Edmonton Real Estate Investor: entrepreneurs

No one has money to spend, sales are down and the Christmas spending frenzy visa bill is coming in the mail. What can you do to increase your cash flow in tight times?

This article is excellent 7 cash flow resolutions for entrepreneurs in 2017

Real estate is different in that you can't upsell your rent once you're in a lease. Once popular add-ons, like the monthly pet fee, are exactly what causes tenants to move to cheaper places.

So keep expenses low. Keep good tenants even if it means a decrease in rent. It's better to not have to renovate AND drop rent to meet market prices.

Upkeep is crucial now as you can nip a bigger problem in the bud. For example I pay for all the tenant's furnace filters, it's much cheaper to spend $30 of prevention than $90 plus for a flame sensor that's dirty.

People will always need places to live and Edmonton is a vibrant city going through a rough patch...

I heard the other day $60 is the new $90 regarding oil prices:

"On average, the well cost assumptions for these producers have fallen by almost 25%. At the same time, the expected recovery per well has climbed by a similar amount. In other words, on lower costs and improvements in extraction, producers in these three light oil plays are spending almost 40% less, on average, to recover a barrel of oil."

Let this be an example on how to run your properties, make do with less and when the economy bounces back you'll have increased your cash flow.

"Alberta Ingenuity plays a key role in fostering partnerships, like this with Hitachi, that enhance Alberta’s research capabilities.....Our goal is to ensure the quality of research in Alberta remains at a world-class level through support to place advanced equipment like this in the hands of talented Albertans." Dr. Peter Hackett, President and CEO of Alberta Ingenuity Fund Jump

Good cash injection for Alberta’s nanotechnology sector. It's nice to see investment diversification.

"Alberta is the most entrepreneurial province in Canada with the rate of entrepreneurship in Alberta 50 per cent higher than the national average, according to a new report." Here

With a real ‘can-do’ attitude Alberta boasts many start ups that have a long standing success rate.

"Alberta’s annual growth in retail sales will far outstrip the rest of the country this year, says the Conference Board of Canada." Here

I feel as though I have posted this article or some incarnation of it for the last 12 years. Sign of strong economy: increasing retail spending.

I really like this video. When you're an entrepreneur it's easy to get discouraged by the hordes of "I made 6 figures in 3 months!" marketing you see. This video puts it all into perspective.

When you read that Albertans are more entrepreneurial than other Canadians it's an understatement. The spirit of owning a building your own company is alive and apparent all around the city and province.

Whenever I leave my house I see truck after pick-up after half-ton pulling trailers with a variety of company names on them. All obviously small but making it in a slew of very specialized fields.

It's this spirit that keeps Alberta's economy leading the nation.

I don't usually go to this site but came across this fantastic post on The Toilet Paper Entrepreneur.

"7 Reasons Why The Recession Is Good For You" has some excellent reasons why spending less money, hanging out with family and friends, streamlining our businesses and eating home cooked meals MIGHT actually be good for you!

Read the blog HERE

....another opens.
I read an article today on how Hard Times Generate Entrepreneurs. Basically during an economic crunch we have to be more innovative and aggressive. Focus on a niche market within your customer base and serve them well.

"Small business have to adapt or die.So you have to look at your customer base, modify who you cater to if it's needed, and cater to that demand. . . . People will still need certain services, and the smaller the niche you serve, the more successful your business can be." Vance Gough, instructor of entrepreneurship at Mount Royal College's Bissett School of Business

In our case that would be helping people, who don't have the time to invest or to learn how, create wealth in Alberta oil sands real estate. It's pretty focused - it probably could be more focused like "... helping 30 - 50 year old professionals..." You get the idea - clarity is key.

If you aren't sure who you would be best serving look at your business and see where most of your revenue comes from. Pareto`s Principle (commonly known as the 80/20 rule) applied here would state that 80% of your revenue comes from 20% of your clientele or actions. Pinpointing that 20% would greatly increase the money you earn and decrease the time you spend trying to earn it.