Making Money

Posts about making money from a 60-plus perspective. This includes sideline earning opportunities of all types.

Start Your Own Business with a Franchise (Part Two)

Start Your Own Business With a Franchise (Part 2)

In my previous article I explained the basics of franchising and revealed some of the attractions of the method to anyone hoping to set up a business of their own.

I also discussed the personal qualities and skills required to run a business, whether a franchise or otherwise. You don’t need to have all of these initially to make a success of running your own business, but you will almost certainly need to develop them.

Today I’ll be setting out some advice on choosing the right franchise for you, and how to run your franchise successfully. I’ll also be listing a selection of current franchise opportunities, along with resources for finding many more.

Before that, though, let’s recap on the main attractions of the franchise route, along with a couple of possible drawbacks.

Franchising Pros and Cons

The main attraction of franchising is that you are buying into a ready-made business format.

While this does not guarantee the success of your business, with a good franchise you will be getting a format that has worked well for others, and with a little luck (and a lot of hard graft) should work for you too.

Another benefit is that, as a franchisee, you are not alone. If you have any problems or queries, the franchisor will be available to advise and support you. They will also in most cases provide training, promotional materials, and so on. You may also be able to network with franchisees in other areas for mutual support.

On the downside, running a franchise will require you to follow the franchisor’s format very closely. If you are a free spirit who likes to carve your own path in life, you may find the restrictions imposed difficult to bear.

The other drawback is, of course, you have to pay the franchisor! Typically there will be an up-front fee and further regular payments for support, training, materials, and so on. Obviously, with a good franchise you get plenty back for your money, but ultimately all these costs have to be covered by you and your business.

As mentioned last time, some big franchises such as McDonalds will set you back a six-figure sum. Finance deals may be available through the franchisor and other lenders, but you are still likely to have to fund a substantial chunk of the initial cost yourself.

If money is tight, however, there are lower-cost franchise opportunities as well. Later in this article I will set out a range of options to suit all budgets.

Choosing a Franchise

It’s important not to rush into choosing your franchise. Nowadays a huge range is available, and it’s vital to take some time to assess the options and identify which might be the most suitable for you.

A good place to start is a franchise exhibition. Held in cities across the UK, these events give you the chance to check out many different franchises and – just as important – chat with the franchisors. Obviously the pandemic meant many exhibitions had to be cancelled, but as normal life gradually resumes they are returning to the calendar again.

The biggest exhibitions are those organised by the British Franchise Association in cities including Manchester, Glasgow, London and Birmingham. Entry is generally free as long as you register in advance. A good place to find out about upcoming exhibitions (and much more besides) is the website https://www.franchiseinfo.co.uk.

Here are a few more tips for choosing the right franchise…

  • Choose something that interests you personally. You are more likely to succeed in a business you enjoy, as you will put more effort and enthusiasm into it. If you like cars, for example, there are franchises covering everything from vehicle rentals to fixing dents and scratches. If working in the outdoors appeals, you could focus on areas such as landscape gardening or window cleaning.
  • Look for franchises that will fit in with your family and personal circumstances. Sectors such as retail and catering involve long hours, often in the evening and at weekends. If you have childcare concerns, or simply fancy seeing your other half and friends now and then, you might prefer to focus on franchises that allow you a bit more free time.
  • Aim to pick a franchise with a good track record and reputation. Be wary of new franchises, especially those based around an unproven product or service. Remember that the franchise is going to have to provide your livelihood potentially for many years to come. You don’t want to hitch your wagon to a business that may prove no more than a short-lived fad.
  • Once you’ve identified some franchises that interest you, ask the franchisors for contact details of existing franchisees you can speak to. Don’t let them fob you off with one or two names. Request a list and choose a few at random to contact. Ask in particular how they get on with the franchisor and what the quality of support has been.
  • If at all possible, arrange to visit one or two existing franchises and stay a few hours to see what the work involves and whether or not it would appeal to you. This can be very illuminating.
  • Ensure the financials stack up. Study the projections provided by the franchisor and see if they tally with your own research, bearing in mind local market conditions. Your accountant, bank and existing franchisees can help verify your findings and assumptions. If the projected revenues look too good to be true, they probably are!
  • Also bear in mind that your start-up costs will need to be deducted from your revenues, so don’t leave yourself short. It may be 6–12 months until your business is fully established, and during that time you will need to have enough money to cover all your costs and expenses, including feeding yourself and your family!
  • Before proceeding further, an essential step is to draw up a detailed business plan. This should cover such things as the size of your territory, local competition, the national and local economic climate, trends affecting the product/service you will be supplying, and so on. It should also include a cash-flow projection showing anticipated monthly income and expenditure for at least the first twelve months.

Your business plan will be an invaluable guide when planning and running your business, and it will also be a necessity if you have to apply to a bank for finance.

Running Your Franchise

Having bought your franchise, you will of course want to get it making money for you in the shortest possible time. Here are some tips for starting and running a successful franchise…

  • Keep in regular touch with your franchisor and act on any advice they give you. Whatever issues you may be facing, you can guarantee that someone, somewhere has already faced something similar, and the franchisor will be able to advise you how they dealt with it. Use the franchisor’s knowledge to your advantage rather than learning the hard way. That is why you paid for a franchise rather than setting out on your own.
  • Improve your business skills. While franchisors will teach you their system, most also expect you to bring some basic business skills to the table. If you don’t know accounting basics, how to read and work with financial documents or how to hire and manage employees, you’re likely to encounter problems. If your sales skills are rusty, your knowledge of business taxes is shaky or you’re not up to speed on internet marketing, consider taking a class to improve your skills. Classes are often available at local colleges, and there are also online courses and seminars that require less time and monetary investment.
  • Likewise, make it your business to learn everything there is to know about your industry (in addition to whatever you found out during your franchise research). Almost every sector has associations and meetings where business owners gather and share ideas – these can provide a great forum for learning and networking. And, as mentioned earlier, your fellow franchisees can also provide invaluable insights into your industry.
  • Monitor your cash flow carefully. Regularly compare the figures in your forecast with the reality, and use this to make informed decisions about your business. It’s important not to under-estimate the working capital required to run a business day to day while it is growing. Cash-flow problems can be mistaken for poor profitability, in the early months especially. Careful planning and monitoring will reveal how you are really doing and prevent unpleasant surprises.
  • Market your business. Even with the franchisor’s name and system behind you, your business won’t sell itself. The fact is there is no-one better to market your business than you. Use the passion you have for your product or service to talk to people face to face. Enthusiasm is infectious and you will be more successful. Monitor carefully the results of any marketing activity, however. You don’t want to waste your money in future if a campaign has not proved profitable for you.
  • Master time management. As a business owner you only have so many hours per day and it’s important to deploy them wisely. Planning and flexibility are the keys to success when it comes to time management. Time spent planning saves a lot more time in the long run. But be flexible as well, and constantly assess any task associated with running your business to see if it can be done more efficiently.
  • Stay up to date with paperwork. Don’t leave it for a month then attempt to do it all in one day. Not only does this become a depressing chore, but by the end of that day you are more likely to be tired and make mistakes.
  • Wherever possible invest in IT and developing your computer skills. Many aspects of running a business can be performed faster and better with the aid of computers, from invoicing to accounts, marketing to stock control. Don’t forget to back everything up on a regular basis!
  • Recognize your strengths and weaknesses and use them to your advantage. If you really are terrible at managing one aspect of your business, employ someone to manage it for you. Your time will be better spent on the aspects of your business you are good at and enjoy.
  • Reward Yourself. The responsibility of running your business is down to you, and that includes rewarding yourself when things go well. Set yourself a goal and when you achieve it give yourself a little reward. You would do it for an employee, so why not for yourself?
  • And finally, enjoy yourself. The chances are you decided to start a business because you wanted to enjoy your work more than you were previously. Yes, running a franchise does require effort, determination and tenacity, but don’t lose sight of the reason you started. Stay positive, enjoy the challenges, and never lose your sense of humour. Have fun!

Example Franchise Opportunities

As promised, I have set out below a selection of franchise opportunities you might like to consider. As well as some high-profile (and high-cost) franchises, I have also included some that may appeal to those on a more limited budget.

1. The Pets, Homes and Gardens Company

Website: https://www.petshomesandgardens.co.uk Cost: £995

This is a pet-sitting and home-care franchise. The work involves visiting clients’ homes while they are away and looking after their pets, as well as keeping an eye on their homes and gardens.

2. Kumon

Website: https://www.kumon.co.uk Cost: £3,000

This franchise involves setting up your own Kumon maths and English study centre. To become a Kumon instructor you should have an interest in education, an understanding of business, and enjoy working with children.

3. Harmony at Home

Website: https://www.harmonyathome.co.uk Cost: £3,300

Harmony at Home is a recruitment and consultancy agency for the childcare industry, providing both permanent, temporary and supply nannies and childcare staff, as well as training courses and consultancy services. The franchise can be operated from home or from an office.

4. My Window Cleaner

Website: https://www.mywindowcleanerfranchise.co.uk Cost: £8,000

Everyone needs their windows cleaned, so there will always be a market for this business. My Window Cleaner offers training, marketing assistance and admin support via an app.

5. Open House Estate and Letting Agents

Website: https://www.onlineestateagents.org.uk (franchise info here) Cost: £1,000

This low-cost franchise involves setting up your own home-based estate and letting agency. Full training is provided.

6. Countrywide Signs

Website: https://www.countrywidesigns.co.uk Cost: £22,950

This business involves going round in a van installing and removing estate agents’ signs. You can start with a single van, and get more vans and take on staff to boost profits further.

7. Haus Maids

Website: https://hausmaids-franchise.co.uk Cost: £9,950

This franchise involves running a local branch of Haus Maids, a company that provides one-off and regular cleaning services for domestic homes. This is a managerial franchise, so the work involves managing a workforce of cleaners rather than actually doing any cleaning yourself.

8. Travel Counsellors

Website: https://recruitment.travelcounsellors.com/gb Cost: c. £10,000

Travel Counsellors is a company that offers clients the opportunity to book a bespoke holiday or business trip, planned for them to the finest detail by a trained and experienced Travel Counsellor. Experience in the travel industry is a particular asset with this franchise. It’s not essential, however, as full training is provided to bring franchisees up to the required standard.

9. Chips Away

Website: https://www.chipsaway.co.uk/franchise Cost: £29,995

This is a van-based business. Franchisees provide a service to vehicle owners, repairing scuffs, minor dents, scratches and other damage.

10. McDonald’s

Website: https://www.mcdonalds.com/gb/en-gb/franchising.html Cost: £400,000+

McDonald’s is one of the best-recognised brands in the world. A growing number of their restaurants are run by franchisees. This is not an opportunity for the faint-hearted, and applicants have to submit to a selection process as well as having at least £100,000 in unencumbered funds. For those accepted, though, the financial rewards can be considerable.

Note that all the costs stated above are approximate minimum amounts and do not include any ongoing payments that may also be required. VAT is also likely to be charged, though you may be able to claim this back once your business is up and running (and registered for VAT).

Closing Thoughts

As I hope I have demonstrated in these articles, if you want to start your own business, buying into a franchise is definitely something you should consider.

Not only will you be getting a tried-and-tested business format to follow, you will also have access to advice and support from the franchisor any time you need it. You will still need to put in some hard work yourself, of course, but your chances of success should be significantly boosted compared with going it alone.

What’s more, there are thousands of different franchises available, in a wide range of industries, and at prices to suit all budgets. Don’t rush into buying a franchise, therefore, but take some time to explore a range of options. And hopefully in less time than you think there is every chance you will be running your own profitable franchise and enjoying the many benefits of being a successful business owner.

As always, if you have any comments or questions on these articles, or franchising in general, please do leave them below.

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Start Your Own Business With a Franchise (Part 1)

Start Your Own Business With a Franchise (Part 1)

If you want to be your own boss, the franchise route is well worth considering.

Franchising isn’t a business in itself, but rather a method of ‘buying into’ a brand and format devised by someone else. With a franchise you typically pay the franchisor an up-front fee, and possibly additional fees once you’re up and running as well.

Franchising has become a very popular method for getting started in business. It has the great advantage that you aren’t starting from scratch. In exchange for your fee, you gain the right to trade under the franchisor’s brand name. You get a ready-made (and hopefully proven) business plan, along with training, materials, assistance with marketing, and access to advice and support any time you need it.

A huge range of franchises is available, and there’s something to suit most budgets. At the lower end of the scale, you can get started as an Avon distributor for as little as £10. At the other end of the scale, you could pay up to £800,000 to purchase a McDonald’s franchise (see cover image).

In between these is a wide variety of businesses, from carpet cleaning to recruitment, gardening to children’s entertainment. While some franchises require business premises, many others can be run from home and/or a car or van.

Of course, some franchises are better than others, and it’s important to research any that interest you carefully. So in this two-part series I’ll be sharing some tips on choosing the best franchise for you and getting the most out of it. I’ll also be setting out a range of current UK franchise opportunities to give you an idea of what’s available.

In this first article, though, I want to start by addressing the more fundamental questions of what running a business entails and the skills and aptitudes required.

Business Basics

At the risk of stating the obvious, running a business is a very different thing from doing an ordinary job.

As a business-owner, you will be responsible for every aspect of your business’s operation. As well as providing a product or service, all the ancillary matters from marketing to book-keeping, purchasing to recruitment will become your responsibility.

Of course, you will get help with many of these from the franchisor, and you may also choose to outsource some to professionals such as book-keepers and/or paid staff. Nonetheless, you will need to oversee all of these tasks and ensure they are done properly even if you don’t do them yourself. That is quite different from an ordinary job, where you simply do whatever task you are paid for and leave everything else for your employer to worry about.

Running your own business requires a particular set of aptitudes and skills, and there is no doubt it suits some people better than others. In the next section I’ll set out the main qualities you need for business success.

Requirements for Success

Everyone has different views on which qualities are the most important for success in business, but there are certain ones that come up time and time again…

(1) Determination

Many people talk about starting a business, but only a small proportion do anything about it. Starting a business is a major decision that will undoubtedly change your life and that of your family. It is important that you are committed to your new career before making such a move; and that once you have started the business you are determined to see it through to success.

(2) Willingness to Work

We all think we are willing to work hard, but if you start a business you will soon find out what this means in practice! In the early days at least you are likely to have to work longer hours than the average employee. Although as your business becomes established some of the pressure may ease, you must still expect to work longer and harder than most people in paid employment.

(3) Persistence and Perseverance

Successful business people let nothing get in the way of achieving their goals. If they encounter problems, they try to find ways to overcome them. If their first attempt doesn’t succeed, they try a different approach; and, if this doesn’t work, another. They are not put off by pitfalls, or discouraged – other than temporarily – by failure. They persevere in their efforts until, eventually, they do succeed.

(4) Stamina

In view of the hours you are likely to have to put in, stamina and at least reasonably good health are important. People running businesses have to avoid taking time off for sickness if at all possible. As a self-employed sole trader in particular, if you are not working you are not generating any income. And if you let down a customer, next time he is likely to go elsewhere.

(5) Self-discipline

If you are in a paid job the chances are you will have a manager or supervisor, part of whose duty is to ensure that you fulfil your obligations to your employer. Your reasons for wishing to start a business may include escaping from such individuals! However, while as a business owner you will have no-one standing watch over you, you will still have obligations to customers, suppliers, employees, officials, and so on. If your business is to go on running successfully, it is important that you have the self-discipline to fulfil all your responsibilities and see a job through to the end.

(6) Willingness to Take Risks

All business people have to take calculated risks. Whereas in a job you have the relative security of a regular wage or salary, as a business owner there is no guarantee what your income will be from one month to the next. You will constantly find yourself having to make decisions about where and how to advertise, which areas to specialize in, when to invest in new equipment, and so on. Although this constant decision-making can be stressful, it can also be satisfying and enjoyable. Solving problems and making decisions can give you a sense of power and confidence. And if you are running a franchise, you will be able to get advice and assistance from the franchisor, of course.

(7) Ability to Cope with Stress

Starting and running a business will inevitably impose a range of stresses, both on you and your family. In the beginning at least, long hours, hard work and disruption to family life can cause tension. To be successful in business you need to be able to cope with, and even thrive on, this kind of pressure.

(8) Enthusiasm

Enthusiasm is an essential ingredient of every business owner. If you are half-hearted about your venture you may have difficulty summoning sufficient determination to overcome problems when they arise. If you are enthusiastic, on the other hand, you will relish the challenges your business presents. What’s more, your enthusiasm will rub off onto customers, employees (if you have them) and other people you have to deal with. Most of us would far rather work with or buy from someone who is enthusiastic and enjoys his work, rather than someone who is permanently depressed about it.

(9) Ambition

Most business people have a driving ambition to achieve the best they can for themselves and their loved ones: as well as money, this may include financial security and a better way of life. With such ambitions they can cope with any setbacks along the way, because in their mind they have a goal or vision that drives them on. Ambition and determination together can overcome many obstacles. In business, as in most others aspects of life, if you know what you want and are determined to achieve it, the chances are excellent that you will succeed.

(10) Honesty and Willingness to Give Good Service

Finally, every business depends for its continuing survival on a circle of satisfied customers. If people are pleased with the service they have received from you, they are likely to recommend you to others as well as keep coming back themselves. By contrast, if you give poor service then, even if they do not complain at the time, they will not return; and rather than recommend you to others, they will warn them about you (quite possibly nowadays on review websites that anyone can find). If you have a good reputation this will ensure that more people keep coming to you. For this reason, successful business people go to great lengths to obtain and keep a good name for themselves.

  • Franchisors are, understandably, fiercely protective of the good name of their brand. In many cases they will want to conduct checks to satisfy themselves that you are a suitable person to run a business in their name. Don’t be surprised or offended if this happens, therefore. It’s actually a good thing, as it demonstrates the franchisor’s long-term commitment to preserving their reputation.

Friends and Family

Just as it is important to have the right personal qualities yourself, you will also need a supportive family and friends.

If you decide to start your business from home, this will inevitably cause changes and disruption in the family routine. Even if you use separate business premises, your friends and family will still have to come to terms with your working long hours and having less time and energy for leisure activities. If you are married or living together, it is especially important that your partner understands the implications of your setting up in business, and supports what you are trying to do.

There is also a positive side, of course. Your family may be a valuable source of help in all sorts of areas, from answering the phone and writing letters, to book-keeping and assisting customers. Having others closely involved with the business can assist when problems arise, as they will bring different ideas and perspectives to the situation.

Although it is not absolutely essential to have a supportive family, there is no doubt that you are more likely to succeed if you have discussed your plans with them and have their wholehearted support.

Your Skills

To run your business successfully, as well as the right personal qualities and a supportive family and friends, you will need a range of skills. These are described in general terms below. If you lack any of these it does not necessarily mean that you should not set up in business. However, if you feel any of these areas is going to present serious problems, you might want to consider taking on a partner or employee to handle that aspect of the business, or using a specialist adviser or consultant. You might also consider taking additional courses to acquire the skills you need.

(1) Technical Skills

These are the skills that you need to actually deliver the service you are offering. In the case of a franchise, training will normally be provided to help you achieve the necessary standard. Obviously some types of business will require more in the way of technical skills than others, and you may also choose to employ staff to deliver services on a day-to-day basis. Even if the latter applies, however, you should still have an in-depth knowledge of the service in question, so you can ensure that all your customers receive the high quality service they expect.

(2) Financial

To run a business successfully you will need a range of financial skills. These include such matters as book-keeping, negotiating credit terms with suppliers, invoicing, credit control, estimating, drawing up budgets and controlling cash flow (the flow of money into and out of the business). Again, the franchisor or should be able to help with this, but it will be down to you to master the skills required and/or hire staff who can perform them to a suitable standard.

(3) Marketing

Marketing is the process by which you identify potential customers and persuade them to buy your products or services. It includes selling skills, and also such matters as pricing, advertising, sales promotions, public relations, and market research.

(4) Management

If you are going to employ others, you will need a variety of management skills in such areas as recruitment, motivating staff and team building. You will need a knowledge of employment law and health and safety requirements. You will also need to be able to fulfil legal requirements in matters such as deducting tax from employees’ pay.

(5) Organization

Whether or not you intend to employ others, you will need organizational skills to ensure that every aspect of your business runs smoothly. This includes setting up systems for dealing with orders and enquiries, keeping customer records, and so on. It also includes time management, i.e. ensuring that your time is used as efficiently as possible.

(6) Planning

Every business owner also needs planning skills. Good financial planning is crucial to the success of a business. Planning skills are also needed to take best advantage of new opportunities that may present themselves, and to avoid any problems due to changing market conditions. Good planning can avert many problems before they happen.

Many of these skills can be acquired through taking courses (including training provided by the franchisor), studying books and websites, talking to professional advisers, and so on. They will also develop naturally with practice and experience once your business is up and running. If you are to succeed in running a business of your own, however, the above are the most important skills you will need to master.

Closing Thoughts

In this introductory article I’ve talked about franchising as a means of starting your own business, and looked at the skills and aptitudes you will need to have or develop. Many of these requirements, of course, apply equally when starting any type of business, not only a franchise.

In case you’ve found this a bit daunting, I should say that everyone considering starting in business inevitably has worries and concerns (and the pandemic has obviously added a whole new layer of these) .With hard work and determination, however, you can almost certainly overcome the obstacles and set up a successful business. And choosing the right franchise will boost your chances of success even further.

In my next article I will discuss how to identify a good-quality franchise opportunity that is also a good fit for your own skills and interests. I will also reveal some steps you can take to ensure that you make a success of your franchise.

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Is it time to clean your solar panels?

Is It Time to Clean Your Solar Panels?

According to the Department for Business, Energy and Industrial Strategy (BEIS), there are now roughly a million homes in the UK with solar panels.

Mine is one of them. We had ours fitted in April 2011, just in time to benefit from the highest Feed-In Tariff (FIT) before the rate was slashed by over half.

I hadn’t really given the panels a lot of thought since then. I submitted meter readings every three months, and a few days later a handy, tax-free payment appeared in the bank account.

In March 2019, though, I had a couple of builders doing repairs to the woodwork around the eaves. This was an awkward job that involved having scaffolding put up. Anyway, one of the builders (a guy I have known for several years and trust) asked if I would like the panels cleaned while they were up there. “They’re filthy,” were his exact words.

He quoted me £60, which seemed a good price, and clearly it made sense to have the work done while they were there and the scaffolding was up. They gave the panels a thorough clean, using large sponges and buckets of warm water with washing-up liquid.

I was intrigued to see how much difference this would make to the amount of electricity the panels generated, so I downloaded a free program called Sunny Explorer that works with my solar PV system. It communicates with the inverter (the device that turns the electricity generated by the panels into usable power) via Bluetooth to show how much electricity your panels are producing. And, thankfully, it shows historical data going right back to when the panels were first installed.

Monitoring Solar Panel Performance

I found the data from Sunny Explorer genuinely eye-opening. First, take a look at this chart showing the total amount of electricity generated by my system year on year since the panels were installed.

Electricity Generated Year by Year Since Installation

As you can see (bearing in mind the panels weren’t installed till April 2011), for the first five years the total power output was pretty consistent. Then in 2016 and 2017 it dropped quite substantially, and again by a smaller amount in 2018, even though that summer was one of the hottest, driest on record. Obviously, if I was being scientific I would compare the total number of sunny days in each of those years, but I think it’s safe to assume that from 2016 onwards the build-up of dirt on the panels began reducing their efficiency.

Now take a look at the monthly chart for March 2019. Can you guess what date the panels were cleaned?

Electricity generated in March 2019

Full marks if you said 27th March. The power generation was quite low that day as the panels weren’t cleaned until the afternoon, and obviously they had to be switched off while the cleaning was going on (the builders actually forgot to switch the system back on before they left, but I’ll forgive them that). Notice how much more power the panels generated in the last four days of the month, though.

2021 Update

Two years on, here is a chart showing how much electricity my panels have been producing year on year. Remember, they were cleaned in March 2019.

Solar Panels Output 2021

As you can see, in 2019 and 2020 my panels were back generating at the same level they had been prior to 2016. And neither of these years featured exceptional amounts of sunshine. Obviously as it’s only mid-April now the total figure for 2021 is lower, but from comparing the month-by-month figures from previous years it is clear that they are still working well.

If I hadn’t had the panels cleaned it’s likely that their electricity production would have continued at the 2018 level (and probably lower). As it was, in 2019 and 2020 they generated an extra 1,700 kwh compared to the 2018 level, worth about £850 to me in financial terms. So that £60 I paid to have them cleaned was a very good investment!

Overall, I think the lesson from this is that it’s well worth monitoring the performance of your panels, and having them cleaned if you notice it is declining. When our panels were installed we were told that they were ‘self cleaning’ due to the amount of rain we get in the UK, but that clearly wasn’t sufficient in my case anyway!

More Top Tips

  • I used the free Sunny Explorer software to monitor my system. This works with inverters made by SMA Solar Technology. If you have a different make of inverter it may not work for you, but there should be some other way to check your system’s performance. Ask your installer if in doubt.
  • If you have trees nearby (as I do) there will probably be more birds around, and over time their droppings are likely to build up on your panels and reduce their efficiency. While dust generally washes off with a good rain shower, bird droppings may not.
  • Before cleaning or inspecting solar PV panels, it is essential to switch them off via the main isolating switch (in my home it’s a bright red switch next to the solar power meter). Failing to do so could result in a severe electric shock.
  • If you cannot safely access your panels to clean them, hire a professional to do it. Don’t get up on the roof yourself unless you have the necessary training, expertise and equipment.
  • A good solution for cleaning solar panels that can avoid the need for going up on the roof is a water-fed pole with a soft brush, combined with a squeegee. Avoid using abrasive tools or products in case you scratch the glass.
  • Avoid cleaning your panels when the weather is hot, as spraying cold water on very hot panels could cause smearing or even damage them. Instead try to clean the panels in the morning or evening or on cooler days.
  • Based on my experience, it may not be necessary or cost-effective to clean your panels every year, but every three to five years could be a good strategy. In any event, monitoring the output of your panels will help you decide.

Good luck, and I hope your solar panels are soon working at peak efficiency again!

If you have any comments or questions about this post, as always, please feel free to post them below.

This is an update of my original 2019 post.

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UK Bloggers Spring 2021 Giveaway

Win a Fantastic Health and Beauty Bundle in the UK Bloggers Spring Giveaway!

Spring is here at last, and for once there is plenty of good news in the air.

The vaccine roll-out is going well, cases are way down, and across the UK Covid restrictions are being relaxed. I had my first swim for four months yesterday in the outdoor pool at David Lloyd Lichfield, and tomorrow will be having my first haircut in almost six!

To celebrate all of this, I thought it was high time for another giveaway. I have therefore got together with some of my fellow UK bloggers to offer a bundle of top-quality health and beauty products worth almost £400 for the lucky winner. You can see the full list below ↓↓↓

This giveaway has been arranged and co-ordinated by my blogging colleague Emma at www.MakeMoneyWithoutAJob.com. Do take a look at her site, where (among other things) you can sign up for a free, daily £10 prize draw. There are also articles on money-making topics from How to Make £1,000 Every Month to Online Jobs for Teens, Free Money Offers to How to Make Money Watching Netflix. Literally something for everybody!

The Bloggers Taking Part

Please show your support for all the bloggers taking part in this giveaway by visiting their blogs. They are:

Peggy May | Becca Blogs It Out | Life In A Breakdown | Earn Money Do Good | Unique Young Mum | My Tunbridge Wells | Travel Bugs | Mrs Pinch | Discover Kent | Monethalia | Best Things To Do In Cambridge | Koody | Spilling Life Tea | The Mini Millionaire | Real Girls Wobble | Looking After Your Pennies | The Money Making Mum | Business For Mums | Alice In Sheffield | Chilling With Lucas | Fizzy Peaches | Two Hearts One Roof | Catch Up With Claire | Home In The Pastures | The Sporting Blog | Lipgloss And Curves | The Financial Wilderness | My Balancing Act | Lake District Offers | Discount Days Out | My Random MusingsMind Over Money Matters | Savvy Dad | Reducued Grub | Skilled Finances | Live The Easy Life | Gift Guides UK | Jenny In Neverland | Mum On A Budget | Testing Time Blog | Pretty Core | Thrifty Husband | Pounds And Sense | Wot A Woman Diary | Rhian Westbury | Stapos Thrifty Life Hacks | Bossy Girl | On The Soap Box | Five From The Swich | Be Happy Be You | Just Average Jen | The Geordie Grandma | Finding The Edge | A Thrifty Gamer | Dad Fat Diary | Book Fail | Awesome Scope

The Prize

One lucky winner will receive a health and beauty bundle worth almost £400.

Included in this bundle is:

  • La Roche-Posay Effaclar Duo+ Blemish treatment 40ml
  • Marc Jacobs Perfect 50ml
  • Glo32 Teeth Whitening System
  • CYO Makeup Bag Top Up Bundle
  • Olay Regenerist Luminous Anti-Ageing Brightening And Protecting Face Cream SPF20 50ml
  • Footner exfoliating socks
  • Liz Earle Cleanse and Polish 50ml
  • Champney’s Calm Reed Riffuser
  • Champney’s Slumber Body Butter 300ml
  • Maybelline Sky High Mascara x 2 (Black; Waterproof)
  • EcoTools – Daily Essentials Total Face Brush set
  • L’Oreal Paris Men Expert Get Better With Age Anti-Ageing Duo Giftset for him
  • Too Faced Hangover Wash Away the Day Cleanser 125ml
  • La Roche-Posay Anthelios Ultra-Light Invisible Fluid Sun Cream SPF50 50ml
  • Champney’s Weekend Treat Gift Set

Terms and Conditions

1. There is one top prize of a health and beauty bundle.
2. There are no runner-up prizes.
3. Open to UK residents aged 18 and over, excluding all bloggers involved with running the giveaway.
4. Closing date for entries is midnight on 30 April 2021.
5. The same Rafflecopter widget appears on all the blogs involved, but you only need to enter on one blog.
6. Entrants must log in to the Rafflecopter widget, and complete one or more of the tasks – each completed task earns one entry in the prize draw.
7. Tweeting about the giveaway via the Rafflecopter widget will earn five bonus entries into the prize draw.
8. One winner will be chosen at random.
9. The winner will be informed by email within 7 days of the closing date and will need to respond within 28 days with their delivery address, or a replacement winner will be chosen.
10. The winners’ names will be published in the Rafflecopter widget (unless the winner objects to this).
11. The prizes will be dispatched within 14 days of the winner confirming their address.
12. The promoter is www.MakeMoneyWithoutAJob.com
13. By participating in this prize draw, entrants confirm they have read, understood and agree to be bound by these terms and conditions.

The Giveaway

Complete any or all of the Rafflecopter entry widgets below to enter.

a Rafflecopter giveaway

One final small point is that if a winning entry comes from following someone on social media, the organizer (Emma) will check before awarding the prize that the winner is still following the account in question. If they aren’t, they will be disqualified and a new winner drawn. So, please, don’t follow and immediately unfollow, as your entry won’t then count.

Good luck, and here’s hoping we can all look forward to even better times soon 🙂

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Who Wants to Win a Shed-load of Money? How Win Big as a TV Show Contestant!

Who Wants to Make a Shedload of Money? How to Win Big as a TV Show Contestant!

Today I thought I would share something a bit different with you – a sideline opportunity you may not have considered before.

There is a huge demand for people to appear in TV shows. In recent years “reality television” featuring ordinary people in a range of scenarios, from dating to surviving in inhospitable places, has become extremely popular.

Talent shows are also massive. If you can sing, dance, tell jokes, do magic tricks, perform acrobatics, or have some other talent people might like to watch, there is almost certainly a show you can apply for.

Other shows offer the opportunity for successful – and talented – contestants to become celebrities in the field concerned. For example, many of the winners and runners-up in cookery shows such as Masterchef and The Great British Bake Off have gone on to obtain publishing contracts, and in some cases started their own restaurants. One example is the 2005 Masterchef winner Thomasina Miers, who now runs a chain of Mexican restaurants called Wahaca and has also presented several TV cooking series.

Another very popular option is quiz or game shows – from Pointless to Bargain Hunt. A steady stream of contestants is needed for these shows, which is many cases are broadcast daily. And the best news is that these shows are open to people of all ages and backgrounds, and you don’t need any special skill or talent to take part.

  • Although the coronavirus pandemic (and government response to it) put a temporary brake on some shows, many found ways to get round restrictions, e.g. by redesigning their sets to allow for social distancing. And right now, with restrictions being eased across the UK as virus cases plummet, large numbers of shows are looking for contestants again 🙂

Some shows offer the possibility of winning life-changing sums (Who Wants to be a Millionaire is the classic example). In other cases the rewards are more modest – but even the chance of winning two or three thousand pounds on a show such as The Chase is not to be sniffed at. And under UK law, cash and prizes won on TV shows are entirely tax-free.

Even aside from the chance of fame or fortune, being in a TV show can be an exciting and eye-opening experience. You will see what goes on behind the scenes at your favourite shows, and watch them with fresh appreciation in future. And, of course, you will have an experience to remember and tell friends about for years to come.

Researching and Applying

You can find out what shows are currently recruiting by contacting the production companies directly. See who makes a show that you would like to appear on and look them up online.

There are also websites that publish contestant calls. BeOnScreen is a good place to start. Here is one opportunity that was being advertised there at the time of writing:

Iain Stirling’s CelebAbility is BACK for another series and is looking for fun and outgoing teams of 3 to take part!

This physical, comedy game show sees teams of 3 go up against a squad of celebrities in a series of hilarious games with the chance to win some fab prizes including a cash prize.

Groups can include; friends, family, colleagues or people you share the same hobby with.

If you and your team are aged 18 and over, fun and outgoing who love to play games and get involved in fun challenges, then we want to hear from you!

 

Depending on when you read this, the opportunity above may have gone, but others will certainly have taken its place. Note that many shows are recorded in or around London, so if you live near the capital you will have a certain advantage. In the interests of diversity, however, many also film in other parts of the UK, so definitely don’t be put off if you live elsewhere.

  • As well as calls for contestants, BeOnScreen also advertises free tickets for TV shows, and occasionally calls for extras. If all or any of these things interest you, it’s well worth signing up on the website to receive email updates when new opportunities are posted.

There’s much to be said for applying for new shows such as those listed on BeOnScreen, as the competition for places isn’t as intense as established shows. But there are plenty of the latter that need a steady supply of contestants too, of course.

One top tip is to go for daytime shows, which typically have smaller audiences than prime-time shows, again resulting in less competition from other would-be contestants. But do ensure that the prizes are worth your while before sending in an application.

Another useful resource is UKGameShows. Among other things, this has a page listing current (and new) shows requiring contestants. You will also find links here to the web pages for applying to  popular shows such as MasterChef, Bargain Hunt, Countdown, Pointless, and more.

Finally, my blogging colleague Di Coke (also known as SuperLucky Di) has a page dedicated to current contestant calls for UK game shows. This is well worth bookmarking and returning regularly to.

Before applying to be on any show, I recommend finding out as much as you can about it. If a particular physical or problem-solving skill is required, try to practise this as much as possible. And if it requires specialist knowledge, bury your head in some relevant books, and then get a friend or partner to test your knowledge.

It’s also a good idea to practise your public-speaking skills, especially if this is something that doesn’t come naturally to you. If possible, get a friend to assume the role of the show’s host and ask you some likely questions. This will help prepare you for the show itself, and will also assist you with the auditioning process (see below).



Auditioning for a Show

To be accepted as a contestant, you will normally need to go through some sort of audition. Big TV talent shows such as Britain’s Got Talent and X Factor typically hold open auditions in major cities across the country.

To get on a quiz or reality show you will probably have to perform an initial test/audition as well, though it will be lower key. These auditions are generally held by specialist companies who recruit contestants for the shows. They will assess such things as your personality and appearance, your general knowledge, and how well you communicate. They may also check your ability to cope in stressful circumstances.

One time I was auditioning for a quiz show, I was completing a pen-and-paper test in the company of half a dozen other applicants. Suddenly an alarm went off. We all looked at one another, unsure what was going on. The representative then returned to the room and assured us there was nothing to worry about. She revealed later that this was simply a standard test they used to ensure that potential contestants didn’t crumble under pressure!

As mentioned above, if you’re auditioning for a quiz show you may be given a series of questions to answer, either verbally or in writing, to test your general knowledge. If you find them all easy, it may nevertheless be a good strategy to deliberately get one or two wrong. As our American friends say, nobody likes a smartass! And the companies like to recruit contestants with all levels of knowledge and skill, so the watching audience can relate to them as ‘ordinary people’.

One other top tip for aspiring quiz show contestants is to try to stand out from everyone else. The researchers are looking for people who will come across on TV as outgoing and interesting, rather than dull and anonymous.

This needs to be judged carefully, of course. You don’t want to make yourself appear too weird, or the researchers may fear you will be a loose cannon. If (like me) you’re naturally somewhat introverted, though, it will help a lot if you can make an effort to present yourself as a bit more outgoing. If you can manage ‘bubbly’, so much the better!

A distinctive hairstyle or item of clothing may give you an extra edge as well.

At another audition, one of my fellow applicants was wearing a clerical dog collar. It turned out he was a university chaplain. You could tell immediately that the researchers loved him, and I saw him subsequently on the TV show in question and many others. He even turned up with a team of other university chaplains on a quiz show called Busman’s Holiday!

On the Day

If you’re selected for a show, try to arrive in good time at the studio and introduce yourself to the researchers. They are likely to ask a few questions about your family, job, hobbies, and so on. This is to give the host or hostess something to talk about.

Once the show starts, try not to be distracted by the cameras and audience. As far as possible, relax and concentrate on the task in hand. Do your best to succeed, but remember that not everyone can win every time. Smile and be courteous to the host and (especially) the other contestants. This will ensure the audience like you and get behind you, which can help a lot when you’re under pressure.

Good luck, and I hope big prizes are soon coming your way!

  • Have you been on a TV show yourself and won anything (or not)? I’d love to hear about your experiences! Please post your comments below as usual.

This is a fully updated version of my original article on this subject published in January 2017.

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Assetz Exchange Review

Assetz Exchange: My Review of This P2P Property Investment Platform

Today I’m looking at P2P property investment platform Assetz Exchange (launched in January 2019)..

As I have noted before on Pounds and Sense, I am something of an enthusiast for property investment (and specifically property crowdfunding). Among other things, I like the fact that you can make money from both rental income and capital growth. And investing in property can be a good way of spreading the risk when you have equity-based investments.

Of course, investing in property directly is costly and carries all the risk inherent in putting all your eggs in one basket. A major attraction of P2P property crowdfunding investment is that you can get started with much less money and build a diversified portfolio to help mitigate the risks.

In addition, if you invest this way you don’t have to deal with the day-to-day hassles of being a landlord, from finding tenants to repairing broken boilers. This is taken care of by the platform itself and/or their management company. You just have to sit back and – all being well – wait for the rental income and (hopefully) capital gains to materialize.

That said, there have been a few reversals in the P2P property sector over the last few months (see this recent post, for example). So I am now more concerned than ever to ensure that any investments I make in this category control risk as effectively as possible.

What Is Assetz Exchange?

As mentioned above, Assetz Exchange is a licensed P2P property investment platform. It is owned by well-known P2P lending platform Assetz Capital, but run quite separately from them. If you already have an account with Assetz Capital, you will have to register separately with Assetz Exchange.

Assetz Exchange aims to offer net yields to investors of between 5.2 and 7.2% per year. These are generally paid by institutional tenants through multi-year leases. All properties are unleveraged, providing additional security (and stability) for investors.

Assetz Exchange has some similarities with Property Partner, but they differ in some important ways. For one thing, many of the properties are rented out to charities (e.g. NACRO) or housing associations. These organizations generally sign longer contracts than private individuals. They don’t have voids (periods when the property is untenanted and producing no income). Neither are there any maintenance costs, as the organizations take responsibility for this themselves. And finally, these organizations are directly funded by the government, giving them a secure income stream.

Another area of specialism is show homes. Working with a national housebuilder, Avant Homes, Assetz Exchange purchases fully furnished show homes from multiple sites around the country. These are then leased back to the developer for fixed periods of up to five years to be used to help sell other plots. This eliminates potential void periods and avoids any maintenance costs. At the end of the leases, investors will be able to vote on whether to lease the houses to tenants or sell them to home-buyers on the open market.

Assetz Exchange also offers investors the chance to get involved with a new generation of modular eco-homes. This is already a popular approach to house-building in Europe and the United States. Assetz Exchange fund the acquisition and conversion of land into serviced plots, allowing buyers to then order a house to be built on that plot to their own specification. These modular-built eco-homes are sustainable and low energy. They are also typically quick to complete and have a lower impact on the environment.

Assetz Exchange do also buy and let some standard properties as well, offering investors the chance to further diversify their portfolios.

Signing Up

Before you can invest through Assetz Exchange, you will of course have to sign up on the platform. This is pretty straightforward. You just visit the Assetz Exchange website, read the information there, and click on Register in the top-right-hand corner.

You will then be required to enter your contact details and confirm which of four categories of investor you fall into. The options are as follows:

High Net Worth Investor – This includes individuals who have an annual income of £100,000 or more or net assets of £250,000 or more.

Self-certified Sophisticated Investor – This includes individuals who have made more than one peer-to-peer investment in the last two years or who meet certain other criteria relating to investment experience. This is the category I selected myself.

Investment Professional – Including corporate investors and SIPP or SSAS professional service providers.

Everyday Investor – This category is for investors who don’t fit into any of the categories above. They can still invest via Assetz Exchange but must pledge not to invest more than 10 per cent of their portfolio in P2P loans.

You will also be required to answer some multiple-choice questions to confirm that you understand the nature of investments that can be made on the platform. I found some of these questions quite challenging, and was pleased to get them all right first time. I would therefore recommend reading the information on the Assetz Exchange website (including the Help pages) carefully before proceeding to register. If you do make any mistakes, however, feedback is provided, and you can take the test again until you achieve a 100% correct score.

Once you have done all this, you will be able to fund your account. This must be done by bank transfer, as Assetz Exchange do not allow debit card payments. You will then be able to browse the range of currently available property investments:

Investing

Once you are registered on the platform and signed in, click on Exchange in the menu at the top of the screen and all current projects will be displayed. Here are a couple that are showing at the time of writing…

Assetz Exchange 1

Clicking on any of these will open a page devoted to the investment concerned. Here you can read all about it, view reports and site plans, and so on. One very important area is the Order Book (see example below).

Order Book

All buying and selling on the platform is conducted via an exchange (otherwise known as the Order Book) which works similarly to the secondary market on Property Partner.

So if you want to buy shares in a particular project, you can do so by accepting the best price currently available on the exchange. In the example above, there are £4,895 of shares available at zero discount (i.e. the original offer price).

If you want to get your shares at a lower price than this, you can make a bid. In the example, an investor has put in a bid for £75 at a 1.04% discount and another investor (or maybe the same one) has put in a bid for £154 at a 2.08% discount.

Conversely, if you wish to sell some or all of your shares at any time, you can accept the best bid (or bids) on the Order Book currently, or place an offer and wait to see if this is matched.

It does take a little bit of getting your head around at first, but it’s actually a simple and straightforward process. One thing to note is that if there is nothing showing on the right-hand-side of the Order Book (under Offers) you won’t be able to buy shares in that project there and then – though you can of course place a bid if you wish and see if a seller wants to match it.

In any event, if you want to buy, just click on the green Buy button (either on the Exchange page or the details page) and complete the short online form. You will need to indicate how much you want to invest, whether this should be from your General or IFISA account (see below), and whether the amount should include the FCC or not (see What Are The Charges? below).

You will also need to indicate whether you want to buy at the current best price (selected by default) or you want to try for a better price (in which case your bid will be added to the left-hand column in the Order Book).

The IFISA Option

As mentioned above, if you wish you can invest with Assetz Exchange via an IFISA (Innovative Finance ISA). As discussed in this recent post, this type of ISA for P2P investing gives you the same tax advantages as a cash or stocks and shares ISA. You don’t have to pay any tax on the money you make, whether this takes the form of dividends, income or capital gains.

Everyone has a generous annual ISA allowance of £20,000 in the current 2020/21 tax year (and next year as well). This can be divided any way you like among the three types of ISA. So if you open an Assetz Exchange IFISA, you can still have cash and stocks and shares ISAs with other providers as well, so long as you don’t invest more than £20,000 in total. You can also only invest money in one of each type of ISA in any one financial year.

Choosing the IFISA option on Assetz Exchange is very easy. You can do it when first registering on the site or later. The only extra thing you have to do is enter your National Insurance number.

If you have maxed out your ISA allowance – or have already invested in another IFISA in the current tax year – you can still invest via your default ‘Regular’ account. You can invest any amount this way, but of course any profits you make will potentially be taxable.

What Are The Fees?

Assetz Exchange do not charge any monthly fees to investors (this is in contrast to Property Partner, who made the unpopular decision to impose an Assets Under Management charge and monthly fee, greatly impacting small investors on the platform especially). The company does have to make money somehow, of course, and they do this from three sources:

Arrangement fee

When a property is first purchased, Assetz Exchange charge an arrangement fee which is included in the Fixed Costs & Contingency (FCC). When parts of the property are sold on the Exchange, this fee is added to the purchase price of the buyer (see above) and so is recovered by the seller. The size of this fee is included in the loan conditions.

Monitoring fee

Assetz Exchange charge a percentage of the gross rent received for the property. The percentage is stated in the loan conditions of the property.

Property disposal fee

A fee of 2% of the gross sales proceeds is charged if investors vote to sell and the property is physically sold.

What Are The Safeguards?

Like most other property crowdfunding platforms, all investments in any project on Assetz Exchange are held in a Special Purpose Vehicle (SPV) for the project concerned. This gives investors in the project some protection if the main company were to go into administration.

A contingency balance is held within each SPV which acts in a similar manner to a provision fund, covering unexpected short-term cash-flow disruptions. It is topped up from receipts and no distributions are made to investors if it falls below a certain level.

SPVs also benefit from indemnity insurance which covers non-payments from tenants. This in theory also covers disruption to cash-flow, but it does not cover voids (periods where the property does not have a paying tenant). For reasons mentioned above, voids should not be an issue with most of the properties listed on the platform.

In common with most other P2P investment platforms, Assetz Exchange does not fall within the remit of the Financial Services Compensation Scheme (FSCS), which covers customers with UK financial services firms up to £85,000 if the institution in question were to go bust.

Pros and Cons

Here is my list of pros and cons for Assetz Exchange.

Pros

1. Fast, easy sign-up.

2. Well-designed, intuitive website.

3. Low minimum investment (as little as 80p per project!) – this makes building a diversified portfolio straightforward.

4. Assetz Exchange take care of all the work involved in buying and managing properties. You just choose which ones to invest in.

5. Option to access money any time by selling on the secondary market (though this does depend on another investor being willing to buy your shares at a price you find acceptable).

6. Relatively low-risk investment options (though of course there are no guarantees)

7. Customer support (in my experience anyway) is fast, friendly and helpful.

8. Charges are reasonable. There is no charge for selling investments.

9. Potential to make money through both capital appreciation and rental income.

10. Rental income is paid into your account every month. You can either withdraw or reinvest it.

11. No monthly fees and only transaction-based charges to pay.

12. Opportunity to invest in socially beneficial developments such as sheltered housing

13. Tax-free IFISA option to which any investment on the platform can be added

14. Investors can vote for their favoured exit option (e.g. selling up) when the time comes

Cons

1. Can’t invest using a debit card

2. No auto-invest option currently available

3. Not as many opportunities as some P2P platforms (although the number is increasing steadily)

Closing Thoughts

I was impressed enough with Assetz Exchange to invest a small amount (£100) of my own money initially and will report back on PAS about how my portfolio fares. Here is how it’s looking at the time of writing, roughly a month after I opened my account. As you can see, my initial investment has grown by £3.87 from a combination of income received and capital growth. For a month that’s not bad at all – if it carries on growing at that rate I’ll be delighted! – but of course it is much too soon to draw any firm conclusions from this.

My Assetz Exchange investments

I particularly like the fact that with the low minimum investment on Assetz Exchange, even if you’re starting very cautiously (as I am) it’s easy to build a diversified portfolio. I like the relative simplicity of investing on the website and the fact that you can exit an investment any time via the exchange (though that does depend on willing buyers being available at a price that is acceptable to you). It is also good that there are no charges associated with selling on the exchange.

  • You can, of course, withdraw uninvested funds from your Assetz Exchange account at any time.

Obviously there are risks in any form of investing and it is important to do your own ‘due diligence’ before proceeding. You should also bear in mind that this type of investment is not covered by the Financial Services Compensation Scheme, which covers savers with UK banks and other financial institutions up to £85,000. On the other hand, the potential returns are significantly better than the fractions of a percent typically on offer from savings institutions right now, while the risks appear to be at the lower end of the spectrum, with many of the properties on long-term leases with corporate/institutional tenants.

To be very clear, nobody should put all their spare cash into Assetz Exchange (or any other investment platform for that matter) but in my opinion there is definitely a case for including AE within a diversified portfolio.

As mentioned above, I shall be reporting back on how my Assetz Exchange investments perform on PAS in future. In the mean time, if you have any comments or questions about this post, or Assetz Exchange more generally, please do leave them below as usual.

Disclaimer: I am not a registered financial adviser and nothing in this post should be construed as personal financial advice. You should always perform your own ‘due diligence’ before making any investment and speak to a qualified professional adviser if in any doubt how best to proceed. All investments carry a risk of loss.

Please note also that this review uses my affiliate links. If you click through and make an investment or perform some other qualifying transaction, I may receive a commission for introducing you. This will not affect any charges you pay or the product/service you receive.

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FI Money Review

Review: FI Money: Learn the Hard Way, Teach the Easy Way by Peter Duffy

I was pleased to receive a review copy of FI Money: Learn the Hard Way, Teach the Easy Way from Peter Duffy. Peter is the author of the book (and a fellow UK money blogger).

FI Money (as I’ll call it for short from now on) is a self-published paperback of 222 pages (it’s also available as a Kindle ebook). It is organized into 28 main chapters plus additional material. I won’t list all the chapters here, but here are the first ten to give you a flavour of the content (and style).

  1. Force yourself to smile
  2. YouTube obsession
  3. Your relationship with money
  4. Overthinker
  5. Understanding our ‘Chimp’ emotions
  6. Goals written down
  7. Crystal clear goals
  8. Stress less
  9. Mental training
  10. How NOT to invest

FI Money is a personal account of one man’s journey towards financial independence (the FI referred to in the title). It is a self-development book, but as Peter says in the Introduction it isn’t the usual success story typically associated with such books. He says, ‘I am a work in progress, similar to a building under construction.’

The chapters are generally quite short. They are well written and broken up with bullet-points, headings, To Do lists, and so on. Peter focuses on different aspects of his quest for financial independence, with a particular emphasis on buy-to-let. As this is not something I have ever got into myself (apart from some investments on property crowdfunding platforms) I was particularly intrigued by this. Peter talks about his experiences with refreshing honesty and is not afraid to disclose some of the mistakes he has made along the way. If you’re thinking of investing in buy-to-let yourself, there are some valuable lessons to be learned here.

The book covers many other subjects as well, including property renovation, tax, investing, keeping records, and more. I particularly enjoyed Chapter 10 ‘How NOT to Invest’ which focuses on some of Peter’s less successful investments. These include Premium Bonds (like me he’s not a fan), Bitcoin and other cryptocurrencies, and a particularly ill-advised buy-to-let project early in his career. There are some salutary lessons to be learned from all this (and a few laughs to be had as well!).

In addition to the practical advice, FI Money has a particular emphasis on the psychological aspects of achieving financial independence – the money mindset, as Peter calls it. He is a firm believer in building your financial knowledge, but also adopting the right emotional and practical disciplines and carefully planning and managing your journey towards FI. There is a lot of food for thought in the book from someone who really has been on this particular journey himself (or at least is well on the way there).

As mentioned earlier, Peter also runs a personal finance blog called Duffmoney. This is well worth a read as well, and will give you a flavour of Peter’s style and his attitude towards investing and money matters generally.

As always, if you have any comments or questions about this review, please do post them below.

Disclosure: In common with many posts on Pounds and Sense, this review includes affiliate links. If you click through and make a purchase, I may receive a fee for introducing you. This will not affect in any way the price you pay or the product or service you receive.

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Top Tips for Freebie Hunters

Top Tips for New Freebie and Competition Fans

The world is an expensive place, so it’s no wonder many people are obsessed with getting freebies.

However, when entering the freebie-hunting world it is important that you adhere to certain rules in order to make the most of it. This article will set out some top tips for novice freebie-hunters – and you may learn a thing or two as a seasoned freebie-hunter as well.

If It Sounds Too Good To Be True, It Probably Is

The excitement of (potentially) getting a freebie from a favourite brand can easily cloud your judgement.

According to Karen Newman at Mega Free Stuff, the majority of transactions have both an upside and a downside; however, when a transaction is free the downside is temporarily forgotten. ‘Free’ provides people with a strong emotional charge, where the individual perceives the item on offer to be more valuable than it actually is. This basically means that the person will set aside common sense if they are being offered a freebie.

Some companies are willing to give freebies, but fans of a brand are often willing to sell their soul (or at least provide all sorts of valuable personal information) in exchange for a minute sample. This is detrimental, and it is essential that you know how big the sample is and what exactly you will be getting. Be sure the freebie is genuine and always read the terms and conditions before applying for any offers.

If You Do Not Ask, You Will Not Receive

It is always worthwhile writing letters or sending emails to companies asking if they have any samples available for you to try. This may seem obnoxious and pointless to some, but those who complete this task have often received large boxes of free items or discount vouchers from the companies as a means of gaining feedback on their products. Furthermore, if you do not like a product, be honest about this. In many cases companies are happy to offer replacement freebies (plus an extra item) if their products do not meet with the user’s approval.

Do Not Expect Too Much

A full-sized freebie is a rare occurrence, with the majority of free products being delivered in small envelopes or tiny sachets. Of course, the primary goal is not to obtain a full-sized freebie but a free sample to see if you enjoy the product for a future purchase.

Furthermore, do not expect to receive all free items applied for. Even if you have claimed a free sample noted as available online, it is unlikely that you will get a 100% return. In fact, the most you can expect is approximately 70%. Do not give up hope and keep applying, and soon you will be enjoying masses of freebies. Once again, though, be sure to check that any freebie is worthwhile, and always read the terms and conditions regarding the size and number of samples.

Do Not Feel Guilty

While some individuals may feel a degree of guilt about asking for freebies, this is completely unnecessary. The company sending a freebie is not losing millions of pounds on the free products; in fact, they are benefiting from the free item. Think about it – for every sample sent out, there is the potential of a new customer. If you receive a free sample and like it, there is every chance you will make a future purchase of that product and might even become a regular customer.

Set Up a Second Email Address

One important – but often neglected – tip is to set up a second email address. To avoid receiving spam mail to your primary address, use this second address to claim freebies and enter competitions.

We have found an amazing competition here, where you can have the chance to win one of 20 Lindt chocolate Easter Eggs (see picture below). This competition ends on 1st April 2021.

Free Easter Egg competition

Disclosure: This is a sponsored post for which I am receiving a fee.

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Property Partner

Is This a Good Chance to Profit with Property Partner?

I have discussed Property Partner a few times on this blog, most notably in my Property Partner review.

In brief, Property Partner is a property crowdfunding platform. For the most part they specialize in ‘traditional’ property crowdfunding rather than loan or development finance.

Properties are bought and managed by Property Partner on investors’ behalf. Investors then receive a share of the rental income as dividends, and a share of any profits (plus return of their capital) when the property is sold.

Property Partner launched in January 2015. That date is significant, because after a property has been on the platform for five years, all investors get the chance to exit at a fair market price (determined by an independent surveyor). Due to the pandemic the five-year anniversary process was temporarily put on hold, but it is now proceeding again, albeit with delays as they work through the backlog.

How it operates is that in the run-up to the fifth anniversary of a property, all investors have the opportunity to say if they want to exit their investment at the valuation price or stay on for another five-year term (less than this if they subsequently exit via the resale market, of course).

All investors who have opted to leave will then have their shares pooled and put up for sale on Property Partner at the price stated. New investors are then able to buy these shares.

So long as all shares are sold, the original investors get their money (including any net profits) and the property continues under Property Partner’s management. If all shares don’t sell, however, Property Partner offer the property for sale on the open market. Investors then have to wait until the property is sold before getting their money back. As anyone who has been involved with buying or selling property will know, this is likely to take several months (quite possibly longer in the current circumstances).

The Opportunity

As Property Partner themselves have been pointing out, a number of properties that are coming up to their fifth anniversary are currently trading on the resale market at well below their latest valuation. Here is just one example:

Tower Hill

 

This property in Tower Hill, London (not one I own shares in myself) is due to go through the fifth-anniversary process in April 2021 (or possibly a bit later due to the backlog). At the time of writing shares are available on the secondary market at a price of 91p, which is 28.28% below the latest valuation of £126.88. In theory, then, you could buy shares now and in the next few months sell up for a substantial short-term gain.

Of course, in practice it’s not as simple as that. Here are some reasons:

  1. Nobody knows yet what the final five-year valuation will be. If it is lower than the current valuation (which is perfectly possible in the current economic climate) the net profit will be reduced, perhaps substantially.
  2. There is no guarantee that the shares of all investors who wish to exit will actually sell on the platform. If they don’t, as mentioned, you could have a long wait before the property is sold on the open market. In addition, if this happens there is no guarantee that the property will sell at the valuation price. If it goes for less than this, your returns will be reduced accordingly.
  3. There are platform fees to take into account. In particular, there is a 1% fee for buying on the secondary market and a further 0.5% stamp duty reserve tax charge. Thankfully there are no exit fees, though.
  4. And finally, the number of shares available for any property on the secondary market is limited. Obviously the number you can buy depends on how many shares other investors want to sell at the price in question.

On the plus side, for the length of time you hold the shares you may receive monthly dividends at a rate between 1.5% and 6% per year (though dividend payments on some properties are currently suspended due to Covid). This will offset the fees mentioned above; but if you only intend to hold the shares for a few months it probably won’t cover them completely. Bear in mind that an Assets Under Management (AUM) fee is now deducted from dividends as well.

You can read more about the five-year exit mechanic on this page of the Property Partner website.

My Thoughts

As an investor with Property Partner since almost the beginning (the cover image shows a property in Torquay I own shares in – I plan to retire there one day 😀 ), I am awaiting the five-year exit for my investments with considerable interest.

My personal circumstances have changed since I started investing with the platform, so I intend to take the opportunity to offload at least some of ‘my’ properties. Indeed, I have already voted to sell my shares in the first property I ever invested in with Property Partner (20 Phillimore Close) and am waiting to see how this pans out. I will update this post in due course once I know.

Nonetheless, I am still considering investing short term on the resale market to take advantage of the opportunity the five-year anniversary presents. In particular, I have already topped up my investments in some of the properties I already hold but am planning to dispose of.

I will, though, be cautious until I have a better idea how the first few five-year anniversaries have passed, so I can see if all shares put up by investors sell on Property Partner, or if they have to sell  the properties concerned on the open market. As mentioned earlier, the latter route will clearly take longer and there is no guarantee what price would be achieved.

Would I recommend someone who is currently an investor in Property Partner to look into this? Yes, certainly. Whatever your current circumstances, you need to be aware of what is going on with any properties you hold with Property Partner. And if you wish to sell, you should definitely consider taking advantage of the five-year exit mechanic. Equally, if you have money available to invest, you could check out the opportunities buying now on the resale market – though do bear in my mind my cautionary comments above.

If you haven’t joined Property Partner, and you like the idea of investing some of your portfolio in property, the platform is certainly worth a look. As older properties come back on the market for new investors, there will be no shortage of opportunities in the months ahead. And my understanding is that, as the original costs of acquisition have been amortised, there will be less costs to cover from investors, thus boosting the potential returns from the properties in question.

In addition, as these properties have a five-year history already, you will be able to check how they have been performing in terms of dividends generated and capital appreciation. This is no guarantee of how well or badly they will do in the future, of course.

Take a look at my Property Partner review for much more information about the platform and how it works. Also, if you do decide to invest in Property Partner, there is a welcome bonus offer. For convenience I have copied details below from my review.

Welcome Offer

As an existing Property Partner investor, I can offer a special bonus for anyone joining via my link. If you click through this special invitation link, sign up and invest a minimum of £2,000 within 60 days, you will receive an extra bonus as follows (and so will I):

£2,000 – £30
£10,000 – £150
£20,000 – £300
£50,000 – £750

Not only that, once you are an investor with Property Partner, you will be able to offer the same bonus to your friends and relatives and earn commission yourself. There is no limit to the number of people you can introduce through this scheme.

If you have any comments or questions about this post, as always, please do leave them below.

Note: This is a fully updated version of a post published in 2019.

Disclosure: this post includes referral links. If you click through and make an investment, I may receive a commission for introducing you. This has no effect on the terms or benefits you will receive. Please note also that I am not a professional financial adviser. You should do your own ‘due diligence’ before making any investment, and seek professional advice from a qualified financial adviser if in any doubt how best to proceed. Be aware that all investments carry a risk of loss.

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Why Bloggers Need a Media Kit

Why Bloggers Need a Media Kit (and What Should Go In It!)

Today I’m discussing a subject that will be relevant to any of you who have blogs yourself or are thinking of starting one.

I’ve been blogging for almost twenty years now. I started off blogging about freelance writing and moved on to personal finance with Pounds and Sense. I make money from my blog by various means, but the most important (and lucrative) is through collaborations with businesses and agencies on sponsored posts, sponsored links, and so on.

Companies are always on the lookout for ‘influencers’ who can help get their message across to their target audience. They have budgets for this purpose, but before sending any money your way they will almost certainly want to see your blog’s media kit (also known as a press kit). If you don’t have one – or it’s not up to scratch – you can expect to lose out on many paying opportunities.

So What Goes Into a Media Kit?

As a blogger, your media kit is an advertisement for you and your blog and the services you can offer. It will typically consist of one or two pages you can send (or hand out) to anyone enquiring about potential advertising opportunities or collaborations

A good media kit will ensure you create a strong and professional first impression. Everybody’s media kit is different, but here are some things you should consider including in yours…

Biography

In this section you provide a brief account of yourself, including such things as your age, location, occupational background, hobbies and interests, family, and so on. Companies want to know whom they will be working with, to reassure themselves that you and your blog will be a good fit for their target audience. Let your personality shine through, therefore, quirks and all! You should also include a good-quality portrait-style photo of yourself (see the example in the header image).

Blog Description

In this section you talk about your blog itself – the subjects you cover, your target readership, and any other information that may interest potential advertisers. You may also wish to include your blog’s logo.

Stats

Advertisers want to know the size and nature of the audience you can deliver for them. So it’s important to share some key stats, including such things as total unique views, social media following, email newsletter subscribers, and so forth. Clearly you will want to pick the most impressive-looking stats – so if you don’t have many Instagram followers (for example) just leave that out. But don’t exaggerate either. Clients can and will check your stats, and if they don’t appear to correspond with the figures you have quoted, they are unlikely to want to proceed further

Collaboration Options

Here you list ways brands can collaborate or advertise with you. Some possibilities include:

  • Sponsored Posts
  • Sponsored Links
  • Product Reviews
  • Contests and Giveaways
  • Banner Ads
  • Social Media Campaigns

You can also include prices for these services in your media kit if you like. Personally I don’t do this, as I like to leave room to negotiate over price.

Testimonials

If you have worked for business clients before, I would strongly recommend including any testimonials you may have received. And don’t be afraid to ask for testimonials after a successful collaboration. This type of social proof provides invaluable reassurance for would-be clients that you can deliver on your promises and achieve good results for them.

Contact Information

The most important one of all! Don’t forget to include your contact details so that potential clients can get back to you. You will probably want to include your email address, phone numbers (home and mobile), postal address, and so on.

Media Kit Design

As a blogger you aren’t necessarily expected to have an all-singing, all dancing, media kit, but the smarter and more professional it looks, the better. Your kit should work both electronically (e.g. as an email attachment) and when printed out in colour.

Fortunately you don’t need to be a design guru to produce a great-looking media kit. There are lots of free and inexpensive templates available, which you can edit and personalize to your heart’s content. A great place to look for such templates is the Design Bundles website – just put “Media Kits” in the search box on that website.

Win a Design Bundle!

Here’s a great opportunity to win a media kit template and any other design resources you would like too 🙂

My friends at Design Bundles are running a giveaway to win a prize worth £100. This comprises a £50 credit for Design Bundles to use on Media Kit templates and any other products you’d like from them, along with a four-month premium subscription to Canva. As you probably know, Canva is a brilliant design website you can use to create a media kit and other amazing graphics for your blog as well. You can enter via the Rafflecopter widget below.

a Rafflecopter giveaway

Anyone world-wide can enter. All fields are optional, so you can choose which ones you’d like to complete. But obviously, the more you do, the better your chances of winning.

The contest is open now and will close at midnight on Tuesday 26th January 2021. The winner will be contacted by the end of that week to arrange their prize.

Good luck in the giveaway, and with creating an attractive and compelling media kit!

As always, if you have any comments or questions about this post, please do leave them below.

Disclosure: This is a sponsored post for which I am receiving a fee.

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