, followed by Canada at 10.2%, Germany at 8.5%, USA at 8%, and Russia at 6.5%.

Perhaps the most significant change in the forestry and lumber industry brought on by higher prices is a shift in global trade flows.

For instance, Canada, one of the largest producers of wood in the world, reduced its number of overseas wood exports in order to meet the demand for the USA housing market. Germany, the third-largest wood producer in the world, increased exports substantially within Europe but reduced shipments to China, the USA, and the Middle East/North Africa.

Just as you might optimize your pricing strategy in business to adapt to certain economic factors, governments and forestry and lumber companies adopted similar measures to remain competitive in this new economic environment.

Yet another thing that the lumber shortage has brought to light is the issue of unsustainable timber production in the forestry business.

Simply put, unsustainable timber production refers to the harvesting of trees in a way that violates local forest department regulations. The problem is far-reaching. The World Wildlife Organization found that 8-10% of timber production is done in violation of national rules and regulations.

Regardless of demand, countries must take it upon themselves to promote sustainable forestry and lumber practices by refusing to buy timber cut through illegal logging. Consumers are now aware of the importance of sustainability and are likely to support a company that is conscious of good practices.

Such opportunities help grow your business while also doing your part to save the environment!

Increased lumber prices have affected the forestry business in many ways. There’s the obvious problem of having to scramble to meet demand by upping supply, but also less-obvious ripple effects, such as pandemic restrictions, the altering of trade flows, and shining a brighter light on unsustainable timber production.

As for a final, present-day lumber shortage update, after all-time highs in May of 2021, it appears that lumber prices are indeed returning to normal.

Are you looking to start a funeral business? If so, do you have the capital to start a new small business in this economic climate? If you’re struggling to get the funds to begin the process of establishing your funeral home, then you may qualify for funeral home business loans.

Our guide below will explain how you can begin operating a funeral business, how to create a funeral business plan, your financing options for this endeavor, and why business loans are extending to the funeral business. Keep reading to learn more!

How to Start a Funeral Home Business

If you want to learn how to start a funeral business, you’re in the right place! Below, we outline the steps you need to take to start a funeral home business.

1. Produce a business plan (consider startup costs, name of the parlor, target market, and customer fees)
2. Create a legal entity (determine company structure – partnership, sole proprietorship, etc.)
3. Register for taxes and apply for EIN
4. Open a bank account and credit card account for your business
5. Develop an accounting system or hire accountants for your business
6. Check to see what type of permits and state or local licenses you will need to open a funeral business
7. Obtain business insurance such as general liability insurance
8. Develop your brand, logo, and marketing strategy
9. Design a business website
10. Purchase and set up a phone system in your funeral home

Guide to Creating a Funeral Home Business Plan

Our guide to developing a funeral home business plan involves the following factors.

• Create an executive summary describing the value of your funeral home
• Discuss the products and services of your business (include the separate rooms available for the funeral)
• Outline your mission statement and overall vision
• Describe the business structure, including goals and hierarchy of managers and employees
• Outline the different job roles and responsibilities of each worker (such as funeral home director, mortician, administrative assistants, human resources professionals, etc.)
• Conduct a SWOT analysis and assess the strengths and weaknesses of the business
• Use the SWOT analysis to define opportunities for promoting your business and identify potential risks
• Perform a market analysis and identify market trends and your target market

Is a Funeral Home Business Profitable?

How much money do funeral homes make? Well, the entire funeral industry makes $17 billion in revenue, on average, per year. Furthermore, the median cost for a funeral is $7,360, and the average funeral home handles about 150 deaths or less every year.

A funeral home business makes its profits when providing the following services:

• Moving the body to the funeral home
• Embalming, dressing, grooming, and cosmetology
• Selling the casket
• Using the facility and professionals to plan a viewing and funeral ceremony
• Using a hearse or another automobile
• Memorial cards and register book along with any other printed pieces

In addition, funeral homes often charge a basic services fee. This fee is usually around $2,000. The average gross profit margin in the funeral sector is 62.5 percent. Furthermore, top-earning owners of funeral homes can make more than $92,000 per year. Clearly, the funeral home business is a profitable venture.

What are Funeral Business Loans Requirements?

Requirements related to business loans for funeral business involve a variety of factors, such as specific documentation to apply for a loan.

The most small business loan requirements involve business and personal tax returns, income statements, identification like a passport or driver’s license, commercial leases, personal and business bank statements, a balance sheet, and articles of incorporation.

Essentially, you will need to provide as many financial records as possible to your lender, and you will need to spend at least six months in business before you apply for a small business loan. Furthermore, you will surely need to have a good personal credit score to gain business loan approval.

Lastly, you’ll also need to outline the revenue and gross sales you’ve made running a small business as part of the standard funeral business loan requirements.

Why Business Loans are Extending to the Funeral Business

The funeral home industry is slowly growing, and business loans are steadily increasing for this sector. Business loans are extending to the funeral business profitable, as funeral homes do have a gross profit margin of 62.5 percent.

Essentially, this shows lenders that funeral homes are profitable, and they’ll likely have the loan paid off with interest in the required period of time. Essentially, the funeral home industry is expected to have a growth in revenue due to the coronavirus pandemic.

Over the next five years (from 2021 to 2026), the funeral industry is predicted to rise in revenue on a marginal level. The older baby boomer population is expected to lead to growth in this industry as well.

Financing Options to Support Your Funeral Business in 2022

Opening a funeral home is not a simple process and can be very costly. It may cost you anywhere from $150,000 to $300,000 to operate a funeral home.

If you have a chunk of this money already set aside, you might still need to qualify for a $50k business loan to run a mortuary. Luckily, there are four options you can pursue to obtain a $50,000 loan.

First, you can get a conventional loan, but you will have to provide an extensive amount of proof to the lender if you go this route. You can also choose to get a small business association loan or a business line of credit.

You may consider getting an alternative lender instead of a bank. An online lender is similar to a bank but has expertise in lending funds to businesses. These four financing options are excellent for supporting your funeral home business in 2022.

Conclusion

When opening up a new funeral home, you will need to take the necessary steps to create a business plan and determine how much funding is necessary to run this business. With the funeral industry growing stronger, business loans are increasing for this sector.

According to the U.S Bureau of Labor Statistics, approximately 70% of small businesses make it to the end of the second year, and the number drops up to 50% at the end of the fifth year. This decline is mainly linked to financial problems. As a small business owner, you may lack enough funds to meet certain needs such as purchasing equipment, getting inventory, or expanding.

Therefore, you may need to get a loan to keep your business going. However, this step can be challenging, especially if you have bad credit. Fortunately, you no longer have to worry because many lenders are now financing entrepreneurs with poor credit. This guide discusses how to get a business loan with bad credit. Let’s delve into the details.

Getting Small Business Loans with Bad Credit and No Collateral

Putting your property up for collateral when you have bad credit can help you secure a small business loan faster. However, this may not be possible for everyone. For example, if your business has not yet accumulated enough assets.

Luckily, you can get small business loans that don’t require collateral, even when you have bad credit.

Note that these loans have unique terms and approval requirements. Therefore, you should go through them carefully to avoid misunderstandings in the future.

Types of Business Loans You Can Get with Bad Credit

Different types of long-term business loans for bad credit exist. As such, you should research the best small business loans that meet your specific needs. Some examples are equipment financing, term loans, invoice factoring, lines of credit, and merchant cash advances.

Equipment financing is the best loan option if you can’t afford the needed equipment. This loan usually finances 80% to 100% of the purchase price. The equipment will serve as collateral, which means the lender can take it if you can’t repay the loan according to the agreed terms.

Term loans involve borrowing money from a lender, which is repaid within a set period, between one to ten years. However, since you have bad credit, you should get term loans from alternative lenders since traditional ones like banks can deny you.

Invoice factoring is another example of a guaranteed small business loans bad credit. If you have unpaid invoices leading to cash flow problems, you can use this loan option. The lender will buy your invoices at a discount and give you an advance.

Your clients will pay the lender directly, who will then deduct their fees and give you the remaining balance once the invoices are paid in full. Your accounts receivables will act as collateral. Besides, you can only qualify for invoices that are payable within 30 to 90 days.

Lines of credit are revolving loans with a fixed amount that you can use to meet your business needs. When paying back, only the interest on the portion you borrowed will apply. Merchant cash advances allow you to get an advance from a lender for future sales.

Lastly, SBA loans are government small business loans. With this option, you can finance any project, including purchasing inventory, construction, renovation, mergers and acquisitions, or buying real estate, among others. Therefore, if you have bad credit and want funding that doesn’t restrict you on how to use the proceeds, you should consider applying for an SBA loan.

Research Business Loan Lender’s Credit Score Requirements

Despite the above-mentioned small business loan options being flexible, every lender has credit limits. For example, most online lenders will consider your application if your credit score is about 500, which is generally low. However, below this, such lenders can decline to work with you.

Some lenders, on the other hand, will offer you a loan regardless of how low your credit score is. Therefore, don’t waste time sending applications to lenders with credit score requirements you don’t meet.

What Lenders Look for When Considering Bad Credit Business Loans

Besides credit score, lenders have other requirements that applicants must meet to qualify for bad credit business loans. These include years in business, the size of a company, annual revenue, the risk associated with a particular industry, and credit history. For example, even though you may meet a lender’s required credit limit, you can be asked to wait until your business has sufficient credit history.

Moreover, the reason behind your bad credit may affect a lender’s decision. For instance, bankruptcy and defaulting on loans can lower your chances of loan approval. Therefore, getting a small business loan with bad credit is significantly dependent on the lender. Hence, it is important to check for multiple lenders and choose one with requirements that favor you.

Find an Option That Suits Your Business

During your research, you should go through the loan conditions to discover what suits your line of business. For example, if you are a contractor, you want to work with a lender that offers equipment financing since your business mainly deals with such assets. Equipment financing is also beneficial for trucking companies with bad credit. If you are in the business-to-business industry, which means you supply products or services to clients who pay invoices over certain period payment terms, work with a lender that offers invoice factoring, and so on.

Work with a Co-Signer

Another tip that can help you get decent small business funding with bad credit is working with a co-signer. This is someone with a good credit score who agrees to be partially responsible for your loan. It means they can repay it should you fail to do so.

Finding a co-signer can be challenging. Therefore, it’s easier to ask your family members or friends who trust you. Also, ensure that you explain the loan terms to them in-depth to help them make an informed decision. After signing, involve them in your repayment plan and keep them informed throughout the loan period.

Final Thoughts

The tips discussed above can help you get both short and long-term loans when you have bad credit. Once you qualify for these loans, you should pay them on time and comply with the terms to have a good relationship with the lender(s).

No matter the kind of business you operate, you have to deal with customer service in one way or another. And while most people think it’s all about answering customer questions, which is true, it can be challenging.

It involves dealing with all sorts of people and meeting their expectations. Therefore, to provide a professional service, one has to be patient, diplomatic, and smart.

This article reviews some of the trickiest customer service challenges and their solutions.

Why Customer Service Challenges are Different Today

Customer service statistics show 68% of customers believe that the key to providing the best service is to have a polite customer service representative. While that may be true, customer service faces numerous challenges of customer satisfaction, especially because of the nature of the modern customer.

For decades, several factors have been defining customer service. However, things are changing with the demands of the customers of today.

Today’s customer expects you to deliver the goods and services they purchase faster. They also expect the handling to be flawless which can be a big concern for enterprises and their customers.

Additionally, today’s customer expects something in return when they conduct business with you. This is yet another challenge companies have to deal with as the customer service team must do everything possible to entice the customers to return.

Remember, a dissatisfied customer is a walking time bomb that can hurt your business severely. These are the consumers the customer service department has to deal with.

The following section will describe broadly what are the customer service challenges you can face and some customer service problem solving examples.

6 Biggest Customer Service Challenges and How to Solve Them

Below are some customer service problems examples and how you can solve them to make the customer experience awesome for your loyal clients.

1. Having No Answer To A Customer’s Question

What happens when a customer asks an unexpected question and you have no answer? This is a common occurrence you have to deal with.

For example, if you have been shipping some purchases for your customer and they enquire about its arrival, you may not have a definite answer.

While it’s usually a third-party that handles logistics, you cannot just say, “I don’t know,” to your customer. So, what’s the solution?

Your customer service team should guide your customer on where to seek the information, and if possible, work towards obtaining the details themselves. Even if you have no accurate answer, don’t just shrug your customer off.

“I’m sorry, we have no answer right now” doesn’t sit well with customers. It’s a wrong answer, which is the last thing you want landing in your customer’s ears.

The right approach is to:

• Acknowledge the question.
• Request them to allow you some time to find an answer.
• Get back to them as soon as you have accurate information.

2. Transferring Customer Calls

According to American Express, customers hate being directed to another department or waiting to be connected to another office. Customers may hate these automated messages, but sometimes, this may be necessary to get the best support on their inquiry.

When you do this, ensure you explain to the customer that you’ll transfer the call and why it’s important to them.

So don’t just transfer a call. It annoys customers, especially when they get a voicemail where they expected a live conversation.

3. Handling Angry Customers

It’s normal to come across an angry customer. And there are many reasons why your customer might be upset.

It may be they’re confused, you offended them through a mistake, or they’re just having a bad day.

One mistake most customer service agents make is to try and match the customer’s emotion or get defensive. It takes things from bad to worse.

Fortunately, Disney invented an approach that you can adopt to deal with angry customers and turn things around effectively. The technique is called the HEARD technique, which stands for:

• Hear: Hear what the customer is angry about without interrupting.
• Empathize: Show the customer you understand his frustrations.
• Apologize: Even when you have not wronged them, express your apologies.
• Resolve: Go all the way to find a solution to the issue while engaging the customer on what they feel is best.
• Diagnose: Get to the bottom of the issue to identify why it happened in the first place and fix it to ensure it doesn’t occur again.

4. Customer Wants A Discount You Cannot Afford

The modern customer will choose you over your rivals if you offer discounts. However, discounts can hurt your firm.

If you don’t use the discount strategy wisely, it may devalue your brand’s perception in the customers’ eyes. Sometimes, you have to say “No” to a request for a discount.

That said, approach the issue somberly, explaining to your customer why the company cannot go lower than the current price.

5. Serving Multiple Customers

The customer service department is a busy sector where you have to deal with several customers concurrently. You need to manage all the customers, or you risk messing things up.

The right approach is to time your pauses well. If you have to put a customer on hold, explain that they have to wait as you look to resolve the issue at hand. This gives you a chance to talk with another customer.

Avoid telling a customer you’re talking with someone else. It’s not courteous. Also, avoid keeping them on hold for long.

6. A Crisis or Outage

The occurrence of a power outage or a crisis can be detrimental. In fact, it’s deadly to have critical emergencies such as security breaches. Always be ready to handle these situations.

Having a crisis management plan in place is essential. It communicates to workers what they need to do during such critical times. Secondly, approach customers with an apology, making them feel you understand and empathize with what they’re going through.

Additionally, giving updates now and then on how far you are in solving the crisis can help calm and reassure unsettled customers. And when operations resume, publishing a post-mortem goes a long way in further reassuring customers that they’re in capable hands.

Before You Go

Apparently, more than 80% of customers shift to competitors after experiencing poor customer service. You don’t want this happening to you, as it means all your efforts go to waste. Therefore, finding solutions to your customer service challenges is the gateway to establishing a successful business with a loyal customer base. Fortunately, you now know six of the most critical customer experience challenges and how to resolve them.

The COVID-19 pandemic has been devastating for the United States economy. No one has been hit harder than small business owners. More than 100,000 small businesses have permanently shut down as a result of the pandemic. Among these are restaurants, food production, farms, construction, and more.

The good news is that independent contractors in the construction industry are eligible for disaster relief loans. These business loans for independent contractors are available under several government programs begun under former Pres. Trump.

Small business owners have had to face up to the kind of disaster they never thought they would face. It has been an extraordinarily stressful period. Small business loans for independent contractors and others may provide what they need to survive.

What Are Disaster Relief Loans?

In early 2020, Pres. Trump announced the passing of the CARES Act. This included the Paycheck Protection Program, which was designed to protect small businesses from closing their doors during the pandemic’s economic downturn. The second coronavirus aid package, passed in Dec. 2020, included $284 billion in additional funding for PPP loans for small businesses.

The PPP gives small businesses up to eight weeks of funds to pay expenses and benefits. The intent was to protect jobs and prioritize small businesses, self-employed workers, and independent contractors.

These loans were at first only available for certain businesses, such as those with less than 500 employees who met other criteria. Now, they are available for self-employed individuals, independent contractors, and sole proprietors.

PPP loans for independent contractors listed above cover up to $100,000 in the following:

• Payroll and benefits
• Rent
• Utilities
• Mortgage interest
• Business software
• Cost of materials
• Measures spent to protect employees against COVID-19
• Property damage from recent civil unrest

Similarly, PPP loans for the self-employed and contractors may cover salary losses, though you can apply for 2.5 times your average payroll amount in a year, up to $100,000. Forgiveness is available for these loans if you use the funds for payroll and operations in the first 24 weeks.

Heavy Equipment Financing Options

Most businesses have the option under standard small business loans to have their equipment financed. This applies to standard office equipment like desks, copiers, file cabinets, and so on. But construction companies need something a little different, which is where heavy equipment financing comes in.

These loans help you pay for the construction equipment you need without putting up cash upfront. This equipment is expensive, but small businesses don’t have the time to wait around for funding. A loan makes it possible for you to finance the purchase immediately to get more projects done.

Heavy Equipment Financing Calculations

Calculating the financing you are likely to receive for your business is a long and detailed process. Grants for independent contractors generally qualify based on three points: credit score, revenue, and down payment.

If you have a poor credit score or sluggish cash flow, a lender will likely want to see some down payment before they agree to an independent contractor loan for COVID. 

Interest rates for heavy equipment are generally much lower since these are considered low-risk loans. However, these depend on the lender you choose. They are unlikely to be much lower than 8 percent, though they may be higher if you have poor credit or a low cash flow. These are all essential things to know before applying for EIDL for independent contractors.

Applying For Equipment Financing With Bad Credit

Unfortunately, some business owners may have bad credit. The good news is that there are options even if your credit score isn’t stellar. So, what should you know about applying for equipment financing with bad credit?

The bottom line is: yes, you are more likely to be approved for a loan if your credit is good. That said, you have a better chance of getting a heavy equipment loan than other loans with a bad credit score. The reason for this is pretty simple – if you default on the loan, the equipment itself can be seized by the lender and liquidated.

You have a better chance of being approved if you can either prove that you have incoming revenue or if you can put down a down payment. Bear in mind that bad credit will probably mean you will pay higher interest rates.

In short, having bad credit is not a death sentence for your hopes of getting a PPP loan for an independent contractor. You still have options, including spending time rebuilding credit before applying.

How To Apply

Before you apply for a disaster relief loan, you should know whether you are likely to qualify. The IRS views independent contractors as sole proprietors for these loans.

You will need to present several documents to the IRS to prove that you require financing and have a steady stream of income to pay the loan back. These documents generally include tax returns for your business and your household and expense reports, bank statements, and vendor invoices.

You can either apply directly through your bank or an online lender. Where you apply will affect not only what documentation you need to supply but also your loan amount and interest rates.

As you prepare to apply for a loan, make sure that your business’ bookkeeping is up-to-date, including everything you need from your most recent tax returns as well as any other financial records. These may include:

• Federal tax information
• Payroll information
• Employee 1099 records
• Profit and loss statements, vendor invoices, expense reports
• Bank statements

The most significant thing you will need to show is that the change in your financial status was due directly to the coronavirus pandemic instead of other factors.

Surviving Difficult Times

Business owners and independent contractors have spent the last year wondering if their business could survive the economic downturn of the COVID-19 pandemic. It is vital to make sure you are prepared for any disasters that could come your way.

Although it is never possible to prepare perfectly, you can take measures to improve your chances. An SBA disaster loan, especially SBA loans for the self-employed during COVID-19, can help you protect your business both now and in the future. To learn more about SBA grants, visit our blog.

You may think that all the rising costs of groceries, and just about everything these days, is primarily a hit on consumer pockets.

The truth is that the shortage affects trading companies, retail businesses, and retail buyers, but the cost hikes start with the manufacturers.

Manufacturers are forced to eat these costs for their business. Most people don’t know this because all they see is prices going up in stores, but the price hikes began well before this.

The reason for this cost rise stems from the slowdown in the supply chain, and most importantly, the shipping container costs manufacturers have to pay.

Why have shipping containers become so expensive? The answer is that there just aren’t enough containers available to ship.

Why Is There a Global Shipping Container Shortage in 2021?

The steep rise in the cost of shipping containers began with the Covid-19 pandemic. The lockdowns initiated by the pandemic put a screeching halt on the supply line in March of 2020.

When millions of people were suddenly put on unemployment, the economy took a hit. Items being shipped had to be delayed for fear of Covid spread, and there wasn’t as much need for shipping overseas.

Few businesses remained open, and there was less consumer demand. This resulted in a slowing in the supply chain and shipping containers being halted from shipping.

The Suez canal blockage in March of 2021 also played a major role in slowing down shipments. This created major delays by blocking out all traffic to hundreds of shipping vessels through the Canal for days.

This and many other problems have emerged during the pandemic that has not been solved promptly because of worker shortages. Today, there are still fewer available truckers and workers to deliver and offload shipments.

Many factories temporarily closed during the lockdowns, which caused their containers to be stopped at ports.

Why Manufacturers Are Eating Costs on 10x Shipping Container

As shipping was limited, shipping companies reduced the number of ships to stabilize the cost. Shipping lines would continue to lose money delivering shipping vessels with little cargo to deliver, so they reduced the number of vessels to maintain ocean freight.

From April through June of 2020, most companies limited economic activity. It wasn’t until July that world economic activity started to recover.

China was able to recover its production rates at an earlier stage than the rest of the world because of government funding and having been forced to go into lockdown earlier. This increased exports from China. This also encouraged other businesses to start producing in China, which increased exports more.

As shipping vessels had decreased during the lockdowns, they were not able to collect empty containers left at ports due to a lack of chassis and other necessary equipment.

A lack of workers has been the prime reason why the supply chain has been slowed down. With too few truckers delivering and workers unloading shipping containers, these ships were suddenly stuck at the dock or stranded because the docks were already full.

Shipping containers around the world are now seeing a 6-month delay in delivery, many of which haven’t even gotten onto a ship yet for shipment. This supply chain problem has become a major threat to businesses reliant on these trade transport lines.

Manufacturers specifically have been forced to eat the rising costs of shipping containers during this supply crisis because they can’t afford to pass the costs down to their buyers without losing business.

If manufacturers want to get their products shipped, they have no choice but to deal with this demand. They are in competition for shipping containers.

Rising Container Rates From China

There are roughly 900K 20-foot shipping containers sent from China to North America per month.

Current container rates from China to the U.S. have reached highs above $20,000 per 40-foot box, according to a CNBC report on the global shipping container shortage of 2021.

Shipping companies have begun charging as much as 10 times the usual cost for shipping cargoes.

This cost has risen higher due to increased retailer orders ahead of the peak shopping season, with a lack of workers to deal with shipping demands. Many hopeful shoppers are now realizing they may not be receiving their presents on time. This is creating a sudden soaring demand. The supply chain is already so far behind schedule that this has created a bottleneck effect in supply that will likely be noticeable during the holidays.

When Will Shipping Container Prices Go down?

These costs aren’t expected to go back down until mid-2023, with high rates lasting through the 2022 Chinese New Year. There is an expected shipping cost increase during the peak shipping season this year, so things will probably get worse before they get better.

The current crisis in shipping containers has highlighted weaknesses in our supply chain already under pressure before 2020. Manufacturers are going to continue eating these costs, despite some of it spreading down the line.

Economists and manufacturers didn’t see all these unsuspected factors coming into play, which has put many companies out of business.

Continued spikes in Covid cases and continued low employment rates mean these costs and delays could last longer than expected.

But what does it mean for businesses going into the future?

Lessons from Container Shipping Delays 2021

This isn’t all bad news. Businesses have had to relearn the dos and donts of business financing in order to stay ahead and ensure profit. Many manufacturers and entrepreneurs are learning how to adapt by doing things such as paying business taxes quarterly to be prepared for more unruly situations.

There are many lessons to be learned from the current costs being paid for shipping containers globally. This supply and demand issue has forced industries and entrepreneurs to become more resilient.

Businesses that are prepared have a better chance of adapting to these unforeseen risks and finding opportunities in every situation.

If 2021 has taught us one thing, it’s that there is no such thing as security. As the global pandemic ripped every sense of normalcy from us, we came to realize that there truly is no safety blanket to grasp on.

With the massive changes made to our work life, job losses, layoffs, and unemployment, we also found that sometimes the most secure way to ensure our financial safety is to create it ourselves.

Why become a small business owner?

We’re now living in a time where we need small businesses, online specifically, more than ever.

Why Own a Small Business: Reasons to Run Your Own Business

The first and perhaps most important reason is control. You determine your hours, you make all of the decisions regarding your business, and you will never get laid off.

The second reason you should become a small business owner in 2022 is freedom. You will no longer attend a nine to five or answer to another boss again. You only have to answer yourself.

Thirdly, you can make a great living if you make the right moves in developing and nourishing your business. The more you put into it, the more you can expect to get out of it.

Unlike a regular corporate job, there is no cap on your financial earnings. Just remember that you will have to invest back into your business if you expect it to grow.

Why become a small business owner:

1. Owning your own small business will give you control over your professional life.
2. You will have freedom in your business and only have to answer to yourself.
3. There is no financial cap.

How to Become a Business Owner With No Money in 2022

You may think that there is no way you could even start your small business in 2022 because you don’t have the money for it. Believe it or not, we can show you how to become a business owner with no money.

Before you throw the whole idea out with that one limiting belief, know that there are options for small business loans. Some of them might even be more attainable than you think.

You also may think that you lack experience in your field or business in general. Here are resources for how to become a business owner without a degree and without any money.

One great potential option to help you start your small business is obtaining an SBA loan. SBA is a type of loan designed to help people open their small businesses. There are several different types of SBA loans. You can learn more about what type may work best for you and your business goals in our SBA loans article.

There are also several resources for business loans specifically for women. Unfortunately, when it comes to loan approvals, women often get the short end of the stick. Luckily, there are grants and other resources to get funds to start your own business.

You can check into non-for-profits and several other organizations to see what kinds of funding you are eligible for to get some help starting your small business.

Potential Challenges of Owning a Small Business

Despite all the positives of becoming a small business owner, there are some disadvantages to owning a small business. With all of the negatives, you might start wondering why become a small business owner? You’re going to have to work harder and smarter than you ever have in your entire life.

Here are some of the most challenging parts of being a small business owner:

1. The success or failure of your small business is entirely up to you.
2. There is a lot of weight on the business owner. You will be spending a lot of long nights, stressful situations and encounter problems often. However, the positive outcomes can make all of this so worth it.
3. You may have very little time off. Your business isn’t going to be like a nine-to-five corporate job with vacation days and paid sick leave. If you aren’t out there doing it, nobody else is either.

What Are the Benefits of Being a Small Business Owner?

Why become a small business owner? Being a small business owner isn’t easy. However, the hard work and determination make the results even more satisfying. You will be your boss, have the autonomy to make every decision about your business.

You can share your passion and contribute something unique and good to the world. Go into a business that is going to be a passion for you. While there are so many financial benefits of owning a business, there’s no way you’re going to succeed in something you can’t fully put your all into.

What are some of the differences between a small business owner vs entrepreneur?

Safety would be the number one difference. Entrepreneurs work in several different businesses rather than sticking to and establishing just one. Small business owners are usually in just one business.

What It Takes to Be a Successful Small Business Owner

Ultimately it takes a lot of hard, smart work, a lot of determination, and a lot of your time and effort. What does it take to be a small business owner?

In addition to all those things, here are some small business owner responsibilities and other suggestions to make your business successful.

1. Make sure you have a functional, attractive website. You want to draw people in and be engaging. The best way is with a solid website.
2. Balance your workload. Know that as much as you want to, you cannot handle all of the responsibility yourself. It’s okay, and it’s necessary to hire people for certain projects or tasks within your business.
3. Create a strict schedule and stick to it! Don’t spend time getting off task. Even though your time is your own when you are a small business owner, you still need to keep a schedule as if you were your own employee to keep track of.

Successful Small Business Owner Examples 2022

Small crafts, goods, or clothing/ jewelry

Selling on your own site or selling on Etsy is a great way to start your own business. Etsy also has the most female small business owners of any other platform.

Life coaching

Especially during this trying year, everyone has been struggling. 2022 is the year to get back on track. If you have a passion for inspiring others, why not start a motivational business?

Freelance services

Your business could be whatever services you have a niche. Be it tech services, writing, editing, etc. You can start your own business and build your client base.

These are just a few of the many types of successful small businesses you can start. Look inwards and think about something that you feel extreme passion for. Then ask yourself, is it marketable?

Final Thoughts

Starting a business isn’t the best move for everyone. It’s extremely hard work, but it comes with some great opportunities.

If it’s your dream or goal to start your own business, we suggest looking into some additional resources and getting as much information as you can before launching your business.

If it feels right, you should go for it.

Have you ever met someone who never once needed help with their homework? If so, that person is a scientific anomaly. Someone should study them for the sake of posterity.

Whether in junior high, community college, a postgraduate program, students need help. No matter the age or stage of life, having options for doing well in school is an incredible asset to anyone pursuing an education. 

Learning new things, while exciting, is never easy. This explains why tutoring is such an important endeavor. If you’re wondering how to expand tutoring business, you’ve come to the right place.

Tutors do so much for struggling students who want to get ahead in their work or who maybe need a little extra attention. With the advent of distance learning, online tutoring has become an affordable way for students to get the help they need.

The tutoring business model is flexible, rarely uniform across different subjects. There are, however, some practical things you can do to grow and expand your business in a timely fashion. 

Define Your Tutoring Business Model

The first step in advancing any business is defining your business model. If you want your tutoring business to stand out, it’s critical to decide how you’ll operate on a day-to-day basis. Growing your business starts with these definitions.

Keep in mind that no business model is set in stone. It can be flexible and should change over time as you settle into the rhythm of your business. However, it is vital to have a model of some kind. 

Establishing a set structure will help give potential clients the peace of mind to know that you are experienced and professional. People tend to balk at prices that are always in flux and rules that never stay the same. Your clients want and need consistency, and a proper business model is your chance to provide that. 

Defining Your Tutoring Niches

Defining your tutoring niche is an excellent first step. While it may work to be a general tutor in every subject, it’s usually wise to pick two or three subjects or classes on which to focus. 

Target Market for Tutoring Services

Finding a niche is a good step toward finding your target market for tutoring services. Defining your target market will help grow your client base as you determine what demographics you can serve. Once you know who you want your clients to be, you’ll know how to reach them better.

A good step toward finding that target market is picturing your ideal client. Ask lots of questions about who they are, what they do, what their needs are, and how you can help them. 

From there, you can project a model onto the larger population that will help you find the right sphere to which you can cater. Focusing your energy on a specific market instead of trying to reach all people everywhere will keep you from burning out. 

How to Make Your Tutoring Business Stand Out

Tutoring is all the rage these days, and for good reason. As online school becomes more prominent and working professionals finally decide to go back for a degree, tutoring will only become more popular. 

With so many qualified people out there learning how to promote online tutoring, it’s essential to stand out as unique. The more exciting and fun you can make your tutoring business, the better off you will be in the long run.

One way to learn how to scale a tutoring business is by increasing your web presence. There are a few practical ways to do this that don’t take much time:

• Optimization: optimizing your marketing for search engines can increase web traffic.
• Social media: building a social profile will allow clients to find you easily and give you a way to showcase your work in a public, accessible place.
• Emails: developing an email list and sending out regular updates and information about your business will help your clients feel closely connected.
• Specialize: don’t be afraid to portray yourself as an expert in your field. Let your clients know that they are learning from the best. 
• Boast: always share your successes with your clients. They will see it and be reassured, and potential clients will see it and wonder what they’re missing.
• Get help: it’s never a bad idea to hire a business coach to help shape and refine your ideas. 

Partnerships: How Referrals Can Help Your Tutoring Business

Working with fellow tutors who specialize in different subjects than you will allow you to build a network of fellow entrepreneurs. Offer to refer clients to them if they will do the same for you.

You can also utilize referrals and recommendations from past and current clients. By getting them to write reviews for you or post on your social media pages, you can showcase the extent of your expertise and create confidence in your services. 

How to Get Clients for Your Tutoring Business to Stay

It isn’t enough to simply land good clients when you’re learning how to start an online tutoring business. The trick is to keep them and to keep more coming. While advertising tutoring services can seem like a drag, it’s an easy way to get your name out and reach people you may not meet otherwise.

Always provide people with an easy way to contact you. Making yourself available for questions and concerns will show potential clients that you are serious about your work. Whether by phone, email, or social media messaging, make sure you are available.  

Do things for your clients. Provide discounts and deals, offer a few free resources they can utilize on their own time, and hear them out when they have concerns. These small things can make a big difference in a client’s loyalty. 

Conclusion

The truth is, it’s a great time to find out how to start a tutoring business. The whole world is moving online, and that includes learning experiences. There are plenty of ways to grow and expand an online tutoring business. You just have to know where to look.

Learning how to use content marketing to grow your business may seem like a challenge, but with a few helpful tips and a good game plan, you can knock it right out of the park. Your content marketing needs to be easily accessible to the public, and there should be a lot of it.

Here’s how to use digital marketing to grow your business, which is the same as content marketing, and set up the framework for a successful business online.

What Is Content Marketing – And Why Is It Useful?

Content marketing is every piece of content that your business puts out on the web to establish yourself as a thought leader in your industry. This content must be of the highest quality and be engaging to those viewing your content.

This is the main principle of how to grow a business through marketing, and it includes:

• Blog posts
• Videos
• Webinars
• Social media posts
• Podcasts
• Newsletters

This helps you attract potential customers and allows your business to be an industry leader rather than another follower. Content marketing also helps promote your website and your business which is key to getting new customers. Also, you can grow an email subscriber list with content marketing, reaching more potential customers by sending them weekly emails.

The key to successful content marketing is a business growth strategy, especially for new businesses. This helps your business set up for success by focusing on growth and quality, two things that are vital to running a business.

How Does Content Marketing Help Small Businesses?

The great thing about content marketing is when done correctly, it doesn’t take much cash flow, which small and startup businesses may not have a lot of to begin with. While content marketing can take time to plan and execute if you’re doing it yourself, the results can be tremendously satisfying.

Small businesses with blogs, which is just a piece of content marketing, generate 126% higher lead generation growth than businesses without blogs. That growth is massive and can catapult the growth of your small business into a fully-fledged corporation.

How To Get Started With Content Marketing

To start having a successful business, you need to have a content marketing strategy framework. You need to build the foundation of your business before putting a roof on it. The foundation of a content marketing strategy starts with the fundamentals of your business.

• What’s your mission
• What do you want your business to accomplish
• What’s the vision of your business
• How are you going to measure the successful implementation of your business
• What skills do you need to have for content marketing

After that, you need to learn how you can grow your business with content marketing skills. These skills are vital for running your business online and getting eyes on your website. This includes:

• Solid grammar
• Readable writing skills
• SEO
• Storytelling
• Project management
• Strategic planning
• Research and data analysis

Now that you know what foundation you need to begin learning how to start content marketing, you can set up a strategy to always know where to go and what to do with your digital content.

Steps for Creating A Content Marketing Strategy To Grow Your Business

Whether you’re learning how to grow an eCommerce business or plan on selling services rather than products, you need to have a content marketing strategy in place.

You should customize this strategy to your business, but the steps you need to take are pretty much the same no matter the company.

Know Your Audience

The first thing you need to do is decide on your target audience. What audience needs what you’re selling. Get to know them until you know your audience better than they know themselves.

Find where they hang out, listen to how they talk and their problems, and figure out how your product can help them.

Figure Out the Best Content Channels

This goes hand in hand with the above. If you know your audience well, then you’ll know where they like to hang out online. Use that to your advantage to promote your content and reach people faster.

Decide on What Content Works the Best

While blog posts are still the bread and butter of every content marketing strategy, you might find that other certain types give you more traction than others. For example, if your target audience is always on the move, something with audio would be perfect.

Create a Content Calendar

Now you need to plan out what content goes out when. Lack of planning this crucial step can cost you traction, and people won’t take you seriously as a business. A simple and free way to do this is by using Google Calendar and sticking to the deadlines you create.

Create Content

Nest step is to create the content you need. You’ll need to research, compile the data, and create something new and unique with the data you’ve curated. It also helps to look at the gaps in the market and create something to fill those gaps, as a good leader would do.

Distribute and Market

Don’t just stick to your blog. Get out there on social media and let people know what you’ve been up to. Create a schedule to go off of and continue to put yourself out there.

Once you get people coming to your site, get them to sign up for your email newsletter and start a conversation there with them, too.

Measure and Adjust

Go back to your analytics. See what is working and what isn’t working. Keep and tweak what is working and throw out what isn’t. This will streamline your process until it’s second nature to do the things that work instead of floundering in the dark.

Frequently Used Content Marketing Strategy Examples in 2022

In the online world, content is still king. That means the more content you put out, the more eyes you’re going to get. However, if the content isn’t high-quality, then those eyes will immediately leave, affecting your site’s ranking in Google.

The strategies that have worked in previous years can still work in 2022. These common content marketing strategy examples will still be viable for years to come. Those include:

• Long-form blog posts
• Social media uploads
• Video content
• E-books
• Email marketing
• Webinars

The Benefits of Using Content Marketing to Grow Your Business

The benefits of successful content marketing strategies outweigh both the cost and time needed to get them off the ground and running. Here are some benefits when it comes to how to use content marketing to grow your business.

• Increases trust in your brand
• Increases authority of your brand
• It makes you more visible online
• Better ROI than traditional advertising

So, when you come down to it, it’s much better to use content marketing than any other means to grow and sustain your business. When the money comes in, you can outsource or look into applying for business financing to help fund your business.

Are you thinking of starting and growing your online clothing business? The immense competition could thwart you, but a clothing business is worth it.

The eCommerce clothing industry has an estimated global market value of $759 billion. Revenues from online clothing stores should hit the $1.0 trillion mark by 2025. Of course, this growth could be faster, given the COVID-19 pandemic has forced people to shop online.

You can start your online store and thrive in this industry. Here’s a detailed guide on how to grow an online clothing business.

How to Start an Online Clothing Business from Home

Starting any business from scratch might look scary. You have to put in a lot of effort, but you’ll reap the rewards once the venture develops. So, is a clothing business profitable?

Selling clothes online can be a profitable venture. You’ll need a solid foundation to act as a launchpad for your successful store.

The tips below can help you build a thriving eCommerce store for clothes and apparel.

Step 1: Identify a Clothing Niche

One mistake you should avoid from the start is selling clothes for all demographics. This is because potential customers might find it challenging to find the right product. Besides, you’ll struggle to stand out from competitors.

A better alternative is focusing on a specific clothing niche. A niche allows you to target a particular market more efficiently. Ensure to pick a niche that’s unique and has earning potential.

Step 2: Create Business Plan For Your Online Clothing Store

You cannot grow an eCommerce business without a business plan.

A clothing business plan outlines how your online store will grow and develop. The plan needs to be well thought out and should cover at least the first three years of your business.

Below are some specifics to include in a sample business plan for an online clothing store.

• An executive summary: highlights what you’re trying to accomplish
• Products: the type of clothes/apparel you stock
• Market analysis: your target market, growth potential, and possible competitors
• Marketing strategy: the advertising campaigns you would run to attract and retain customers
• Financial planning: long-term and short-term financial projections
• Budget: an estimation of revenues and expenses

While creating a plan, you must also pick a business model for your eCommerce store. Common business models in the clothing sector include:

• Dropshipping
• Print on demand
• Private label clothing
• Custom cut and sew

Step 3: Pick an Ecommerce Platform

When learning how to grow an online clothing business, you must understand the importance of an eCommerce platform.

An eCommerce platform acts as your storefront. It allows you to upload photos, customize your store, and create checkouts. Consider going for platforms that offer a wealth of tools. Examples include:

• Shopify
• Wix
• WooCommerce
• Magento
• Big Commerce

Step 4: Create Your Online Store and List Products

You’ll need to find a suitable domain for your fashion store and link it to the eCommerce platform. You can customize the site as you wish, but ensure it’s easy to use and navigate.

Once the site is fully running, you can list your products. Remember to upload high-quality photos and to include product descriptions.

Ideas on How to Promote Your Online Clothing Business like a Pro

Without adequate exposure, your online clothing business will struggle to attract customers. That’s why you need to create an effective marketing campaign. But do you know how to promote an online clothing business?

Use Influencer Marketing

When done right, influencer marketing can elevate your brand’s reach, exposure, and engagement. According to a survey done by Mediakix, about 80% of marketers consider influencer marketing effective.

Ensure you work with an influencer in the fashion niche. The influencer’s followers should be people who might be interested in your clothing brand.

Leverage the Power of Social Platforms

Over 57% of the global population uses social media platforms. What’s more, users spend about 2 hours on these sites every day. These social channels present an opportunity to develop brand awareness, foster customer relationships, and even make sales.

Social sites can also help you grow a property management business.

How to Grow a Clothing Business on Instagram

Instagram (IG) is perhaps the best social channel to promote your clothing line. It has tons of users and offers many tools to perfect your ad. Here’s how to grow a fashion brand on IG.

• Upload high-resolution pics of your clothes/apparel
• Create informative video content
• Research your hashtags
• Use compelling captions on pics
• Engage with users
• Make your feed shoppable
• Promote your brand’s IG using Instagram ads

Embrace SEO

Effective SEO strategies will help boost organic traffic to your online fashion store. More traffic translates to potential leads.

Here are a few things to consider when implementing fashion SEO on your clothing site:

• Research trendy keywords – consider using less competitive, long-tailed keywords
• Create outstanding content – create an informative blog on your site
• Optimize images
• Categorize products
• Link pages
• Build backlinks from other fashion sites

Be Part of Online Activities

Are you still thinking about how to market an online clothing store? You can augment your brand’s awareness by participating in online fashion discussions and events.

Webinars, forums, virtual conferences, and similar events present the perfect opportunity to showcase your fashion knowledge. Of course, curious participants will learn about your online clothing business when researching your portfolio. This is how to grow a clothing brand.

Tips on How to Grow Your Fashion Brand

It’s vital to evaluate your business’s position constantly. Is your online fashion brand growing or stagnating? Has your store benefitted from the influx of online shopping during this pandemic?

Your clothing business won’t grow automatically. You have to come up with a business growth strategy.  Here are a few practical ways to scale up your clothing line.

Target Festivals and Seasonal Sales

Business in the fashion industry tends to boom during the festive season. As an online retailer, you should increase inventory and up your marketing campaigns during such periods. You could target festivals like Christmas, New year, Diwali, Halloween, to name a few.

Refine Your Merchandise

Always keep an eye on trends shaping current fashion. Ensure you constantly refine products in your inventory to match the current trends.

Control Costs

You have to control costs to improve your store’s bottom line. Ensure you aren’t overspending on designs, material, marketing, and manufacturing.

Final Thoughts

Building a successful online fashion store might seem daunting, but it’s doable. The above guide should help you learn how to grow an online clothing business.