Crypto vs. Property - Fight of the Ages - The Benefits and Risks of Investing in Cryptocurrency vs. Investing in Property Management in the 2022 Economy as Crypto Drops in Value and Rental Industry Stays Steady

In the past weeks the economy has taken another strange turn with the decreasing value of cryptocurrency. In light of this, we present a comparison between your financial opportunities investing in crypto versus investing in property management.

Cryptocurrency

Crypto vs. Property Management - Cryptocurrency Value Graph 2014-2022 Bitcoin Value Grows End of 2021 Max Falls in 2022
This graph shows the value of the cryptocurrency bitcoin from 2014 – 2022

Crypto provides a higher chance to get rich quickly through investments in a lucrative but highly uncertain venture. Times Money Mentor explains that the most popular cryptocurrency for example, bitcoin, was only worth $1 in 2011 near its launch. Ten years later, bitcoin reached its record value of $69,004, implying that a promising return could be gained from blockchain technology. As 2021 ended and 2022 began however, bitcoin values dropped to $47,000 in March and $29,000 in May. This still seems like a lot of money, but with it comes the stress and risk of a digital market that could crash at any moment. For those who bought into bitcoin at its beginning, the challenge is not just to decide the right time to sell, but also how to successfully manage a digital wallet full of cryptocurrency. For those looking to enter the market, a larger investment will be needed for just one bitcoin or adjacent cryptocurrency.

One of the other risks involved in cryptocurrency, or blockchain technology, is that it is not protected. When one accumulates Crypto, these virtual coins are stored in a digital wallet with a password. This means that if the password to the digital wallet is lost or forgotten the crypto currency stored inside it is lost forever. If you have the financial means and ability to enter the cryptocurrency game and you are willing to take on the risk that crypto presents, then there are chances for financial gain with the click of a button and some waiting. For those not in an ideal position to invest large amounts of money into cryptocurrency however, there are many more secure avenues for investment.

Property Management

Crypto vs. Property Management - Property Management and Rental Industries are a Secure and Lucrative Investment - Image of a Home

In property management you may not make as much at one time, but you will have a stream of residual income that will grow as you add to your property management portfolio. In the rental industry there are a number of different ways to earn a profit. One is to be a real estate property owner. As an owner, you can rent out your home and leave the heavy lifting to a property management company such as All County® making you, the owner, a passive profit.

To make a larger profit you may consider becoming a property manager. As a property manager you work for owners to manage their most important asset, their home. In doing this you receive a percentage of the rent paid by tenants on a residual monthly basis. Though this may not be a large profit from one home, as you add more doors to your property management portfolio your monthly income can skyrocket.

At All County®, we have seen that those who work to grow their business and use our processes achieve significant success. This is not a get rich quick business, but a business structure that can have incredible yield when worked at diligently. Additionally, among franchises and business startups, property management is on the lower end when it comes to barriers of entry. You still pay some money to purchase and start your property management franchise, but there is no costly inventory or astronomical fees. This makes owning your own business less of a risk, especially for those just entering the franchise market with little self-employment or business experience.

Conclusion

Deciding where to invest your money is an important step in ensuring a secure financial future. There are many options to choose from ranging from the near gamble of cryptocurrency, to the more secure but labor intensive industry of property management. Whether bitcoin or one of its counterparts, cryptocurrency will make large promises of wealth at risk of certainty while property management will provide wealth and financial success that builds over time. Crypto and property management are both ways to increase your wealth, but the comparison between them sheds some light on where you can feel confident placing your investment.

 

Sources

https://www.cnbc.com/2022/06/13/the-crypto-industry-just-had-one-of-its-worst-days-ever.html

https://www.thetimes.co.uk/money-mentor/article/cryptocurrency-good-investment/

https://www.thetimes.co.uk/money-mentor/article/how-cryptocurrency-works/

https://www.coindesk.com/price/bitcoin/

Why This Year is the Best Time to Become Your own Boss - in 2022 A Self-Employed Female Boss Plans for her Property Management Franchise in an Uncertain Economy

In 2022 it is becoming increasingly common for employees to break away from corporate jobs to become their own boss. As the COVID-19 pandemic caused numerous layoffs and prompted many employees to work remotely, some made the choice not to return, deciding to instead become self-employed.

Many People are Turning to Self-Employment

Self Employed Boss Back to Level from Before COVID-19 Pandemic Corporate Employment Levels not Recovered to Pre-Pandemic Levels 2019-2021 Pew Research Center Self Employment DataThe PEW Research Center reports that while the number of employees in a typical corporate setting dropped during COVID-19 and never recovered, the number of self-employed workers did recover from COVID-19 pandemic levels by 2021. This showcases the opportunity for growth as a self-employed company owner across the United States. Business ownership is not for everyone, but for those with a desire to be self-employed, starting a company or franchise can be a perfect opportunity.

Within an uncertain economy the security involved in being free from the control of a boss and corporate structure is very inviting. Though the economy remains largely similar to previous quarters, the prices of many necessities such as fuel are on the rise. Additionally, inflation is lurking around the corner. Given this current outlook, starting a new business or franchise is an appealing solution. The real estate market, and specifically property management, has seen a large increase in financial opportunity in recent years, making housing an ideal industry to enter.

 

The Benefits of Starting a Business in an Uncertain Economy

Both investopedia and hubspot blog have written about the benefits of starting a business at an economically uncertain time. However, many potential business owners too afraid to become their own boss when they are not confident about the economic uncertainties. There is no perfectly safe time to start a business, it will always be a risky venture, but if the owner is prepared then uncertain times can give the new entrepreneur an edge up on competition. There will likely be less competition from other new businesses if you choose to begin your venture when times are perceived to be economically uncertain. Established businesses will also be affected by economic conditions, likely slowing or halting new innovations in favor of stability. If you can create something new while no one else does, your business or franchise will stand out. There is substantial evidence that customers who come to a business during times of uncertainty will stick with that business once economic conditions improve. If your services can fit the needs of customers in an uncertain economy, how much more can these customers trust you when the economy is thriving again?

No matter the economic conditions surrounding you, it is important to make sure you are entering a market with demand. About half of new businesses fail within five years, and about 35 percent of these failures are due to a lack of market need. People will always require a place to live, meaning real estate and property management will always be essential industries. This ongoing need for housing will increase your chance for success as a business owner.

Self-Employed-Boss-in-Property-Management-Franchise-has-Freedom-Fulfilment-Work-Life-Balance-Flexibility-Involvement-Purpose-Success-in-Uncertain-Economy

The Personal Benefits of Becoming Your Own Boss

Aside from the economic upsides, becoming your own boss provides you with greater opportunities for freedom, flexibility, work-life balance, and fulfilment. According to a survey conducted by Emergent Research and Rockbridge Associates and appearing in Forbes, 77 percent of workers who are self-employed did so to be their own boss, followed 74 percent of self-employed workers drawn to the flexibility that working independently affords. Many of these respondents stated that working for themselves increased their happiness and even their health! At All County®, many of our franchisees express that flexibility is one of their favorite parts of owning their own business. As franchisees, they are afforded the opportunity to maintain a work-life balance that caters to their desires and needs, and allows them to prioritize time with their families more than they could in a traditional position.

Many self-employed owners find significantly more meaning and fulfilment in running their own business, as they can impact their communities. Nasdaq recently reported that close relationships between owners and customers as well as a strong belief in a company’s goals or values are the main encouragements to potential workers. As a business owner you set the company climate you want to experience and gather consumers and employees around you that align with that vision. In property management, this includes the development of a strong system of owners and tenants who you help by managing their most important asset, their home, and who in return support your business. As expressed by one of All County’s® newest franchisees Dan Goodman, “we find that if we’re honest and upfront, we can expect the same in return and everybody has as pleasant a working experience as possible.”

Conclusion

Building a successful business in economically certain times requires the new boss or franchisee to have a solid business plan. In economically uncertain times this is especially important. Building a customer base before the doors of your new business open, and ensuring that you have the support and financial means to become your own boss are requisite. Providing solutions for these needs is just one of the ways that being part of a franchise system such as All County® Property Management can make becoming a business owner simpler and more lucrative. With the support of All County’s® brand, procedures, and staff it becomes easier to succeed where others may fail. With determination economically uncertain times may be the perfect chance for you to turn your self-employment dreams into a reality.

Sources

https://www.thebalancesmb.com/the-advantages-of-owning-your-own-business-2948555

https://seekingalpha.com/article/4507927-us-financial-conditions-profile-may-6-2022

https://www.bea.gov/news/glance

https://www.forbes.com/sites/elainepofeldt/2017/06/13/new-study-why-self-employment-keeps-accelerating/?sh=5234d5dc6ac8

https://www.entrepreneur.com/article/376318

https://www.pewresearch.org/fact-tank/2021/11/03/the-self-employed-are-back-at-work-in-pre-covid-19-numbers-but-their-businesses-have-smaller-payrolls/

https://www.nasdaq.com/articles/the-small-business-economy-is-set-to-soar-in-2022

https://blog.hubspot.com/sales/should-you-start-a-business-in-uncertain-times

https://www.investopedia.com/articles/pf/09/start-business-in-depressed-economy.asp