Archives for March 2021

Small Cap Names in a Big Crypto Market

March 23, 2021 by Channelchek Leave a Comment

Owning Bitcoin isn’t the Only Way to Invest in a Burgeoning Cryptocurrency Market

Bitcoin (BTC) in circulation just exceeded one trillion ($USD) in value. Dogecoin (DOGE) is “heading to the moon” thanks to a strong Reddit community of investors and a few tweets from Elon Musk. In its short history, cryptocurrency has already made an impact on global markets. And the investment community has taken notice. Since you’re on Channelchek, you might be looking for the next outperformer like Bitcoin. Does the lovable Shiba-Inu inspired crypto-coin that was started as a joke (DOGE) have the staying power to reach the stratosphere? Time will tell. But the direct holding of cryptocurrency isn’t the only way to benefit from its growth. Currency exchange platforms, blockchain providers, and crypto mining companies all represent their own unique investment opportunities.

Blockchain

Blockchain is the platform that serves as the backbone of cryptocurrency. In the simplest terms, blockchain is a public electronic ledger. Built around a peer-to-peer (P2P) system, multiple users create a series of records in the ledger. These entries may be infinitely amended over time, but each entry is unchangeable. This process creates complete transactional transparency. Every entry, and amendment, can be verified based on this transparency, and every entry is approved by consensus between the participants in the chain. Basically, this platform has created an accounting ledger with no eraser and a nearly infinite supply of auditors.

While blockchain is still technically in its infancy, and its level of global adoption in the future is still in question, it has certainly gained traction in the past five years. Beyond the rise in cryptocurrency popularity, larger public companies have implemented their own private blockchain systems to track internal processes, such as produce from farm to store (Wal-Mart) and diamonds from mine to authenticator to distributor (De Beers).

Taal Distributed Information Technologies (TAALF)

TAAL Distributed Information Technologies is a company that provides a wide range of Blockchain/Crypto-related services, including transaction processing, pool management, data storage solutions, and blockchain computing. Their primary focus is on the global adoption of Bitcoin SV (original Bitcoin). TAAL’s vision is ‘New Innovations for the New Economy.”

TAAL recently announced a successful first phase deployment of blockchain computer power at their Alberta facility. Part of their 2021 strategy, this first phase helps TAAL support transaction volume growth and meet scalability requirements, providing the computing power needed for enterprise clients to achieve business advantages using their processing services. “We are pleased to mark this important first step in reaching our operational infrastructure milestone for 2021. Despite the global pandemic challenges, we have successfully begun TAAL’s next-generation blockchain infrastructure operations in Alberta, Canada on schedule. This brings online, trusted, compliant blockchain transaction solutions for global enterprise clients”, commented TAAL CEO, and Executive Chairman, Stefan Matthews,.

TAALF’s stock has experienced a nearly 500% increase over the past three months, reaching a 52 week high on February 18, 2021.

DMG Blockchain Solutions (DMGGF)

Straddling blockchain and mining sectors of crypto, DMG is a diversified cryptocurrency and blockchain platform company. In the blockchain space, they offer a permissioned blockchain technology focused on developing enterprise software for supply chain management. Other company focal areas include crypto mining, hosting services for mining clients, transaction fees, and data analytics.

In January, DMG joined Marathon Patent Group (MARA) to launch North America’s first cooperative mining pool, Digital Currency Miners of North America (DCMNA). The goal of DCMNA is to create North America’s first cooperative mining pool, and to help improve their financial performance. As part of their role in this agreement, DMG will provide their patent-pending technologies to create transaction blocks that omit transactions identified as risky and those that might not meet OFAC standards.

DMGGF has seen a substantial increase in share price over the past 3 months, reaching a 52 week high in February of 2021, trading at an average of over 3 million shares per day over the past 3o days.

HIVE Blockchain Technologies (HVBTF)

Shareholders of HIVE Blockchain Technologies, Ltd. own a pure-play blockchain investment. HIVE creates newly minted cryptocurrencies continuously on the cloud through their data center facilities in Canada, Sweden, and Iceland.

HIVE recently announced plans to expand their Ethereum footprint by 30% using 6MW of green energy to mine. This expansion involves a $9M investment in GPU chips and associated mining computers and refitting their Sweden facility. As part of the announcement, HIVE proclaimed they would continue to “utilize cash flow to make opportunistic investments in ASIC and GPU new and next-generation mining equipment that can provide positive gross mining margins.”

HVBTF has seen a 500% increase in share price over the past 3 months, resting at a 52 week high in February 2021.

Cryptocurrency Mining

Cryptocurrency mining is a process where a computer (or a group of computers) complete a series of math equations as a computational task, generally processing other cryptocurrency transactions. In exchange for their assistance in performing these tasks, the “miners” are rewarded cryptocurrency. This process is akin to credit card processing fees. The various frameworks required to process a credit card transaction, from bank fees to computational requirements, lead to transaction fees. Generally, these fees are passed on to the merchant. In cryptocurrency mining, the miners take on some of these computational requirements, allowing merchants to absorb a lower fee.

While home users can use their own PCs and electricity to participate in crypto mining, the payoff is generally small, and not outweighed by electricity and equipment cooling costs. This is especially true as transaction processing demands increase. In modern-day crypto-mining the majority of the work is done by data farms – large data rooms filled with GPU-rich computers with the single purpose of processing transactions. (profit potential)

Hut 8 Mining Corp (HUTMF)

Hut 8 Mining Corp focuses entirely on Bitcoin mining, operating 56 BlackBox datacenters (all operating at a maximum capacity of 65 MW) in Medicine Hat, Alberta, and another 38 operating at 42MW in Drumheller, Alberta. Hut 8 aims to provide a secure and simple way to invest directly in bitcoin.

In February 2021, they reached a milestone of 400 minters installed, following the scheduled delivery of the first batch of 5400 machines ordered in January 2021. “Guaranteeing our access to new, cutting-edge mining equipment while market demand greatly outweighs supply has solidified our position as one of the only miners operating at full capacity, taking full advantage of today’s economics,” said Jaime Leverton, CEO, Hut 8.

In the past three months, HUTMF has surged over 800%, trading at a 30-day average of over 2M shares/day.

Marathon Patent Group (MARA)

Marathon Patent Group is a digital asset company and one of the first Nasdaq-listed Cryptocurrency mining companies. Marathon mines cryptocurrencies, with a focus on the blockchain ecosystem. They currently operate a proprietary mining facility operating at 105 MW in Montana, as well 2000+ ASIC Bitcoin Miners at a co-hosted facility in North Dakota.

Marathon recently announced that 4000 miners had shipped from Bitmain to their Montana facility. Once installed, their mining fleet will consist of over 6500 miners. “This shipment of 4,000 S-19 Pro miners is the first of many we will be receiving from Bitmain in 2021 as we build towards becoming one the largest and most efficient miners in North America,” said Merrick Okamoto, Marathon’s chairman, and CEO.

Over the last 90 days, MARA has increased from just over $3.00/share to a February 19th closing price of $43.27.

Voyager Digital (VYGVF)

Voyager Digital allows users to build their cryptocurrency portfolio by facilitating the purchase and trade of over 50 digital assets through the platform, which includes an app for Apple and Android smartphones. Voyager offers users a layer of security with advanced fraud protection and FDIC insurance up to $250,000.

Recent mergers and acquisitions have brought Voyager more users and have fueled high growth over the past few months. Voyager recently announced that assets under management had surpassed $1.1 billion ($USD), up 500% from $230 million at the close of 2020. “Voyager could not have reached this important milestone of AUM exceeding $1 billion without the support of our loyal community. With our recent capital raises in 2021 totaling US$146 million and our strong cash balance of approximately US$156 million, Voyager is better positioned than ever to grow our team, expand internationally and offer new exciting products to our users. We thank all of our stakeholders for their support on this momentous occasion,” said Stephen Ehrlich, Co-founder, Director and CEO of Voyager.

VYGVF has jumped from just under $1/share in mid-November 2020 to over $15/share in mid-February, with daily volume steadily increasing over the same period.

Currency Exchanges

A cryptocurrency exchange is a platform that facilitates the exchange of cryptocurrencies for other assets, generally cash. As in the exchange of any other currencies, the cryptocurrency exchange platform makes money through fees for acting as the intermediary.

The majority of current cryptocurrency exchanges are centralized. Centralized exchanges are backed and controlled by a company and provide security and stability for users on both ends of the transaction. Still, and often because of the transactional fees associated with a centralized exchange, some users prefer a decentralized exchange, which allows for direct peer-to-peer transactions.

Take-Away

Direct ownership of cryptocurrency is not the only way to gain exposure to what has been a growing and lucrative play. Technology companies that either mine or provide crypto or blockchain services would allow an equity investment in companies that stand to benefit from the increased acceptance and speculation in cryptocurrencies.

Channelchek can serve as an excellent resource to mine ideas and develop an understanding of small and microcap companies that could benefit from crypto growth.

The sectors and companies mentioned in this article represent a small sample of the various investment opportunities in the world of cryptocurrencies. While recent results look positive, you should always know the risk before investing. No investment decision should be made solely on this or any one article you read. You are solely responsible for deciding whether any investment or transaction is suitable for you based upon your investment goals, financial situation, and tolerance for risk. You must seek independent professional advice to ascertain the investment, legal, tax, accounting, regulatory or other consequences before investing or transacting.

SuggestedReading:

Money Supply Drives Stock Market Performance

Small Business Trends You Should Follow in 2021

Boost Your Online Sales in 2021

Sources:

https://www.computerworld.com/article/3191077/what-is-blockchain-the-complete-guide.html

https://www.taal.com/news/taal-alberta-facility-blockchain-computer-power/

https://www.globenewswire.com/fr/news-release/2021/01/05/2153647/0/en/Marathon-Patent-Group-and-DMG-Blockchain-Solutions-to-Form-the-Digital-Currency-Miners-of-North-America-DCMNA-and-Launch-North-America-s-First-Cooperative-Mining-Pool.html

https://www.hiveblockchain.com/news/hive-blockchain-announces-plans-to-expand-ethereum-footprint-by-30-using-6-mw-of-green-energy-to-mine-ethereum/

https://www.bitdegree.org/crypto/tutorials/how-to-mine-cryptocurrency

https://hut8mining.com/hut-8-equips-up-ready-to-match-the-momentum-of-bitcoin-adoption-with-the-successful-installation-of-its-first-batch-of-mining-equipment-on-schedule

https://www.marathonpg.com/news/press-releases/detail/1226/bitmain-ships-4000-antminer-s-19-pro-asic-miners-to

https://corporatefinanceinstitute.com/resources/knowledge/other/cryptocurrency-exchanges/

https://cointelegraph.com/news/voyager-token-vgx-gains-926-as-mergers-and-acquisitions-bring-new-users

https://www.investvoyager.com/pressreleases/voyager-digital-announces-assets-under-management-surpass-ususd1-1-billion

9 Best eCommerce Platforms For Small Business Online Sales

March 12, 2021 by Matt Carrigan Leave a Comment

It’s no secret that the eCommerce industry is rapidly growing, and holds huge opportunity for committed entrepreneurs. But in order to succeed, you’re going to have to find the best eCommerce platform for your small business. Top eCommerce solutions can help you drive traffic, stand out visually, generate marketing leads, and ultimately, boost sales.

There are many great platforms out there, but depending on your business, only one or two may truly suit your unique needs. Use this guide to review the different pros and cons of top eCommerce platforms and make the best decision.

What Should You Look for in an eCommerce Platform for Your Small Business?

How can you find the best eCommerce platform for your business? Depending on your goals, there are a few factors that you need to consider.

Search engine optimization (SEO): SEO ensures your site is targeting your ideal customers and bringing in consistent, organic traffic. Make sure your eCommerce platform offers top SEO tools and customizable URLs, image ALT tags, and more.
Overall Monthly or Flat Cost: Remember, free platforms won’t typically offer a ton of features – and pricey eCommerce solutions aren’t necessarily better than most. Instead, focus on price plans you are comfortable with – ideally for a monthly rate or one-time cost – and don’t be afraid to spend a little extra for quality web hosting. You can always cut costs in other areas.
Ease of use: An eCommerce platform can offer all the top-notch, must-have features. But if it isn’t easy to navigate, it’s going to take up your time and slow down your business. Opt for something you’ll be able to use intuitively.
Speed, Performance & Scalability: If your site isn’t performing well or suffers from slow speeds, customers can become frustrated and click elsewhere. Avoid this by sticking to an eCommerce platform that offers top performance capabilities and has the infrastructure to support you as you grow.
Customizable Design: It’s perfectly possible to make sales with a generic, free theme on your eCommerce site. But building an online brand and reaching the next level of success will require customizing your design. Look for eCommerce platforms that allow you to do just that.
User Experience: Your eCommerce platform needs to be easy for you to navigate, but it also has to be user-friendly. You want an eCommerce platform that offers top features within an organized website structure. Compatibility with mobile devices and credit card payments is also a must.
Marketing Options: Look for an eCommerce platform that tracks who visits your site, offers customer analytical tools, and turns data into leads. If your eCommerce platform is compatible with automated marketing tools, you’ll have an advantage.

Based on your business, you may (or may not) need to put equal focus on each category. So, what are the best eCommerce platforms?

Best eCommerce Platforms for Small Businesses

Before you choose the best eCommerce platform for your small business to sell online, make sure to have a concrete idea of the must-have features you’re looking for.

If you’re planning on growing your eCommerce site, you’ll want a scalable platform that makes adding products easy. If you aren’t tech-savvy, you’ll need web hosting that’s easy to use. When a distinctive, brand-centric layout is important for your business, look for platforms that allow a ton of customization.

Many of the platforms outlined below also offer free trials. If you’re unsure of what you’re looking for, consider taking advantage of this option before settling on a choice.

Best for Customization: Magento

A favorite among some of the biggest enterprise retail brands, Magneto offers a wide range of top-notch features and customizable options. Working with the right developer, you can build almost anything you want on Magneto.

For online retailers looking to scale as they sell, Magento is capable of supporting unlimited products. Magneto also boasts tools for accounting, marketing automation, email campaigns, subscriptions, SEO, and more.

However, some of Magneto’s themes are on the pricier side and many of its features require developer skills. If you have a dedicated developer or development team and are willing to commit to the time and spend, then Magento may be the right fit for you. But if you’re looking for a hands-off solution, Magento may not fit the bill.

Best for Retail and eCommerce Integration: Shopify

One of the best eCommerce platforms for small businesses, Shopify has all the must-have features laid out within an easy-to-use, intuitive interface. It excels at supporting inventory management, one-click selling, omnichannel sales, and more.

Shopify works wonders when it comes to integrating omnichannel selling partners, such as Facebook, Instagram, Amazon, and more. However, its SEO capabilities don’t particularly stand out and many retailers have had difficulty customizing their URLs.

Overall, Shopify is a simple, user-friendly platform that offers some, but not all, of the capabilities you’d look for.

Best for Beginners: Wix

Wix is a leading eCommerce platform when it comes to free themes, drag and drop elements, easy setup, and a beginner-friendly interface. It incorporates omni-channel selling, abandoned cart recovery, dropshipping, and more. Wix also offers affordable price plans, which is a huge perk for entrepreneurs with new eCommerce stores.

Unfortunately, Wix isn’t the best when it comes to SEO. You’re also going to run into difficulty if you want a fully customizable template. Some users have also experienced security concerns.

Best for Design and Functionality: Squarespace

Squarespace is a top eCommerce platform for small businesses because of its affordability, stellar designs, great functionality, and easy set up process. This platform offers drag and drop elements, inventory management, marketing tools, omnichannel selling, SEO, analytics, and more – for an affordable price range.

Squarespace even integrates with ShipStation and ShipBob and presents real-time shipping rate calculations. However, it doesn’t offer dropshipping capabilities or Amazon integration.

Best for Budget: Weebly

Weebly is budget-friendly, easy-to-use, and an overall great choice for beginners. There are a ton of free and low-cost design templates – albeit with limits on customization. Weebly also offers automated marketing tools, shipping tools, inventory management, and more.

Weebly provides excellent value for small businesses, but larger retailers or those looking to scale are likely to run into limitations. The platform also isn’t strong on SEO and doesn’t allow for omni-channel selling through Amazon, Facebook, or Etsy.

Best for Scaling: BigCommerce

BigCommerce offers the ideal mix of simple features and more advanced elements – making it perfect for businesses looking to scale. The platform is incredibly flexible and offers a high-degree of customization. BigCommerce also excels at omni-channel selling, cart abandonment tools, SEO, and more.

The only downside is that BigCommerce becomes more expensive as your inventory and store grows. It also doesn’t offer one-click selling.

Best for SEO: WooCommerce

WooCommerce is an eCommerce solution from WordPress, one of the most popular content management systems for small businesses. WooCommerce excels at SEO and offers extensions for payment gateways, omnichannel selling, email marketing, one-click selling, and shipping.

If you don’t have a WordPress site, then it probably won’t make sense to consider WooCommerce. Some users have also reported problems with scalability.

Best for Ease of Use: GoDaddy

While primarily functioning as a domain broker and hosting service, GoDaddy also offers an eCommerce platform that is simple, fast, and easy to use. Many small business owners, especially those who struggle with technology, opt for GoDaddy because it’s incredibly straightforward.

In exchange for its simplistic approach, GoDaddy isn’t feature-rich or customizable. If you’re planning on scaling your business, GoDaddy also wouldn’t be the best choice.

For a fast and easy web presence, though, it may be the right answer.

Best for Payment Processing: Shift4Shop

Previously known as 3dcart, Shift4Shop is now owned by payment company Shift4 Payments. Shift4Shop is hailed for its powerful payment processor capabilities and security features. It also includes several features, like SEO capabilities, marketing tools, inventory management, omnichannel selling, and more.

Shift4Shop does provide quality designs and themes. However, choices are limited and there isn’t a lot of opportunity for customization.

Choosing the Best eCommerce Platform for Your Small Business

Choosing the best eCommerce platform for your small business is going to be costly – but it’s also an investment in your own success. The right platform will drive sales and bring in more revenue to make the switch worthwhile.

Rather than settling for the cheapest option, our Business Financing Advisors can help you get the funding you need to invest in your online store. We’ll help you compare line of credit offers and business loans from over 75 lenders.

You don’t want to settle for anything less than the best eCommerce platform for your small business. Get started by applying now!

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

Suggested Reading:

The 12 Most Profitable Small Businesses [2021]

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Where Could Investors Profit When the Economy Fully Opens?

The 12 Most Profitable Small Businesses [2021]

March 3, 2021 by peter@vertexmarkets.com Leave a Comment

Author, Megan Capobianco

This post was originally published on June 3, 2019. It has been updated with new information about the most profitable businesses, and even more high-potential business ideas.

Not all businesses are created equal in terms of profitability. Although you have an endless amount of directions to take as an entrepreneur, you will want to invest in starting a small business that is lucrative both this year and in the future.

With technology constantly evolving, and the COVID-19 pandemic changing the landscape, there are plenty of new opportunities. So what businesses make the most money?

Mobile Businesses
If the pandemic has shown us anything, it’s that working remotely is the wave of the future. That’s why mobile businesses are quickly becoming one of the most profitable and trending small businesses in 2019. If you can provide a service or perform a skill that is able to be performed from any location, take your business from in-house to on wheels and start traveling to your customers.
There are several benefits associated with launching a mobile business and conducting services from anywhere. Not only does it increase your opportunity to earn revenue from any town or state, but it also enables you to work on your own terms.
In addition to personal advantages like flexible scheduling and more lucrative opportunities, mobile businesses are in-demand from consumers. With an increase in online ordering and service delivery, becoming a “business on wheels” will enable you to better serve your current and potential customers.
Some examples of profitable mobile businesses include food trucks, repair services (car, phone, plumbing, etc.), IT, and personal training.
Business-To-Business (B2B) Services

Business-to-business services, also referred to as B2B services, are becoming increasingly more popular as time goes on. B2B services can be performed on a freelance basis or as an incorporated business.
There are many types of B2B services you can offer in an effort to save businesses money and increase efficiency. Marketing services include digital marketing, content marketing, social media management, ad management, graphic design, website development, and search engine optimization (SEO). Other B2B services that automate day-to-day operations are payroll, bookkeeping, accounting, tax preparation, and consulting.
These types of services are typically provided by digital marketing agencies, local small businesses, and independent contractors. No matter which way you choose to perform B2B services, the potential to earn six figures per year is very possible.
“Sharing” Businesses

“Sharing” businesses are trending now more than ever before thanks to increased interest in environmental concern, minimalism, and the economy. “Sharing” businesses have entered the homes, businesses, and lives of millions of people across the world.
As opposed to owning, renting is the more environmentally and economically friendly option. This is why Uber and Lyft have become the two biggest ride-sharing apps, and AirBnb is the most popular home rental sharing app.
There are companies launching in the personal wellness, fashion, and home improvement spaces every day. Depending on your interests and which business model you would be best suited for, starting a small business in today’s sharing economy would be an extremely profitable business idea.
Be sure to consider social distancing and other COVID-19 safety regulations!
Child-Oriented Businesses
Do you have a passion for improving the lives of children and their parents? With a major baby boom over the last two years, child-oriented businesses are guaranteed to see profit this year.
Child-oriented businesses range from doulas and post-pregnancy caretakers to childcare organizations and entertainment services for kids. Depending on your skill set and business goals, you can take this opportunity to earn money by combining your love for caretaking and interest in tech, gaming, and/or healthcare.
Real Estate Services
According to Forbes, real estate leasors were one of the top most profitable businesses of 2017 — and this still rings true in 2019.
Depending on your state, leasing real estate agents may not require a real estate license as long as they work under a licensed broker. However, if you aspire to launch a full-service real estate business, you will need to acquire your license, a set of business cards, and a strong marketing strategy.
Virtual Reality (VR) Businesses
Virtual reality (VR) is biggest technological advances to hit homes and theaters in recent years. From video game headsets to interactive home setups, the opportunities to incorporate VR into your everyday lifestyle (and business) are limitless.
With the pandemic limiting entertainment possibilities outside the home, there’s never been a better time to break into the industry.
There are many ways to start a VR business in 2019, like 3D movies, office team-building exercises, meditation, training, and gaming. All of these options can either be mobile on wheels or in a set location. No matter where your VR small business is located, you will be sure to attract a strong interest in people of all ages and levels of technology experience.
Personal Services
If you are active in the digital space, then you are likely well aware that personal services are taking the world by storm. Wellness, health, fitness, and pet-related services are some of the most popular and profitable personal small business ventures. Start-up costs can be as low as $0 and generate thousands of dollars of revenue in no time.
Open an eCommerce Website (Or Dropshipping)
eCommerce was already a rapidly growing industry. During the pandemic, consumer shopping patterns shifted towards the internet even more. Between April and June, eCommerce spending increased by 44%, according to Digital Commerce 360.
There’s more opportunity than ever to earn income either on the side, or as a primary revenue stream. You don’t even need physical products on hand or in a warehouse to open an eCommerce website.
Dropshipping, the eCommerce practice of selling products online and having another company fulfill them, is also gaining popularity. As a dropshipper, you split the profit with the company that actually fulfills the order.
Because you don’t need any inventory, warehouse space or a shipping process, start-up costs are very low. In fact, your only costs may be hiring people to build and manage your website, and market your products. Your goal is to get traffic and compel people to buy—that’s it.
At scale, this is certainly one of the most profitable small businesses you can open.
Monthly Box & Subscription-Based Businesses
The eCommerce boom isn’t limited to standalone products—subscription boxes are booming now, too.
Subscription boxes marry the simplicity and ease of online shopping with the thrills of variety and surprise. Customers pay a monthly recurring fee and receive a few products once a month.
Between meal-prep kits and other food-related subscription boxes, to curated alcohol samples, to makeup, and even fan merchandise, people love subscriptions. There are endless possibilities, and targeted, niche-focused marketing could be all you need to convert prospective buyers.
Rather than lose customers after a few boxes, you can encourage them to continuously renew by always providing new value, products, and content. Consider what your audience would find interesting or helpful, and build a strategy from there.
Commercial Deep Cleaning Services
Commercial cleaning services were important, but with COVID-19 creating new safety regulations, they’re more important now than ever. These local cleaning companies enable businesses to open and continue to serve customers, especially as the pandemic continues.
If you market your business correctly and establish weekly or bi-weekly contracts with local shops, this could be an extremely profitable business. Most businesses are required to clean on a regular basis.
Businesses may require a more thorough deep cleaning if an employee tests positive, or the area becomes a hotspot. They may also pay for a deep cleaning to help customers feel comfortable and safe. Your commercial cleaning company can add value by taking pictures throughout the process, and offering them up as a marketing tool for the business.
Errand Services Like Shopping & More
Amazon and DoorDash add convenience by helping people get what they need without leaving their homes. But what about everything you can’t get through a mainstream delivery or eCommerce app?
You can fill that void by offering errand services that make life even more convenient for people via an app or website.
Consider other tasks that might normally cause people to leave their homes, like laundry, purchasing alcohol, and more. Then, offer a streamlined solution with an integrated payment method.
As an eCommerce alcohol delivery platform, Drizly has already capitalized on this potential. Since the beginning of 2020, the number of retailers on the platform has doubled. Year over year, this growing brand has experienced a 350% increase in sales—which they intend to sustain.
IT & Telecommuting Consulting Companies
During the height of the pandemic, all companies (aside from those deemed essential by the government) were working from home. For some companies, the transition was seamless. For others that were less prepared, it was a bit hectic.
Now that things have leveled off, many companies have returned to the office, but some are staying home for the long haul—or permanently. Even those that have returned are considering the potential impact a second wave—and a second work-from-home order—could have on productivity.
IT & telecommuting consulting companies can help ease this transition by:

Recommending and taking steps to implement the right technology to allow people to seamlessly work from home
Migrating local networks to the cloud, allowing workers to access files normally stored on local servers from home
Protecting company and customer data by boosting cybersecurity
You can jump on this profitable small business opportunity by creating a company that helps make this a seamless transition. Now that people understand the risks of not being prepared to work from home, decision makers will take steps to help make this a stress-free process.

Get The Capital You Need To Grow or Expand Your Business

Looking to grow your established business, or expand your existing company by providing another product or service?

It might not be cheap, but National is here to help.

At National, we understand that every challenge is also an opportunity. Rather than looking at the numbers, we consider what you need to reach new horizons in your business.

Through our 75+ lender marketplace, you can find the best options on the market without shopping around. One of our knowledgeable Business Financing Advisors will walk you through the process, explaining your options and giving you the chance to ask questions.

Ready to get started growing your business? Apply now to learn your options!

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

Managing Investment Portfolio Risk

March 1, 2021 by Paul Hoffman / Managing Editor Leave a Comment

Two Ways High Performing Investment Portfolios Guard Against Losses

Are stocks overbought, or does the bull market have more to run? Sound arguments can be made for either side.

On the side that forecasts more stock market gains, they may point to earnings expectations. This makes sense since fewer pandemic-related restrictions are now leading to more business activity. Activity means earnings increases which normally equates to the stock market rising. On the bearish side, those that think the market is pricey and too risky may argue that interest rates have begun to move up from their historic lows. Higher rates add to the cost of doing business and serve to reduce consumer purchases. Additionally, stocks are an alternative for income investors that have left the bond market in hopes of a higher yield. As higher bond yields return, they may shed their stock market positions and return to the fixed income market.

Both bullish arguments and bearish positions have merit. This leaves investors with the decision to either leave a still booming stock market and possibly miss out on returns in exchange for near-zero interest or the potential for double-digit gains in equities. The double-digit returns, of course, may be negative double-digit to investors. It is basic physics that the higher something climbs, the further it has to fall. Both stocks and bonds are near priced near historic highs. This means they both have more potential downside than ever before.

Capturing Upside and Limiting Downside

Stocks have not exhibited any real weakness since late March 2020. The trend is still rapidly upward. People are putting more and more money in equities. The more money that goes in, the less money that can be used to help drive up prices later. And the more money that may run for cover later when an eventual selloff occurs.

Investors that expect an inevitable selloff will one day occur, but also that the market has more upside, could consider practicing a little defense. In today’s point-and-shoot world of stock trading both online and by phone app, many individuals don’t take the time to protect themselves from major losses. With the market continuously going up and quickly erasing any downward moves, investors have been rewarded for ignoring the fundamentals of risk management. The truth is, we don’t know when the big slide (or slow march) down will occur, but we do know we are closer to it than we were yesterday.

The two most basic methods for an individual to feel confident that their portfolio can still capture gains, without too much risk on the downside, are placing stop losses on their positions or buying puts. The stop losses cost the portfolio owner the erosion down to the Stop (sell price) only if hit. The cost of the Put is upfront and known even if it is never exercised which would be the case if the stock continued to perform well through the Put option’s expiration.

Using Stop Loss Orders

A stop-loss order gets you out of a stock you’re long when the price starts falling. If you’re short, a stop-loss buy order can be used. There are several types of stops you may use. A Hard Stop is when you set a fixed price that, if reached, triggers a market sell order. For example, you own “Company A” stock at $4.25; it is now trading at $7. Over the past few weeks, it has dropped to $6.50 several times but seems to have firm support there. To protect yourself if the stock should drop below that and keep going, you could set a hard stop a little below the $6.50 price. For example, If you set this stop loss at $6.30, an at-market sell order will be triggered when it hits $6.30. In a world of commission-free trades, you may wish to quickly get back in at a lower price if it should drop considerably.

A Trailing Stop is a little different; it moves up with the stock price in a long position and down with the price in a short position. The order is spread to the price in terms of dollars or a percent difference. Using the example from above, if you set a trailing stop of 10% and Company A stock rises from $7.00 to $9.00, the trailing stop will move from the original $7 less $0.70 ($6.30) to $9 less $0.90 $8.10). The idea is more profit is captured when the stock does turn downward. A set dollar amount, rather than a percentage, can also be used for trailing stops.

Proponents of stop losses take comfort in their ability to protect the position from rapidly changing markets. Opponents could argue that both hard and trailing stops make temporary losses permanent. For an investor who is always monitoring their account and can trust their decision-making as moves unfold, they may feel a stop loss is not for them; they can stop losses on their own. Whether an investor uses them or not, once in a position, pre-planning various scenarios and actions you could take is critical to managing downside risk.

At the end of the day, if you are going to have continued success as an investor, you have to be confident in your strategy. This means carrying through with your plan. The advantage of stop-loss orders is that they can help you stay on track and prevent your judgment from getting clouded with emotion.

Put Option

The S&P 500 declined in one out of every four years between 1926 and 2009. Then the “Great Financial Crisis” of 2008 cleared the way for years of stock market growth leading us to today’s heights. That is a very long barely interrupted growth trendline, historically. The most basic way for an investor to protect their upside gains is to take profits. One problem with this is what if the stock is still the best place for your money. After all, selling the stock means you have to do something else with the proceeds. When this is the case, locking in some of your gains, and holding the stock, can be done using the options market.

A common strategy is to buy a Put Option (a Put). This gives the holder the option of being able to sell stock at a certain price at a specific date in the future.

For example, you own 100 shares of “Company B.” It has risen by 80% in a single year and now trades at $100. All the analysts covering the stock have price targets well in excess of $100, and the industry is experiencing a boom for the foreseeable future. But, who knows, some of these positives may already be built-in, and the bigger picture economy is questionable. Or there could be a black swan event. To protect your profits, you could buy a Put on Company B with an expiration date six months into the future, and at a strike price (sale price) of $105, (slightly in the money). This option’s market value will fluctuate as you hold it with expectations, time to expiration, and changes in the equities value. But, for the example, let’s say the option costs $600 ($6 per share). You now have the right (contractual ability) to sell 100 shares of Company B at $105.

If the stock drops to $90, the value of the Put will have risen significantly. At this point, you can sell the option for a profit to offset the decline in the stock price. Options do have expiration dates, at which time the contract for the counterparty to honor your ability to exercise the Put expires. It becomes an unused “insurance policy.”

Take-Away

With stocks and bonds trading at historic highs, being in either the equity or fixed income markets represents a greater potential for loss. There are tools and strategies which can protect you from extreme losses.

Getting completely out of any investment may not be the best plan. After all, everything has a cost, even doing nothing. Just think about the investors that stepped aside and went into cash during the first half of 2020, thinking, “it isn’t wise to be long during a pandemic.” They are likely worse off than if they had invested in a diversified mix of large and small-cap stocks. They didn’t get hurt by stepping aside, but they missed a huge run-up.

Investors that believe there is likely plenty of upside to a market index or particular stocks can still participate and capture much of it if it occurs. This, too, has a cost, but that cost serves as insurance against extreme losses.

Your broker can provide you with more detailed descriptions and various reasons when these strategies and other possible risk-limiting measures benefit your account. Each trading platform works differently, if you have questions you should contact a representative of your broker.

Paul Hoffman

Managing Editor, Channelchek

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