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Maneuvering through commercial construction financing rates can be challenging, but comprehending the process is vital for securing the best terms for your project. Start by researching various lenders to compare their interest rates, which typically hover around 1% to 2% above standard mortgage rates. A solid business plan and a good credit score are fundamental for approval. In the following sections, we’ll break down the types of loans, key criteria for approval, and tips to strengthen your position with lenders. Key Takeaways Understand that commercial construction loan rates typically range from 1% to 2% above standard mortgage rates, impacting overall financing costs. Compare offers from multiple lenders to find competitive rates and favorable terms for your construction project. Be aware of variable interest rates, which can start lower but may increase over time, affecting your budget. Maintain a strong credit score of 700 or higher to qualify for better interest rates and loan terms. Engage in thorough planning, including a detailed business proposal, to strengthen your position when negotiating rates with lenders. Understanding Construction Loans Grasping construction loans is essential for anyone looking to finance a commercial building project. These short-term financing options typically last one year or less and are particularly designed to cover costs associated with building or renovating properties. Construction loan rates usually range from 1% to 2% above standard mortgage rates, reflecting the increased risk involved. You’ll likely need to provide a down payment of at least 20% to 25%, which is higher than what you’d find with conventional mortgages. Funds come in phases, or “draws,” tied to particular project milestones, so regular inspections are necessary before additional money is released. To qualify, you must submit detailed project plans, budgets, and specifications, demonstrating your preparedness and reducing perceived risks for lenders. Comprehending these factors will help you navigate the intricacies of construction loan interest rates and guarantee you’re well-equipped for your commercial project. Types of Commercial Construction Loans When exploring commercial construction loans, you’ll encounter several types, each customized to different project needs. Construction-to-permanent loans convert into a traditional mortgage once your project is complete, whereas stand-alone construction loans need refinancing afterward. Other options include renovation loans for upgrades, owner-builder loans for those acting as their own contractors, and specialized green construction loans that support eco-friendly initiatives. Loan Types Overview Several types of commercial construction loans are available, each designed to cater to different financing needs throughout the construction process. Comprehending these options can help you choose the right loan for your project. Here’s a quick overview: Construction-to-Permanent Loans: Combine construction financing and long-term mortgage, simplifying changes. Stand-Alone Construction Loans: Short-term loans for construction only, requiring a separate mortgage afterward. Renovation Construction Loans: Customized for purchasing and remodeling existing properties, suitable for both residential and commercial projects. Owner-Builder Construction Loans: Allow you to be your own contractor but involve higher risks and require project management expertise. Keep an eye on FHA construction loan APR rates today and builders loan rates to make informed decisions about commercial construction financing rates. Key Features Explained Comprehending the different types of commercial construction loans is vital for selecting the right financing option for your project. Construction-to-Permanent Loans combine the construction phase with a long-term mortgage, simplifying your shift to permanent financing. Conversely, Stand-Alone Construction Loans only cover the construction period, requiring a separate mortgage afterward, which adds complexity. If you’re looking to remodel, Renovation Construction Loans offer funds customized for existing properties. For those wanting to manage the project themselves, Owner-Builder Construction Loans allow this but come with higher risks. Finally, Green Construction Loans support eco-friendly projects and often feature favorable construction mortgage rates. Grasping these options helps you find the best construction loans suited for your needs. Key Criteria for Loan Approval Securing loan approval for commercial construction financing involves several key criteria that you need to understand. Focusing on these factors can help you navigate current building loan rates more effectively: Credit Score: Aim for a score of 700 or higher to secure favorable terms. Business Plan: Provide a thorough plan detailing construction specifics, timelines, and budgets. Down Payment: Be prepared to contribute 20% to 25% of the total project cost, as this mitigates lender risk. Loan-to-Value (LTV) Ratio: Keep your LTV ratio low, as lower ratios increase your chances of approval. Additional Considerations for Approval Though meeting the primary criteria for commercial construction loan approval is essential, several additional considerations can further improve your chances of securing financing. First, lenders typically require a minimum credit score of 680; higher scores can lead to better interest rates and terms. A well-documented business plan, complete with detailed construction plans, timelines, and budget, shows your preparedness and boosts project viability. Be ready to provide a down payment of at least 20% to 25% of the total project cost, which is higher than traditional mortgages, to reduce lender risk. Engaging a qualified builder with a proven track record can streamline the approval process and guarantee lenders of successful project execution. Finally, maintaining a healthy debt-to-income (DTI) ratio, ideally below 43%, is critical, as lenders assess this to confirm your ability to manage additional debt responsibly. Construction Timeline Once you’ve addressed the additional considerations for loan approval, comprehending the construction timeline becomes fundamental for successful project execution. Typically, commercial construction projects span 12 to 24 months, influenced by complexity and size. Key phases include: Pre-construction planning Actual construction Post-construction inspections Approvals Delays can occur because of weather, permitting issues, or labor shortages, so it’s critical to anticipate potential setbacks. Regular progress evaluations and adherence to a draw schedule guarantee that funding aligns with completed milestones. This not only helps maintain cash flow but likewise keeps the project on track. Effective project management and clear communication with your contractors are imperative in keeping the timeline intact and avoiding cost overruns. Builder’s Experience and Reputation Builder experience and reputation greatly influence the financing environment for commercial construction projects. Builders with extensive experience often develop established relationships with lenders, leading to more favorable financing rates and terms. A strong reputation improves a builder’s credibility, making lenders more inclined to offer lower interest rates, as they perceive reduced risk. When builders demonstrate a successful track record of completing projects on time and within budget, they’re likely to receive better financing options, including lower loan rates. Lenders typically evaluate a builder’s portfolio and past performance; well-regarded builders can qualify for discounts on interest rates or reduced fees. Furthermore, builders with solid reputations may gain access to exclusive loan products particularly customized to their expertise, further improving financing conditions. Consequently, investing in a builder’s experience and reputation can markedly impact your commercial construction financing outcomes. Interest Rates and Payment Structure When considering commercial construction financing, you’ll notice that variable interest rates can greatly impact your overall costs. During the construction phase, you’ll typically make interest-only payments, allowing you to manage your cash flow more effectively as you defer principal payments until the project is complete. Comprehending these payment structures and their implications can help you make more informed financial decisions throughout your construction process. Variable Interest Rate Impact During the process of maneuvering through the intricacies of commercial construction financing, it’s important to understand how variable interest rates can impact both your payment structure and overall project costs. These rates fluctuate based on market conditions, affecting your monthly payments throughout the loan term. Here are key points to reflect upon: Variable rates often start lower than fixed rates but can increase over time. Payments may change during the construction phase, impacting your budget. Lenders typically tie these rates to benchmarks like the prime rate or LIBOR. Unanticipated rate increases can create financial challenges, so effective cash flow management is essential. Being aware of these factors can help you navigate the intricacies of financing your commercial project more effectively. Interest-Only Payment Period How can comprehending the interest-only payment period of your commercial construction loan benefit your financial planning? During this phase, you’ll make payments solely on the interest accrued, easing your cash flow as the project is underway. Nevertheless, keep in mind that interest rates for these loans are often variable, which means they can fluctuate and may be higher than traditional mortgages because of the risks involved in construction projects. The interest-only period typically lasts until construction is finished, after which the loan converts to a standard mortgage with principal and interest payments. Although this arrangement lowers your immediate financial burden, it doesn’t reduce your principal balance, which must be repaid later. Be cautious of potential rate increases that could raise your overall costs. Loan Disbursement Process Grasping the loan disbursement process is vital for anyone involved in commercial construction. Construction loans are typically disbursed in phases, called “draws,” linked to specific project milestones. This guarantees funds flow as construction progresses. To keep everything on track, lenders conduct regular inspections to verify each phase’s completion before releasing the next draw. Here are key points to take into account during this process: The draw schedule should be detailed in the loan agreement. Plan for potential delays because of unforeseen circumstances, like weather or labor shortages. Effective cash flow management is critical to maintain project momentum. Delays in fund access can lead to increased costs and hinder progress. Risk Management Strategies After grasping the loan disbursement process, it’s important to focus on risk management strategies that can safeguard your commercial construction project. Establishing a contingency fund of 10% to 15% of total project costs helps mitigate unforeseen expenses. Conduct regular risk assessments to identify potential issues early, allowing for proactive management. Implementing robust project management practices, including detailed planning and scheduling, can greatly reduce delays and their financial impacts. Here’s a quick overview of effective risk management strategies: Strategy Benefit Contingency Fund Mitigates unforeseen expenses Regular Risk Assessments Enables timely issue identification Robust Project Management Reduces delays and associated costs Experienced Contractors Guarantees compliance and minimizes mistakes Legal and Regulatory Compliance Comprehension of legal and regulatory compliance is crucial for the success of your commercial construction project, as failing to adhere to local zoning laws and building codes can lead to significant setbacks. You need to understand that each municipality has unique requirements and obtaining the necessary permits is critical. Regular inspections by local authorities are often mandated, impacting your project’s timeline and financing. Furthermore, keep in mind the following: Compliance with safety and building standards is mandatory to avoid fines. Environmental regulations may apply, requiring clearances for projects affecting ecosystems. Non-compliance can jeopardize loan terms and result in financial losses. Consulting legal experts in construction law is imperative for maneuvering these intricacies. Staying informed and compliant will both help you avoid legal repercussions and guarantee your project runs smoothly and efficiently. Tips for Securing the Best Construction Loan When you’re looking to secure the best construction loan, comparing offers from various lenders is essential, as each can present different rates and terms that greatly impact your overall costs. Strengthening your project proposals with detailed plans and budgets not merely improves your credibility but likewise positions you for more favorable loan conditions. Compare Lender Offers Securing the best construction loan involves more than just comparing interest rates; it requires a thorough evaluation of various lender offers. To get the most favorable terms, keep these key factors in mind: Interest rates: Although important, don’t overlook other costs. Associated fees: Look for origination, appraisal, and inspection fees that can add up. Loan-to-Value (LTV) ratio: A lower LTV, ideally 80% or lower, can lead to better rates. Loan structure: Understand if the loan is interest-only during construction or shifts to a fixed-rate mortgage, as this impacts your monthly payments. Strengthen Project Proposals A strong project proposal is essential for securing the best construction loan, and taking specific steps can markedly improve your chances of approval. Start by preparing detailed project plans and specifications, including blueprints and cost estimates, to demonstrate thorough planning and reduce perceived risk to lenders. Highlight your project’s strengths, such as location, market demand, and potential return on investment, to make a compelling case for funding. Gather financial documents like tax returns and bank statements to showcase your income stability and creditworthiness. Maintain open communication with potential lenders to build rapport and trust, which can lead to better loan terms. Finally, consider involving experienced builders or contractors in your proposal to boost credibility and instill confidence in lenders. Building Strong Relationships With Lenders Building strong relationships with lenders is essential for anyone seeking commercial construction financing, as it can lead to more favorable loan terms and conditions. To cultivate these connections, focus on the following key practices: Establish rapport: Get to know your lenders personally, which can improve trust and comprehension. Communicate openly: Keep lines of communication clear to facilitate quick resolutions for any issues that arise during the loan process. Present a solid vision: Share a well-prepared project proposal that clearly outlines your goals and instills confidence in your project. Address concerns proactively: Discuss any potential risks upfront; this shows lenders you’re thorough and responsible. Frequently Asked Questions What Are the 5 Cs of Commercial Lending? The 5 Cs of commercial lending are crucial factors lenders assess when evaluating your creditworthiness. First, character reflects your reputation and credit history. Second, capacity measures your ability to repay the loan through financial analysis. Third, capital indicates your investment in the project, requiring a significant down payment. Fourth, collateral involves assets you pledge as security. Finally, conditions refer to the economic environment and terms of the loan, influencing the lender’s decision. What Are the 4 Cs of Commercial Lending? The 4 Cs of commercial lending are essential for lenders evaluating your creditworthiness. First, Character reflects your reputation and credit history. Next, Capacity assesses your ability to generate cash flow for loan repayment. Then there’s Capital, which represents your personal investment in the project, typically requiring a 20% to 25% down payment. Finally, Collateral is the asset you offer to secure the loan, providing lenders with reassurance against default. What Is a Typical Interest Rate on a Commercial Loan? A typical interest rate on a commercial loan ranges from 4% to 10% as of late 2023. These rates vary based on factors like your creditworthiness and current market conditions. Typically, construction loans carry higher rates than traditional mortgages, often 1% to 2% more. If you have a lower loan-to-value ratio, you might secure better rates. Stay informed about economic trends, as they can greatly impact these rates over time. How Does Commercial Construction Financing Work? Commercial construction financing provides short-term loans that fund construction projects in phases, called “draws,” tied to specific milestones. You’ll need to submit detailed project plans, budgets, and financial documentation, including proof of income and a solid credit score, to qualify. As construction progresses, lenders release funds after inspections confirm completion of each phase. Once the project is finished, you can either refinance into a permanent mortgage or use a construction-to-permanent loan. Conclusion In summary, successfully managing commercial construction financing rates requires thorough research, preparation, and strong relationships with lenders. By comprehending the types of loans available, key criteria for approval, and effective risk management strategies, you can position yourself for ideal financing terms. Always keep your project timeline in mind and remain compliant with legal requirements. With careful planning and a detailed business plan, you can secure the financing needed to bring your construction project to life. Image via Google Gemini This article, "Navigating Commercial Construction Financing Rates: A Step-by-Step Guide" was first published on Small Business Trends View the full article

Maneuvering through commercial construction financing rates can be challenging, but comprehending the process is vital for securing the best terms for your project. Start by researching various lenders to compare their interest rates, which typically hover around 1% to 2% above standard mortgage rates. A solid business plan and a good credit score are fundamental for approval. In the following sections, we’ll break down the types of loans, key criteria for approval, and tips to strengthen your position with lenders. Key Takeaways Understand that commercial construction loan rates typically range from 1% to 2% above standard mortgage rates, impacting overall financing costs. Compare offers from multiple lenders to find competitive rates and favorable terms for your construction project. Be aware of variable interest rates, which can start lower but may increase over time, affecting your budget. Maintain a strong credit score of 700 or higher to qualify for better interest rates and loan terms. Engage in thorough planning, including a detailed business proposal, to strengthen your position when negotiating rates with lenders. Understanding Construction Loans Grasping construction loans is essential for anyone looking to finance a commercial building project. These short-term financing options typically last one year or less and are particularly designed to cover costs associated with building or renovating properties. Construction loan rates usually range from 1% to 2% above standard mortgage rates, reflecting the increased risk involved. You’ll likely need to provide a down payment of at least 20% to 25%, which is higher than what you’d find with conventional mortgages. Funds come in phases, or “draws,” tied to particular project milestones, so regular inspections are necessary before additional money is released. To qualify, you must submit detailed project plans, budgets, and specifications, demonstrating your preparedness and reducing perceived risks for lenders. Comprehending these factors will help you navigate the intricacies of construction loan interest rates and guarantee you’re well-equipped for your commercial project. Types of Commercial Construction Loans When exploring commercial construction loans, you’ll encounter several types, each customized to different project needs. Construction-to-permanent loans convert into a traditional mortgage once your project is complete, whereas stand-alone construction loans need refinancing afterward. Other options include renovation loans for upgrades, owner-builder loans for those acting as their own contractors, and specialized green construction loans that support eco-friendly initiatives. Loan Types Overview Several types of commercial construction loans are available, each designed to cater to different financing needs throughout the construction process. Comprehending these options can help you choose the right loan for your project. Here’s a quick overview: Construction-to-Permanent Loans: Combine construction financing and long-term mortgage, simplifying changes. Stand-Alone Construction Loans: Short-term loans for construction only, requiring a separate mortgage afterward. Renovation Construction Loans: Customized for purchasing and remodeling existing properties, suitable for both residential and commercial projects. Owner-Builder Construction Loans: Allow you to be your own contractor but involve higher risks and require project management expertise. Keep an eye on FHA construction loan APR rates today and builders loan rates to make informed decisions about commercial construction financing rates. Key Features Explained Comprehending the different types of commercial construction loans is vital for selecting the right financing option for your project. Construction-to-Permanent Loans combine the construction phase with a long-term mortgage, simplifying your shift to permanent financing. Conversely, Stand-Alone Construction Loans only cover the construction period, requiring a separate mortgage afterward, which adds complexity. If you’re looking to remodel, Renovation Construction Loans offer funds customized for existing properties. For those wanting to manage the project themselves, Owner-Builder Construction Loans allow this but come with higher risks. Finally, Green Construction Loans support eco-friendly projects and often feature favorable construction mortgage rates. Grasping these options helps you find the best construction loans suited for your needs. Key Criteria for Loan Approval Securing loan approval for commercial construction financing involves several key criteria that you need to understand. Focusing on these factors can help you navigate current building loan rates more effectively: Credit Score: Aim for a score of 700 or higher to secure favorable terms. Business Plan: Provide a thorough plan detailing construction specifics, timelines, and budgets. Down Payment: Be prepared to contribute 20% to 25% of the total project cost, as this mitigates lender risk. Loan-to-Value (LTV) Ratio: Keep your LTV ratio low, as lower ratios increase your chances of approval. Additional Considerations for Approval Though meeting the primary criteria for commercial construction loan approval is essential, several additional considerations can further improve your chances of securing financing. First, lenders typically require a minimum credit score of 680; higher scores can lead to better interest rates and terms. A well-documented business plan, complete with detailed construction plans, timelines, and budget, shows your preparedness and boosts project viability. Be ready to provide a down payment of at least 20% to 25% of the total project cost, which is higher than traditional mortgages, to reduce lender risk. Engaging a qualified builder with a proven track record can streamline the approval process and guarantee lenders of successful project execution. Finally, maintaining a healthy debt-to-income (DTI) ratio, ideally below 43%, is critical, as lenders assess this to confirm your ability to manage additional debt responsibly. Construction Timeline Once you’ve addressed the additional considerations for loan approval, comprehending the construction timeline becomes fundamental for successful project execution. Typically, commercial construction projects span 12 to 24 months, influenced by complexity and size. Key phases include: Pre-construction planning Actual construction Post-construction inspections Approvals Delays can occur because of weather, permitting issues, or labor shortages, so it’s critical to anticipate potential setbacks. Regular progress evaluations and adherence to a draw schedule guarantee that funding aligns with completed milestones. This not only helps maintain cash flow but likewise keeps the project on track. Effective project management and clear communication with your contractors are imperative in keeping the timeline intact and avoiding cost overruns. Builder’s Experience and Reputation Builder experience and reputation greatly influence the financing environment for commercial construction projects. Builders with extensive experience often develop established relationships with lenders, leading to more favorable financing rates and terms. A strong reputation improves a builder’s credibility, making lenders more inclined to offer lower interest rates, as they perceive reduced risk. When builders demonstrate a successful track record of completing projects on time and within budget, they’re likely to receive better financing options, including lower loan rates. Lenders typically evaluate a builder’s portfolio and past performance; well-regarded builders can qualify for discounts on interest rates or reduced fees. Furthermore, builders with solid reputations may gain access to exclusive loan products particularly customized to their expertise, further improving financing conditions. Consequently, investing in a builder’s experience and reputation can markedly impact your commercial construction financing outcomes. Interest Rates and Payment Structure When considering commercial construction financing, you’ll notice that variable interest rates can greatly impact your overall costs. During the construction phase, you’ll typically make interest-only payments, allowing you to manage your cash flow more effectively as you defer principal payments until the project is complete. Comprehending these payment structures and their implications can help you make more informed financial decisions throughout your construction process. Variable Interest Rate Impact During the process of maneuvering through the intricacies of commercial construction financing, it’s important to understand how variable interest rates can impact both your payment structure and overall project costs. These rates fluctuate based on market conditions, affecting your monthly payments throughout the loan term. Here are key points to reflect upon: Variable rates often start lower than fixed rates but can increase over time. Payments may change during the construction phase, impacting your budget. Lenders typically tie these rates to benchmarks like the prime rate or LIBOR. Unanticipated rate increases can create financial challenges, so effective cash flow management is essential. Being aware of these factors can help you navigate the intricacies of financing your commercial project more effectively. Interest-Only Payment Period How can comprehending the interest-only payment period of your commercial construction loan benefit your financial planning? During this phase, you’ll make payments solely on the interest accrued, easing your cash flow as the project is underway. Nevertheless, keep in mind that interest rates for these loans are often variable, which means they can fluctuate and may be higher than traditional mortgages because of the risks involved in construction projects. The interest-only period typically lasts until construction is finished, after which the loan converts to a standard mortgage with principal and interest payments. Although this arrangement lowers your immediate financial burden, it doesn’t reduce your principal balance, which must be repaid later. Be cautious of potential rate increases that could raise your overall costs. Loan Disbursement Process Grasping the loan disbursement process is vital for anyone involved in commercial construction. Construction loans are typically disbursed in phases, called “draws,” linked to specific project milestones. This guarantees funds flow as construction progresses. To keep everything on track, lenders conduct regular inspections to verify each phase’s completion before releasing the next draw. Here are key points to take into account during this process: The draw schedule should be detailed in the loan agreement. Plan for potential delays because of unforeseen circumstances, like weather or labor shortages. Effective cash flow management is critical to maintain project momentum. Delays in fund access can lead to increased costs and hinder progress. Risk Management Strategies After grasping the loan disbursement process, it’s important to focus on risk management strategies that can safeguard your commercial construction project. Establishing a contingency fund of 10% to 15% of total project costs helps mitigate unforeseen expenses. Conduct regular risk assessments to identify potential issues early, allowing for proactive management. Implementing robust project management practices, including detailed planning and scheduling, can greatly reduce delays and their financial impacts. Here’s a quick overview of effective risk management strategies: Strategy Benefit Contingency Fund Mitigates unforeseen expenses Regular Risk Assessments Enables timely issue identification Robust Project Management Reduces delays and associated costs Experienced Contractors Guarantees compliance and minimizes mistakes Legal and Regulatory Compliance Comprehension of legal and regulatory compliance is crucial for the success of your commercial construction project, as failing to adhere to local zoning laws and building codes can lead to significant setbacks. You need to understand that each municipality has unique requirements and obtaining the necessary permits is critical. Regular inspections by local authorities are often mandated, impacting your project’s timeline and financing. Furthermore, keep in mind the following: Compliance with safety and building standards is mandatory to avoid fines. Environmental regulations may apply, requiring clearances for projects affecting ecosystems. Non-compliance can jeopardize loan terms and result in financial losses. Consulting legal experts in construction law is imperative for maneuvering these intricacies. Staying informed and compliant will both help you avoid legal repercussions and guarantee your project runs smoothly and efficiently. Tips for Securing the Best Construction Loan When you’re looking to secure the best construction loan, comparing offers from various lenders is essential, as each can present different rates and terms that greatly impact your overall costs. Strengthening your project proposals with detailed plans and budgets not merely improves your credibility but likewise positions you for more favorable loan conditions. Compare Lender Offers Securing the best construction loan involves more than just comparing interest rates; it requires a thorough evaluation of various lender offers. To get the most favorable terms, keep these key factors in mind: Interest rates: Although important, don’t overlook other costs. Associated fees: Look for origination, appraisal, and inspection fees that can add up. Loan-to-Value (LTV) ratio: A lower LTV, ideally 80% or lower, can lead to better rates. Loan structure: Understand if the loan is interest-only during construction or shifts to a fixed-rate mortgage, as this impacts your monthly payments. Strengthen Project Proposals A strong project proposal is essential for securing the best construction loan, and taking specific steps can markedly improve your chances of approval. Start by preparing detailed project plans and specifications, including blueprints and cost estimates, to demonstrate thorough planning and reduce perceived risk to lenders. Highlight your project’s strengths, such as location, market demand, and potential return on investment, to make a compelling case for funding. Gather financial documents like tax returns and bank statements to showcase your income stability and creditworthiness. Maintain open communication with potential lenders to build rapport and trust, which can lead to better loan terms. Finally, consider involving experienced builders or contractors in your proposal to boost credibility and instill confidence in lenders. Building Strong Relationships With Lenders Building strong relationships with lenders is essential for anyone seeking commercial construction financing, as it can lead to more favorable loan terms and conditions. To cultivate these connections, focus on the following key practices: Establish rapport: Get to know your lenders personally, which can improve trust and comprehension. Communicate openly: Keep lines of communication clear to facilitate quick resolutions for any issues that arise during the loan process. Present a solid vision: Share a well-prepared project proposal that clearly outlines your goals and instills confidence in your project. Address concerns proactively: Discuss any potential risks upfront; this shows lenders you’re thorough and responsible. Frequently Asked Questions What Are the 5 Cs of Commercial Lending? The 5 Cs of commercial lending are crucial factors lenders assess when evaluating your creditworthiness. First, character reflects your reputation and credit history. Second, capacity measures your ability to repay the loan through financial analysis. Third, capital indicates your investment in the project, requiring a significant down payment. Fourth, collateral involves assets you pledge as security. Finally, conditions refer to the economic environment and terms of the loan, influencing the lender’s decision. What Are the 4 Cs of Commercial Lending? The 4 Cs of commercial lending are essential for lenders evaluating your creditworthiness. First, Character reflects your reputation and credit history. Next, Capacity assesses your ability to generate cash flow for loan repayment. Then there’s Capital, which represents your personal investment in the project, typically requiring a 20% to 25% down payment. Finally, Collateral is the asset you offer to secure the loan, providing lenders with reassurance against default. What Is a Typical Interest Rate on a Commercial Loan? A typical interest rate on a commercial loan ranges from 4% to 10% as of late 2023. These rates vary based on factors like your creditworthiness and current market conditions. Typically, construction loans carry higher rates than traditional mortgages, often 1% to 2% more. If you have a lower loan-to-value ratio, you might secure better rates. Stay informed about economic trends, as they can greatly impact these rates over time. How Does Commercial Construction Financing Work? Commercial construction financing provides short-term loans that fund construction projects in phases, called “draws,” tied to specific milestones. You’ll need to submit detailed project plans, budgets, and financial documentation, including proof of income and a solid credit score, to qualify. As construction progresses, lenders release funds after inspections confirm completion of each phase. Once the project is finished, you can either refinance into a permanent mortgage or use a construction-to-permanent loan. Conclusion In summary, successfully managing commercial construction financing rates requires thorough research, preparation, and strong relationships with lenders. By comprehending the types of loans available, key criteria for approval, and effective risk management strategies, you can position yourself for ideal financing terms. Always keep your project timeline in mind and remain compliant with legal requirements. With careful planning and a detailed business plan, you can secure the financing needed to bring your construction project to life. Image via Google Gemini This article, "Navigating Commercial Construction Financing Rates: A Step-by-Step Guide" was first published on Small Business Trends View the full article

In a previous piece, I argued that large language models are not enterprise architecture. The response was clear: that argument is hard to dismiss. The harder question is what comes next: “if not this, then what?” It’s the right question. Because the problem was never that AI doesn’t work. It clearly does. The problem is that we tried to place it in the wrong layer. We didn’t fail at AI. We failed at where we put it. Over the last two years, companies have invested tens of billions into generative AI. The result is not ambiguity. It’s clarity. A growing body of research, including a widely cited MIT study, shows that around 95% of enterprise generative AI initiatives fail to deliver measurable business impact, despite widespread adoption. This is not because the models don’t work: it’s because they were inserted into organizations as tools, not as systems. We tried to bolt intelligence onto workflows. What we need is systems where intelligence is the workflow. From stateless tools to persistent systems Large language models are, by design, stateless: each interaction starts from scratch unless we artificially reconstruct context. Companies are the opposite. They are stateful systems: they accumulate decisions, track relationships, evolve over time, and depend on continuity. This mismatch is not a minor inconvenience. It is structural. Research on enterprise AI failures consistently points to the same issue: systems fail not because they generate bad outputs, but because they cannot integrate into ongoing processes or maintain context over time. Enterprise AI cannot be session-based. It has to remember. From answers to outcomes We optimized AI to answer questions. But companies need systems that change outcomes. This is where the gap becomes obvious: an LLM can generate a compelling sales strategy, but it cannot track whether it worked, adapt based on results, coordinate execution across teams or improve over time. That’s not a limitation of implementation: it’s a limitation of design. The same MIT research describes a “GenAI Divide”: organizations are stuck in high adoption but low transformation, precisely because current systems don’t close the loop between action and outcome. Answers don’t change companies: systems do. From prompts to constraints Much of today’s AI conversation revolves around prompts. But prompts are just an interface. Companies don’t operate through prompts, they operate through constraints: compliance rules, permissions, risk thresholds and operational boundaries. And this is where most AI systems break. They generate within probabilities. Companies operate within constraints. This is one of the least discussed and most important reasons why enterprise AI initiatives stall. Even broader AI research shows that projects fail when systems are not aligned with real-world constraints, workflows, and decision contexts. Prompts are UX. Constraints are architecture. From copilots to systems of action The dominant metaphor of the last two years has been the “copilot.” It sounds appealing, but it’s also misleading. A copilot suggests. A company needs systems that act. This distinction matters, because suggesting is cheap. Executing is hard. Execution requires: integration with systems of record coordination across processes ownership of outcomes adaptation over time And this is precisely where most current approaches collapse. Not because they are poorly implemented, but because they were never designed for it. The architecture shift no one is talking about What, then, replaces this? Not better prompts, not bigger models, and definitely, not more infrastructure. The next phase of enterprise AI will be defined by something else entirely: Systems that combine persistent state embedded workflows continuous learning from outcomes operation under constraints integration with real environments In other words: systems that don’t just generate language about the world, but operate within it. Research and practice are converging on the same conclusion: success comes not from generic tools, but from systems that adapt, learn, and embed into workflows. Why this shift will feel like a discontinuity We are still early in this transition. Most organizations are investing in the visible layer: models, interfaces, infrastructure. But the real shift is happening one layer deeper. And when it becomes visible, it won’t look like an incremental improvement: it will look like a discontinuity. Because we are not moving from “worse AI” to “better AI.” We are moving from tools that talk to systems that act. The real opportunity This is not the end of enterprise AI: it is the end of a misconception. Language models are not enterprise architecture, they are an interface layer. A powerful one, but insufficient on its own. The companies that understand this first won’t simply deploy AI better. They will build something their competitors won’t recognize until it’s too late. View the full article

Earnings hint at growth trajectory despite increases in capital spendingView the full article

Welcome to AI Decoded, Fast Company’s weekly newsletter that breaks down the most important news in the world of AI. You can sign up to receive this newsletter every week via email here. Are the biggest AI labs betting on the wrong horse? Big AI companies are betting nearly all of their R&D and capital expenditure on the idea that pre-trained transformer models can deliver AI with human-level general intelligence. This approach relies heavily on backpropagation, the standard algorithm used to train deep neural networks. Ben Goertzel, who coined the term “AGI” with his 2005 book Artificial General Intelligence (co-written with DeepMind founder Shane Legg), is skeptical. “The commercial AI industry is just betting everything on copying GPT [generative pre-trained transformers] in various permutations, which in my view is a waste of resources because all these LLMs are kind of doing about the same thing.” “When something works, everyone wants to double and triple down on what worked,” he says. But this concentration of resources around a single paradigm may be risky. Transformer models require billions of dollars in compute to train, along with enormous ongoing computational resources to operate. So far, major AI labs have continued to see intelligence gains from adding more compute and training data. But as models grow larger, those gains are becoming increasingly expensive, raising the possibility that the returns may eventually no longer justify the cost. And because the financial stakes are so high, labs have little room to invest seriously in fundamentally different approaches. Goertzel argues that scale alone is not enough without the right underlying algorithms. In his view, a major limitation of transformer models is that they cannot continually learn from new experiences and update their internal parameters in real time the way humans do. Instead, they revert to their baseline parameters with each new interaction, without meaningfully learning from prior exchanges. Researchers at Google DeepMind, Microsoft, and Ilya Sutskever’s Safe Superintelligence are exploring alternative neural network architectures that may enable continual learning, Goertzel says. “DeepMind has incredible diversity within their AI team” and possesses a “deep bench” of experience with alternate AI paradigms, he says. The result is an AI landscape in which massive compute resources are largely devoted to refining existing methods rather than pursuing fundamentally different architectures that may be better suited to the kind of human-level generalization required for true AGI. Goertzel remains optimistic that AGI could emerge within the next few years, but he believes it will likely require moving beyond simply scaling current LLMs. Sakana’s new agents combine the intelligence of frontier AI models Last week, Tokyo-based startup Sakana AI announced the beta release of its flagship commercial product, Sakana Fugu. The launch follows a relatively quiet stretch for the company, which was founded in 2023 by Llion Jones, one of the nine inventors of transformer models, alongside former Google DeepMind researcher David Ha. Fugu is a multi-agent orchestration system designed to coordinate multiple frontier foundation models, including those from OpenAI, Google, and Anthropic, into a single collective intelligence engine. Within the system, these models function as agents working together on complex tasks spanning coding, mathematics, and scientific reasoning. AI systems that combine multiple models in a pipeline are nothing new, but assigning tasks to specific models or switching between them has often required manual oversight. Fugu is designed to orchestrate those models autonomously, establishing collaboration topologies and routing subtasks to the model best suited for a given problem. Another key feature is a looping mechanism that operates while the system works through a task. If it becomes stuck or fails to identify a promising path forward, it can recognize that impasse, launch corrective workflows, and iteratively work toward a stronger solution. By combining the strengths of diverse models, Sakana AI says Fugu outperforms comparable systems on industry benchmarks including SWE-Pro, which measures real-world software engineering performance, and GPQA-D, which evaluates graduate-level scientific reasoning. Peter Thiel is backing an AI startup that fact-checks journalists Influential VC Peter Thiel is backing a new startup called Objection AI, whose stated mission is to “restore confidence in the Fourth Estate.” At least, that’s how the company’s CEO framed it to TechCrunch. Objection AI is led by lawyer-turned-entrepreneur Aron D’Souza, who helped spearhead the Thiel-backed lawsuit that ultimately bankrupted Gawker Media. That legal crusade followed a 2007 Gawker article that outed Thiel as gay. While Thiel did not sue Gawker directly at the time, he secretly financed multiple lawsuits against the publisher. If someone believes the media has published damaging or false claims about them, they can pay Objection AI $2,000 to launch an AI-assisted investigation. The company says it deploys a team of AI models to analyze facts gathered by crowdsourced “investigators,” ultimately producing a judgment styled as an official certificate. The ruling carries no legal authority, but it can be widely circulated on social media as a reputational defense tool. D’Souza argues that media organizations can too easily damage reputations, particularly when reporting relies on anonymous sources and later proves inaccurate. (And there is indeed some logic to that critique.) Objection offers clients a mechanism to challenge coverage and initiate a public-facing review process, potentially providing a faster response than a prolonged libel lawsuit. But critics point out that Objection may do more to suppress truth than combat misinformation. By pressuring journalists to reveal sources or discouraging whistleblowers from coming forward, such a system could create a chilling effect on investigative reporting. The real product here probably isn’t objective fact-checking. It’s more likely a database of journalist credibility scores that can be weaponized to discredit reporters, support litigation, intimidate sources, or give powerful figures another avenue to challenge unfavorable reporting. “Your reporter has a 62% credibility rating” could become a potent talking point in a defamation case or PR offensive. Objection AI already lists a number of active investigations on its website, and there is little transparency around whether any could evolve into litigation, potentially backed by wealthy interests operating behind the scenes. On behalf of journalists everywhere, many thanks to Thiel and D’Souza for their tireless efforts to restore public trust in the press. Now do VCs and lawyers. More AI coverage from Fast Company: Celebrities like Taylor Swift are setting the guardrails for the AI age Why Manus has become a crucial prize in the global AI race The hidden logic behind AI CEOs’ job loss warnings PayPal says AI shopping agents are creating an invisible storefront economy Want exclusive reporting and trend analysis on technology, business innovation, future of work, and design? Sign up for Fast Company Premium. View the full article

Every year, the Beverage Testing Institute convenes a blind tasting panel to evaluate thousands of American whiskeys, judging each bottle anonymously to determine which truly stand above the rest. Without the influence of brand reputation or marketing hype, the process has become a respected benchmark in the spirits industry. This year’s highest-scoring bottles span the full breadth of American whiskey: classic Kentucky bourbons, bold ryes, high-altitude single malts, Tennessee whiskeys, and even a standout peach-infused spirit. Together, they highlight just how diverse—and competitive—the modern American whiskey landscape has become. BevTest’s top American whiskeys of 2025 include revived heritage labels, carefully aged single-barrel releases, high-proof bottles built for enthusiasts, and inventive flavored expressions that show how far the category has evolved. Whether you’re stocking a bar cart or searching for your next great pour, these four bottles—especially the best bourbon—stood out among the many that impressed the judges most this year, according to Forbes. Best Bourbon: Cream of Kentucky Small Batch Scoring 96 out of 100 and earning a platinum medal, this label was named the best bourbon whiskey of 2025. Cream of Kentucky revives a historic pre-Prohibition brand under the guidance of former Four Roses master distiller Jim Rutledge, who sources and blends select Kentucky bourbons to craft what he describes as a “double-rich” house style. The result is a whiskey that leans into classic Kentucky character. Honeyed orchard fruit and orange blossom lead the aroma, layered with caramel apple, vanilla, and subtle oak. Bottled at 100 proof, the BevTest panel praised the whiskey’s complexity, noting “aromas of caramel, chocolate, rice cookie, spiced poached apricots, and apples, along with flavors of spice cake with crème anglaise, praline with dried fruits, and a hint of white ash.” The judges concluded it is “a sumptuous, finely balanced bourbon with tremendous flavor and length—one that can handle anything you throw at it.” Despite its earning the top bourbon award, Cream of Kentucky retails for $69.99—sometimes as low as $60. Best American single malt: Stranahan’s 10 Year Old Mountain Angel, batch no. 4 Also scoring 96 out of 100 and earning a platinum medal, this label was named the best American single malt whiskey of 2025. Mountain Angel, Stranahan’s ultra-premium American single malt, is aged for a full decade in new charred American oak barrels stored at high altitude in Colorado, where the region’s dramatic temperature swings intensify the aging process. Judges described the nose as inviting and layered, blending warm cream, citrus zest, and caramelized sugar with hints of mountain pine, dried fruit, and spiced oak. On the palate, the whiskey is direct yet well-balanced, revealing silky malt sweetness alongside candied raspberry, orange peel, caramel, toasted barley, and honey. Notes of oak spice, dark chocolate, and a subtle warmth add depth without overpowering the spirit’s core fruit and malt character. The texture is thick, velvety, and mouth-coating, reflecting both the whiskey’s extended aging and the concentration produced by Colorado’s high-altitude climate. The BevTest panel noted aromas of butterscotch, cinnamon, poached pear, and maple, alongside flavors of white pepper, marzipan, and nutmeg, describing the whiskey as “warm, fruity, and nutty with a lightly spiced confectionery note—perfect for sipping by a fireplace.” Best cask-finished bourbon: Kentucky 10 Barrel Strength Hand Selected With a score of 92 out of 100, this Kentucky 10 Year Barrel-Strength Hand-Selected Straight Bourbon is a classic small-batch pick, bottled at full cask proof, usually chosen for its rich flavor and structure. It received a gold medal and was named the best cask-finished straight bourbon whiskey of 2025. On the nose, the whiskey is rich and aromatic, with bold notes of caramel, vanilla, dark brown sugar, and maple syrup layered with ripe stone fruit, apple, baking spices, and well-charred oak. On the palate, it is robust and sweet, revealing caramel corn, toffee, cinnamon, nutmeg, and clove before deepening into darker notes of cocoa, roasted peanuts, tobacco, and leather. With a smooth, oily texture, the whiskey coats the tongue with sweetness and oak tannin. The finish is long and warming with a hunt of barrel char, which makes it a wonderful whiskey for slow sipping or an old fashioned. The BevTest Judging Panel described the whiskey as having “aromas of buttery roasted nuts, chocolate cake with peach sauce, and saffron-spiced fruits. The flavors include chocolate crème brûlée with mint, cola nut, and marzipan. A charming, fruity, spicy bourbon with instant appeal and good versatility.” Best flavored whiskey: Hardhide Chilton County Peach Whiskey Receiving a gold medal and a score of 94 out of 100, Hardhide Chilton County Peach Whiskey was named the best flavored whiskey of 2025. The label is crafted using fresh peaches from Alabama’s Chilton County, which are blended with three-year-old wheat whiskey and light American whiskey at Sugarfield Distillery in Louisiana. From the first sip, the whiskey evokes freshly picked ripe peach, with aromas of honey, caramel, and stone fruit layered over subtle grain and oak, while the smooth palate carries natural peach alongside caramel, brown sugar, toffee, and gentle baking spices without drifting into liqueur-like sweetness. The texture is soft and slightly viscous, reflecting the fruit and sugars integrated into the spirit. The BevTest panel noted aromas of pear flesh, peach, and golden pineapple alongside flavors of nectarine, lychee tea, and butterscotch, describing it as “a bright, balanced, fruity peach whiskey that adds a touch of orchard fruit to cocktails.” —Leila Sheridan This article originally appeared on Fast Company’s sister website, Inc.com. Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy. View the full article

Information is a commodity. The real challenge is establishing trust in today’s world of content overload and automated answers. How can you tell who, among an array of self-proclaimed experts, really understands a topic? And more importantly, how can you instill that trust in others? It starts at the top. According to the 2026 Edelman Trust Barometer, 75% of respondents said CEOs are obligated to help bridge trust divides, but just 44% do so well. That’s a huge gap that highlights a leadership credibility challenge, playing out externally with customersand inside the workplace. 3 TRUST-BUILDING STRATEGIES These are three core principles I lean on to establish trust. 1. Transparency: Be honest and open to what you don’t know. Authenticity builds connection. Leaders who admit they don’t have all the answers and show vulnerability earn deeper trust. This openness creates a culture of accountability that resonates with both employees and customers. One thing we do at Scribd, Inc. is quarterly employee pulse surveys. As you might imagine, scores across various topics fluctuate. But we share all of them in company meetings, using it as an opportunity to discuss what’s going well and dig into how we can improve. This has led to higher engagement. Transparency means also sharing the bad as well as the good. If someone tells me everything is going great and is perfect, I’m not likely to trust them. There is always something we can do better. It’s the same when you communicate with the employees—share the misses as well as the wins. 2. Communication: Clarity and humanity over bulk. Always clearly articulate your intent, purpose, and vision. Don’t give your teams or your audience an opportunity to second-guess or fill in the blanks of what you don’t say. How you share is equally as important as what you share. We all sound better since we learned to bulk up our messages with AI. It’s personally been a great copyeditor for me, but I don’t want it to take my voice. The best technique I’ve found is reading messages aloud. It sounds simple, but it really helps me catch when I sound authentic or like a robot. The best ways to add weight to your messages are by using personal or firsthand examples that showcase your reasoning and citing your sources, elevating from machine-driven meh opinion towards fact-based messaging. 3. Teamwork Building a strong team is one of the most important leadership skills I’ve learned. When hiring, prioritize good judgment and cultural fit over purely technical skills; judgment is crucial in ambiguous environments like the one we live in. The most effective leaders succeed because of the team around them. I am [formerly!] a finance guy, so I look at things through a specific lens. If I didn’t have creative and technical people around me viewing things from a different perspective, the company might not be doing as well. To operationalize this, try developing an internal committee to ensure those closest to the facts inform your strategy. Teamwork extends outside the workplace. Customers are skeptical. The content you put out is a way to meet them. Reduce the noise and share things that genuinely provide help. Consumers increasingly look to real people, so instead of claiming you’re an expert, bring in actual experts. PIVOT FROM INFORMATION TO UNDERSTANDING Reliable, quality, human source content is increasingly becoming a scarce resource. Real value comes from helping people understand and make sense of that information. This is a challenge I deal with every day. Scribd, Inc. has an abundance of information, hundreds of millions of pieces of content, built over nearly two decades. Just downloading that content has been crucial to our business success in the past. But now, accessing content isn’t the issue; that’s easy. It’s making sense of it all. Like many companies, we’ve pivoted our approach. We’re finding new ways to provide trust and value, which led us to update our mission. Our new North Star is to advance human understanding. The future is not about who has the most information, but who has the credibility to translate the plethora of it into something actionable. The ultimate goal for every leader must be to protect and invest in the one thing AI cannot replicate: genuine human understanding. Tony Grimminck is the CEO of Scribd, Inc. View the full article

When considering franchise buy-in prices, it’s vital to understand the varying tiers of investment. Initial franchise fees can range widely, from as low as $10,000 to over $100,000, depending on the brand and model. Established franchises, like Taco Bell or KFC, typically require higher investments. Beyond the initial fees, ongoing expenses, royalty fees, and hidden costs can greatly impact your total investment. Knowing these factors is critical to making an informed decision. What other financial aspects should you consider? Key Takeaways Franchise buy-in prices typically range from under $1,000 for micro-franchises to over $100,000 for major brands like Taco Bell and KFC. Low-cost franchises usually have initial fees under $15,000, while established service franchises cost between $25,000 and $50,000. The average initial investment for franchises, excluding real estate, is approximately $250,000. Additional startup costs may include real estate, renovations, equipment, and hidden expenses like insurance. Ongoing royalty fees range from 1.5% to 10% of gross revenue, impacting overall financial commitment. Understanding Franchise Investment Tiers When you’re considering entering the domain of franchising, comprehending the various investment tiers is crucial, as it helps you identify opportunities that align with your financial capacity and business goals. Franchise buy-in prices can vary greatly, with low-cost franchises often starting under $15,000. Micro-franchises, which may cost less than $1,000, typically involve home-based or mobile businesses with minimal overhead. Service-based franchises range from $1,000 to $5,000, allowing for flexibility and low equipment needs. For mobile and home-based operations, costs typically fall between $5,000 and $25,000, capturing local market demand. Established service franchises, priced between $25,000 and $50,000, offer greater brand recognition and support, making them a compelling choice for aspiring franchisees. Key Factors Influencing Franchise Costs When you’re considering a franchise, it’s crucial to understand the initial investment requirements and ongoing royalty fees that come with it. The initial costs can vary widely based on location and brand recognition, impacting everything from franchise fees to real estate expenses. Furthermore, ongoing royalty fees, typically a percentage of your monthly gross revenue, add to the overall financial commitment of running a franchise. Initial Investment Requirements Initial investment requirements for franchises can vary considerably based on several key factors. If you’re looking to franchise a restaurant, you might find low-cost options starting under $10,000, whereas established brands could demand $250,000 or more. Typically, the franchise fee ranges from $20,000 to $50,000, but some can be as low as $10,000 or as high as $100,000. Don’t forget to factor in supplementary startup costs, which could include real estate, renovations, equipment, and inventory—these can add thousands to your initial investment. Moreover, hidden costs like insurance and technology fees can greatly affect your total financial commitment. Being aware of these factors is vital for making informed decisions when considering franchise opportunities. Ongoing Royalty Fees Ongoing royalty fees represent a fundamental aspect of franchise costs that can greatly affect your overall profitability. These fees typically range from 4% to 8% of your gross revenue, though some franchises charge as little as 1.5% or as much as 10%. It’s important to take into account the following variations: Dream Vacations charges a royalty fee of only 1.5% to 3% on annual commissionable sales. Complete Weddings + Events imposes an 8% royalty rate on annual gross revenue. Motto Mortgage offers a unique structure, charging $0 for the first six months, then $4,500 monthly thereafter. Understanding these fees is significant when evaluating the total cost of ownership and ongoing expenses for your franchise, as they can greatly impact your profitability. Typical Initial Franchise Fees Franchise fees represent a significant upfront investment for anyone looking to enter the domain of franchising. These initial fees can range from $10,000 to over $100,000, depending on the brand and its market position. Many low-cost franchises have initial fees under $15,000, making them accessible to aspiring entrepreneurs. Typically, franchise fees are a one-time payment granting you the right to operate under the franchisor’s brand and business model. Nevertheless, major franchises like Taco Bell and KFC require much higher initial investments, with liquid asset requirements exceeding $750,000 and $1.5 million, respectively. On average, the initial investment for franchises, excluding real estate costs, tends to fall around $250,000, highlighting the financial commitment involved in franchising. Ongoing Expenses and Royalty Fees When considering the financial terrain of franchising, it’s crucial to understand that costs extend far beyond the initial buy-in. Ongoing expenses can greatly impact your profitability. You’ll typically face royalty fees ranging from 4% to 8% of your gross revenue each month, along with marketing fees that add another 2% to 5%. Some franchises, like Motto Mortgage, offer unique structures, waiving royalty fees for the first six months, then charging a flat fee. Here are some key ongoing expenses to keep in mind: Royalty fees that support franchisor services and brand consistency Marketing fees for both local and national advertising efforts Additional costs like insurance and technology fees that aren’t immediately obvious Hidden Costs to Consider When considering the true cost of owning a franchise, you can’t overlook hidden expenses that may not be immediately obvious. Insurance and liability costs, along with technology and software fees, can considerably increase your annual budget, adding thousands of dollars to your operational expenses. It’s essential to factor these costs into your financial planning to guarantee you’re fully prepared for the financial commitment of running a franchise. Insurance and Liability Expenses Steering through the terrain of insurance and liability expenses is fundamental for any franchisee, as these costs can greatly affect your bottom line. You must anticipate various insurance requirements, which often add thousands to your annual expenses. Liability insurance can range from $500 to $3,000 per year, depending on your business type and location. Property insurance, important for protecting your franchise assets, typically costs between $1,000 and $2,500 annually. Workers’ compensation insurance is usually mandatory, averaging around $1,000 to $2,500 per employee per year. These hidden costs can greatly impact your franchise’s profitability and cash flow, so it’s critical to factor them into your overall budget to guarantee financial stability. Technology and Software Fees Insurance and liability expenses are just one part of the financial terrain you’ll navigate as a franchisee. Technology fees can considerably impact your budget, including costs for software subscriptions, point-of-sale systems, and website maintenance. These expenses can add thousands to your annual operating costs. Often, you may be required to invest in specific technology platforms mandated by the franchisor, and these prices can vary widely. Moreover, ongoing support and updates for your technology might incur extra fees that you’ll need to factor in. To avoid surprises, grasping these potential hidden costs is crucial for accurate financial planning. Always review the Franchise Disclosure Document (FDD) carefully, as it typically outlines any technology fees associated with your franchise. Evaluating Total Investment Requirements Evaluating total investment requirements for a franchise involves more than merely the initial buy-in price, as various factors contribute to the overall financial commitment. You’ll need to take into account not just the franchise fee but additional costs that will arise during your expedition. Franchise fees typically range from $10,000 to $100,000, depending on the brand. Expect ongoing operational costs, including marketing fees that can take up 2% to 5% of your gross revenue. Don’t forget expenses for real estate, renovations, and equipment, which can greatly impact your total investment. Understanding all these components guarantees you’re prepared for the financial obligations that come with opening and running a franchise, allowing for better long-term planning. Tips for Financial Preparedness Preparing financially for a franchise opportunity requires a thorough understanding of your resources and potential costs beyond the initial buy-in. Start by evaluating your current financial situation with a personal financial statement that lists your assets and debts. Research the specific franchise’s investment requirements, which can vary considerably. Apply the “3X rule” for budgeting; multiply your available investment by three to estimate total ownership costs, including working capital. Don’t overlook hidden costs like insurance and technology fees that can affect profitability. Finally, consult with a financial advisor or franchise financing firm to create a detailed financial plan, addressing both upfront and ongoing costs, ensuring you’re set for long-term success in your franchise venture. Frequently Asked Questions Why Does It Only Cost $10k to Own a Chick-Fil-A Franchise? It only costs $10,000 to own a Chick-fil-A franchise since the company covers most initial expenses, like real estate and equipment. This low buy-in allows you to focus on operations rather than substantial capital investment. Nevertheless, you need to share a significant portion of your profits with the franchisor, including a 15% royalty fee on sales. In spite of the initial costs, the average annual sales can exceed $4 million, offering a solid return on investment. What Is the 7 Day Rule for Franchise? The 7 Day Rule requires franchisors to provide you with a Franchise Disclosure Document (FDD) at least seven days before you sign any agreements or make payments. This document contains crucial information about the franchise, including fees, obligations, and financial performance. The rule aims to guarantee you have enough time to review and understand the franchise details, promoting transparency and informed decision-making during the reduction of the risk of impulsive purchases. What Are the 4 P’s of Franchising? The 4 P’s of franchising are vital for your franchise strategy. First, there’s Product, which involves what you offer and how it meets customer needs. Next, Price is about setting the right cost for your goods or services, impacting profitability. Place refers to where customers can access your offerings, whether in-store or online. Finally, Promotion includes your marketing efforts to build brand awareness and attract customers, fundamental for driving sales and growth in your franchise. How Much Does Chick-Fil-A Franchise Owner Make? As a Chick-Fil-A franchise owner, you can expect to earn an average annual income between $150,000 and $200,000. Your earnings depend on various factors, including your location and how effectively you manage your restaurant. Since Chick-Fil-A retains ownership of the property, you won’t build equity in the property itself, but the company provides extensive training and support to help you maximize profitability and succeed in the competitive fast-food market. Conclusion In summary, grasping the typical franchise buy-in prices is crucial for anyone considering this investment. You need to evaluate initial fees, ongoing expenses, and potential hidden costs to determine the total investment required. By carefully evaluating these factors and planning your finances, you can make informed decisions that align with your budget and goals. Thorough research and financial preparedness are fundamental steps in the successful maneuvering of the intricacies of franchise ownership and ensuring a profitable venture. Image via Google Gemini This article, "Typical Franchise Buy-In Prices" was first published on Small Business Trends View the full article

When considering franchise buy-in prices, it’s vital to understand the varying tiers of investment. Initial franchise fees can range widely, from as low as $10,000 to over $100,000, depending on the brand and model. Established franchises, like Taco Bell or KFC, typically require higher investments. Beyond the initial fees, ongoing expenses, royalty fees, and hidden costs can greatly impact your total investment. Knowing these factors is critical to making an informed decision. What other financial aspects should you consider? Key Takeaways Franchise buy-in prices typically range from under $1,000 for micro-franchises to over $100,000 for major brands like Taco Bell and KFC. Low-cost franchises usually have initial fees under $15,000, while established service franchises cost between $25,000 and $50,000. The average initial investment for franchises, excluding real estate, is approximately $250,000. Additional startup costs may include real estate, renovations, equipment, and hidden expenses like insurance. Ongoing royalty fees range from 1.5% to 10% of gross revenue, impacting overall financial commitment. Understanding Franchise Investment Tiers When you’re considering entering the domain of franchising, comprehending the various investment tiers is crucial, as it helps you identify opportunities that align with your financial capacity and business goals. Franchise buy-in prices can vary greatly, with low-cost franchises often starting under $15,000. Micro-franchises, which may cost less than $1,000, typically involve home-based or mobile businesses with minimal overhead. Service-based franchises range from $1,000 to $5,000, allowing for flexibility and low equipment needs. For mobile and home-based operations, costs typically fall between $5,000 and $25,000, capturing local market demand. Established service franchises, priced between $25,000 and $50,000, offer greater brand recognition and support, making them a compelling choice for aspiring franchisees. Key Factors Influencing Franchise Costs When you’re considering a franchise, it’s crucial to understand the initial investment requirements and ongoing royalty fees that come with it. The initial costs can vary widely based on location and brand recognition, impacting everything from franchise fees to real estate expenses. Furthermore, ongoing royalty fees, typically a percentage of your monthly gross revenue, add to the overall financial commitment of running a franchise. Initial Investment Requirements Initial investment requirements for franchises can vary considerably based on several key factors. If you’re looking to franchise a restaurant, you might find low-cost options starting under $10,000, whereas established brands could demand $250,000 or more. Typically, the franchise fee ranges from $20,000 to $50,000, but some can be as low as $10,000 or as high as $100,000. Don’t forget to factor in supplementary startup costs, which could include real estate, renovations, equipment, and inventory—these can add thousands to your initial investment. Moreover, hidden costs like insurance and technology fees can greatly affect your total financial commitment. Being aware of these factors is vital for making informed decisions when considering franchise opportunities. Ongoing Royalty Fees Ongoing royalty fees represent a fundamental aspect of franchise costs that can greatly affect your overall profitability. These fees typically range from 4% to 8% of your gross revenue, though some franchises charge as little as 1.5% or as much as 10%. It’s important to take into account the following variations: Dream Vacations charges a royalty fee of only 1.5% to 3% on annual commissionable sales. Complete Weddings + Events imposes an 8% royalty rate on annual gross revenue. Motto Mortgage offers a unique structure, charging $0 for the first six months, then $4,500 monthly thereafter. Understanding these fees is significant when evaluating the total cost of ownership and ongoing expenses for your franchise, as they can greatly impact your profitability. Typical Initial Franchise Fees Franchise fees represent a significant upfront investment for anyone looking to enter the domain of franchising. These initial fees can range from $10,000 to over $100,000, depending on the brand and its market position. Many low-cost franchises have initial fees under $15,000, making them accessible to aspiring entrepreneurs. Typically, franchise fees are a one-time payment granting you the right to operate under the franchisor’s brand and business model. Nevertheless, major franchises like Taco Bell and KFC require much higher initial investments, with liquid asset requirements exceeding $750,000 and $1.5 million, respectively. On average, the initial investment for franchises, excluding real estate costs, tends to fall around $250,000, highlighting the financial commitment involved in franchising. Ongoing Expenses and Royalty Fees When considering the financial terrain of franchising, it’s crucial to understand that costs extend far beyond the initial buy-in. Ongoing expenses can greatly impact your profitability. You’ll typically face royalty fees ranging from 4% to 8% of your gross revenue each month, along with marketing fees that add another 2% to 5%. Some franchises, like Motto Mortgage, offer unique structures, waiving royalty fees for the first six months, then charging a flat fee. Here are some key ongoing expenses to keep in mind: Royalty fees that support franchisor services and brand consistency Marketing fees for both local and national advertising efforts Additional costs like insurance and technology fees that aren’t immediately obvious Hidden Costs to Consider When considering the true cost of owning a franchise, you can’t overlook hidden expenses that may not be immediately obvious. Insurance and liability costs, along with technology and software fees, can considerably increase your annual budget, adding thousands of dollars to your operational expenses. It’s essential to factor these costs into your financial planning to guarantee you’re fully prepared for the financial commitment of running a franchise. Insurance and Liability Expenses Steering through the terrain of insurance and liability expenses is fundamental for any franchisee, as these costs can greatly affect your bottom line. You must anticipate various insurance requirements, which often add thousands to your annual expenses. Liability insurance can range from $500 to $3,000 per year, depending on your business type and location. Property insurance, important for protecting your franchise assets, typically costs between $1,000 and $2,500 annually. Workers’ compensation insurance is usually mandatory, averaging around $1,000 to $2,500 per employee per year. These hidden costs can greatly impact your franchise’s profitability and cash flow, so it’s critical to factor them into your overall budget to guarantee financial stability. Technology and Software Fees Insurance and liability expenses are just one part of the financial terrain you’ll navigate as a franchisee. Technology fees can considerably impact your budget, including costs for software subscriptions, point-of-sale systems, and website maintenance. These expenses can add thousands to your annual operating costs. Often, you may be required to invest in specific technology platforms mandated by the franchisor, and these prices can vary widely. Moreover, ongoing support and updates for your technology might incur extra fees that you’ll need to factor in. To avoid surprises, grasping these potential hidden costs is crucial for accurate financial planning. Always review the Franchise Disclosure Document (FDD) carefully, as it typically outlines any technology fees associated with your franchise. Evaluating Total Investment Requirements Evaluating total investment requirements for a franchise involves more than merely the initial buy-in price, as various factors contribute to the overall financial commitment. You’ll need to take into account not just the franchise fee but additional costs that will arise during your expedition. Franchise fees typically range from $10,000 to $100,000, depending on the brand. Expect ongoing operational costs, including marketing fees that can take up 2% to 5% of your gross revenue. Don’t forget expenses for real estate, renovations, and equipment, which can greatly impact your total investment. Understanding all these components guarantees you’re prepared for the financial obligations that come with opening and running a franchise, allowing for better long-term planning. Tips for Financial Preparedness Preparing financially for a franchise opportunity requires a thorough understanding of your resources and potential costs beyond the initial buy-in. Start by evaluating your current financial situation with a personal financial statement that lists your assets and debts. Research the specific franchise’s investment requirements, which can vary considerably. Apply the “3X rule” for budgeting; multiply your available investment by three to estimate total ownership costs, including working capital. Don’t overlook hidden costs like insurance and technology fees that can affect profitability. Finally, consult with a financial advisor or franchise financing firm to create a detailed financial plan, addressing both upfront and ongoing costs, ensuring you’re set for long-term success in your franchise venture. Frequently Asked Questions Why Does It Only Cost $10k to Own a Chick-Fil-A Franchise? It only costs $10,000 to own a Chick-fil-A franchise since the company covers most initial expenses, like real estate and equipment. This low buy-in allows you to focus on operations rather than substantial capital investment. Nevertheless, you need to share a significant portion of your profits with the franchisor, including a 15% royalty fee on sales. In spite of the initial costs, the average annual sales can exceed $4 million, offering a solid return on investment. What Is the 7 Day Rule for Franchise? The 7 Day Rule requires franchisors to provide you with a Franchise Disclosure Document (FDD) at least seven days before you sign any agreements or make payments. This document contains crucial information about the franchise, including fees, obligations, and financial performance. The rule aims to guarantee you have enough time to review and understand the franchise details, promoting transparency and informed decision-making during the reduction of the risk of impulsive purchases. What Are the 4 P’s of Franchising? The 4 P’s of franchising are vital for your franchise strategy. First, there’s Product, which involves what you offer and how it meets customer needs. Next, Price is about setting the right cost for your goods or services, impacting profitability. Place refers to where customers can access your offerings, whether in-store or online. Finally, Promotion includes your marketing efforts to build brand awareness and attract customers, fundamental for driving sales and growth in your franchise. How Much Does Chick-Fil-A Franchise Owner Make? As a Chick-Fil-A franchise owner, you can expect to earn an average annual income between $150,000 and $200,000. Your earnings depend on various factors, including your location and how effectively you manage your restaurant. Since Chick-Fil-A retains ownership of the property, you won’t build equity in the property itself, but the company provides extensive training and support to help you maximize profitability and succeed in the competitive fast-food market. Conclusion In summary, grasping the typical franchise buy-in prices is crucial for anyone considering this investment. You need to evaluate initial fees, ongoing expenses, and potential hidden costs to determine the total investment required. By carefully evaluating these factors and planning your finances, you can make informed decisions that align with your budget and goals. Thorough research and financial preparedness are fundamental steps in the successful maneuvering of the intricacies of franchise ownership and ensuring a profitable venture. Image via Google Gemini This article, "Typical Franchise Buy-In Prices" was first published on Small Business Trends View the full article

This week, the gaming community was abuzz with frustration, anger, and confusion over a supposed change in Sony's digital game policy. Reportedly, Sony was rolling out a new system, where digital games would need to connect to the internet once every 30 days in order to function as expected. When some players dug through a digital game's information page, they indeed found a timer, in the form of a "remaining time" deadline, stating how much time they had left before needing to connect to the internet again. If the player missed the deadline, they might lose access to the game, until they connect their PlayStation to the internet again. This is a pretty serious policy shift, and without confirmation from Sony, it sounded to me like a bit of internet speculation. After all, Sony once chided Microsoft for trying to implement the same policy back in 2013 (a policy Microsoft quickly ditched). But soon after, a PlayStation Support account confirmed the change to a customer, stating that the policy affected any digital games purchased after a March 2026 update, and that "The 30-day is a Valid Period and is not a sign of an account restriction or anything like that." Needless to say, gamers were pissed. Sony isn't making you connect to the internet once a monthThe good news, however, is this is not Sony's new policy—despite what one support staff member may have incorrectly asserted. After days of bubbling tensions over the issue, a Sony spokesperson finally made a public statement to GameSpot. It's true Sony is now requiring an internet check on digital games, but there's an important distinction: It only needs to happen once. Here's what the spokesperson said to GameSpot: “Players can continue to access and play their purchased games as usual. A one-time online check is required to confirm the game's license, after which no further check-ins are required." This is a huge difference in policy. Sony isn't threatening to block players who keep their PlayStations disconnected from the internet; rather, you need to confirm the license once, and you're free to play your games as you wish. If you're buying your games digitally, you're connected to the internet, which means this check likely happens at some point in that process anyway. Sony hasn't confirmed why this internet check is now necessary, but it's likely to do with piracy. It was possible to buy a game from the PS Store's website without downloading it to your console, copy the license file, then request a refund for the game. While Sony would remove the game from the customer's account, that user could take the license file to an illegal rip of the game, and, in effect, turn it into a "legit" title. Now, that license file won't activate until the game downloads to the console, and connects to Sony's servers. It's a good reminder to take internet rumors and discussions with a grain of salt, and to wait for official confirmation from a company when it comes to big policy shifts—even if a support page supposedly confirms the change first. PlayStation 5 (1TB) $624.99 at Walmart $499.99 Save 0.00 Shop Now Shop Now $624.99 at Walmart $499.99 Save 0.00 View the full article

If I had to name my Mount Rushmore of brands seen as quintessentially American around the globe, it would probably be Levi’s, Harley-Davidson, McDonald’s, and Budweiser. While there are an impressive number of iconic American brands—Apple, Coca-Cola, Nike, Google, Amazon, and Walmart among them—only a few have an identity that is also closely tied to the idea of “America” itself. So it should come as no surprise that Budweiser is tapping that identity to simultaneously celebrate America’s 250th, along with its own 150th anniversary. The brand just launched a new spot called “Great Delivery” to start its summer campaign that will also include limited-edition patriotic cans, and the Budweiser Clydesdales hitting the road to bring the mission of its non-profit partner Folds of Honor to communities across the country. Here we see Clydesdale-led wagons packed to the rim with beer making their way across the country to the wild shirtless lyrics, bong-rattling bass, and confident drumwork of Grand Funk Railroad’s “We’re an American Band.” Anheuser-Busch senior vice-president Todd Allen says the goal is to make this summer the most celebrated Budweiser has ever had. “Brands don’t turn 150 years old every year, and our anniversary lining up with America’s 250th birthday gives Budweiser a once-in-a-lifetime moment to celebrate,” says Allen. “When a brand has been part of the fabric of a country for more than half its history, a milestone like this isn’t just a marketing moment, but a chance to celebrate that shared heritage and the people who are part of it.” Allen is absolutely right, and given the occasion, Budweiser should be treating this entire year as one big Super Bowl. But if 2026 is particularly special, here’s hoping the generic look and feel of “The Great Delivery” is just the opening salvo in a summer of more inspiring work. Hot ‘MURICA Summer The year got off to such a great start for Budweiser at the Super Bowl, with the undeniably charming “American Icons,” featuring the budding friendship between a Clydesdale and a bald eagle. If the brand truly does see this year as more than a mere marketing moment, it needs to treat it as such. Sure, patriotic cans are cool, but also something the brand did in 2016 for its 140th anniversary. I’ve got my own Hot ‘MURICA Summer idea for Budweiser. Remember the brand’s epic 2017 Super Bowl spot “Born the Hard Way”? It was a 60-second version of the story behind company co-founder Adolphus Busch’s 1857 journey stateside from Hamburg, Germany, and meeting Eberhard Anheuser. Now that AB InBev has that significant deal with Netflix, let’s get a director like Peter Berg—a master of straddling both Hollywood and brand content—to helm a full-on miniseries based on that same story. One of the best ways to celebrate America today, amid an unprecedented level of political polarization, is to dip back into our shared history. This story has everything: an immigrant’s tale, the American West, the drama of entrepreneurship, and of course, beer. Hey, if they can do it for the House of Guinness, why not the King of Beers? View the full article

A recent Washington Post investigation described something called “degree hacking” — students racing through accredited online bachelor’s and master’s programs in weeks rather than years. One woman earned both degrees in 2024 for a combined cost of just over $4,000. Another completed 16 college courses in 22 days. A cottage industry of YouTube coaches and $1,500 consulting packages has sprung up to help people game the system. Academic officials are alarmed. Accreditors are saying they may investigate. Reddit moderators at one university forum have had to create a separate subforum to contain the conflict between regular students and speed-runners. I am not alarmed. I’ve been warning about exactly this dynamic for years. If anything, I’m surprised it took this long. We’ve known this was coming since at least 2018 Back in 2018, I wrote a piece I called “Breaking Up the Degree Stranglehold.” The core argument was straightforward: the four-year college degree had become a blunt instrument — a filter employers used to manage hiring volume, not a reliable signal of whether a candidate could actually do the job. Drawing on research by Harvard’s Joseph Fuller, I pointed out that 67% of production supervisor job postings at that time required a college degree, while only 16% of employed production supervisors actually held one. More than six million jobs were already experiencing what Fuller called “degree inflation.” We weren’t hiring for competence. We were hiring for a credential — and then confusing the two. The costs were enormous and fell hardest on people who could least afford them. Requiring a bachelor’s degree for entry-level work knocked out nearly 83% of Latino candidates and 80% of potential African American candidates. It drove students into debt to obtain credentials that were, in many cases, economically irrational proxies for skills employers weren’t even that sure they needed. The degree had become, as I wrote then, “a handy shortcut” — a one-click filter that reduced the hiring pile without requiring anyone to think harder about what the job actually demanded. The shortcut was always a stand-in Here is the uncomfortable truth at the center of the degree-hacking controversy: employers never really cared about the degree. They cared about what the degree was supposed to represent. What does a bachelor’s degree signal? Loosely, it suggests that a person can manage sustained effort over time, read and write with reasonable competence, show up reliably, and work within institutional structures. It also, especially at selective schools, signals that the candidate has been sorted against a competitive peer group. These are real things. They matter in the workplace. But they aren’t what we’re measuring when we issue a diploma. We’re measuring seat time, credit hours, and completion of a curriculum designed, at its core, around the research interests of faculty rather than the capability needs of employers. The degree is a contract between a student and an institution. The employer is a third party who has agreed, by convention, to treat it as meaningful. When a student completes an accredited competency-based program in eight weeks, they have fulfilled the terms of that contract. The institution says they have demonstrated competency. The credential is technically legitimate. And yet something that employers were treating as a proxy for three or four years of formation and signaling has been compressed into a fraction of the time. No wonder they’re worried. The shortcut just got a shortcut. Both sides are now weaponizing technology What’s happening here follows a pattern that anyone who studies technological disruption would recognize. When a system creates a scarce and valuable signal — in this case, an accredited degree — the people locked out of it will use whatever tools they have to obtain it or replicate it. And the people benefiting from its value will use tools to defend it. We are now in a full-scale arms race. On one side, job seekers are using online learning platforms, competency-based pathways, credit transfers, and AI-assisted coursework to obtain credentials at a fraction of the traditional cost in time and money. One of the students profiled in the Washington Post finished her undergraduate and MBA at Western Governors for under $9,000 — covered largely by her employer and a Pell Grant — while raising a six-year-old and holding a full-time job. She subsequently earned a promotion to a higher-paying role. For her, hacking the system worked. She was richly rewarded for it. On the other side, employers are increasingly turning to AI-powered resume screening, structured skills assessments, and work-sample tests — precisely because they’ve figured out that the degree doesn’t reliably deliver what they thought it did. LinkedIn’s skills-based hiring tools, HireVue’s competency assessments, and a wave of pyschometric screening products are all essentially employers trying to get to the signal underneath the credential. Both sides are making rational choices. The system in between — the degree as a trusted proxy — is being hollowed out from both ends simultaneously. Purdue Global saw the problem clearly enough to stop allowing unlimited concurrent enrollments in its ExcelTrack program in January, citing concerns about “academic integrity and the value of a Purdue Global degree.” That’s one institution trying to defend the signal. But unless most institutions align around a similar standard, individual holdouts simply divert traffic to schools that don’t impose limits. This is a collective action problem, not an individual institutional one. The real fix is hard and nobody wants to do it The degree-hacking phenomenon will not be resolved by accreditors issuing stern inquiries, or by universities capping enrollment speeds, or by hiring managers adding another screening filter. It will persist until we do something genuinely difficult: reconnect what educational institutions actually certify with what employers are genuinely confident represents mastery. Right now, those two things are almost entirely decoupled. An accredited degree certifies that a student completed a curriculum designed by people whose primary professional incentive is research output, not employer-relevant skill formation. The accreditor certifies the institution’s process, not the student’s capability. The employer uses the resulting credential as a signal for things nobody in the chain actually measured directly. What would a real fix look like? It would require employers to define, with much greater specificity, what capabilities they actually need — and to be willing to assess those capabilities directly, rather than outsourcing the work to universities. It would require universities to design curricula around demonstrable competencies, not credit hours. It would require accreditors to evaluate whether graduates can actually do things, not merely whether the faculty had the right publications record. It may even mean changing the nature of incentives at universities to reward transfer of capability to students at least as much as being cited by academic peers. Some of this is happening. Competency-based education, when done rigorously, is a step in the right direction. So is the growing use of employer-designed certifications — think of how Google’s professional certificates have gained traction — and apprenticeship models that keep the learning tethered to real work. But “a step in the right direction” is not the same as a functioning system. Until we establish credible, widely accepted mechanisms for certifying that a student has reached a meaningful level of mastery in something specific — and until employers trust those mechanisms enough to hire against them — we will keep running this same race. The students degree-hacking their way through online programs aren’t the problem. They are a symptom. The problem is a credential infrastructure that was always a proxy, pretending to be a signal. View the full article

A new integration between Constant Contact and Canva promises to streamline marketing efforts for small businesses. Small business owners can now create eye-catching designs in Canva and immediately push those designs into their marketing campaigns with Constant Contact, making the process smoother than ever. This partnership was announced during the Canva Create event and aims to assist small businesses and nonprofits in effectively managing their marketing campaigns across several platforms, including email and social media channels like TikTok, Instagram, Facebook, and LinkedIn. With this integration, users can accomplish tasks like designing, scheduling, and automating campaigns from within a unified platform. Lee Ott, Chief Product and Growth Officer at Constant Contact, emphasized the significance of this integration: “When you can go from a great design to a campaign that gets you seen by your customers across email and every major social channel in one click, that’s not just a better experience. That’s a real competitive advantage for the businesses that need it most.” One-click convenience is a game-changer for busy entrepreneurs who juggle multiple responsibilities. Instead of downloading and re-uploading designs, business owners can now seamlessly transition their Canva creations directly into Constant Contact. This saves precious time and reduces the potential for errors. Brand assets in Constant Contact remain synced with Canva, ensuring that all materials are easy to access. Roger Coles, a Canva Verified Expert and Corporate Trainer, noted this time-saving aspect: “If you’re handling your own marketing, every minute matters. Previously, spotting one tiny typo meant 20 minutes disappeared in a cycle of downloading and re-uploading. This integration changes that, giving those 20 minutes back to the business owner.” Small businesses represent a significant segment of the market for both companies. The integration requires no extra costs; businesses can start using it without incurring additional charges, making it accessible for those with tight budgets. Existing and new Constant Contact users can connect their accounts at no additional cost, and new users can sign up for a free trial with no credit card required. This integration allows not just for publishing but also for managing campaigns. It offers built-in reporting, enabling users to track their performance across all channels. Entrepreneurs can select the social platforms they wish to share on directly from the Canva interface, and then let Constant Contact manage the delivery and scheduling. However, as with any new technology, small businesses may face challenges. Those unfamiliar with either tool may need time to adapt to the integration. Understanding how to maximize this partnership will require thoughtful planning, such as determining the best types of content for different channels. Additionally, while the integration offers a host of features, businesses need to ensure that they have a strategic approach to their social media presence and email marketing. The integration also prompts a reflection on how to manage brand identity across platforms, especially if a business is not currently utilizing Constant Contact or Canva. Small business owners might want to assess their existing marketing tools and develop a comprehensive strategy that aligns with their goals. With this new integration, Constant Contact and Canva stand poised to give small business owners the tools they need to enhance their marketing efforts while saving time and effort. This advancement represents both a simplification of the design-to-publish process and an opportunity to elevate brand visibility across various platforms effectively. For more information, you can read the full press release at Constant Contact’s news page. Image via Google Gemini This article, "Constant Contact and Canva Team Up to Streamline Marketing for Small Businesses" was first published on Small Business Trends View the full article

A new integration between Constant Contact and Canva promises to streamline marketing efforts for small businesses. Small business owners can now create eye-catching designs in Canva and immediately push those designs into their marketing campaigns with Constant Contact, making the process smoother than ever. This partnership was announced during the Canva Create event and aims to assist small businesses and nonprofits in effectively managing their marketing campaigns across several platforms, including email and social media channels like TikTok, Instagram, Facebook, and LinkedIn. With this integration, users can accomplish tasks like designing, scheduling, and automating campaigns from within a unified platform. Lee Ott, Chief Product and Growth Officer at Constant Contact, emphasized the significance of this integration: “When you can go from a great design to a campaign that gets you seen by your customers across email and every major social channel in one click, that’s not just a better experience. That’s a real competitive advantage for the businesses that need it most.” One-click convenience is a game-changer for busy entrepreneurs who juggle multiple responsibilities. Instead of downloading and re-uploading designs, business owners can now seamlessly transition their Canva creations directly into Constant Contact. This saves precious time and reduces the potential for errors. Brand assets in Constant Contact remain synced with Canva, ensuring that all materials are easy to access. Roger Coles, a Canva Verified Expert and Corporate Trainer, noted this time-saving aspect: “If you’re handling your own marketing, every minute matters. Previously, spotting one tiny typo meant 20 minutes disappeared in a cycle of downloading and re-uploading. This integration changes that, giving those 20 minutes back to the business owner.” Small businesses represent a significant segment of the market for both companies. The integration requires no extra costs; businesses can start using it without incurring additional charges, making it accessible for those with tight budgets. Existing and new Constant Contact users can connect their accounts at no additional cost, and new users can sign up for a free trial with no credit card required. This integration allows not just for publishing but also for managing campaigns. It offers built-in reporting, enabling users to track their performance across all channels. Entrepreneurs can select the social platforms they wish to share on directly from the Canva interface, and then let Constant Contact manage the delivery and scheduling. However, as with any new technology, small businesses may face challenges. Those unfamiliar with either tool may need time to adapt to the integration. Understanding how to maximize this partnership will require thoughtful planning, such as determining the best types of content for different channels. Additionally, while the integration offers a host of features, businesses need to ensure that they have a strategic approach to their social media presence and email marketing. The integration also prompts a reflection on how to manage brand identity across platforms, especially if a business is not currently utilizing Constant Contact or Canva. Small business owners might want to assess their existing marketing tools and develop a comprehensive strategy that aligns with their goals. With this new integration, Constant Contact and Canva stand poised to give small business owners the tools they need to enhance their marketing efforts while saving time and effort. This advancement represents both a simplification of the design-to-publish process and an opportunity to elevate brand visibility across various platforms effectively. For more information, you can read the full press release at Constant Contact’s news page. Image via Google Gemini This article, "Constant Contact and Canva Team Up to Streamline Marketing for Small Businesses" was first published on Small Business Trends View the full article

Mojtaba Khamenei says Iranians will defend their nuclear capabilities as a ‘national asset’View the full article

Electric bills are rising in Ann Arbor, Michigan, just like in other cities. But a new city program is starting to install city-owned solar panels and batteries at homes, a move that could save some residents hundreds a year. The first projects are underway now. For residents, it’s a way to get the benefits of solar without the upfront investment. “Any other way, I couldn’t afford to do it,” says Bruce Schauer, age 80, who saw the advantages of adding solar panels and a battery, but wouldn’t have gotten a system otherwise. After his system is installed in the next couple of weeks and starts sending power to his home, he expects to save around $400 a year on his electric bills. “I’ve looked into solar in the past, but the upfront cost is huge,” says Myles Burchill, another resident who will get a system added in the coming weeks. “I would have loved to do it as soon as we moved in. With this opportunity, we don’t own the panels, but we get the benefits of paying lower rates. And if we don’t use all the electricity, the potential for [the local utility] to pay us.” The installations are happening first in a pilot in Ann Arbor’s lower-income Bryant neighborhood, where around 150 homes will add solar and batteries this year. The program will scale to around 1,000 homes next year, and then several thousand per year after that. The pilot is the first step for the city’s new Sustainable Energy Utility, which aims to speed up the grid’s transition to renewable energy. “It’s bringing clean, affordable and resilient energy to residents quickly who need it the most, and who’ve traditionally been left out of the energy transition,” says Shoshannah Lenski, executive director of the Sustainable Energy Utility, also known as A2SEU. Ann Arbor realized that by creating its own power company, it could add clean energy faster than the existing local utility, DTE Energy. DTE doesn’t plan to reach 100% clean energy until 2050 (and includes gas in its definition of “clean”). Instead of building large-scale wind and solar projects—which typically take several years to get approval and be built—the city also realized that it could more quickly create a distributed network of rooftop solar, batteries, and geothermal power throughout neighborhoods. As the program scales up, by buying equipment in bulk, it can negotiate lower costs. (For the pilot, solar panel and battery costs are being covered by a grant.) The city hopes to also negotiate lower costs with installers, who will be able to efficiently work on several homes in a neighborhood at once and avoid marketing costs, since the city will deliver customers. The city can also save on financing. “We can use municipal financing, with its lower cost of capital, to take on debt to install these systems,” says Lenski. Residents who sign up still have accounts with DTE. But the solar panels on their roof will cover their electricity needs first, sending extra power into the batteries for use at night and in cloudy weather. Any extra solar power after that can be sold back to DTE. In some cases, the system may cover nearly all of a household’s energy use. In other cases, it will just shrink the amount of power drawn from the grid. In the pilot, the city utility will charge a flat rate of $75 a month for the service from April to September, when it’s sunniest, and $25 a month over the fall and winter. Since the equipment is owned by the city, there’s no upfront cost. Residents will get solar without adding to their electric bills, and many may end up paying less in total. They’ll also get battery backup if the grid goes down, which has a financial value. “Maybe two, three times a year the power goes out,” says Schauer. “Last year, we lost $250, $300 worth of food.” DTE has raised its rates repeatedly in recent years, and proposed another $474 million rate hike on April 28, two months after its last 4.6% increase went into effect. The utility’s power rates per kilowatt-hour are the highest in the Midwest. While those rates go up, the city is offering guaranteed rates for the next four years. “Relying on renewable energy only, the A2SEU rates will never be subject to the volatility of fuel prices,” Lenski says. The approach is unique, but the city gets calls every week from other communities that are now being to consider doing something similar. “Part of the fun and part of the challenge is that we’re having to write our own playbook as we go,” she says. “We’re really hoping to do this in a way that we can document our learnings and share those with other communities that may want to follow in our footsteps.” View the full article

Growth in retained and investment portfolios drove gains as the government-sponsored enterprise reported the highest refinancing share seen in four years. View the full article

We may earn a commission from links on this page. With fine central chemistry, a sense of humor, and interesting things to say about the challenges of interfaith romance, Nobody Wants This has been a rom-com hit for Netflix, with a third season coming this year. The world may be a cesspit, but we still love love—at least on TV, and not only on the Hallmark Channel. With that in mind, here are 15 more streaming shows that deal with romance (exclusively) and comedy (mostly), all filled with will-they/won't-they suspense and wildly shippable characters. Fleabag (2016 – 2019) This critical favorite stars Phoebe Waller-Bridge as the title character (she's only ever referred to as "Fleabag") in a comedy-drama about a free-spirited, deeply angry single young woman in living in London and sharing her romantic ups and downs via confessional asides to us, the audience. She falls, rather reluctantly, for "The Priest" (Andrew Scott)—she's a confirmed atheist and he's, obviously, not, so it's a bit like Nobody Wants This but messier. Waller-Bridge won separate Emmys as the star, creator, and writer of the series. Stream Fleabag on Prime Video. Fleabag (2016 – 2019) at Prime Video Learn More Learn More at Prime Video Crash Landing on You (2019) That title isn’t just a metaphor: This Korean series involves a literal crash landing into the North side of the Korean Demilitarized Zone. Yoon Se-ri (Son Ye-jin) is an heiress and independent business owner whose complicated relationships with her family have caused her to step away from them. On a paragliding trip, a tornado sends her north, and she’s rescued from disaster by a captain in the North Korean Special Police Force. The romance between two characters, as well as the sensitive and humane portrayal of life in the North, made this a mega-hit on South Korean TV, and a fan fave worldwide. Stream Crash Landing on You on Netflix. Crash Landing on You (2019) at Netflix Learn More Learn More at Netflix Catastrophe (2015 – 2019) A family sitcom that feels far more believable than most, this British import sees Irish primary school teacher Sharon (Sharon Horgan) hooking up with American ad exec Rob (Rob Delaney) over the course of a week, only to discover that she's pregnant once he returns home. They don't really have feelings for each other, but decide to give a go at being a couple, eventually falling into marriage just before the birth of their child. There are lots of jokes and plenty of acerbic dialogue, but this isn't Married... with Children. Sharon and Rob can be a bit nasty, to each other and to their sloppy friend group, but there's also something rather sweet in the show's conviction that having someone to be a mess with can be one of life's great joys. Stream Catastrophe on Prime Video. Catastrophe (2015 – 2019) Learn More Learn More Younger (2015 – 2021) Younger follows Liza Miller (Sutton Foster), a recently divorced woman in her 40s who finds that age is a barrier to reentering the publishing industry she left years earlier. After a compliment convinces her that she could pass for a younger woman (poor thing), she manages to convince the right people that she's just 26 in order to land an entry-level job. Seven seasons of misadventures ensue, but much of the show revolves around the twisty-turny relationship between Liza and Josh (Nico Tortorella), a tattoo artist in his twenties. Stream Younger on Netflix. Younger (2015 – 2021) at Netflix Learn More Learn More at Netflix Normal People (2020) OK, not so much with the comedy here. This one comes from Sally Rooney's smart, bestselling novel about the appropriately steamy coming-of-age romance between Marianne (Daisy Edgar Jones) and Connell (Paul Mescal), characters and actors with impressive chemistry. She's rich but lonely, he's popular but the son of the housekeeper. As time goes on and their roles start to shift, life and love only grows more complicated. The plot isn't groundbreaking, but there's an uncommon intelligence here, as well as a frankness about sex and sexual violence that sets it apart. Stream Normal People on Hulu. Normal People (2020) at Hulu Learn More Learn More at Hulu It’s Okay to Not Be Okay (2020) Discussions around mental health remain fraught most anywhere in the world, and South Korea is no exception. Though opportunities for treatment are better than in many other places, social stigma remains a problem. Which is part of the reason Jo Yong and Park Shin-woo’s miniseries was such a sensation when it was released last year: Writer Jo based the show on her own life, plus a good bit of research. The show chronicles the slow-burn romance between Moon Gang-tae (Kim Soo-hyun), a health care worker living with his autistic brother, and a famous children’s book author (Seo Yea-ji) with antisocial personality disorder. It’s lovely, frequently quite funny, and was popular enough in South Korea to inspire a series of children’s books based on the work of the show’s fictional writer. Stream It’s Okay to Not Be Okay on Netflix. It’s Okay to Not Be Okay (2020) at Netflix Learn More Learn More at Netflix The Lovers (2023) Janet (Roisin Gallagher) is a deeply cynical, foul-mouthed supermarket employee. Seamus O’Hannigan (Johnny Flynn) is a very mildly famous, but incredibly self-involved TV presenter with a nice girlfriend. Given the title of this British comedy, you won't be surprised to learn that the mismatched pair fall in lust almost immediately, the indifferent Janet pricking Seamus' considerable ego in a way that seems to work for him. The relationship is prickly, but the chemistry here is palpable. Stream The Lovers on Prime Video. The Lovers (2023) at Prime Video Learn More Learn More at Prime Video Sex Education (2019 – 2023) There’s a fair bit of sex on TV (having migrated from the now largely sexless movies), but that’s not the same thing as sex positivity. In this British comedy-drama, Asa Butterfield and Gillian Anderson star as an insecure, shy teenager named Otis and his mother, Jean, a frank and sometimes painfully honest sex therapist. When a school bully needs some sex advice, Otis dispenses some of the wisdom he’s picked up from mom, eventually making a name for himself around school by selling his knowledge as expertise. It’s a funny and charmingly raunchy show, treating sex with humor and positivity, and features a great will-they-or-won't they couple in awkward Otis and the more fearless Maeve (Emma Mackey). Stream Sex Education on Netflix. Sex Education (2019 – 2023) at Netflix Learn More Learn More at Netflix Heated Rivalry (2025 – ) You've probably heard the buzz about this one: Shane Hollander (Hudson Williams) and Ilya Rozanov (Connor Storrie) are professional ice hockey players who compete on rival teams, the Montreal Metros and the Boston Raiders. Even as their public relationship remains contentious over a period of years, the two develop a casual (at least at first) sexual relationship that grows increasingly sweaty, ice notwithstanding. (If you want to narrow your recommendations to more shows like Heated Rivalry, we've got a list for that too—along with the books, movies, and video games to explore next.) Stream Heated Rivalry on HBO Max. Heated Rivalry (2025 – ) Learn More Learn More The End of the F***ing World (2017 – 2019) In this extremely unlikely, pitch-dark romantic comedy, James (Alex Lawther) is a budding self-proclaimed psychopath dreaming of killing a person for the first time. He decides on rebellious classmate Alyssa (Jessica Barden), and sets off with her on a road trip across England in order to work his way into her good graces first. It doesn’t work out the way he plans, not even a bit. You’ll finish the first season satisfied and convinced another isn’t necessary, and then be amazed as the second manages to top it. Listen: Sickos can enjoy rom-coms, too. Stream The End of the F***ing World on Netflix. The End of the F***ing World (2017 – 2019) Learn More Learn More The Good Place (2016 – 2020) Not a rom-com, at least not primarily, but there is nonetheless a strong romantic throughline in the relationship between central characters Eleanor Shellstrop (Kristin Bell) and Chidi Anagonye (William Jackson Harper), who are both...deceased. The show is set in an idyllic afterlife run by Ted Danson's immortal Michael, and Eleanor and Chidi are meant to be soulmates—except that rude, crude, and selfish Eleanor was mistaken for another woman, and assigned to the wrong place and the wrong soulmate. To avoid disaster, the two have to fake their love until it starts to become something a bit more real. Stream The Good Place on Peacock, Prime Video, and Hulu. The Good Place (2016 – 2020) at Peacock Learn More Learn More at Peacock Emily in Paris (2020 – ) Lily Collins stars as the faux pas-prone Emily Cooper, who moves to Paris and lands a temporary job at a glitzy French marketing firm kind of by accident. She doesn't speak the language and doesn't get the culture, but slowly manages to ingratiate herself to the locals while juggling work and a romance with Lucas Bravo's Gabriel. The series hails from Darren Star, creator of Sex and the City, so her budding high-fashion sense and tendency to narrate adventures à la Carrie Bradshaw make perfect sense. Stream Emily in Paris on Netflix. Emily in Paris (2020 – ) at Netflix Learn More Learn More at Netflix Modern Love (2019 – 2021) The theme of this series is, mostly, New York City—it's a genuine anthology with rom-com leanings, with episodes dealing with dating apps, mental illness, romance among older couples, etc., with each telling an entire story inspired by the New York Times column of the same name. Tina Fey, Julia Garner, Andrew Scott, Sophie Okonedo, Anne Hathaway, Dev Patel, and Cristin Milioti are just some of the performers who appear across the show's two seasons. If you get sick of NYC, Prime also has five spin-offs set in cities around the world (Hyderabad, Chennai, Tokyo, Amsterdam, and Mumbai). Stream Modern Love on Prime Video. Modern Love (2019 – 2021) at Prime Video Learn More Learn More at Prime Video Heartstopper (2022 – ) Repressed yearning is all well and good, but Heartstopper is the affirming high school/coming-of-age/queer teen love story we all kinda need right about now. While it never soft-pedals the dangers of homophobia, it likewise doesn’t wallow in tragedy. Kit Connor and Joe Locke deliver sensitive (and often very funny) performances in a show that’s nearly all smiles without feeling treacly. Stream Heartstopper on Netflix. Heartstopper (2022 – ) at Netflix Learn More Learn More at Netflix With Love (2021 – 2023) Last, but not least: Gloria Calderón Kellett (One Day at a Time) created this series that follows four couples at once, making for an excellent and very efficient use of your romantic-comedy screen time. At the center of the show is the large and tight-knit Diaz family lead by Lily (Emeraude Toubia) and her brother Jorge (Mark Indelicato), each of whom faces romantic entanglements across an entire year in each of the show's two seasons, with each episode involving a holiday starting with an eventful Nochebuena. Some of the storylines hit harder than others, but this sweet, funny show hits way more than it misses. Stream With Love on Prime Video. With Love (2021 – 2023) at Prime Video Learn More Learn More at Prime Video View the full article

The soccer coach had blocked himself from sportsbooks by the time he found prediction markets. The tax accountant said he “got the same high” on those platforms that he got from gambling. “That was how I relapsed — with Kalshi and Polymarket. I lost a bunch of money.” The rapid growth of prediction markets has sparked a high-stakes debate that is playing out in courts and legislatures all over the country. Operators of those companies believe they should be regulated like the stock exchange because of federal law and their customer-to-customer structure, while sportsbooks and state officials think they should be supervised the same way as sports gambling platforms. While that argument continues with no sign of resolution, the clinicians who treat gambling disorders are more concerned about what they are seeing with their patients. In their spaces, when it comes to sports gambling and prediction markets, the end result is virtually the same. Two gambling addicts who spoke to The Associated Press — the soccer coach and tax accountant — say they had relapses on prediction markets after they took legal action to protect themselves from the allure of sports betting. They are being identified by their occupations because of the sensitivity of their situations. Their stories reflect what experts say they see with some of their clients. “There may be real differences in how these products are defined or regulated, but in the therapy room, we are often seeing the same cycle of anticipation, action and reaction play out again and again,” said Dr. Cynthia Grant, the vice president of clinical for Birches Health, which operates a national network of providers for treating gambling addiction. “I sometimes think of it like different doors into the same room. The label on the door may change, but once someone’s inside, the experience can feel very familiar.” The road from sportsbooks to prediction markets Sportsbooks and prediction markets offer a lot of similar options. Wagers on games, individual performances and other possibilities. But the format is different. Sportsbooks have in-house experts who set odds that dictate payouts for winning bets. It’s the house versus the gamblers. Traders on predictions markets swap contracts of yes-or-no questions, and profits and losses are dictated by the market. Win a “yes” holding on an event contract where most of the market guessed “no,” and the payout is bigger. Prediction markets generally make money through fees on contracts. For addicts, they are two paths to the same result. The soccer coach who spoke to the AP started gambling when he was 16. Small bets against friends in his New York neighborhood, everything from cards to basketball and tennis. When he turned 18, he started going to casinos and making bets at sportsbooks. Amid mounting losses, he turned to prediction markets. “I would be in all this debt and get a paycheck for $2,000 on a Friday and it would be gone by Saturday or Sunday,” said the coach, 21. “I wouldn’t have money to fill up my gas tank.” He was struggling with loans and maxed-out credit cards while working and going to college before he stepped away in January to confront his addiction problems, which also included smoking marijuana. He joined Gamblers Anonymous, and he was told he had to stop associating with people who gamble. “For a younger crowd, that’s difficult because it’s everywhere,” the coach said. “My friends from childhood — most of them all gamble.” The coach and the tax accountant had formally self-excluded from sportsbooks before they started trading on prediction markets. Self-exclusion programs provide an opportunity for gamblers to ban themselves from gambling facilities and betting apps. They are offered in many states as part of gambling regulations, but there is no widely adopted national system. The landscape for self-exclusion programs becomes even more fragmented when predictions markets are included. Kalshi started a voluntary opt-out program when it launched a customer protection hub in March 2025, and it’s one of several platforms — including Polymarket — collaborating on a national self-exclusion program for prediction markets. But it’s not clear if that program would ever overlap with the systems used by state gambling regulators. The accountant, 33, said his gambling problems started after New York launched legalized mobile sports betting in January 2022. He had “a boatload of debt” in August 2023 when he told his then-fiancée about what was going on with him. She married him anyway. Looking to save money after the wedding, they moved into a rental house owned by his parents. He self-excluded from sportsbooks. Then, after the couple lost their first pregnancy, the accountant started day-trading before signing up for Kalshi. “Prediction markets are the same thing packaged in a different way,” the accountant said. “It’s a dangerous loophole. … How can you do all that and say you’re not a sportsbook?” Tennis was his go-to sport — he liked the speed of the matches — before he went to rehab in Virginia last year. He had a relapse in December when he downloaded Polymarket and made a free $10 wager. He was confronted by his wife, who had his email connected to her phone and reached out to his sponsor. While there has been no substantive research into the effect of prediction markets on sports gambling addiction, the experiences of the coach and the accountant are not uncommon for treatment experts. “You’re seeing a lot of the same behaviors, whether it’s a prediction market or it’s gambling,” said Jody Bechtold, the CEO of The Better Institute, a Pennsylvania practice that works with people impacted by gambling disorders. “You’re seeing, you know, wagering more and more. Chasing losses, so ‘Oh, today was a bad day, I have to work tomorrow at the prediction markets to get my money back.’ … The lies, the secrecy, and that it’s impacting everyday life.” Kalshi spokeswoman Elisabeth Diana highlighted its programs for responsible trading — such as trading breaks and self-limits — and said it’s working on other measures to further facilitate healthy trading behavior. Compared to casinos, Diana said, Kalshi is “fairer, more transparent, and less predatory.” “There is no house that wins when customers lose,” she said. “This means that Kalshi doesn’t hook losers and penalize winners.” A message was left seeking comment from Polymarket. Event contracts are increasingly popular on prediction markets Sports have become a major category for prediction markets. Kalshi had more than $2 billion in total trading volume on this year’s NCAA men’s basketball tournament, according to Diana. Michigan’s 69-63 victory over Connecticut in the championship had $10.6 million in volume on Polymarket. The U.S. market for sports-focused event contracts could grow to approximately $1.1 trillion in annual volume, according to a Bank of America report. “A year ago, if you said prediction markets, I mean I don’t know what that is, I don’t see it,” said Dr. Timothy Fong, the co-director of the UCLA Gambling Studies Program. “Now we’re starting to see it more and more in our patients that come into the clinic. And it’s usually not one, it’s multiple platforms they’re betting on, right? … When you have something that’s available, that’s accessible, that’s anonymous, is super easy to use, multiple times in a day, of course that’s going to raise the risk of addiction for any human on Earth.” There are multiple ongoing lawsuits involving states and prediction markets, and the ramifications of the legal dispute are being felt on a variety of levels. Marlene Warner, the CEO of the Massachusetts Council on Gaming and Health — a private nonprofit health organization that provides educational programs on gambling along with other services — said the situation with prediction markets “feels a bit like the wild, wild west right now.” “We’re very used to like going to our state regulator or, you know, seeing a process go through where all of a sudden now you’re like, ‘OK, a piece of legislation has outlined what is appropriate for a licensed sports betting operator to do,'” Warner said. “And then you see the regulation come into place. And so you can track it. But right now, nobody knows kind of what the limits are.” In most states with legal sports gambling, it is limited to ages 21 and older, while prediction markets are open for 18- to 20-year-olds with some exceptions. Prediction markets also have a presence in states where sports betting is illegal, including Texas and California. “I don’t know enough frankly, we don’t know enough, nothing’s been studied about them, I can’t tell you whether they’re more less or exactly the same in terms of risk level,” Warner said. “But what I do know is they’re in a very gray, unregulated space and that alone makes it difficult.” Prediction markets fall under the jurisdiction of the federal Commodity Futures Trading Commission, which has a regulation that prohibits an event contract “that involves, relates to, or references terrorism, assassination, war, gaming, or an activity that is unlawful under any state or federal law.” CFTC chairman Michael Selig is backing prediction markets in their legal proceedings against several states, asserting the commission’s “exclusive jurisdiction over these markets.” While that argument continues, the soccer coach and tax accountant are rebuilding their lives — while doing their best to stay vigilant with their addictions. “You have to face this stuff or it just keeps getting worse,” the coach said. AP sports: https://apnews.com/sports The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism. —Jay Cohen and Cora Lewis, Associated Press View the full article

In this political climate, corporate sustainability initiatives are not always a popular topic of conversation. But even though they are less visible, with companies greenhushing, sustainability commitments and actions are continuing—and in some cases growing. We asked our Fast Company Impact Council members how their approaches to sustainability have changed in the last year. Six leaders shared positive changes and thoughtful tactics their companies were taking. Some efforts are internal, some are external. But all are intentional. 1. B CORP CERTIFICATION We achieved B Corp certification last year for our Philadelphia location, which was a culmination of 15 months of work to improve every aspect of our business to align with positive environmental and social impact. In that process, we developed clear metrics and measurement methodologies around waste and emissions reduction and codified community engagement initiatives. — Bo Zhao, Baby Gear Group 2. SUSTAINABLE CONFERENCE Engage for Good’s annual conference is our biggest event and we’ve tried to make sustainability a series of practical choices rather than a slogan. We’ve moved away from printed agendas in favor of digital materials through our event app, encouraged speakers to share resources electronically, and worked with venues that prioritize water conservation and other sustainability efforts. Even small decisions, like offering strong vegetarian options, can meaningfully reduce the footprint of a large event. — Muneer Panjwani, Engage for Good 3. EXTERNAL APPROACH Our company was founded 75 years ago on a commitment to be forever 100% PVC-free. So in many ways there’s been no change internally, as we continue to champion more sustainable practices as the foundation of who we are. What has changed is our external approach. We’ve evolved our focus to creating and being part of industry-wide coalitions to raise awareness and promote education on the built environment’s significant impact on our ecosystem, inspiring tangible change and action on a wider scale. — Gordon Boggis, Carnegie 4. EMBED SUSTAINABILITY INTO OPERATIONS We’ve shifted from treating sustainability as a standalone initiative to embedding it into how we actually work. Being 100% remote, our globally-distributed team operates across time zones by design, which means less travel, fewer offices, and a delivery model that’s inherently lighter. The focus now is on removing waste from every process rather than layering sustainability on top of existing ones. — Peter Smart, Fantasy 5. BETTERMENT INTELLIGENCE We have evolved beyond passive sustainability toward what we call “betterment intelligence.” In the past year, we’ve integrated AI-first tools to simulate the long-term social impact of branding decisions before they are executed. As a Certified B Corp with a record score of 110.4, we no longer view sustainability as a departmental initiative, but as the primary standard of brand survival. Whether it’s branding the first smart farm in Mongolia or metropolitan identities in Busan, South Korea, our approach now demands that commercial success and social betterment are mathematically inseparable. — Sooyoung Cho, the bread and butter brand consulting LLC 6. COMMUNICATION AND TIMELY TOOLS In light of AI’s impacts on sustainability, we’ve reinforced actions to take a firmer stance and communicate this to employees and clients. We invested in local hardware to run as much of our generative platforms as possible. With full control, we closely monitor usage and right-size it for our 1,250-person firm. We’re also investing more in our sustainability and resiliency center as a growth engine, paired with responsible design including eco-friendly water re-use systems for data centers. It’s about being responsible, balanced, and providing timely tools while driving stewardship. — Mike Sewell, Gresham Smith View the full article

It’s not just you. Workplace stress is at a breaking point and starting to manifest in some alarming ways. Overstressed workers are now crying, having panic attacks, and even using substances to cope with work stress while on the job in strikingly high numbers. A new report from Modern Health, a mental health platform offered as an employee benefit, surveyed on a random sample of 1,000 workers at companies of 250 or more employees. It found that employees are deeply stressed, feel largely unsupported, and that it’s all bubbling over to the point that it’s impacting their behavior at work. For many workers, AI fears are driving their stress levels. Two-thirds say AI has raised the bar in terms of what’s expected of them day-to-day and 64% say their stress has ticked up as a result. One in four employees say that AI is actually harming their mental health. The stress is changing the way employees show up at work: 63% report using alcohol, THC, or prescribed pharmaceuticals to unwind once they are home for the day. A staggering 52% said they’ve used substances at the office over the past year. Employees are also having more meltdowns than they did just a year ago. Per the report, 51% of employees said they’ve cried at the office within the last 30 days alone. That’s up 12 points from last year’s survey. Likewise, 52% say they’ve experienced an anxiety or panic attack at work. Often, this is the result of employees feeling bogged down with work but unable to set boundaries or take breaks. Case in point, 72% said they felt pressure to work through their mental health strains (up 10 points from the previous year). The same number said their employer prioritizes productivity over wellbeing. And over half (57%) said they felt pressure to respond to work messages outside of work hours. When employees feel like they can never log off, the lines between what they bring home and what they bring back to work get very blurred. As such, workplace stress is reshaping behavior in ways employers can’t afford to ignore. View the full article

In the basement of an Emack & Bolio’s ice cream shop in Midtown Manhattan, six batteries—each about the size of a toaster oven stood on its side—are plugged into the wall, connected right to the breaker box. Those batteries will charge during off-peak electricity times, when power is cheap. When energy demand increases and power prices go up, the batteries will discharge, keeping the freezers running and lights on while cutting the business’s utility costs. The batteries are from David Energy, a New York City-based startup energy provider. David Energy provides batteries to businesses for free, and then uses its software platform to manage when they draw and discharge power. It’s a unique solution that has the potential to lower businesses’ electricity bills while also easing overall demand on the power grid, which makes it more reliable for everyone. An aging grid increases costs David Energy’s ultimate mission is to have a power grid that runs 100% on clean energy, but especially in a city like New York, not every building, business owner, or tenant can access solar power directly. In the meantime, plug-in batteries—which can connect to a standard wall outlet and don’t require any electrical work to get up and running—can be an easy, low-lift solution to reduce energy demand and decarbonize a business’s operations. “The grid is aging, and a big reason why [utility] bills are going up is the infrastructure itself,” says David Energy cofounder and CEO James McGinniss. “More than half of most of our customers’ bills is just the cost of delivering the power, and we want the grid to continue to be reliable while still being affordable.” Over the last five years, electricity costs in New York have gone up nearly 37%, according to the Chamber of Commerce. For business owners who have felt that squeeze, David Energy promises at least a little relief. “We promise a customer that we will charge them less than what they would have paid the utility had we not been their supplier, as long as we can install on-site, plug-in batteries,” McGinniss says. “That value proposition to the customer is ultimately saving money on their power bills.” The company says it’s consistently delivering about 5% savings to customers, though that can vary based on power demand. Depending on the size of the storefronts, and how many locations a business has, that could mean hundreds to thousands of dollars off their electricity bills annually. Easing strain on the power grid Emack & Bolio’s only received the batteries a few weeks ago, and so hasn’t been able to track savings yet. But owner Neil Glaser is excited about the potential savings, especially in the summer. Glaser also likes the climate benefit. He also owns a Brooklyn location of the ice cream chain that has solar panels, but the Manhattan location lacked enough sunlight to make that tech viable. “We’re very green oriented, and always have been,” he says. “We’re always looking at ways to draw less from the grid and cut our energy costs, because we have freezers running 24/7.” Before being contacted by David Energy, Glaser hadn’t known personal plug-in batteries were an option. New York City fire and building codes prevent small buildings from having their own solar batteries, like a Tesla Powerwall, but plug-in batteries skirt those complexities. Plug-in batteries only power the store directly; they aren’t large enough to export power to the grid. But they can still provide broad grid benefits. When demand peaks, particularly during hot summer days, utility provider Con Edison often asks customers to lighten their electricity use and turn off appliances to ease the strain on the grid. If businesses can shift their power needs to plug-in batteries, that means less of a chance for a blackout—which is always a big concern for an ice cream store, Glaser notes. The potential of plug-in batteries and solar David Energy’s small batteries fit easily into cramped New York City retail spaces. And again, because they just plug into the wall, there’s no landlord approval needed. If a business closes or moves, the startup can collect the battery and install it somewhere else. The battery program launched in December 2025, and already David Energy has more than 1,000 batteries (representing more than 2,000 kilowatt hours of power) contracted with customers, with hundreds already installed and connected. Those batteries are dispersed among more than 80 customers (many of which have multiple batteries on site) spanning all sorts of retail businesses—restaurants, gyms, coffee shops, spas, and soon, laundromats. Big chains like Domino’s, Beard Papa’s, and Barry’s, and local ones like Black Seed Bagels, are among David Energy’s customers. In the future, David Energy hopes to provide solar to customers as well, but McGinniss is still excited about the potential of plug-in batteries alone. They’re a somewhat new technology, particularly to the United States. McGinniss learned about them from Germany, which started rolling out both plug-in batteries and plug-in solar—also called balcony solar, a similar tech that is gaining support across the country—after the 2022 Russian invasion of Ukraine. “Access to solar and batteries is just growing exponentially because of this new plug-in form factor,” he says. The plug-in phenomenon that has gained traction across Europe is starting to come stateside, he adds, “where people are turning to this really novel, new class of technologies to say, ‘my bills are getting out of control and [this is] really simple to use.’ And we’re helping lead the charge there.” View the full article

Tracking key customer retention metrics is crucial for grasping your business’s health and growth potential. Metrics like Customer Retention Rate (CRR) reveal how well you’re keeping customers over time, whereas Repeat Purchase Rate (RPR) indicates the frequency at which they return. Moreover, monitoring Customer Churn Rate helps identify those who stop using your service. Comprehending these metrics can guide your retention strategies, but there are more factors to reflect upon. Key Takeaways Customer Retention Rate (CRR) measures the percentage of customers retained over a specific period, indicating loyalty levels. Repeat Purchase Rate (RPR) tracks the percentage of existing customers making additional purchases, reflecting customer satisfaction and product appeal. Customer Churn Rate quantifies the percentage of customers who discontinue using a service, helping identify retention issues early. Customer Lifetime Value (LTV) estimates the total revenue expected from a customer throughout their relationship with the business, guiding marketing strategies. Net Promoter Score (NPS) gauges customer loyalty by measuring the likelihood of customers recommending the business to others. Understanding Customer Retention Metrics Comprehending customer retention metrics is crucial for any business aiming to cultivate loyalty and drive revenue growth. Key metrics include Customer Retention Rate (CRR), which measures the percentage of customers retained over time. You can calculate CRR using the customer retention rate calculation formula: ((End number of customers – New customers gained) / Starting number of customers) x 100. Furthermore, the Repeat Purchase Rate (RPR) shows how many existing customers make further purchases, with an average of 28.2% across industries. The Customer Churn Rate indicates customer loss, ideally between 3% and 8% for SaaS businesses, whereas Customer Lifetime Value (LTV) estimates the total revenue a customer generates during their relationship with your company. Regularly monitoring these retention KPIs informs improvement strategies. Importance of Customer Retention Metrics Grasping the significance of customer retention metrics is crucial for any business looking to nurture long-lasting relationships with its clientele. Recognizing the importance of customer retention not only aids in evaluating your business’s effectiveness but furthermore improves your overall profitability. Here are three key points to contemplate: High retention rates indicate satisfied customers, leading to increased loyalty and revenue. Retaining existing customers is considerably more cost-effective than acquiring new ones, with acquisition costs being 5 to 25 times higher. Monitoring customer retention KPIs, like Churn Rate and Customer Retention Rate (CRR), allows you to identify dissatisfaction early and improve customer experiences. Customer Retention Rate (CRR) The Customer Retention Rate (CRR) is a crucial metric that quantifies the percentage of customers a business retains over a specific period. To calculate the customer retention rate, use the formula: ((End number of customers – New customers gained) / Starting number of customers) x 100. A CRR of 95% is considered good for SaaS companies, reflecting strong customer loyalty and satisfaction. Monitoring retention metrics like CRR over time helps you identify trends and potential issues in customer experience that may lead to churn. If your CRR is low, it may signal problems in the purchasing or product usage process, prompting you to investigate customer needs and feedback for improvement. Repeat Purchase Rate (RPR) The Repeat Purchase Rate (RPR) is an essential metric that measures the percentage of your existing customers who make additional purchases, calculated by dividing the number of customers who bought more than once by the total number of customers. Comprehending your RPR is imperative for nurturing customer loyalty, as a higher rate often leads to increased revenue, considering that existing customers typically spend considerably more than new ones. Calculation Methodology Explained Calculating the Repeat Purchase Rate (RPR) is essential for comprehending customer loyalty and identifying effective retention strategies. To measure RPR accurately, you can use the following client retention formula: Identify the number of customers who made more than one purchase during a specific timeframe. Determine the total number of customers within that same timeframe. Apply the formula: (Number of customers who made more than one purchase / Total number of customers) x 100. Importance for Loyalty Grasping the significance of the Repeat Purchase Rate (RPR) is vital for businesses aiming to improve customer loyalty. The RPR measures the percentage of existing customers who make additional purchases, calculated as (Number of customers who made more than one purchase / Total number of customers) x 100. On average, RPR across industries stands at 28.2%. High customer retention rates are found by analyzing RPR, which indicates greater customer satisfaction and engagement. When RPR is low, it could signal issues with product quality or customer service, making it imperative to investigate. Comprehending why customer retention is important allows businesses to implement targeted strategies, enhancing overall customer experience and boosting loyalty through improved retention rate definition measures. Customer Churn Rate Customer churn rate measures the percentage of customers who stop using your service during a specific period, and calculating it’s crucial for comprehending customer retention. You can determine your churn rate using the formula: (Number of customers who left / Total number of customers at the start of the period) x 100. Identifying the causes of churn, such as dissatisfaction or unmet expectations, allows you to implement effective strategies to reduce it and improve customer loyalty. Churn Rate Calculation Comprehending churn rate calculation is vital for evaluating customer retention effectiveness within your business. The churn rate reflects the percentage of customers who leave during a specific period. To calculate it, use the formula: Identify the number of customers lost during the period. Determine the total number of customers at the start of that period. Apply the formula: (Customers lost / Total customers at start) x 100. This metric provides valuable insights into user retention metrics. When you know how to find customer retention rate, you can effectively measure retention rate and identify trends over time. A good churn rate for SaaS businesses typically ranges between 3% and 8%, and regular tracking can uncover underlying issues affecting customer loyalty. Causes of Churn Comprehending the causes of churn is essential for any business looking to improve customer retention and boost overall performance. A churn rate between 3% and 8% is typically healthy for SaaS companies, but higher rates can signal serious issues. Common causes of churn include poor customer support, insufficient product value, and competitive offerings. To effectively address these issues, you must regularly monitor client retention metrics, as they highlight trends and patterns in customer behavior. Gathering customer feedback through surveys can provide insights into why customers leave, helping you understand how do we measure retention. By identifying these underlying reasons, you can develop targeted strategies to improve customer satisfaction and reduce churn effectively. Reducing Churn Strategies To effectively reduce churn, businesses must implement targeted strategies that address customer dissatisfaction and improve overall experience. Focusing on customer feedback is crucial; it helps identify pain points and areas needing improvement. Here are three effective strategies: Regularly Collect Feedback: Use surveys and session replays to gain insights into customer experiences and identify trends that may lead to churn. Personalize Interactions: Tailor customer interactions based on their preferences and behaviors, which can greatly improve satisfaction and retention. Monitor Churn Rates: Keep an eye on churn rates and analyze the reasons behind customer departures to proactively address issues and enhance retention efforts. Revenue Churn Rate Revenue Churn Rate is a crucial metric for businesses, particularly within the SaaS industry, as it quantifies the percentage of recurring revenue lost from existing customers over a specific period. You can calculate it using the formula: {[(MRR at the beginning – MRR at the end) – upsells] / MRR at the beginning} × 100. A healthy Revenue Churn Rate is typically less than 5%, indicating effective customer retention strategies. Monitoring this metric helps you identify high-impact customer segments and comprehend how customer loss affects overall revenue. Metric Healthy Range Importance Revenue Churn Rate Indicates retention effectiveness Customer Lifetime Value > $1000 Guides marketing strategies Monthly Recurring Revenue Increasing Shows growth trends Customer Lifetime Value (LTV) Comprehending Customer Lifetime Value (LTV) is essential for businesses aiming to optimize their marketing strategies and improve customer retention efforts. LTV estimates the total revenue a business can expect from a customer throughout their relationship. Here are three key points to reflect on: E-commerce Calculation: LTV is determined by multiplying the average order value by the average number of purchases per year and the average customer lifespan in years. SaaS Calculation: For SaaS, LTV is calculated by dividing the monthly average revenue per account by the monthly churn rate, offering insights into long-term profitability. Importance of Monitoring: Tracking LTV trends allows businesses to make informed decisions on customer acquisition costs and retention strategies, in the end driving growth and profitability. Customer Satisfaction Score (CSAT) Customer Satisfaction Score (CSAT) is a key metric that measures how satisfied customers are with your product or service. You calculate it by dividing the total number of positive scores by the number of respondents, and scores above 90% typically indicate high satisfaction. Comprehending the importance of high CSAT scores can greatly impact your retention strategies, as satisfied customers are more likely to return and recommend your brand to others. Calculation Methodology Explained To accurately assess customer satisfaction, businesses often rely on the Customer Satisfaction Score (CSAT), which gauges how well a product or service meets customer expectations. You can calculate CSAT by following these steps: Collect Responses: Ask customers to rate their satisfaction on a scale, typically from 1 to 5 or 1 to 10. Identify Positive Ratings: Count the total number of positive responses, which are ratings of 4 or 5 on a 5-point scale or 8-10 on a 10-point scale. Calculate the Score: Divide the number of positive responses by the total number of responses, then multiply by 100 to get the percentage. A CSAT score above 90% indicates high customer satisfaction and effective service or product delivery. Regular tracking helps identify pain points in the customer experience. Importance of High Scores High scores in the Customer Satisfaction Score (CSAT) are crucial indicators of how well a business meets the needs and expectations of its clients. A CSAT score above 90% typically signals high customer satisfaction, reflecting effective service delivery. Regularly tracking CSAT allows you to identify pain points in the customer experience and adapt strategies to improve overall satisfaction. Furthermore, high CSAT scores correlate strongly with increased customer loyalty and retention, as satisfied customers are more likely to make repeat purchases and refer others. Impact on Retention Strategies Measuring customer satisfaction using the Customer Satisfaction Score (CSAT) plays a pivotal role in shaping effective retention strategies. High CSAT scores directly correlate with customer loyalty and reduced churn rates. To implement effective retention strategies, consider the following: Regularly Collect CSAT Data: Gather feedback immediately after customer interactions to identify pain points and areas for improvement. Monitor Trends Over Time: Track CSAT scores to assess the effectiveness of your retention efforts and make necessary adjustments. Focus on High-Scoring Areas: Identify which aspects of the customer experience contribute to high satisfaction, and improve those elements to drive loyalty. Net Promoter Score® (NPS) The Net Promoter Score® (NPS) serves as a crucial metric for comprehending customer loyalty and satisfaction. By asking customers how likely they are to recommend your product or service on a scale from 0 to 10, you can classify them into promoters, passives, and detractors. A positive NPS of 60 or above indicates strong satisfaction, whereas a negative score highlights areas for improvement. Calculating NPS involves subtracting the percentage of detractors from the percentage of promoters, providing a valuable snapshot of customer sentiment. Category Score Range Description Promoters 9-10 Loyal customers, likely to refer others Passives 7-8 Neutral, can easily be swayed Detractors 0-6 Unhappy customers, may harm your brand Customer Effort Score (CES) Customer Effort Score (CES) is an essential metric that measures how easy it’s for you to complete a task or resolve an issue with a company. By focusing on reducing customer friction during interactions, businesses can improve your overall experience, leading to higher satisfaction and loyalty. Aiming for a CES score of 5 or lower on a 7-point scale can highlight areas where improvements are needed, eventually making your purchasing process smoother and more enjoyable. Measuring Purchase Ease How easy is it for your customers to complete a purchase or use your service? Measuring Purchase Ease through the Customer Effort Score (CES) can provide valuable insights. A higher CES indicates that customers find the purchasing process less strenuous, which correlates with increased satisfaction and retention. Here are three key points to evaluate: CES Calculation: Ask customers to rate their experience on a scale from 1 to 7, where lower scores signify easier experiences. Impact on Loyalty: Customers who find the process easy are 96% more likely to repurchase and 88% more likely to recommend your business. Ongoing Monitoring: Regularly tracking CES helps identify pain points and allows for targeted improvements to improve customer experience. Reducing Customer Friction Reducing customer friction is crucial for improving the overall experience and satisfaction during interactions with your business. The Customer Effort Score (CES) helps you measure how easy it’s for customers to engage with your company. By asking customers to rate their effort on a scale, you can identify areas that require improvement. Research shows that lower CES scores lead to higher customer satisfaction and loyalty, as customers prefer seamless interactions. Companies with low CES often experience reduced churn rates, as customers are less likely to leave when their experiences are smooth. Regularly monitoring CES will provide insights into pain points in the customer experience, enabling you to implement targeted improvements that improve overall satisfaction and retention. Daily, Weekly, and Monthly Active Users (DAU, WAU, MAU) Comprehending Daily, Weekly, and Monthly Active Users (DAU, WAU, MAU) is crucial for evaluating user engagement and retention within your product or service. These metrics provide insights into how often users interact with your offering, helping you identify trends and areas for improvement. DAU: Measures the number of unique users engaging with your product daily, indicating immediate user engagement levels. WAU: Tracks unique users over a week, allowing you to spot behavioral patterns and engagement fluctuations. MAU: Counts unique users over a month, serving as a key indicator of overall user retention and long-term engagement. Engagement Rate by Channel and Segment Engagement rates by channel are crucial metrics that help businesses assess how effectively different communication methods, such as email, social media, and direct messaging, capture and sustain customer interest. Higher engagement rates indicate successful outreach, whereas segmenting these rates allows you to analyze performance across various demographics or behavior patterns. This reveals which customer groups respond best to specific channels. For example, a good email engagement rate is over 20%, whereas social media engagement typically ranges from 1% to 5%, varying by platform. Regularly tracking these metrics helps identify underperforming channels and informs necessary adjustments to your communication strategies. In the end, this optimization improves customer retention by tailoring content to suit the preferences of different segments. Reactivation and Renewal Rates Reactivation and renewal rates are essential metrics that can profoundly influence a company’s customer retention strategy. Monitoring these rates helps you understand customer behavior and the effectiveness of your re-engagement efforts. Here are three key points to take into account: Reactivation Rate: This measures the percentage of previously churned customers who return to make a purchase. Use the formula: (Number of churned customers who returned / Total number of churned customers) × 100 to evaluate your win-back strategies. Renewal Rate: Especially crucial for subscription businesses, it reflects the proportion of customers renewing their subscriptions. Calculate it by dividing the number of customers who renewed by those up for renewal. Trend Analysis: Tracking both rates identifies patterns, enabling customized strategies to boost customer loyalty and reduce churn. Analyzing Customer Feedback for Insights Analyzing customer feedback is crucial for gaining insights that can greatly improve your retention strategies. By utilizing surveys and tools like Voice of Customer, you can capture qualitative data at critical points in the customer experience. This information complements quantitative metrics, offering a deeper comprehension of customer experiences and satisfaction levels. Regularly collecting and analyzing feedback helps identify pain points and areas for improvement. For instance, addressing specific concerns raised by customers can lead to increased repeat purchase rates, as customers are more likely to engage with a brand that listens and responds. Furthermore, grasping the reasons behind customer churn allows you to implement targeted strategies, ensuring you retain valuable clientele and improve overall satisfaction. Frequently Asked Questions What Are the Metrics for Customer Retention? To measure customer retention effectively, you’ll want to track several key metrics. Start with Customer Retention Rate (CRR), which calculates the percentage of retained customers over a specific period. Next, consider the Repeat Purchase Rate (RPR) to gauge loyalty by identifying customers who make additional purchases. Monitor Customer Churn Rate to understand how many customers leave, and assess Customer Lifetime Value (LTV) to estimate the total revenue generated from each customer during their relationship with your business. What Are the 5 Key Performance Indicators for Customer Service? To measure customer service effectiveness, focus on five key performance indicators (KPIs): First Response Time (FRT), which indicates how quickly your team responds to inquiries; Resolution Rate, showing the percentage of issues resolved on first contact; Customer Satisfaction Score (CSAT), reflecting customer satisfaction levels; Net Promoter Score (NPS), which gauges customer loyalty; and Customer Effort Score (CES), evaluating how easy it’s for customers to interact with your service. What Are the 8 C’s of Customer Retention? The 8 C’s of customer retention are crucial for building strong relationships with your customers. They include Clarity, ensuring customers understand product value; Convenience, simplifying the purchasing process; Consistency, maintaining quality across touchpoints; Connection, nurturing relationships; Communication, keeping feedback channels open; Community, creating a sense of belonging; Commitment, showing dedication to customer needs; and Customer-Centricity, focusing on the customer’s experience. Together, these elements augment loyalty and satisfaction, in the end improving retention rates. What Are the 5 Key Factors That Drive Retention? To drive customer retention, focus on five key factors: grasping customer needs, providing excellent service, delivering consistent quality, personalizing experiences, and engaging customers regularly. By actively listening to feedback, you can tailor your offerings to meet their expectations. Guarantee your service team is responsive and helpful, maintain high product standards, and utilize data to personalize interactions. Regular check-ins and targeted communications can strengthen relationships, in the end encouraging customers to remain loyal. Conclusion In summary, tracking key customer retention metrics like Customer Retention Rate, Repeat Purchase Rate, and Customer Churn Rate is crucial for comprehending your business’s performance. By analyzing these metrics, along with engagement rates and customer feedback, you can identify areas for improvement and develop targeted strategies to improve customer loyalty. Monitoring these indicators not just helps retain existing customers but additionally contributes to long-term profitability and growth, ensuring your business remains competitive in the market. Image via Google Gemini This article, "What Are Key Customer Retention Metrics to Track?" was first published on Small Business Trends View the full article

Tracking key customer retention metrics is crucial for grasping your business’s health and growth potential. Metrics like Customer Retention Rate (CRR) reveal how well you’re keeping customers over time, whereas Repeat Purchase Rate (RPR) indicates the frequency at which they return. Moreover, monitoring Customer Churn Rate helps identify those who stop using your service. Comprehending these metrics can guide your retention strategies, but there are more factors to reflect upon. Key Takeaways Customer Retention Rate (CRR) measures the percentage of customers retained over a specific period, indicating loyalty levels. Repeat Purchase Rate (RPR) tracks the percentage of existing customers making additional purchases, reflecting customer satisfaction and product appeal. Customer Churn Rate quantifies the percentage of customers who discontinue using a service, helping identify retention issues early. Customer Lifetime Value (LTV) estimates the total revenue expected from a customer throughout their relationship with the business, guiding marketing strategies. Net Promoter Score (NPS) gauges customer loyalty by measuring the likelihood of customers recommending the business to others. Understanding Customer Retention Metrics Comprehending customer retention metrics is crucial for any business aiming to cultivate loyalty and drive revenue growth. Key metrics include Customer Retention Rate (CRR), which measures the percentage of customers retained over time. You can calculate CRR using the customer retention rate calculation formula: ((End number of customers – New customers gained) / Starting number of customers) x 100. Furthermore, the Repeat Purchase Rate (RPR) shows how many existing customers make further purchases, with an average of 28.2% across industries. The Customer Churn Rate indicates customer loss, ideally between 3% and 8% for SaaS businesses, whereas Customer Lifetime Value (LTV) estimates the total revenue a customer generates during their relationship with your company. Regularly monitoring these retention KPIs informs improvement strategies. Importance of Customer Retention Metrics Grasping the significance of customer retention metrics is crucial for any business looking to nurture long-lasting relationships with its clientele. Recognizing the importance of customer retention not only aids in evaluating your business’s effectiveness but furthermore improves your overall profitability. Here are three key points to contemplate: High retention rates indicate satisfied customers, leading to increased loyalty and revenue. Retaining existing customers is considerably more cost-effective than acquiring new ones, with acquisition costs being 5 to 25 times higher. Monitoring customer retention KPIs, like Churn Rate and Customer Retention Rate (CRR), allows you to identify dissatisfaction early and improve customer experiences. Customer Retention Rate (CRR) The Customer Retention Rate (CRR) is a crucial metric that quantifies the percentage of customers a business retains over a specific period. To calculate the customer retention rate, use the formula: ((End number of customers – New customers gained) / Starting number of customers) x 100. A CRR of 95% is considered good for SaaS companies, reflecting strong customer loyalty and satisfaction. Monitoring retention metrics like CRR over time helps you identify trends and potential issues in customer experience that may lead to churn. If your CRR is low, it may signal problems in the purchasing or product usage process, prompting you to investigate customer needs and feedback for improvement. Repeat Purchase Rate (RPR) The Repeat Purchase Rate (RPR) is an essential metric that measures the percentage of your existing customers who make additional purchases, calculated by dividing the number of customers who bought more than once by the total number of customers. Comprehending your RPR is imperative for nurturing customer loyalty, as a higher rate often leads to increased revenue, considering that existing customers typically spend considerably more than new ones. Calculation Methodology Explained Calculating the Repeat Purchase Rate (RPR) is essential for comprehending customer loyalty and identifying effective retention strategies. To measure RPR accurately, you can use the following client retention formula: Identify the number of customers who made more than one purchase during a specific timeframe. Determine the total number of customers within that same timeframe. Apply the formula: (Number of customers who made more than one purchase / Total number of customers) x 100. Importance for Loyalty Grasping the significance of the Repeat Purchase Rate (RPR) is vital for businesses aiming to improve customer loyalty. The RPR measures the percentage of existing customers who make additional purchases, calculated as (Number of customers who made more than one purchase / Total number of customers) x 100. On average, RPR across industries stands at 28.2%. High customer retention rates are found by analyzing RPR, which indicates greater customer satisfaction and engagement. When RPR is low, it could signal issues with product quality or customer service, making it imperative to investigate. Comprehending why customer retention is important allows businesses to implement targeted strategies, enhancing overall customer experience and boosting loyalty through improved retention rate definition measures. Customer Churn Rate Customer churn rate measures the percentage of customers who stop using your service during a specific period, and calculating it’s crucial for comprehending customer retention. You can determine your churn rate using the formula: (Number of customers who left / Total number of customers at the start of the period) x 100. Identifying the causes of churn, such as dissatisfaction or unmet expectations, allows you to implement effective strategies to reduce it and improve customer loyalty. Churn Rate Calculation Comprehending churn rate calculation is vital for evaluating customer retention effectiveness within your business. The churn rate reflects the percentage of customers who leave during a specific period. To calculate it, use the formula: Identify the number of customers lost during the period. Determine the total number of customers at the start of that period. Apply the formula: (Customers lost / Total customers at start) x 100. This metric provides valuable insights into user retention metrics. When you know how to find customer retention rate, you can effectively measure retention rate and identify trends over time. A good churn rate for SaaS businesses typically ranges between 3% and 8%, and regular tracking can uncover underlying issues affecting customer loyalty. Causes of Churn Comprehending the causes of churn is essential for any business looking to improve customer retention and boost overall performance. A churn rate between 3% and 8% is typically healthy for SaaS companies, but higher rates can signal serious issues. Common causes of churn include poor customer support, insufficient product value, and competitive offerings. To effectively address these issues, you must regularly monitor client retention metrics, as they highlight trends and patterns in customer behavior. Gathering customer feedback through surveys can provide insights into why customers leave, helping you understand how do we measure retention. By identifying these underlying reasons, you can develop targeted strategies to improve customer satisfaction and reduce churn effectively. Reducing Churn Strategies To effectively reduce churn, businesses must implement targeted strategies that address customer dissatisfaction and improve overall experience. Focusing on customer feedback is crucial; it helps identify pain points and areas needing improvement. Here are three effective strategies: Regularly Collect Feedback: Use surveys and session replays to gain insights into customer experiences and identify trends that may lead to churn. Personalize Interactions: Tailor customer interactions based on their preferences and behaviors, which can greatly improve satisfaction and retention. Monitor Churn Rates: Keep an eye on churn rates and analyze the reasons behind customer departures to proactively address issues and enhance retention efforts. Revenue Churn Rate Revenue Churn Rate is a crucial metric for businesses, particularly within the SaaS industry, as it quantifies the percentage of recurring revenue lost from existing customers over a specific period. You can calculate it using the formula: {[(MRR at the beginning – MRR at the end) – upsells] / MRR at the beginning} × 100. A healthy Revenue Churn Rate is typically less than 5%, indicating effective customer retention strategies. Monitoring this metric helps you identify high-impact customer segments and comprehend how customer loss affects overall revenue. Metric Healthy Range Importance Revenue Churn Rate Indicates retention effectiveness Customer Lifetime Value > $1000 Guides marketing strategies Monthly Recurring Revenue Increasing Shows growth trends Customer Lifetime Value (LTV) Comprehending Customer Lifetime Value (LTV) is essential for businesses aiming to optimize their marketing strategies and improve customer retention efforts. LTV estimates the total revenue a business can expect from a customer throughout their relationship. Here are three key points to reflect on: E-commerce Calculation: LTV is determined by multiplying the average order value by the average number of purchases per year and the average customer lifespan in years. SaaS Calculation: For SaaS, LTV is calculated by dividing the monthly average revenue per account by the monthly churn rate, offering insights into long-term profitability. Importance of Monitoring: Tracking LTV trends allows businesses to make informed decisions on customer acquisition costs and retention strategies, in the end driving growth and profitability. Customer Satisfaction Score (CSAT) Customer Satisfaction Score (CSAT) is a key metric that measures how satisfied customers are with your product or service. You calculate it by dividing the total number of positive scores by the number of respondents, and scores above 90% typically indicate high satisfaction. Comprehending the importance of high CSAT scores can greatly impact your retention strategies, as satisfied customers are more likely to return and recommend your brand to others. Calculation Methodology Explained To accurately assess customer satisfaction, businesses often rely on the Customer Satisfaction Score (CSAT), which gauges how well a product or service meets customer expectations. You can calculate CSAT by following these steps: Collect Responses: Ask customers to rate their satisfaction on a scale, typically from 1 to 5 or 1 to 10. Identify Positive Ratings: Count the total number of positive responses, which are ratings of 4 or 5 on a 5-point scale or 8-10 on a 10-point scale. Calculate the Score: Divide the number of positive responses by the total number of responses, then multiply by 100 to get the percentage. A CSAT score above 90% indicates high customer satisfaction and effective service or product delivery. Regular tracking helps identify pain points in the customer experience. Importance of High Scores High scores in the Customer Satisfaction Score (CSAT) are crucial indicators of how well a business meets the needs and expectations of its clients. A CSAT score above 90% typically signals high customer satisfaction, reflecting effective service delivery. Regularly tracking CSAT allows you to identify pain points in the customer experience and adapt strategies to improve overall satisfaction. Furthermore, high CSAT scores correlate strongly with increased customer loyalty and retention, as satisfied customers are more likely to make repeat purchases and refer others. Impact on Retention Strategies Measuring customer satisfaction using the Customer Satisfaction Score (CSAT) plays a pivotal role in shaping effective retention strategies. High CSAT scores directly correlate with customer loyalty and reduced churn rates. To implement effective retention strategies, consider the following: Regularly Collect CSAT Data: Gather feedback immediately after customer interactions to identify pain points and areas for improvement. Monitor Trends Over Time: Track CSAT scores to assess the effectiveness of your retention efforts and make necessary adjustments. Focus on High-Scoring Areas: Identify which aspects of the customer experience contribute to high satisfaction, and improve those elements to drive loyalty. Net Promoter Score® (NPS) The Net Promoter Score® (NPS) serves as a crucial metric for comprehending customer loyalty and satisfaction. By asking customers how likely they are to recommend your product or service on a scale from 0 to 10, you can classify them into promoters, passives, and detractors. A positive NPS of 60 or above indicates strong satisfaction, whereas a negative score highlights areas for improvement. Calculating NPS involves subtracting the percentage of detractors from the percentage of promoters, providing a valuable snapshot of customer sentiment. Category Score Range Description Promoters 9-10 Loyal customers, likely to refer others Passives 7-8 Neutral, can easily be swayed Detractors 0-6 Unhappy customers, may harm your brand Customer Effort Score (CES) Customer Effort Score (CES) is an essential metric that measures how easy it’s for you to complete a task or resolve an issue with a company. By focusing on reducing customer friction during interactions, businesses can improve your overall experience, leading to higher satisfaction and loyalty. Aiming for a CES score of 5 or lower on a 7-point scale can highlight areas where improvements are needed, eventually making your purchasing process smoother and more enjoyable. Measuring Purchase Ease How easy is it for your customers to complete a purchase or use your service? Measuring Purchase Ease through the Customer Effort Score (CES) can provide valuable insights. A higher CES indicates that customers find the purchasing process less strenuous, which correlates with increased satisfaction and retention. Here are three key points to evaluate: CES Calculation: Ask customers to rate their experience on a scale from 1 to 7, where lower scores signify easier experiences. Impact on Loyalty: Customers who find the process easy are 96% more likely to repurchase and 88% more likely to recommend your business. Ongoing Monitoring: Regularly tracking CES helps identify pain points and allows for targeted improvements to improve customer experience. Reducing Customer Friction Reducing customer friction is crucial for improving the overall experience and satisfaction during interactions with your business. The Customer Effort Score (CES) helps you measure how easy it’s for customers to engage with your company. By asking customers to rate their effort on a scale, you can identify areas that require improvement. Research shows that lower CES scores lead to higher customer satisfaction and loyalty, as customers prefer seamless interactions. Companies with low CES often experience reduced churn rates, as customers are less likely to leave when their experiences are smooth. Regularly monitoring CES will provide insights into pain points in the customer experience, enabling you to implement targeted improvements that improve overall satisfaction and retention. Daily, Weekly, and Monthly Active Users (DAU, WAU, MAU) Comprehending Daily, Weekly, and Monthly Active Users (DAU, WAU, MAU) is crucial for evaluating user engagement and retention within your product or service. These metrics provide insights into how often users interact with your offering, helping you identify trends and areas for improvement. DAU: Measures the number of unique users engaging with your product daily, indicating immediate user engagement levels. WAU: Tracks unique users over a week, allowing you to spot behavioral patterns and engagement fluctuations. MAU: Counts unique users over a month, serving as a key indicator of overall user retention and long-term engagement. Engagement Rate by Channel and Segment Engagement rates by channel are crucial metrics that help businesses assess how effectively different communication methods, such as email, social media, and direct messaging, capture and sustain customer interest. Higher engagement rates indicate successful outreach, whereas segmenting these rates allows you to analyze performance across various demographics or behavior patterns. This reveals which customer groups respond best to specific channels. For example, a good email engagement rate is over 20%, whereas social media engagement typically ranges from 1% to 5%, varying by platform. Regularly tracking these metrics helps identify underperforming channels and informs necessary adjustments to your communication strategies. In the end, this optimization improves customer retention by tailoring content to suit the preferences of different segments. Reactivation and Renewal Rates Reactivation and renewal rates are essential metrics that can profoundly influence a company’s customer retention strategy. Monitoring these rates helps you understand customer behavior and the effectiveness of your re-engagement efforts. Here are three key points to take into account: Reactivation Rate: This measures the percentage of previously churned customers who return to make a purchase. Use the formula: (Number of churned customers who returned / Total number of churned customers) × 100 to evaluate your win-back strategies. Renewal Rate: Especially crucial for subscription businesses, it reflects the proportion of customers renewing their subscriptions. Calculate it by dividing the number of customers who renewed by those up for renewal. Trend Analysis: Tracking both rates identifies patterns, enabling customized strategies to boost customer loyalty and reduce churn. Analyzing Customer Feedback for Insights Analyzing customer feedback is crucial for gaining insights that can greatly improve your retention strategies. By utilizing surveys and tools like Voice of Customer, you can capture qualitative data at critical points in the customer experience. This information complements quantitative metrics, offering a deeper comprehension of customer experiences and satisfaction levels. Regularly collecting and analyzing feedback helps identify pain points and areas for improvement. For instance, addressing specific concerns raised by customers can lead to increased repeat purchase rates, as customers are more likely to engage with a brand that listens and responds. Furthermore, grasping the reasons behind customer churn allows you to implement targeted strategies, ensuring you retain valuable clientele and improve overall satisfaction. Frequently Asked Questions What Are the Metrics for Customer Retention? To measure customer retention effectively, you’ll want to track several key metrics. Start with Customer Retention Rate (CRR), which calculates the percentage of retained customers over a specific period. Next, consider the Repeat Purchase Rate (RPR) to gauge loyalty by identifying customers who make additional purchases. Monitor Customer Churn Rate to understand how many customers leave, and assess Customer Lifetime Value (LTV) to estimate the total revenue generated from each customer during their relationship with your business. What Are the 5 Key Performance Indicators for Customer Service? To measure customer service effectiveness, focus on five key performance indicators (KPIs): First Response Time (FRT), which indicates how quickly your team responds to inquiries; Resolution Rate, showing the percentage of issues resolved on first contact; Customer Satisfaction Score (CSAT), reflecting customer satisfaction levels; Net Promoter Score (NPS), which gauges customer loyalty; and Customer Effort Score (CES), evaluating how easy it’s for customers to interact with your service. What Are the 8 C’s of Customer Retention? The 8 C’s of customer retention are crucial for building strong relationships with your customers. They include Clarity, ensuring customers understand product value; Convenience, simplifying the purchasing process; Consistency, maintaining quality across touchpoints; Connection, nurturing relationships; Communication, keeping feedback channels open; Community, creating a sense of belonging; Commitment, showing dedication to customer needs; and Customer-Centricity, focusing on the customer’s experience. Together, these elements augment loyalty and satisfaction, in the end improving retention rates. What Are the 5 Key Factors That Drive Retention? To drive customer retention, focus on five key factors: grasping customer needs, providing excellent service, delivering consistent quality, personalizing experiences, and engaging customers regularly. By actively listening to feedback, you can tailor your offerings to meet their expectations. Guarantee your service team is responsive and helpful, maintain high product standards, and utilize data to personalize interactions. Regular check-ins and targeted communications can strengthen relationships, in the end encouraging customers to remain loyal. Conclusion In summary, tracking key customer retention metrics like Customer Retention Rate, Repeat Purchase Rate, and Customer Churn Rate is crucial for comprehending your business’s performance. By analyzing these metrics, along with engagement rates and customer feedback, you can identify areas for improvement and develop targeted strategies to improve customer loyalty. Monitoring these indicators not just helps retain existing customers but additionally contributes to long-term profitability and growth, ensuring your business remains competitive in the market. Image via Google Gemini This article, "What Are Key Customer Retention Metrics to Track?" was first published on Small Business Trends View the full article

A new analysis suggests Americans are being overcharged by $150 billion annually to insure their homes, autos and businesses — and it proposes federal guardrails so that a public beset by affordability pressures could see savings. The analysis by the Vanderbilt Policy Accelerator obtained exclusively by The Associated Press details how insurers are paying out less on claims after an accident, natural disaster or other misfortune than they did decades ago. For every $1 collected in premiums, insurers reimbursed 62 cents for claims in 2024, down from an average loss ratio of 80 cents in the 1980s and 1990s. The analysis wades into a thorny set of economic and political questions as insurance companies are managing the potential risks of climate change when the cost of groceries, gasoline and housing are a frustration for many voters. Insurance companies say they have hiked premiums because of rising prices for homes and autos and the expenses of fixing them. “The fact that the loss ratios are so low means that the insurance industry is charging too much,” said Brian Shearer, director of competition and regulatory policy at the Vanderbilt University think tank and a former senior adviser at the Consumer Financial Protection Bureau. The insurance industry said its current loss ratio reflects the costs for insurers in recent years and the steps deemed necessary for ensuring that insurance funding is stable and solvent. “Current loss ratios reflect the impact of enormous financial losses over the last several years and the steps insurers have taken (to) maintain and restore financial strength so funds are available to pay future claims,” Don Griffin, vice president for policy and research at the American Property Casualty Insurance Association, said in an emailed statement. “Loss ratios in the 1990s were driven to nearly unsustainable levels by Hurricane Andrew in particular.” While President Donald The President won a second term on the promise to contain inflation, he has also gutted institutions such as the CFPB that sought to find potential savings. Housing costs have been particularly acute. Average mortgage rates remain above 6%, and an executive order by The President to increase construction of new homes would still take years to bend the curve on housing prices. When The President, a Republican, signed the order on housing regulations in March, he emphasized that he was eliminating the heightened standards to protect homes against damage from natural disasters and improving energy efficiency because he said they were increasing construction costs. “We will slash many of these pointless regulations that do nothing for safety and add lots of costs,” he said at the signing. Research by the economists Benjamin Keys and Philip Mulder found that average premiums for home insurance climbed an inflation-adjusted 28% between 2017 and 2024 to an annual cost of $2,750. Their research found reasons for the increases: Roughly a third came from higher construction costs, and another 20% came from greater disaster risks. But it also noted the higher costs for financial instruments such as reinsurance, which insurers purchase to protect them from catastrophic financial losses. The Vanderbilt analysis by contrast looks at the gap between what insurers charge and what they pay out to customers. By returning to the loss ratio of 80 cents paid out for each $1 collected, it estimates that households and businesses could have saved roughly $150 billion from the $1 trillion-plus paid in premiums in 2024. The analysis includes proposed legislative language for the federal government to set a higher loss ratio for insurers. Currently, state governments primarily regulate insurance, but a federal mandate would be harder for companies to challenge. The analysis further argues that insurers are using the premiums “to pay for corporate perks, corporate jets, stock-buy backs, excessive executive compensation, excessive dividends, excessive advertising, and excessive agent commissions.” “Companies are competing against each other, not based on price but just based on brand awareness,” said Shearer, the author of the analysis, arguing that too much money is spent on marketing. —Josh Boak, Associated Press View the full article