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ChatGPT citations favor pages that rank well, match the query in their headings, and stay tightly focused, according to an AirOps study of 16,851 queries. The top retrieval result was cited 58% of the time, and pages that answered the main query more narrowly outperformed broader, more comprehensive guides. Why we care. This study clarifies how to earn ChatGPT citations: win retrieval, mirror the query in your headings, and answer one question extremely well. In this study, that mattered more than breadth. The findings. Retrieval rank was the strongest signal. Pages in the top search position were cited 58.4% of the time, versus 14.2% for pages in position 10. Heading relevance was the strongest on-page factor. Pages with the strongest heading-query match were cited 41.0% of the time, compared with roughly 30% for weaker matches. Focused pages also beat comprehensive ones. Pages that answered the main query more narrowly outperformed broader, more comprehensive guides, undercutting the usual “ultimate guide” approach. What drove ChatGPT citations. In this study, pages that won citations usually ranked well, used headings that closely matched the query, and stayed focused on answering it. Structure helped, but only slightly: Pages with JSON-LD markup posted a 38.5% citation rate versus 32.0% for pages without it, and articles with 4 to 10 subheadings performed best. Beyond a certain point, length hurt performance: Pages between 500 and 2,000 words performed best, but pages longer than 5,000 words were cited less often than pages under 500 words. Freshness helps, up to a point. Pages published 30 to 89 days earlier performed best, while pages newer than 30 days performed worse. This suggests new content may need time to build retrieval signals. Pages more than 2 years old were cited less often, which suggests that content refreshes could help if you’re already ranking for the right queries. About the data. AirOps said it scraped ChatGPT’s interface, not the API, and analyzed 50,553 responses generated from 16,851 unique queries run three times each. The dataset included 353,799 pages and more than 1.5 million fan-out detail rows across 10 verticals and four query types. The study. The Fan-Out Effect: What Happens Between a Query and a Citation View the full article

We may earn a commission from links on this page. As HBO's Industry begins, the recent grads working at prestigious investment bank Pierpoint & Co. are given their marching orders: There are a lot of them and only a few full-time job openings, so they'll need to prove themselves if they hope to stick around. They respond to this challenge by doing whatever it takes—whatever it takes. Renewed for a fifth and final season, Industry has been the streaming era's most cogent take on the world of finance bros (of any gender), and modern white collar workers in a more upscale Glengarry Glen Ross mode. While you wait for this story of disaster capitalism to return, dive into these 10 other shows that make work look even more stressful than it is. Sweetbitter (2018 – 2019) Taking on restaurant culture in place of finance, Sweetbitter finds much of the same stress, intensity, and competitiveness non display—probably no surprise if you watch The Bear. The show is adapted from the Stephanie Danler novel of the same name; she based it on her experiences as an NYC waitress (she also created the series and wrote the pilot), so we can assume a certain level of verisimilitude. Yellowjackets' Ella Purnell plays Tess, 21 at the series' opening and arriving in the city with big dreams. She gets a job at a prestigious restaurant where, as we (and she) quickly learn, there's at least as much drama (including drugs, booze, and sex) on the service side of the industry as there is in the kitchen. Stream Sweetbitter on Prime Video. Sweetbitter (2018 – 2019) at Prime Video Learn More Learn More at Prime Video Misaeng: Incomplete Life (2014) A critically-acclaimed sensation on its initial release, there's a really impressive, stressful, universal sense of realism in this show about white-collar work in South Korea. Im Si-wan is Jang Geu-rae, a young man who has done nothing but work toward his goal of becoming a professional Baduk (a game which you might know better as Go) player since childhood. By his 20s, though, it's clear that it's not to be, and all he can do is take an office job as a provisional contractor with a shipping company. A complete outsider, he's even less prepared than the other interns for a high-stress world in which a work-life balance is all but impossible. Its intensity is very much in the mode of Industry, but there's hopefulness in Geu-rae's determination not to lose himself. Stream Misaeng: Incomplete Life on Netflix and Tubi. Misaeng: Incomplete Life (2014) at Netflix Learn More Learn More at Netflix Billions (2016 – 2023) Less young-Brit oriented and more of a cat-and-mouse game, this one is a (darkly) satirical dive into the shady world of high finance. Paul Giamatti is rather ruthless as U.S. attorney Chuck Rhoades (based in part on the real-life Preet Bharara), who is working to bring down shady hedge fund manager Bobby Axelrod (Damian Lewis). The tone is that of a darkly comic soap opera, and it stays fresh over seven seasons by playing off the contrast between Axelrod's willingness to use all the money and power at his disposal to stay on top and out of jail, and Rhoades' willingness to resort to shady, not-entirely-legal tactics to reel in his big fish. Stream Billions on Paramount+ and Prime Video. Billions (2016 – 2023) at Paramount+ Learn More Learn More at Paramount+ How to Make It in America (2010 – 2011) A bit of counter-programming, perhaps, in this dramedy about a couple of scrappy New York City outsiders who would never fit in with the Industry crew. And yet! There's a sense here that getting ahead requires tremendous hustle, and that drive for big success carries with it the potential for an even bigger fall. Bryan Greenberg is Ben Epstein, a quiet guy with any number of big ideas, while Victor Rasuk is outgoing, often shameless, Cam Calderon—together they manage a startup clothing business with the benefits of neither money nor experience, amiably hustling their ways to success, maybe. It's like Industry if that show were about nicer, goofier guys who are at their best when talking themselves out of trouble. Stream How to Make It in America on HBO Max and Netflix. How to Make It in America (2010 – 2011) at HBO Max Learn More Learn More at HBO Max The Dropout (2022) The passage of time has made the story of Theranos founder and fraudster Elizabeth Holmes feel positively quaint, not least because a few of her high-profile backers are serving in the current White House. Amanda Seyfried plays the "entrepreneur" whose rise and precipitous fall has already been the subject of a handful of documentaries. It starts at age 18, when she dropped out of Stanford to build a startup around an at-home blood testing machine that didn't work even a little bit. Years of charming big-name investors with big promises, lies agreed upon, and cleverly faked results lead to big money for Theranos and a lot of bad diagnoses for patients. Stream The Dropout on Hulu. The Dropout (March 3) at Hulu Learn More Learn More at Hulu WeCrashed (2022) Another true-life story of big business and a big fall, this one stars Jared Leto, Anne Hathaway, and Kyle Marvin as the co-founders of WeWork, the (eventually) billion-dollar company that leases co-working spaces. The focus is on Leto and Hathaway's Adam and Rebekah Neumann, portrayed as simultaneously delusional and calculating, operating as almost toxically nice cult leaders while firing people for stepping into their eyelines at the wrong time. The title's crash comes when the company files an now-infamous S-1 form to go public, confidently documenting big losses, extremely precarious financial arrangements, and the weird relationship between the Neumanns and the larger company. Don't worry, though, this one has a happy ending: WeWork lost billions but the Neumanns remain very, very rich. Stream WeCrashed on Apple TV. WeCrashed (2022) at Apple TV Learn More Learn More at Apple TV Mad Men (2007 – 2015) One of the deservedly big names in prestige TV, Mad Men feels, in many ways, like the blueprint for Industry; each creates characters with novelistic depth in wildly cynical and intense environments. The mid-century modern stylings of a New York City ad agency make for a contrast with that of a modern London finance house, but the pressure-cooker environments and excesses feel very much in line. Stream Mad Men on HBO Max. Mad Men (2007 – 2015) at HBO Max Learn More Learn More at HBO Max Boiling Point (2023) Back to the restaurant industry: BBC One's Boiling Point serves as a direct sequel to the 2021 film, though it doesn't really require you to have seen the original—all you really need to know is that the movie's main character, Andy Jones (Stephen Graham) is recovering from a stress and substance abuse-fueled heart attack, while series lead and Andy's former sous chef Carly (Vinette Robinson) has poached much of the old staff to start a new operation called Point North. The show navigates between the high-pressure environment of a restaurant start-up and the personal lives of its staff, while Andy's fall from grace smartly offers a glimpse of a possible future for the driven staff. Stream Boiling Point on Prime Video. Boiling Point (2023) at Prime Video Learn More Learn More at Prime Video Skins (2007 – 2013) I'm calling this one a prequel to Industry (it absolutely is not), in that it deals with similar themes in a (largely) high school environment. Skins makes clear that adolescence is an absolute pressure-cooker, and it feels as though any number of these intense, competitive, often hard-partying characters could graduate into Industry—and, in fact, the final season of Skins sees one-time Kaya Scodelario's Effy Stonem take a job in finance (and dabble in insider trading) as part of an arc that feels very much like Industry in miniature. The popular and controversial British series launched names like Nicholas Hoult, Daniel Kaluuya, and Dev Patel while dealing with hot-button issues like mental illness, substance abuse, and bullying. Look for Freya Mavor (Industry's Daria Greenock) in both shows. Stream Skins on Hulu. Skins (2007 – 2013) at Hulu Learn More Learn More at Hulu Halt and Catch Fire (2014 – 2017) A show that largely flew under the radar during its four seasons, this one offers up a (heavily) fictionalized portrait of the rise of personal computers in the 1980s, into the early days of broad adoption of the internet in the '90s. Lee Pace plays Joe MacMillan, the antihero lead who leaves IBM in 1983 to join the fictional Cardiff Electric. He's charismatic, manipulative, and not terribly tech-proficient, but nonetheless has dreams of building the next big tech innovation—starting by reverse-engineering the IBM PC. It's a show that comes up on any number of critical best-of lists and has a sick opening sequence. And did I mention Lee Pace? Stream Halt and Catch Fire on Prime Video. Halt and Catch Fire (2014 – 2017) at Prime Video Learn More Learn More at Prime Video View the full article

Google announced updates to Chrome that let searchers use AI Mode in a more “engaging” and “deeper” way. Chrome lets you do all of this without switching tabs and potentially losing your place. What is new. Chrome added these new features: (1) Search side-by-side: When you’re using AI Mode in Chrome desktop, clicking a link will open the webpage side-by-side with AI Mode. This makes it easier to visit relevant websites, compare details, and ask follow-up questions while maintaining the context of your search. Here is what it looks like: (2) Search across your tabs: On Chrome desktop or mobile, you can tap the new “plus” menu on the New Tab page (or the existing plus menu in AI Mode) to select recent tabs and add them to your search, allowing AI Mode to provide tailored responses and suggest more sites to explore. (3) Multi-input and easy tool access: You can also mix and match multiple tabs, images, or files like PDFs and bring that context into AI Mode. Additionally, tools like Canvas or image creation, are accessible wherever you see the new plus menu in Chrome. Why we care. These are some new Chrome specific features for users in the U.S. English language that help you unlock more AI Mode features. Again, it is specific to Chrome users right now but it does show you the direction Google is taking AI Mode. View the full article

New Ahrefs data shows Reddit pages appeared often in ChatGPT retrievals but rarely as visible citations. The post ChatGPT Often Retrieves But Rarely Cites Reddit Pages, Data Shows appeared first on Search Engine Journal. View the full article

This week's Freddie Mac mortgage rate survey shows rates at the lowest in four weeks, but homebuyers are giving mixed signals even with improved purchase power. View the full article

Microlending platforms serve as a bridge between borrowers, often from underserved communities, and lenders ready to provide small loans, typically under $50,000. These platforms operate through various models, such as peer-to-peer lending and institutional microfinance. Borrowers submit applications detailing their financial needs, and upon approval, they receive funds to support their ventures. Comprehending how these platforms function can reveal their potential benefits and challenges for aspiring entrepreneurs. What factors should you consider before applying for a microloan? Key Takeaways Microlending platforms connect borrowers, often from underserved communities, with lenders willing to provide small loans, typically under $50,000. They utilize various models, including peer-to-peer financing and institutional lending through microfinance organizations. Platforms like Kiva and Accion Opportunity Fund offer loans alongside financial education and business training to enhance borrower success. Approval processes typically involve evaluating personal and business financial details, allowing access even for those with low or no credit scores. Microlending platforms aim to empower individuals and promote financial independence while managing risks such as high interest rates and potential default. What Is Microlending? Microlending is a financial practice that provides small loans, typically under $50,000, to individuals and entrepreneurs who mightn’t qualify for traditional banking services. Originating with Grameen Bank in 1976, microlending aims to empower marginalized groups, particularly women, by offering them vital financial resources for business ventures. Unlike traditional loans, microloans have less stringent qualification criteria, making them accessible to people with limited or no credit history. Interest rates usually range from 6.5% to 15%, with repayment terms from one to five years, depending on the lender’s policies and the borrower’s creditworthiness. Today, microlending platforms, often utilizing p2p platforms, connect borrowers directly with lenders. These digital platforms streamline the loan application process as they evaluate creditworthiness through alternative data points, enhancing the chances for underserved communities to secure needed funding. Consequently, microlending plays a significant role in promoting financial inclusion and economic empowerment. How Microlending Works When you consider microlending, it’s important to understand the application process and how funding works. You’ll typically need to fill out an application and provide documentation, which can lead to funding in about 30 to 90 days. Once approved, you’ll repay the loan in installments, with interest rates varying based on your creditworthiness and the lender’s policies. Application Process Overview Applying for a microloan involves several key steps that you should comprehend before proceeding. First, you’ll need to choose a microlender and complete an application, which typically requires personal and business details along with supporting documents. Once submitted, the approval process can take anywhere from 30 to 90 days, during which lenders assess your creditworthiness and business viability. Microloans usually range from $500 to $50,000, with the average amount around $13,000; interest rates often vary between 6.5% and 15%. Furthermore, many microlending platforms connect borrowers with lenders, including options for peer-to-peer lending, where multiple investors can fund a single loan. Comprehending these steps will help you navigate the microloan application process effectively. Funding and Repayment Structure For those seeking small loans, microlending offers a unique funding structure that caters to individuals who may struggle to access traditional credit. Typically, microloans range from $500 to $50,000 and have simpler qualification criteria. You can apply through various microlending platforms, which evaluate your creditworthiness using personal and business data. Once approved, repayment terms usually vary from 1 to 7 years, depending on the lender and loan specifics. Interest rates can range from 6.5% to 15%, though some platforms, like Kiva, offer 0% interest loans funded by crowdfunding. Generally, the application process takes 30 to 90 days, and you’ll need to repay the loan in installments according to the agreed terms. Borrower Qualifications for Microloans Comprehending borrower qualifications for microloans is essential if you’re considering this financing option to support your business endeavors. Microloans have specific criteria that potential borrowers must meet, which can vary by lender. Here are some common qualifications: Basic credit assessment, with low or no credit scores often accepted Evaluation of personal income, business revenue, and operational duration Documentation to verify income sources, business plans, and intended use of funds Focus on supporting underserved groups, like women and minorities Targeting new entrepreneurs or small business owners Understanding these qualifications can help you prepare your application effectively. Since microlenders prioritize business plans and revenue potential, focusing on these aspects can improve your chances of securing the funds you need. Types of Microlending Models During the exploration of the domain of microlending, it’s important to understand the various models available, as each offers distinct features and benefits. The primary models include peer-to-peer (P2P) financing and institutional lending through microfinance organizations or nonprofits. In the P2P model, you can connect directly with individual borrowers, often selecting them based on their profiles and loan requests. This approach allows for pooling funds from multiple lenders to meet the loan amount. On the other hand, institutional lenders, like microfinance institutions (MFIs), typically focus on social impact, offering loans along with business training and support. Some platforms, such as Kiva, implement crowdfunding to gather capital for microloans, enabling individual investors to fund small portions of loans with zero interest and flexible repayment terms. Each model has its own eligibility criteria and loan structures, with microloans usually ranging from $500 to $50,000, aimed at those who may struggle with traditional financing. Benefits of Microlending for Borrowers Microlending offers you easier access to capital, especially if you struggle to qualify for traditional loans. With flexible repayment terms and amounts customized to your needs, you can manage your finances more effectively. Furthermore, many microlending platforms provide financial education opportunities, helping you build the skills necessary for long-term success. Easier Access to Capital Access to capital can be a significant hurdle for many aspiring entrepreneurs, especially those from underserved communities. Microlending platforms ease this challenge by providing funding options typically ranging from $500 to $50,000. These platforms often prioritize social impact, allowing individuals with limited credit histories to secure loans. Here are some key benefits of microlending: Flexible qualification criteria cater to diverse backgrounds. Lower interest rates, usually between 6.5% and 15%, make financing more affordable. Shorter repayment periods of 1 to 5 years help manage cash flow. Access to additional resources, such as business training and mentorship. Empowerment of small business owners who mightn’t qualify for traditional loans. These factors make microlending an appealing opportunity for many. Flexible Repayment Terms For many borrowers, the flexibility of repayment terms offered by microlending platforms can greatly ease the financial burden often associated with loans. These platforms typically allow you to choose repayment timelines that fit your unique situation, often ranging from 1 to 5 years. This adaptability helps reduce financial pressure when compared to traditional loans with rigid structures. Furthermore, many microlending platforms report your repayments to credit bureaus, which aids in building your credit history. With interest rates usually between 6.5% and 15%, microlending offers competitive options. The average loan amount is around $13,000, making it manageable for small businesses to repay without overextending financially. This flexibility finally empowers you to make informed financial decisions. Financial Education Opportunities How can financial education transform your borrowing experience? Microlending platforms often provide valuable resources that improve your financial management skills. These initiatives empower you, especially if you’re a woman entrepreneur, by offering not just loans but also extensive training. Here are some key benefits you’ll gain from financial education through microlending: Access to business training workshops Mentorship opportunities in budgeting and financial planning Improved credit scores from timely repayments Upgraded operational management skills Connections to community networks for ongoing support Risks and Challenges in Microlending Though microlending platforms provide essential financial services to underserved populations, they come with notable risks and challenges that borrowers and investors should carefully consider. Microlending often involves higher interest rates, ranging from 7.99% to 35.99%, reflecting the increased risk of lending to individuals without traditional credit histories. Borrowers frequently face short repayment terms of 1 to 5 years, which can create financial strain if their cash flow is limited. Significant default rates may result in little or no recovery for lenders, as economic factors can hinder borrowers’ ability to repay. The lack of collateral requirements can encourage over-borrowing, leading to unsustainable debt levels. Furthermore, high service fees associated with these platforms can diminish overall returns for investors, making microlending a riskier investment option compared to traditional lending. Careful assessment of these factors is vital for anyone considering participation in microlending. Leading Microlending Platforms As you explore the scenery of microlending platforms, you’ll find several leading options that cater to diverse borrower needs and investor preferences. These platforms provide unique advantages and target different demographics, making them valuable resources in the microlending environment. Here’s a look at some of the top players: Kiva: Offers interest-free loans starting at $25, supporting entrepreneurs globally. Accion Opportunity Fund: Provides microloans from $5,000 to $100,000, focusing on diverse business owners and offering financial education. Grameen America: Targets women entrepreneurs with loans starting at $2,000 and emphasizes community support. LendingClub: Facilitates peer-to-peer lending for loans ranging from $1,000 to $40,000, with flexible terms. Upstart: Requires accredited investors, offering loans with a minimum investment of $100 and terms of three or five years. These platforms illustrate the variety and adaptability found within the microlending sector. How to Apply for a Microloan Have you ever wondered what it takes to secure a microloan? The application process begins with checking your eligibility, which involves evaluating your personal credit score, annual revenue, and existing debt. You’ll typically complete an online form that requires both personal and business information, alongside uploading supporting documents. Here’s a quick overview of the steps: Step Description Timeframe Check Eligibility Evaluate credit score, revenue, and debt status Before applying Complete Application Fill out online form and upload documents 1-2 hours Approval Process Wait for processing and verification A few days to weeks Repayment Terms Understand repayment schedule and terms 6 months to several years Once approved, you’ll need to repay the loan in installments according to the lender’s terms. Is Microlending Right for Your Business? Is microlending the right choice for your business? If you’re a small business owner needing quick access to funds, microlending may be a viable option. These platforms offer loans between $500 and $50,000, often with flexible qualification criteria. Nevertheless, consider the following: Average microloans are around $13,000, suitable for inventory, payroll, or operational costs. Approval times can take 30 to 90 days, impacting immediate cash flow. Borrowers may face higher interest rates, typically between 6.5% and 15%. Repayment terms are usually shorter, ranging from 1 to 5 years. Microlending can support underserved communities, including women and minorities. Evaluate your business needs and financial situation carefully. Microlending can provide valuable resources, but it’s crucial to understand the implications of borrowing before making a decision. Frequently Asked Questions What Is Microlending and How Does It Work? Microlending is a financial practice where small loans, usually under $50,000, are provided to individuals or businesses lacking access to traditional banking services. You apply through a microlender, and the funding process typically takes 30 to 90 days. Interest rates range from 6.5% to 15%, with repayment terms from one to five years. Lenders evaluate your creditworthiness using various factors, often relying on alternative data because of limited credit histories. Who Typically Uses Micro Lending? You’ll find that microlending is often utilized by entrepreneurs, particularly those from underserved communities. Small business owners, including many women, seek these loans to start or grow their ventures when traditional JPMorgan Chase deny them access. Typically, individuals with low incomes or poor credit scores turn to microlending platforms, as they offer flexible eligibility criteria. Loan amounts can range from $500 to $50,000, with the average microloan being around $13,000. What Is the Best Example of Micro Financing? The best example of microfinancing is Kiva, which offers interest-free microloans starting at $25 to borrowers worldwide. You can lend directly to entrepreneurs in underserved communities, encouraging financial inclusion. Kiva’s crowdfunding model shows a repayment rate over 96%, emphasizing its effectiveness. What Is Micro Financing and How Does It Work? Microfinancing is a financial service providing small loans, usually under $50,000, to individuals or businesses that lack access to traditional banking. You apply through a microlender, submit necessary documentation, and receive funding within 30 to 90 days. Repayment occurs in installments with varying interest rates, typically between 6.5% and 15%. These loans can be used for business needs like inventory or operational costs, but not for settling debt or purchasing real estate. Conclusion In conclusion, microlending platforms provide vital financial support to underserved borrowers, enabling them to access small loans for their entrepreneurial needs. By comprehending how these platforms operate, the types of loans available, and the qualifications required, you can make informed decisions about your financing options. During microlending offers numerous benefits, it’s important to evaluate the associated risks and challenges. In the end, appraising whether microlending aligns with your business goals can help you leverage this resource effectively. Image via Google Gemini and ArtSmart This article, "What Are Microlending Platforms and How Do They Function?" was first published on Small Business Trends View the full article

A reader writes: One of my employees has asked for a massive raise. He has good reasons for wanting a raise: his responsibilities have ended up being very different than what he was originally hired for, he’s been doing very well with them, and he’s definitely paid below market for what he’s ended up doing. We hired him at $15/hour for an entry-level position with no hard requirements, and based on some quick market research, I’d say the work he’s doing now is closer to a $20-$25 range, so I’m actually in favor of giving him a pretty substantial increase. The trouble is that he’s asked for an increase to $40/hour, and he’s only been here for four months. That’s more than I make, and I’m honestly shocked that he thought this was reasonable to ask for. He says he did some market research, but that number hasn’t been supported by anything I’ve been able to find. Four months also seems like a short amount of time to me, but I don’t know if the significant change in duties should override that. I want to advocate for my employee with our company’s owner (who is very reluctant to spend money), but I am suspicious that bringing the employee’s $40/hour request to him will make my employee (and potentially me as well) look completely out of touch with reality. Our owner is extremely hands-off — we’re all remote, and I talk to him maybe once every month or two for about 10 minutes. I told my employee that $40/hour was more than I make and gently suggested that asking for a lower number might be a better idea, but he shrugged that off and said he isn’t set on that number, but sees it as a good “starting point.” Any suggestions for how to approach this? I answer this question over at Inc. today, where I’m revisiting letters that have been buried in the archives here from years ago (and sometimes updating/expanding my answers to them). You can read it here. The post my employee asked for a 170% raise appeared first on Ask a Manager. View the full article

Modern-day Luddites are gaining ground because tech titans haven’t shown people how innovation will improve their livesView the full article

And why it changes everything for you. By Hitendra Patil Client Accounting Services: The Definitive Success Guide Go PRO for members-only access to more Hitendra Patil. View the full article

And why it changes everything for you. By Hitendra Patil Client Accounting Services: The Definitive Success Guide Go PRO for members-only access to more Hitendra Patil. View the full article

We may earn a commission from links on this page. “Be able to do a pull-up” is a common fitness goal, and if you work hard—with negative pull-ups, inverted rows, and more—someday you’ll get there. Go ahead, take a minute to celebrate. But don’t drop the workouts that you were doing pre-pull-up. It’s tempting to change up your training, because for weeks or months (maybe years!) you were doing the things that you do when you can’t do a pull-up. You may have been doing negative pull-ups, where you start at the top of the movement and slowly lower yourself down. You may have been doing inverted rows, where you pull yourself toward a low bar or rings. You may have been doing assisted pull-ups on a machine, banded pull-ups with decreasing thicknesses of elastic, lat pulldowns, dumbbell rows, and more. But your first pull-up is not a graduation from all of that. You should not leave the resistance bands and the lat pulldown machines in the dust. They need to stay with you during the next phase of your journey. JFIT Deluxe Doorway Pull-Up Bar $30.76 at Amazon $43.99 Save $13.23 Get Deal Get Deal $30.76 at Amazon $43.99 Save $13.23 Why you might not be able to consistently do a pull-upSo you did a pull-up today. That doesn’t mean you’ll be able to do one tomorrow. That’s probably confusing, so let me explain. We all have a range of abilities that we can do on any given day. For example, if you squatted 225 pounds last week, that doesn’t mean you could also squat 225 today. We might say that your “range” is 200-225, and when you’re well-rested and psyched up, you’re able to hit the top of that range. But even on a bad day, you know you can hit at least 200. Pull-ups are like that, too. Maybe when you started working toward a pull-up, your strength was in the range of 50-55% of what it takes to do a pull-up. That means that when you get your first pull-up, your range might be something like 95-100%. The day you did the pull-up is a 100% day. The next day, maybe you’re only at 99%. You’ll wonder why you “can’t” do one anymore. What you need to do now is keep working until doing one pull-up is the bottom of your range of abilities. If you’re hovering between being able to do 0-1 pull-ups, you want to expand that range until it’s about 1-3 pull-ups. By the time you can do two or three pull-ups some days, you’ll be able to do one pull-up any day. By the way, everything I’m saying applies to chin-ups, as well. (A pull-up has your palms facing away from you; a chin-up is with palms toward you.) Chin-ups are slightly easier than pull-ups, so if you can do a pull-up sometimes, you might already be able to do chin-ups pretty consistently. Feel free to mix chin-ups and pull-ups in your training. How to get your second pull-upGetting that first pull-up doesn’t unlock a whole new world of workouts; it just gives you one extra tool. You already have a variety of exercises you currently do that build your pull-up strength, and you can do those exercises at a variety of rep ranges and difficulty levels. To that, you can add “do one pull-up.” That one pull-up is not enough to replace everything else. If you need a refresher on great pull-up accessories, they include: Negative pull-ups (slowly lowering yourself down). You can do these for reps, or you can aim to make each set a single, ultra-slow, perhaps 10 or 15 second motion. Banded pull-ups (with a resistance band supporting your feet—either hanging from the pull-up bar or stretched across the rack underneath you). You can do more reps with a heavier band, or fewer reps with a lighter band. These work best when done as a slow, controlled rep. Box or bench pull-ups, with one or both feet on a surface underneath you. Push with your foot just as much as you need to complete each rep. The lat pulldown machine or the assisted pull-up machine. Both of these work your upper body pulling muscles, although they aren’t as effective at training your core or your body position. Rows, rows, rows. My favorites are Kroc rows with dumbbells that are so heavy you need to “cheat” by twisting your whole body (this is a good thing, since it gets your core working). Other great rows include barbell rows, seated cable rows, bent-over dumbbell and kettlebell rows, and bodyweight inverted rows. When you’ve finished your other pull-up accessories for the day, do a few sets of rows. Your pull-up program may have included other exercises as well, like planks and other core work, grip training, dead hangs, or maybe even stretches for your shoulders. Keep doing those, too. If you’ve only been doing one or two of the things from the list above, feel free to add one or two more. Do not feel like you have to do all of them. I’d pick one of the pull-up variations each day—negatives, banded, or bench-assisted—and then add two more exercises from the rest of the list (one machine and one row, or two different rows). How to do more and more repsThat singular pull-up you can do, at least sometimes? Definitely do it at the beginning of your workout. One pull-up, rest a minute or two, then attempt it again. Once you fail, move on to the rest of your workout—the negatives and rows and so on. If you can do a pull-up more than once in a day, you’re getting close to being able to do two or three in a set. If you do a pull-up and it doesn’t feel like a struggle, go for a second rep. Soon enough, you’ll be hitting sets of two or three. Once you can consistently do at least three pull-ups, you can start making this more of a cornerstone of your workouts, rather than a fun bonus. Do three sets of three every day that you do upper-body exercises, and it’s now that you can drop one of your other pull-up exercises. (Still, keep the rows in.) At this point, if you want something more intensive that has you doing pull-ups almost every day, consider the “3RM” version of the Fighter Pull-up Program. Once you can do sets of five consistently, I’d recommend the Armstrong Pull-up Program instead, which is a bit more sustainable. And soon enough, you’ll be repping out pull-ups, instead of just doing one. View 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. Is the Altman firebomb just the start of extreme doomer violence? On April 10, someone threw a molotov cocktail at OpenAI CEO Sam Altman’s house in San Francisco. The alleged assailant, 20-year-old Daniel Moreno-Gama, didn’t stop there. He then went to OpenAI’s headquarters and told the security guards there that he intended to burn down the building and everyone inside. Two days later, someone allegedly fired two shots from a car driving past Altman’s house, but OpenAI said that event was unrelated to the firebombing and didn’t target Altman. The firebombing is an extreme reaction to the rapid evolution of AI systems over the past few years, and to fears that such systems may not act in humans’ best interests. Moreno-Gama said as much in the “manifesto” document police found in his possession. He discusses the “purported risk AI poses to humanity” and “our impending extinction.” He includes a personal letter to Altman, in which he urges the CEO to change. He also advocates for killing CEOs of other AI companies and their investors. Altman has spoken many times about the dangers of AI systems while also pushing OpenAI to develop and release increasingly intelligent models. Some have suggested that when Altman talks about the dangers of AI, it’s really a sort of humble-brag about OpenAI’s models (“so intelligent they’re dangerous”). It’s true that AI labs continue to make big strides in intelligence with every new model. AI coding tools are speeding up development, so new releases, and jumps in capability, are happening more frequently. Meanwhile, the public has grown increasingly concerned, even angsty, about the risks of AI systems, which can range from job losses to AI-assisted cybercrime to human extinction. AI’s transformation of business and life is just getting underway. Models will grow scarily smart. With AI labs under pressure to deliver returns for their investors, there’s almost no chance of hitting “pause.” There’s little reason to think incidents like the Altman firebombing won’t happen again. Sarah Federman, a professor of conflict resolution at the University of San Diego, says that people often resort to violence when they feel powerless to speak out effectively against a perceived wrong. “We’re starting to see the breaking point,” Federman says. “There is all of this fear and nowhere for it to go.” She also believes that as AI labs race to release the best model, concerns about ethics have been pushed aside. She’s got a point. AI companies have spent significant time engaging with lawmakers, explaining how their systems work and why regulating model development can be counterproductive. Many in Washington, D.C., were charmed by Altman, who they found forthright, earnest, and technically proficient. But these companies spend far less time speaking directly to the public. They don’t hold town halls or host AI ethics debates on Fox News or CNN. They’re more likely to start “institutes” to study the future effects of AI on society. And the issue of AI alignment may, by its nature, push people like Moreno-Gama toward extreme behavior. There’s now plenty of AI-doom content online to send some people down a very deep rabbit hole where they lose sight of the myriad of factors that will determine how humans live with superhuman AI. They may see only the “if you build it, we will die” narrative, then feel desperate to act. They may even be helped along by the mildly sycophantic chatbot of their choice. OpenAI releases security-focused GPT-5.4-Cyber model to compete with Anthropic’s Mythos A week after Anthropic announced its controversial new cybersecurity-focused Claude Mythos model, OpenAI has released a similarly focused model called GPT-5.4-Cyber. The company says “Cyber” is a specialized version of its latest general AI model, GPT-5.4, designed to help cybersecurity professionals detect and analyze software vulnerabilities. OpenAI says GPT-5.4-Cyber is trained for defensive use cases, such as analyzing and reverse-engineering potential cyberthreats. Of course, an AI tool that can find and reverse-engineer threats can also be used offensively by bad actors to find vulnerabilities in target systems and create exploits. So OpenAI says access to GPT-5.4-Cyber will initially be limited to vetted organizations, researchers, and security vendors. Anthropic did something similar with its Mythos model, granting access to a group of well-known cybersecurity and infrastructure companies that will use it to find and patch vulnerabilities in widely used software. This, the thinking goes, will give defensive cybersecurity efforts a head start against hackers who will get access to Mythos-level models eventually. Anthropic has no immediate plans to release its Mythos model. OpenAI said the rollout reflects a shift toward broader but controlled deployment of powerful AI systems, emphasizing collaboration with security professionals while attempting to limit potential misuse. xAI is again under fire for “sexualized” chatbot for kids xAI’s Grok chatbot continues to generate sexual deepfake imagery, a recent NBC News investigation found, prompting calls for Elon Musk’s AI company to change course. xAI had earlier promised to restrict such content. Separately, the National Center on Sexual Exploitation (NCOSE) found that Grok’s child-focused chatbot, “Good Rudi,” can engage in sexually explicit conversations. NCOSE is calling for xAI to restrict access to the chatbot. NBC News says it found dozens of AI-generated sexual images and videos depicting real people posted on Musk’s X (formerly Twitter) social media app over the past month. NBC says the images show women whose likenesses were edited by the AI chatbot to put them in more revealing clothing, such as towels, sports bras, skintight Spider-Woman outfits, or bunny costumes. Many of the women were female pop stars or actors. NCOSE researchers found that Grok’s Good Rudi chatbot can tell sexually explicit stories. “As soon as I started a conversation with Rudi, it began the conversation by wanting to share a fun childish story,” one researcher said. “After some prompting, I eventually got the companion to bypass all safety programming.” The chatbot then told a sexy story about two young adults that contained graphic descriptions of sexual encounters, including the characters “getting into sexual positions, and sexual penetration.” More AI coverage from Fast Company: An AI agent opened a store in San Francisco. Then it forgot the staff AI is rewriting the rules of biological experiments. Safety regulations aren’t keeping up New findings from this Gallup poll show how Americans are using AI for health advice I lost $23 investing with ChatGPT, but at least Jason Alexander sang me Happy Birthday Want exclusive reporting and trend analysis on technology, business innovation, future of work, and design? 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Today's Bissett Bullet: “When should a lead be considered dead?” By Martin Bissett See more Bissett Bullets here Go PRO for members-only access to more Martin Bissett. View the full article

Today's Bissett Bullet: “When should a lead be considered dead?” By Martin Bissett See more Bissett Bullets here Go PRO for members-only access to more Martin Bissett. View the full article

Aim for a mix at all revenue levels. By Sandi Leyva Go PRO for members-only access to more Sandi Smith Leyva. View the full article

Aim for a mix at all revenue levels. By Sandi Leyva Go PRO for members-only access to more Sandi Smith Leyva. View the full article

Conservatives accuse Prime Minister Sir Keir Starmer of misleading parliamentView the full article

Since opening in Silicon Valley in 2019, NTT Research has operated as a long-horizon science lab, a dedicated arm of Japan’s telecommunications giant NTT Group, which invests more than $3 billion annually in global R&D. Now in its seventh year, the lab was built as a research subsidiary insulated from quarterly pressure and product roadmaps. Unlike startups or typical corporate innovation teams, NTT Research is a wholly owned entity focused on seeding advances in computing, security, and healthcare that can later fold into NTT’s global infrastructure and enterprise services. Many of these efforts take five to fifteen years to approach commercialization, a timeline now under strain as AI compresses development cycles and markets reward speed. The question has sharpened: what is the value of discovery if it never leaves the lab? NTT Research is trying to answer that with what it calls “NTT Research 2.0,” a dual-engine model that maintains long-horizon science while pushing discoveries toward market. President and CEO Kazu Gomi frames the shift as inevitable. At its center is Scale Academy, a new incubator designed to spin out companies from lab breakthroughs. Its first test case, SaltGrain, is a zero-trust data security platform built on attribute-based encryption, a concept first proposed in 2004 that has largely remained theoretical. The effort reflects a broader challenge: turning deep research into viable companies without losing the rigor that produced it in the first place. In a conversation with Fast Company, Gomi discusses how to operationalize advanced science, what sets Scale Academy apart from traditional incubators, and how to judge when emerging technologies are ready for the real world. This conversation has been edited for length and clarity. NTT Research has long operated on a 5–15 year horizon for breakthroughs. With NTT Research 2.0, you’re introducing a more market-driven, startup-like approach. How do you decide when a technology is ready to move from the lab to commercialization—and how do you balance avoiding premature launches with not letting viable ideas sit too long? This shift didn’t happen overnight—we have actually been building this business incubation capability behind the scenes for over a year. What you are now seeing with Research 2.0 is the formalization of something that was already taking shape internally. At a practical level, the key realization was that after seven years of fundamental research, we now have several technologies that are approaching, or in some cases already at, a point where there is clear commercial potential. And it would be a shame to let those opportunities sit idle. So operationally, we have introduced a new layer—a business incubation function—that selectively picks up technologies that show near-term product viability. The idea is not to change how research is done, but to create a parallel path that can take these technologies to market in a more structured way. In terms of avoiding risks such as pushing immature technologies too early or letting mature ones sit too long, the way I think about it is not through rigid stage gates, but through separation of roles and clarity of intent. The research team continues to focus on fundamental discovery without pressure from product timelines. Meanwhile, the incubation team evaluates technologies through a completely different lens: market readiness, customer relevance, and business viability. The decision of when something is ‘ready’ is less about a fixed checklist and more about whether we can see a credible path to real-world deployment and value creation. The most important structural choice we made was not to convert researchers into business operators. Instead, we built Scale Academy as a completely separate team, bringing in people from outside who think in terms of markets, customers, and revenue. That separation ensures we don’t compromise the integrity of either side. The research team is not rushed, and the incubation team is not constrained by academic thinking. Many big-tech companies have incubators or venture arms. What makes Scale Academy structurally different? Is it truly operating with startup-like independence in incentives and governance, or is it still shaped by being inside a large enterprise? And how do you define success: venture creation, revenue, or building a repeatable commercialization engine? Where we differentiate is the starting point. Scale Academy is not sourcing ideas from product teams or incremental innovation—it is directly connected to a very strong basic research foundation. That means the technologies we are working with are often fundamentally new, sometimes even ahead of market demand, which gives us a different kind of leverage. In terms of governance and constraints, yes, we do have the advantage of NTT as a large parent providing funding and stability. But at the same time, we are very conscious that no company can succeed in isolation today. So one of the core principles we are building into Scale Academy is ecosystem participation. When we spin out companies, we don’t intend to own everything—we want to bring in other partners, investors, and players who are relevant to that market. Being part of a broader ecosystem is critical to scaling these upcoming technologies. As for success metrics, it’s still evolving, but I don’t want to reduce it to just the number of startups launched. That would be too simplistic. What matters more is whether we can create a repeatable, effective process—identifying the right technologies, applying the right business thinking, and building ventures that can become self-sustaining as quickly as possible. Of course, revenue and profitability will be important at the individual company level, but success for me is whether this becomes a sustainable engine that consistently translates deep research into real businesses. Research thrives on patience and uncertainty, while startups demand speed and market validation. How do you reconcile those two fundamentally different operating models without compromising either? And what cultural or organizational shifts were required within NTT Research to support both discovery and deployment? This is probably the most challenging aspect of Research 2.0. Trying to merge those directly would create conflict, so the key is clear separation with controlled collaboration. The incubation team needs technical depth and continued support from the researchers. But this interaction has to be carefully managed. Too much overlap risks distracting the research team; too little collaboration risks weakening the product. Culturally, I do see a shift happening, particularly in motivation. Many researchers have expressed a desire to see their work used in the real world. With Scale Academy, we can now offer that pathway. It becomes an additional incentive, not replacing the academic mission, but complementing it. We can say, ‘You’ve created something valuable, do you want to explore how it might be used?’. But if we don’t manage the boundaries and interactions properly, we could fail on both fronts—neither achieving strong research nor successful commercialization. So this is something we are actively watching and adjusting as we go. Attribute-based encryption (ABE) has existed for years, but never really broke into mainstream enterprise deployment. Why is it viable now? What changed in terms of performance, scalability, or real-world readiness? And does SaltGrain truly redefine zero-trust by embedding policy into the data itself, or is it an evolution of existing approaches shaped by the demands of AI? Technologies like ABE often require a long maturation period. Over the past decade, ABE has become significantly more stable and practical from a technical standpoint. So the technology itself is now ready. However, the more important factor is the market timing. What has changed dramatically in the last one to two years is the rise of AI, especially agentic AI. We are entering a world where more and more AI agents are being deployed across enterprises, and these agents require access to large volumes of data to function effectively. That creates a fundamental tension. On one hand, organizations need to provide as much data as possible to train these agents. On the other hand, much of that data contains sensitive information—personal data, financial details, internal records—that cannot simply be exposed. So companies are stuck in a dilemma: either risk leaking sensitive data or restrict access and limit the effectiveness of AI. This is where SaltGrain comes in. We are combining ABE with additional capabilities to address this specific problem. For example, we are developing classification engines that can automatically scan documents, identify sensitive information, and categorize it into different levels of sensitivity. Once that is done, ABE allows us to selectively mask or encrypt those parts of the data while leaving the rest accessible. Another key shift is that we are no longer designing this system primarily for human users. Increasingly, the ‘viewer’ of the data is an AI agent. So we are fine-tuning the system with that assumption in mind. Different agents can be given different levels of access based on policy, all enforced at the data level. The core idea of embedding policy into the data itself aligns strongly with zero-trust principles. But what makes it new is the context, applying it to AI-driven environments where the scale, speed, and nature of access are fundamentally different. Right now, I don’t see many practical solutions in the market addressing this problem. We’re entering a world where AI agents, not just humans, access and act on enterprise data, creating new security risks. How does your data-centric model address that reality, and can policies embedded at the data level scale across complex, real-world workflows? And how should enterprises think about post-quantum readiness today—urgent priority or longer-term transition? Recent security incidents, like large-scale data breaches where entire document repositories are exposed, show why data-centric security is important. In traditional models, once data is stolen, it is essentially compromised. But with ABE, the protection stays with the data itself. Even if a file is copied or leaked, the access control policies remain embedded, so sensitive information is still protected. For us, zero-trust data security means not relying on perimeter defenses alone and securing the data wherever it goes. In terms of scaling this to AI-driven environments, I think we are still in the early stages. We can point to scenarios where this approach would have significantly reduced the impact of past breaches, but we are still building real-world use cases to quantify that impact more precisely. At the same time, if enterprises can trust that their sensitive data will remain protected, even when shared with agentic AI systems, they will be much more willing to use that data for training and operations. That’s a critical enabler for AI adoption and innovation. The first release of SaltGrain is not post-quantum ready, and that is intentional. Today’s systems are still largely based on pre-quantum cryptography, so we want to deliver value immediately rather than wait. However, in parallel, our research team has already developed post-quantum versions of ABE. The challenge has been performance. Early implementations were too computationally heavy to be practical. Through collaboration between the research team and the incubation team, we spent two years refining those algorithms, adjusting assumptions, and optimizing them to reduce computational requirements while maintaining security. Now we have a version that is much more practical. So our roadmap is to deploy the current solution, demonstrate value, and then transition to post-quantum readiness over the next couple of years. We want to show the market that we not only understand where things are going, but that we have a concrete path to get there. Research is an increasingly crowded space with hyperscalers, startups, and governments all investing heavily in AI, quantum, and next-gen infrastructure. Where does NTT truly differentiate? Is it the depth of research, system-level integration, or long-term capital? And if Scale Academy succeeds, does it redefine the role of a corporate research lab in the AI era, or is this still an experiment in balancing deep science with commercialization? I see this as a management challenge. Until now, NTT Research has been completely focused on fundamental research, with a clear mandate of producing strong scientific work and publishing impactful papers. That has been successful and has built a very strong foundation. What changes with Research 2.0 is that we are adding another dimension. We are not replacing the research mission, but we are expanding it. Our strength lies in the depth of our research, combined with our ability to now connect that to real-world applications. Many companies participate in the Silicon Valley ecosystem, but not all of them come in with the same level of deep, fundamental innovation. I am particularly interested in leveraging this model across the broader NTT organization. Many technologies are being developed in our labs globally, including in Tokyo. Not all of them will be suitable for commercialization, but some of them could be very strong candidates. If Scale Academy proves successful, we can bring those ‘crown jewels’ into this process and take them to global markets more effectively. At this stage, this is still an experiment, but it is a very intentional one. We are not trying to prove that deep science and commercialization are easy to combine—they are not. But we believe that with the right structure, it is possible to create a system where both can thrive. And from what I see internally, there is strong support for this direction. There is a sense of excitement, but also eagerness to see how it develops. View the full article

If you’re considering franchising as a business model, it’s important to comprehend the step-by-step process for success. First, you’ll need to assess your business’s viability and unique value. Next, exploring different franchise types can help you find the right fit. Evaluating financial resources and grasping the Franchise Disclosure Document (FDD) are essential steps. With the right strategy for training and support, you can set your franchise up for growth. But what are the key components of a successful franchise strategy? Key Takeaways Assess your business model for profitability and scalability to attract potential franchisees effectively. Research various franchise types to align with your entrepreneurial goals and investment capacity. Carefully analyze the Franchise Disclosure Document (FDD) to understand obligations and financial commitments. Seek professional advice to identify risks, financing options, and evaluate total investment needs. Develop a structured training program and operations manual to maintain brand consistency across franchise locations. Assessing Your Readiness for Franchising Before plunging into franchising, you need to assess your readiness thoroughly. Start by evaluating your business model’s profitability to demonstrate viability to potential franchisees. Unique value propositions will help your brand stand out in the market, which is essential for attracting franchisees who seek long-term success. Consider the scalability of your operations; effective franchise growth relies on being able to replicate your business model across multiple locations. Established brand recognition can greatly improve your appeal, as franchise organizations often seek partnership with well-known brands. Finally, confirm your financial planning and resources are adequate to support franchisee needs, providing necessary training and ongoing support, much like international franchise companies do to maintain consistency and success across their networks. Researching Different Franchise Types When researching different franchise types, it’s essential to understand the distinctions between business-format franchises, product distribution franchises, and home-based franchises. Business-format franchises offer a complete system for operation, whereas product distribution franchises allow you to sell products under the franchisor’s trademark without extensive support. Home-based franchises typically require a lower investment and are often service-oriented, which can be a great fit for those looking for flexibility and lower overhead costs. Business Format Franchises Business format franchises stand out as the most prevalent franchise type, primarily owing to the extensive framework for operating a business. They provide you with a complete system that includes marketing, operations, and training support. By choosing a recognizable brand, you can benefit from established customer trust and brand loyalty. Typically, you’ll pay an initial franchise fee ranging from $10,000 to over $100,000, alongside ongoing royalty fees of 4% to 12% of monthly revenue. Adhering to strict operational guidelines guarantees brand consistency across all locations. Here’s a quick comparison: Feature Description Example Brand Recognition Established customer trust McDonald’s Initial Fee $10,000 – $100,000 Starbucks Royalty Fees 4% – 12% of monthly revenue Dunkin’ Donuts Product Distribution Franchises Though business format franchises offer a structured approach to running a business, product distribution franchises present a distinct model that might appeal to those looking for flexibility. In this type, you sell the franchisor’s products while using their trademarks, often without needing a brick-and-mortar store. This allows for lower initial investments, as your focus is primarily on inventory and distribution rather than extensive operational costs. Franchisors provide valuable support, including brand recognition, marketing assistance, and established supply chains, which can improve your sales potential and lower risks. Common examples include beverage companies like Coca-Cola, where you operate as a local distributor. Furthermore, you benefit from economies of scale through the franchisor’s supplier relationships, helping with pricing and inventory management. Home-Based Franchises Have you considered the advantages of home-based franchises? These businesses typically require a low initial investment, usually between $10,000 and $50,000, making them accessible for many aspiring entrepreneurs. Operating without a physical storefront allows you to work from home during providing crucial services like cleaning, tutoring, or consulting. Many home-based franchises as well offer thorough training and ongoing support, ensuring you have the skills needed to thrive. The demand for these franchises has surged, especially post-pandemic, as people increasingly seek convenience and flexibility. Furthermore, with lower overhead costs, you can enjoy higher profit margins compared to traditional brick-and-mortar franchises. Exploring home-based options could be a strategic move for your entrepreneurial expedition. Evaluating Financial Resources and Costs When evaluating your financial resources and costs for franchising, it’s essential to assess the initial investment you’ll need, which can vary considerably based on the franchise brand. You’ll additionally want to explore financing options, such as traditional loans or partnerships, to guarantee you have the necessary funds. Finally, consider the long-term profit potential, factoring in ongoing fees and expenses, to gauge the overall viability of your franchise investment. Initial Investment Assessment Evaluating your initial investment for franchising is vital, as it directly influences your potential for success. The initial investment can range from $10,000 to over $100,000, depending on the franchise brand and industry. Well-known franchises typically require higher fees, which often cover the rights to operate under their brand, along with valuable training and marketing support. Furthermore, ongoing royalty fees usually fall between 4% and 12% of your monthly revenue, affecting your profitability. It’s important to verify you have liquid capital amounting to 25% to 30% of any requested loan to qualify for financing options. Conducting a thorough financial assessment, including an analysis of total investment versus potential returns, will help you make informed decisions about franchise ownership. Financing Options Exploration How can you guarantee your financing options align with your franchise goals? Start by grasping the initial franchise fees, which can range from $10,000 to over $100,000, depending on the brand. You’ll additionally face ongoing royalty fees, typically between 4% and 12% of monthly revenue, plus around 2% for marketing. Ascertain you have liquid capital amounting to 25% to 30% of any loan you seek, as this shows lenders your financial stability. Your financing options include traditional bank loans, SBA-backed loans, or leveraging personal assets like real estate. Finally, comprehending all associated costs, including operational expenses after you launch, is essential for effective financial planning and guaranteeing the profitability of your franchise investment. Long-Term Profit Analysis Understanding your long-term profit potential is crucial for making informed franchise investment decisions. To effectively evaluate your financial resources and costs, consider these key factors: Conduct a thorough cost analysis, including initial franchise fees, ongoing royalties, and marketing fees, which typically range from 4% to over 12% of your monthly revenue. Confirm that your liquid capital makes up 25% to 30% of any financing requested, as lenders usually require this for franchise investments. Evaluate the average unit volumes and cost structures to assess the potential return on investment (ROI) before committing, as total investment costs can vary from $20,000 to over $100,000 based on the franchise brand and industry. This analysis will guide your financial decisions moving forward. Analyzing the Franchise Disclosure Document (FDD) When you’re considering a franchise opportunity, the Franchise Disclosure Document (FDD) serves as your significant roadmap. This legal requirement consists of 23 disclosure items that include important details about fees, obligations, and the franchise agreement terms. You must receive the FDD at least 14 days before signing any agreements or making payments, giving you time to review it thoroughly. Pay close attention to the franchisor’s business experience, litigation history, and financial performance representations. The FDD likewise lists current franchisees, providing insights into credibility. Moreover, state regulations may necessitate extra addendums in the FDD, so comprehending these nuances is critical. Assess the financial obligations, including initial fees and ongoing royalties, to evaluate the investment’s profitability potential. Seeking Legal and Financial Advice Before plunging into a franchise opportunity, it’s essential to seek legal and financial advice, as this can greatly impact your decision-making process. Engaging experts can help you navigate complex franchise agreements and guarantee compliance with regulations. Here are three key steps to follow: Consult a licensed franchise attorney to review Franchise Disclosure Documents (FDD) and identify obligations, risks, and compliance issues. Work with a financial advisor to evaluate the total investment needed, including initial fees, ongoing royalties, and funding options. Understand financing terms thoroughly to secure favorable loan conditions, avoiding potential pitfalls. Conducting due diligence with professionals helps you assess the viability and profitability of the franchise before making a commitment. Contacting Franchisors and Initiating Discussions Engaging with franchisors is a crucial step in exploring your franchise options, as it allows you to gather fundamental information about their business model and support systems. Start by researching potential franchisors online and reviewing their Franchise Disclosure Documents (FDD). Prepare a list of questions regarding franchise operations, support, and expectations. Reach out through their official contact methods to express your interest and request further information. Here’s a quick overview of actions you can take: Action Purpose Research FDDs Understand the business model Prepare questions Facilitate meaningful discussions Follow up after contact Show commitment and seek clarifications Attending Discovery Days for Insights Attending Discovery Days offers a unique opportunity to gain firsthand insights into the franchise you’re considering. These events allow you to explore the franchisor’s headquarters and meet the team, providing a deeper comprehension of their culture and operations. Here’s what you can expect: Engage in Q&A sessions: Clarify any concerns about training, support, and daily operations, ensuring you have all the information you need. Attend detailed presentations: Learn about the franchise’s business model, financial performance, and growth potential, which can help guide your decision-making. Network with existing franchisees: Gain insights from those already operating the franchise, offering a realistic perspective on their experiences. Making Informed Commitments Making an informed commitment to a franchise requires careful consideration and due diligence, as the decisions you make can greatly impact your future success. First, thoroughly review the Franchise Disclosure Document (FDD), which outlines crucial details like fees, obligations, and the franchisor’s background. This document must be provided at least 14 days before you sign any agreements or make payments. Assess financial requirements, as initial franchise fees can vary considerably, and ongoing royalties affect long-term profitability. Research existing franchisee experiences to gauge market presence and brand reputation. It’s wise to engage a franchise attorney for legal guidance, ensuring compliance with regulations. Finally, confirm you have adequate financial resources to manage both initial investments and ongoing operational expenses. Developing a Franchise Success Strategy To achieve success in franchising, it’s vital to develop a well-structured strategy that aligns with both your goals and the franchise brand’s standards. Start by focusing on these key areas: Franchise Disclosure Document (FDD): Confirm your FDD complies with federal and state laws, detailing important disclosures to inform potential franchisees about costs and obligations. Operations Manual: Create a thorough operations manual that standardizes procedures, helping franchisees maintain brand consistency across locations. Training and Support: Implement a structured training program to equip franchisees with necessary skills and knowledge, guaranteeing they adhere to brand standards. Frequently Asked Questions What Is the 7 Day Rule for Franchise? The 7 Day Rule for franchises mandates that franchisors provide a Franchise Disclosure Document (FDD) to potential franchisees at least 14 days before any agreement is signed or payment is made. This rule guarantees you have sufficient time to review important information about the franchise opportunity. If franchisors fail to comply with this requirement, they risk legal consequences, including lawsuits, impacting their credibility and brand integrity in the marketplace. What Are the 4 P’s of Franchising? The 4 P’s of franchising are Product, Price, Place, and Promotion. Product refers to the goods or services you offer, ensuring they meet customer expectations and brand standards. Price involves setting fees and royalties that franchisees must pay, which can vary greatly. Place focuses on selecting ideal locations, requiring market research to find areas with demand. Finally, Promotion includes marketing strategies that help build brand awareness and engage customers effectively. How to Franchise Step by Step? To franchise step by step, start by evaluating your business’s readiness, ensuring you have a replicable model and a unique value proposition. Next, prepare a compliant Franchise Disclosure Document (FDD) with all necessary disclosures. Create a detailed operations manual for franchisees, and develop a franchise sales strategy targeting potential franchisees. Finally, engage legal experts to draft the franchise agreement, ensuring compliance with regulations to protect both your interests and your franchisees’. Why Is It Only $10,000 to Open a Chick-Fil-A? Chick-fil-A‘s initial franchise fee is only $10,000 since the company retains ownership of the restaurant property and equipment. This arrangement greatly reduces the financial burden on you as a franchisee. Nevertheless, you must have a net worth of at least $1 million and liquid assets of $250,000 to guarantee you can sustain operations. Furthermore, Chick-fil-A charges royalties around 15% of sales, which supports a sustainable business model whilst keeping entry costs low. Conclusion In summary, succeeding in franchising requires a strategic approach that encompasses thorough preparation, diligent research, and informed decision-making. By evaluating your readiness, exploring various franchise types, and comprehending financial commitments, you position yourself for success. Furthermore, analyzing the FDD and seeking expert advice can help you navigate potential challenges. In the end, developing a robust franchise success strategy guarantees consistency and support, allowing your franchise to thrive across multiple locations as you meet your business goals effectively. Image via Google Gemini This article, "A Step-by-Step Guide to Success in Franchising Franchising" was first published on Small Business Trends View the full article

If you’re considering franchising as a business model, it’s important to comprehend the step-by-step process for success. First, you’ll need to assess your business’s viability and unique value. Next, exploring different franchise types can help you find the right fit. Evaluating financial resources and grasping the Franchise Disclosure Document (FDD) are essential steps. With the right strategy for training and support, you can set your franchise up for growth. But what are the key components of a successful franchise strategy? Key Takeaways Assess your business model for profitability and scalability to attract potential franchisees effectively. Research various franchise types to align with your entrepreneurial goals and investment capacity. Carefully analyze the Franchise Disclosure Document (FDD) to understand obligations and financial commitments. Seek professional advice to identify risks, financing options, and evaluate total investment needs. Develop a structured training program and operations manual to maintain brand consistency across franchise locations. Assessing Your Readiness for Franchising Before plunging into franchising, you need to assess your readiness thoroughly. Start by evaluating your business model’s profitability to demonstrate viability to potential franchisees. Unique value propositions will help your brand stand out in the market, which is essential for attracting franchisees who seek long-term success. Consider the scalability of your operations; effective franchise growth relies on being able to replicate your business model across multiple locations. Established brand recognition can greatly improve your appeal, as franchise organizations often seek partnership with well-known brands. Finally, confirm your financial planning and resources are adequate to support franchisee needs, providing necessary training and ongoing support, much like international franchise companies do to maintain consistency and success across their networks. Researching Different Franchise Types When researching different franchise types, it’s essential to understand the distinctions between business-format franchises, product distribution franchises, and home-based franchises. Business-format franchises offer a complete system for operation, whereas product distribution franchises allow you to sell products under the franchisor’s trademark without extensive support. Home-based franchises typically require a lower investment and are often service-oriented, which can be a great fit for those looking for flexibility and lower overhead costs. Business Format Franchises Business format franchises stand out as the most prevalent franchise type, primarily owing to the extensive framework for operating a business. They provide you with a complete system that includes marketing, operations, and training support. By choosing a recognizable brand, you can benefit from established customer trust and brand loyalty. Typically, you’ll pay an initial franchise fee ranging from $10,000 to over $100,000, alongside ongoing royalty fees of 4% to 12% of monthly revenue. Adhering to strict operational guidelines guarantees brand consistency across all locations. Here’s a quick comparison: Feature Description Example Brand Recognition Established customer trust McDonald’s Initial Fee $10,000 – $100,000 Starbucks Royalty Fees 4% – 12% of monthly revenue Dunkin’ Donuts Product Distribution Franchises Though business format franchises offer a structured approach to running a business, product distribution franchises present a distinct model that might appeal to those looking for flexibility. In this type, you sell the franchisor’s products while using their trademarks, often without needing a brick-and-mortar store. This allows for lower initial investments, as your focus is primarily on inventory and distribution rather than extensive operational costs. Franchisors provide valuable support, including brand recognition, marketing assistance, and established supply chains, which can improve your sales potential and lower risks. Common examples include beverage companies like Coca-Cola, where you operate as a local distributor. Furthermore, you benefit from economies of scale through the franchisor’s supplier relationships, helping with pricing and inventory management. Home-Based Franchises Have you considered the advantages of home-based franchises? These businesses typically require a low initial investment, usually between $10,000 and $50,000, making them accessible for many aspiring entrepreneurs. Operating without a physical storefront allows you to work from home during providing crucial services like cleaning, tutoring, or consulting. Many home-based franchises as well offer thorough training and ongoing support, ensuring you have the skills needed to thrive. The demand for these franchises has surged, especially post-pandemic, as people increasingly seek convenience and flexibility. Furthermore, with lower overhead costs, you can enjoy higher profit margins compared to traditional brick-and-mortar franchises. Exploring home-based options could be a strategic move for your entrepreneurial expedition. Evaluating Financial Resources and Costs When evaluating your financial resources and costs for franchising, it’s essential to assess the initial investment you’ll need, which can vary considerably based on the franchise brand. You’ll additionally want to explore financing options, such as traditional loans or partnerships, to guarantee you have the necessary funds. Finally, consider the long-term profit potential, factoring in ongoing fees and expenses, to gauge the overall viability of your franchise investment. Initial Investment Assessment Evaluating your initial investment for franchising is vital, as it directly influences your potential for success. The initial investment can range from $10,000 to over $100,000, depending on the franchise brand and industry. Well-known franchises typically require higher fees, which often cover the rights to operate under their brand, along with valuable training and marketing support. Furthermore, ongoing royalty fees usually fall between 4% and 12% of your monthly revenue, affecting your profitability. It’s important to verify you have liquid capital amounting to 25% to 30% of any requested loan to qualify for financing options. Conducting a thorough financial assessment, including an analysis of total investment versus potential returns, will help you make informed decisions about franchise ownership. Financing Options Exploration How can you guarantee your financing options align with your franchise goals? Start by grasping the initial franchise fees, which can range from $10,000 to over $100,000, depending on the brand. You’ll additionally face ongoing royalty fees, typically between 4% and 12% of monthly revenue, plus around 2% for marketing. Ascertain you have liquid capital amounting to 25% to 30% of any loan you seek, as this shows lenders your financial stability. Your financing options include traditional bank loans, SBA-backed loans, or leveraging personal assets like real estate. Finally, comprehending all associated costs, including operational expenses after you launch, is essential for effective financial planning and guaranteeing the profitability of your franchise investment. Long-Term Profit Analysis Understanding your long-term profit potential is crucial for making informed franchise investment decisions. To effectively evaluate your financial resources and costs, consider these key factors: Conduct a thorough cost analysis, including initial franchise fees, ongoing royalties, and marketing fees, which typically range from 4% to over 12% of your monthly revenue. Confirm that your liquid capital makes up 25% to 30% of any financing requested, as lenders usually require this for franchise investments. Evaluate the average unit volumes and cost structures to assess the potential return on investment (ROI) before committing, as total investment costs can vary from $20,000 to over $100,000 based on the franchise brand and industry. This analysis will guide your financial decisions moving forward. Analyzing the Franchise Disclosure Document (FDD) When you’re considering a franchise opportunity, the Franchise Disclosure Document (FDD) serves as your significant roadmap. This legal requirement consists of 23 disclosure items that include important details about fees, obligations, and the franchise agreement terms. You must receive the FDD at least 14 days before signing any agreements or making payments, giving you time to review it thoroughly. Pay close attention to the franchisor’s business experience, litigation history, and financial performance representations. The FDD likewise lists current franchisees, providing insights into credibility. Moreover, state regulations may necessitate extra addendums in the FDD, so comprehending these nuances is critical. Assess the financial obligations, including initial fees and ongoing royalties, to evaluate the investment’s profitability potential. Seeking Legal and Financial Advice Before plunging into a franchise opportunity, it’s essential to seek legal and financial advice, as this can greatly impact your decision-making process. Engaging experts can help you navigate complex franchise agreements and guarantee compliance with regulations. Here are three key steps to follow: Consult a licensed franchise attorney to review Franchise Disclosure Documents (FDD) and identify obligations, risks, and compliance issues. Work with a financial advisor to evaluate the total investment needed, including initial fees, ongoing royalties, and funding options. Understand financing terms thoroughly to secure favorable loan conditions, avoiding potential pitfalls. Conducting due diligence with professionals helps you assess the viability and profitability of the franchise before making a commitment. Contacting Franchisors and Initiating Discussions Engaging with franchisors is a crucial step in exploring your franchise options, as it allows you to gather fundamental information about their business model and support systems. Start by researching potential franchisors online and reviewing their Franchise Disclosure Documents (FDD). Prepare a list of questions regarding franchise operations, support, and expectations. Reach out through their official contact methods to express your interest and request further information. Here’s a quick overview of actions you can take: Action Purpose Research FDDs Understand the business model Prepare questions Facilitate meaningful discussions Follow up after contact Show commitment and seek clarifications Attending Discovery Days for Insights Attending Discovery Days offers a unique opportunity to gain firsthand insights into the franchise you’re considering. These events allow you to explore the franchisor’s headquarters and meet the team, providing a deeper comprehension of their culture and operations. Here’s what you can expect: Engage in Q&A sessions: Clarify any concerns about training, support, and daily operations, ensuring you have all the information you need. Attend detailed presentations: Learn about the franchise’s business model, financial performance, and growth potential, which can help guide your decision-making. Network with existing franchisees: Gain insights from those already operating the franchise, offering a realistic perspective on their experiences. Making Informed Commitments Making an informed commitment to a franchise requires careful consideration and due diligence, as the decisions you make can greatly impact your future success. First, thoroughly review the Franchise Disclosure Document (FDD), which outlines crucial details like fees, obligations, and the franchisor’s background. This document must be provided at least 14 days before you sign any agreements or make payments. Assess financial requirements, as initial franchise fees can vary considerably, and ongoing royalties affect long-term profitability. Research existing franchisee experiences to gauge market presence and brand reputation. It’s wise to engage a franchise attorney for legal guidance, ensuring compliance with regulations. Finally, confirm you have adequate financial resources to manage both initial investments and ongoing operational expenses. Developing a Franchise Success Strategy To achieve success in franchising, it’s vital to develop a well-structured strategy that aligns with both your goals and the franchise brand’s standards. Start by focusing on these key areas: Franchise Disclosure Document (FDD): Confirm your FDD complies with federal and state laws, detailing important disclosures to inform potential franchisees about costs and obligations. Operations Manual: Create a thorough operations manual that standardizes procedures, helping franchisees maintain brand consistency across locations. Training and Support: Implement a structured training program to equip franchisees with necessary skills and knowledge, guaranteeing they adhere to brand standards. Frequently Asked Questions What Is the 7 Day Rule for Franchise? The 7 Day Rule for franchises mandates that franchisors provide a Franchise Disclosure Document (FDD) to potential franchisees at least 14 days before any agreement is signed or payment is made. This rule guarantees you have sufficient time to review important information about the franchise opportunity. If franchisors fail to comply with this requirement, they risk legal consequences, including lawsuits, impacting their credibility and brand integrity in the marketplace. What Are the 4 P’s of Franchising? The 4 P’s of franchising are Product, Price, Place, and Promotion. Product refers to the goods or services you offer, ensuring they meet customer expectations and brand standards. Price involves setting fees and royalties that franchisees must pay, which can vary greatly. Place focuses on selecting ideal locations, requiring market research to find areas with demand. Finally, Promotion includes marketing strategies that help build brand awareness and engage customers effectively. How to Franchise Step by Step? To franchise step by step, start by evaluating your business’s readiness, ensuring you have a replicable model and a unique value proposition. Next, prepare a compliant Franchise Disclosure Document (FDD) with all necessary disclosures. Create a detailed operations manual for franchisees, and develop a franchise sales strategy targeting potential franchisees. Finally, engage legal experts to draft the franchise agreement, ensuring compliance with regulations to protect both your interests and your franchisees’. Why Is It Only $10,000 to Open a Chick-Fil-A? Chick-fil-A‘s initial franchise fee is only $10,000 since the company retains ownership of the restaurant property and equipment. This arrangement greatly reduces the financial burden on you as a franchisee. Nevertheless, you must have a net worth of at least $1 million and liquid assets of $250,000 to guarantee you can sustain operations. Furthermore, Chick-fil-A charges royalties around 15% of sales, which supports a sustainable business model whilst keeping entry costs low. Conclusion In summary, succeeding in franchising requires a strategic approach that encompasses thorough preparation, diligent research, and informed decision-making. By evaluating your readiness, exploring various franchise types, and comprehending financial commitments, you position yourself for success. Furthermore, analyzing the FDD and seeking expert advice can help you navigate potential challenges. In the end, developing a robust franchise success strategy guarantees consistency and support, allowing your franchise to thrive across multiple locations as you meet your business goals effectively. Image via Google Gemini This article, "A Step-by-Step Guide to Success in Franchising Franchising" was first published on Small Business Trends View the full article

I have a bit of an issue with short-form content. It's so easy to lose hours scrolling through Instagram Reels at night that I deleted the app, and I only use the Instagram website on my laptop (a categorically worse Instagram experience). The problem is, I just moved my addiction to YouTube Shorts. Because you're greeted with a grid of Shorts as soon as you launch the YouTube app, it's too easy to just keep scrolling through Shorts for hours. It looks like I'm not the only one with this problem: Back in October, YouTube added an option to limit your Shorts watch time. Then, in January, it rolled out an option to disable Shorts in YouTube search. But while these changes are helpful, they're far from perfect: The lowest you could go with the timer was 15 minutes, so you could still watch Shorts when you launched the app—even if only for a quarter of an hour. Now, YouTube is taking things one step further, adding a new “0 minutes” option to its Shorts time management feature. It's not exactly what I would have wanted—a toggle to disable Shorts altogether—but this is a start, especially since it removes Shorts from your main feed. The only issue here is that this is not a strict block. You will still see a Shorts tab, and if you tap on a Short from a profile, you'll see an option to ignore the limit for the day. If you choose this, you're right back to where you started. How to "block" Shorts from the YouTube app on iPhone and AndroidTo enable this feature, open the YouTube app, go to your Profile tab, tap the Settings icon from the top toolbar, and choose the Time Management option. Here, enable the Shorts feed limit feature, then pick the new 0 minutes option. YouTube is rolling out this feature slowly across the globe, so it might take a while for you to see it. According to The Verge, who spoke to YouTube spokesperson Makenzie Spiller, the option is live now for parents and is currently being rolled out to all users. If you're a parent managing a kid's account, you should see the option to limit Shorts to zero minutes right now. The rest of us might have to wait a bit longer for it. If you're curious what a Shorts-free feed looks like, take a look at the video below. If you mostly watch YouTube on your laptop, there's no need to wait. You can block Shorts using the UnTrap extension for YouTube. It has over 300 options for customizing the YouTube interface, but my favorite feature is its ability to reliably delete the Shorts section from the YouTube home screen. View the full article

Company tax brackets are crucial for comprehending how businesses determine their tax obligations. For C corporations, the federal tax rate is a flat 21%, which simplifies calculations compared to individual tax brackets. Nevertheless, state tax rates vary, impacting the overall tax burden. Knowing how these brackets work can help you navigate corporate tax planning effectively. But what about the implications of alternative minimum tax and strategies for minimizing liabilities? Key Takeaways C corporations face a flat federal tax rate of 21% on all taxable income, with no graduated tax brackets. State corporate tax rates vary, averaging around 6.2%, leading to a combined rate of approximately 26%. C corporations experience double taxation on profits: first at the corporate level and again on dividends distributed to shareholders. The Corporate Alternative Minimum Tax (CAMT) ensures large corporations pay a minimum tax of 15% on financial statement income exceeding $1 billion. Pass-through entities, like partnerships and S corporations, avoid double taxation by having profits taxed only at individual income tax rates. Understanding Company Tax Brackets Grasping company tax brackets is vital for navigating the corporate tax environment effectively. For C corporations, comprehending c corporation tax brackets is straightforward since they’re taxed at a flat federal rate of 21%. This rate was reduced from 35% by the Tax Cuts and Jobs Act in 2017, simplifying tax calculations for many businesses. Unlike other business structures, such as pass-through entities, C corporations don’t face graduated tax rates; all taxable income is subject to that same 21% rate. It’s also significant to note that state taxes vary, with 44 states and D.C. imposing additional rates, which can lead to an average combined rate of around 26%. In addition, the Corporate Alternative Minimum Tax, effective after 2022, adds a 15% minimum tax for certain corporations with significant income, affecting overall tax liability. Grasping these company tax brackets is vital for effective financial planning and compliance. The Flat Corporate Income Tax Rate The flat corporate income tax rate in the U.S. stands at 21%, a significant drop from the previous 35% because of the Tax Cuts and Jobs Act of 2017. This rate applies equally to the profits of C corporations, which are taxed separately from their owners, simplifying tax calculations by eliminating graduated brackets. Comprehending how this flat rate affects corporate taxation—including the implications of double taxation and comparisons with pass-through entities—is crucial for grasping the broader framework of company tax brackets. Corporate Tax Rate Overview During the process of maneuvering through the intricacies of corporate taxation, it’s essential to understand that the corporate income tax rate for C corporations in the U.S. is set at a flat 21%. This rate, reduced from the previous 35% by the Tax Cuts and Jobs Act in 2017, applies uniformly to profits calculated as total receipts minus allowable deductions like wages and depreciation. Unlike individual tax rates, which vary based on income levels, the corporate tax rate maintains consistency for all corporate profits. Furthermore, state-level taxes can raise the average combined corporate tax rate to around 26%. This flat structure makes it easier for corporations to predict their tax obligations, contributing considerably to federal revenue. Double Taxation Effects Comprehending double taxation is crucial for grasping the implications of the flat corporate income tax rate. Under this system, C corporations face a 21% corporate tax on profits. When these profits are distributed as dividends to shareholders, they incur an additional tax, which can reach as high as 40.8%. This dual taxation leads to an effective tax burden on the same income, making it a significant factor in corporate decision-making. Tax Stage Tax Rate Corporate Level 21% Individual Dividends Up to 40.8% Overall Tax Burden Varies by income Total Federal Receipts 8.7% (2022) Status of Revenue Third largest Understanding these dynamics helps clarify the challenges corporations face. Comparison With Pass-Through Entities When comparing C corporations to pass-through entities, it’s essential to recognize the fundamental differences in how their income is taxed. C corporations face a flat federal corporate income tax rate of 21%, established by the Tax Cuts and Jobs Act in 2017. This uniform rate applies regardless of income levels, unlike pass-through entities, which are taxed at individual owners’ personal income tax rates ranging from 10% to 37%. Additionally, C corporations experience double taxation, as profits are taxed at the corporate level and again at the individual level when dividends are distributed. Conversely, pass-through entities avoid this entity-level tax, resulting in a significant portion of business income being taxed under individual tax frameworks. Corporate Alternative Minimum Tax (CAMT) The Corporate Alternative Minimum Tax (CAMT) introduces a 15% minimum tax on adjusted financial statement income for corporations with average annual income exceeding $1 billion, starting in tax years after 2022. This tax aims to prevent large IBM from using deductions and credits to avoid paying their fair share, promoting more equitable contributions to the tax system. Comprehending CAMT’s implications is vital for corporations, as it impacts their tax liabilities as well as influences their overall financial strategies. Purpose of CAMT Ensuring fairness in the corporate tax system is a primary goal of the Corporate Alternative Minimum Tax (CAMT). This tax imposes a 15% minimum on adjusted financial statement income for corporations with average annual AFSI exceeding $1 billion, starting after 2022. CAMT targets larger corporations, especially foreign-parented multinationals, requiring them to pay a minimum tax regardless of deductions and credits that could lower their tax bills. By establishing a minimum tax credit that can carry forward indefinitely, CAMT provides relief when liabilities exceed standard corporate tax amounts. In the end, CAMT aims to prevent tax avoidance strategies that undermine the corporate tax base, ensuring that profitable corporations contribute fairly to the tax system, thereby promoting equity in taxation. Impacts on Corporations With the introduction of the Corporate Alternative Minimum Tax (CAMT), large corporations must now navigate a new terrain of tax obligations that considerably impacts their financial strategies. Here are key considerations for corporations: Minimum Tax Rate: CAMT imposes a 15% tax on adjusted financial statement income for those with average annual income exceeding $1 billion. Compliance Requirements: Corporations must carefully track their financial statement income to guarantee they meet the new requirements and avoid penalties. Tax Credit Benefits: If CAMT exceeds regular tax liabilities, corporations can generate a minimum tax credit that can be carried forward indefinitely, providing potential future tax relief. These changes aim to guarantee that highly profitable corporations contribute a fair share of taxes, addressing long-standing concerns about tax avoidance and base erosion. Base Erosion and Anti-Abuse Tax (BEAT) Base Erosion and Anti-Abuse Tax (BEAT) represents a significant measure aimed at large multinational corporations engaged in profit shifting through base-eroding payments to foreign affiliates. This tax particularly targets corporations with average annual gross receipts of at least $500 million over a three-year period. BEAT imposes an additional tax liability on deductible base-eroding payments, ensuring these companies contribute fairly to the U.S. tax base. The BEAT tax rate is currently set at 10% for tax years beginning after 2022, with an increase to 12.5% for tax years starting after 2025. Affected corporations must calculate their regular tax liability and compare it to their BEAT liability, paying the higher amount. In the end, BEAT is designed to supplement the corporate income tax system, ensuring that large corporations pay a minimum level of tax on their income earned in the U.S., in spite of deductions for payments to foreign entities. Taxation for C Corporations Taxation for C corporations involves a structured approach to corporate income that greatly impacts how businesses operate in the U.S. C corporations face a flat federal corporate income tax rate of 21%, following a reduction from 35% as a result of the Tax Cuts and Jobs Act in 2017. Here’s what you need to know: Double Taxation: C corporations pay taxes on profits at the corporate level, and shareholders pay individual income taxes on dividends. State Taxes: In addition to federal taxes, C corporations are subject to varying state corporate income taxes, creating an average combined rate of about 26%. Filing Requirements: Corporations must file Form 1120 to report their income, gains, losses, deductions, and credits for the tax year. Understanding these aspects is essential for managing your corporation’s tax obligations effectively. Taxation for Pass-Through Entities When you operate a pass-through entity, such as a sole proprietorship, partnership, LLC, or S corporation, you’ll notice a distinct difference in how your business is taxed compared to C corporations. Pass-through entities don’t pay corporate income tax; instead, profits are passed through to you as the owner and taxed at individual income tax rates, which range from 10% to 37%. You’ll report this business income on your personal tax return using forms like Schedule C for sole proprietorships or Form 1065 for partnerships. Unlike C corporations, which face double taxation on profits and dividends, pass-through businesses avoid this by having profits taxed only once at the individual level. Furthermore, the Qualified Business Income (QBI) deduction allows eligible pass-through entities to deduct up to 20% of their qualified business income, potentially lowering your overall tax liability. This structure has led to a shift in the direction of pass-through entities as a more tax-efficient option. Federal vs. State Corporate Tax Rates Comprehending the differences between federal and state corporate tax rates is vital for businesses operating in the U.S. The federal corporate tax rate is a flat 21%, established by the Tax Cuts and Jobs Act (TCJA) of 2017. Conversely, state corporate tax rates vary considerably, impacting your overall tax burden. Here are some key points to take into account: Variability: 44 states and D.C. impose corporate taxes, averaging around 6.2%. Rates can be as low as 0% in Florida and as high as 13.3% in California. Incentives: Some states offer specific tax incentives or lower rates for certain types of businesses, which can reduce your tax liability. Effective Rate: When combined, federal and state rates can lead to an effective tax rate of approximately 26% for C corporations, depending on your state. Understanding these differences is fundamental for strategic financial planning. Calculating Corporate Taxes Calculating corporate taxes involves comprehension of how your taxable profits are determined and the various factors that influence your overall tax liability. In the U.S., corporate income tax is imposed at a flat federal rate of 21% on taxable profits, which you calculate by subtracting allowable deductions—like wages and depreciation—from your total receipts. If you’re a C corporation, you’ll need to file Form 1120 to report your income, expenses, and tax liability. Furthermore, states impose their own corporate income taxes, ranging from 0% to 9.80%, which can increase your total tax burden, especially if you operate in multiple jurisdictions. When factoring in state taxes, the average combined corporate tax rate can reach approximately 26%. Accurate recordkeeping is crucial for capturing all allowable deductions, as this directly impacts your taxable income and, in the end, the taxes you owe. Strategies for Minimizing Corporate Tax Liability Minimizing corporate tax liability requires a strategic approach to leverage available deductions and credits effectively. By implementing well-planned strategies, you can greatly reduce your tax burden. Here are three key strategies to contemplate: 1. Maximize Deductions: Take full advantage of allowable deductions such as wages, interest, and depreciation. These directly reduce your taxable income, adhering to Internal Revenue Code guidelines. 2. Utilize Tax Credits****: Explore tax credits, including those for increasing research activities. Unlike deductions, these credits directly offset taxes owed, providing a more substantial reduction in your overall tax liability. 3. Engage in Tax Planning****: Contemplate strategies like the Qualified Business Income (QBI) deduction for eligible pass-through entities, which can reduce qualifying business income by up to 20%. Frequently Asked Questions How Do Corporate Tax Brackets Work? Corporate tax brackets determine how much tax a corporation pays on its profits. In the U.S., C corporations face a flat federal rate of 21%, regardless of income level. This means all taxable profits are taxed uniformly. Moreover, state taxes can apply, varying widely across states. The shift to a territorial tax system means you’ll mainly pay taxes on domestic profits, impacting your overall tax obligations considerably. Comprehending this can help you plan effectively. How Do You Explain How Tax Brackets Work? Tax brackets work by dividing income into segments that are taxed at different rates. As your income rises, you enter higher brackets, which means you pay a higher tax rate only on the income within those brackets. For instance, if you earn more than a certain threshold, the income above that amount gets taxed at a higher rate. Comprehending these brackets helps you estimate tax liabilities and plan your finances effectively. How Do LLC Tax Brackets Work? LLC tax brackets depend on how your LLC is classified for tax purposes. If you’re a single-member LLC, you’ll report income on your personal tax return, subjecting it to individual tax brackets, ranging from 10% to 37% in 2025. Multi-member LLCs usually file as partnerships, and the income passes through to members’ returns. Furthermore, you might qualify for the Qualified Business Income deduction, potentially lowering your effective tax rate. State taxes could likewise apply. How Do You Calculate a Company’s Tax Rate? To calculate a company’s tax rate, you’ll first determine its taxable income by subtracting allowable deductions from total receipts. The corporate tax rate, currently 21% for C corporations in the U.S., then applies to this taxable income. Don’t forget to factor in state tax rates, which can vary widely. Furthermore, consider any special taxes, like the Base Erosion and Anti-abuse Tax, that may affect overall tax obligations. Proper adherence to IRS guidelines is essential. Conclusion In conclusion, comprehending company tax brackets is essential for effective corporate tax planning. C corporations face a flat federal tax rate of 21%, whereas state rates can vary, leading to an average combined rate of about 26%. Furthermore, factors like the Corporate Alternative Minimum Tax and Base Erosion and Anti-Abuse Tax can impact overall tax liability. By grasping these elements, businesses can better navigate their tax responsibilities and explore strategies to minimize their corporate tax burden. Image via Google Gemini This article, "What Are Company Tax Brackets and How Do They Work?" was first published on Small Business Trends View the full article

Company tax brackets are crucial for comprehending how businesses determine their tax obligations. For C corporations, the federal tax rate is a flat 21%, which simplifies calculations compared to individual tax brackets. Nevertheless, state tax rates vary, impacting the overall tax burden. Knowing how these brackets work can help you navigate corporate tax planning effectively. But what about the implications of alternative minimum tax and strategies for minimizing liabilities? Key Takeaways C corporations face a flat federal tax rate of 21% on all taxable income, with no graduated tax brackets. State corporate tax rates vary, averaging around 6.2%, leading to a combined rate of approximately 26%. C corporations experience double taxation on profits: first at the corporate level and again on dividends distributed to shareholders. The Corporate Alternative Minimum Tax (CAMT) ensures large corporations pay a minimum tax of 15% on financial statement income exceeding $1 billion. Pass-through entities, like partnerships and S corporations, avoid double taxation by having profits taxed only at individual income tax rates. Understanding Company Tax Brackets Grasping company tax brackets is vital for navigating the corporate tax environment effectively. For C corporations, comprehending c corporation tax brackets is straightforward since they’re taxed at a flat federal rate of 21%. This rate was reduced from 35% by the Tax Cuts and Jobs Act in 2017, simplifying tax calculations for many businesses. Unlike other business structures, such as pass-through entities, C corporations don’t face graduated tax rates; all taxable income is subject to that same 21% rate. It’s also significant to note that state taxes vary, with 44 states and D.C. imposing additional rates, which can lead to an average combined rate of around 26%. In addition, the Corporate Alternative Minimum Tax, effective after 2022, adds a 15% minimum tax for certain corporations with significant income, affecting overall tax liability. Grasping these company tax brackets is vital for effective financial planning and compliance. The Flat Corporate Income Tax Rate The flat corporate income tax rate in the U.S. stands at 21%, a significant drop from the previous 35% because of the Tax Cuts and Jobs Act of 2017. This rate applies equally to the profits of C corporations, which are taxed separately from their owners, simplifying tax calculations by eliminating graduated brackets. Comprehending how this flat rate affects corporate taxation—including the implications of double taxation and comparisons with pass-through entities—is crucial for grasping the broader framework of company tax brackets. Corporate Tax Rate Overview During the process of maneuvering through the intricacies of corporate taxation, it’s essential to understand that the corporate income tax rate for C corporations in the U.S. is set at a flat 21%. This rate, reduced from the previous 35% by the Tax Cuts and Jobs Act in 2017, applies uniformly to profits calculated as total receipts minus allowable deductions like wages and depreciation. Unlike individual tax rates, which vary based on income levels, the corporate tax rate maintains consistency for all corporate profits. Furthermore, state-level taxes can raise the average combined corporate tax rate to around 26%. This flat structure makes it easier for corporations to predict their tax obligations, contributing considerably to federal revenue. Double Taxation Effects Comprehending double taxation is crucial for grasping the implications of the flat corporate income tax rate. Under this system, C corporations face a 21% corporate tax on profits. When these profits are distributed as dividends to shareholders, they incur an additional tax, which can reach as high as 40.8%. This dual taxation leads to an effective tax burden on the same income, making it a significant factor in corporate decision-making. Tax Stage Tax Rate Corporate Level 21% Individual Dividends Up to 40.8% Overall Tax Burden Varies by income Total Federal Receipts 8.7% (2022) Status of Revenue Third largest Understanding these dynamics helps clarify the challenges corporations face. Comparison With Pass-Through Entities When comparing C corporations to pass-through entities, it’s essential to recognize the fundamental differences in how their income is taxed. C corporations face a flat federal corporate income tax rate of 21%, established by the Tax Cuts and Jobs Act in 2017. This uniform rate applies regardless of income levels, unlike pass-through entities, which are taxed at individual owners’ personal income tax rates ranging from 10% to 37%. Additionally, C corporations experience double taxation, as profits are taxed at the corporate level and again at the individual level when dividends are distributed. Conversely, pass-through entities avoid this entity-level tax, resulting in a significant portion of business income being taxed under individual tax frameworks. Corporate Alternative Minimum Tax (CAMT) The Corporate Alternative Minimum Tax (CAMT) introduces a 15% minimum tax on adjusted financial statement income for corporations with average annual income exceeding $1 billion, starting in tax years after 2022. This tax aims to prevent large IBM from using deductions and credits to avoid paying their fair share, promoting more equitable contributions to the tax system. Comprehending CAMT’s implications is vital for corporations, as it impacts their tax liabilities as well as influences their overall financial strategies. Purpose of CAMT Ensuring fairness in the corporate tax system is a primary goal of the Corporate Alternative Minimum Tax (CAMT). This tax imposes a 15% minimum on adjusted financial statement income for corporations with average annual AFSI exceeding $1 billion, starting after 2022. CAMT targets larger corporations, especially foreign-parented multinationals, requiring them to pay a minimum tax regardless of deductions and credits that could lower their tax bills. By establishing a minimum tax credit that can carry forward indefinitely, CAMT provides relief when liabilities exceed standard corporate tax amounts. In the end, CAMT aims to prevent tax avoidance strategies that undermine the corporate tax base, ensuring that profitable corporations contribute fairly to the tax system, thereby promoting equity in taxation. Impacts on Corporations With the introduction of the Corporate Alternative Minimum Tax (CAMT), large corporations must now navigate a new terrain of tax obligations that considerably impacts their financial strategies. Here are key considerations for corporations: Minimum Tax Rate: CAMT imposes a 15% tax on adjusted financial statement income for those with average annual income exceeding $1 billion. Compliance Requirements: Corporations must carefully track their financial statement income to guarantee they meet the new requirements and avoid penalties. Tax Credit Benefits: If CAMT exceeds regular tax liabilities, corporations can generate a minimum tax credit that can be carried forward indefinitely, providing potential future tax relief. These changes aim to guarantee that highly profitable corporations contribute a fair share of taxes, addressing long-standing concerns about tax avoidance and base erosion. Base Erosion and Anti-Abuse Tax (BEAT) Base Erosion and Anti-Abuse Tax (BEAT) represents a significant measure aimed at large multinational corporations engaged in profit shifting through base-eroding payments to foreign affiliates. This tax particularly targets corporations with average annual gross receipts of at least $500 million over a three-year period. BEAT imposes an additional tax liability on deductible base-eroding payments, ensuring these companies contribute fairly to the U.S. tax base. The BEAT tax rate is currently set at 10% for tax years beginning after 2022, with an increase to 12.5% for tax years starting after 2025. Affected corporations must calculate their regular tax liability and compare it to their BEAT liability, paying the higher amount. In the end, BEAT is designed to supplement the corporate income tax system, ensuring that large corporations pay a minimum level of tax on their income earned in the U.S., in spite of deductions for payments to foreign entities. Taxation for C Corporations Taxation for C corporations involves a structured approach to corporate income that greatly impacts how businesses operate in the U.S. C corporations face a flat federal corporate income tax rate of 21%, following a reduction from 35% as a result of the Tax Cuts and Jobs Act in 2017. Here’s what you need to know: Double Taxation: C corporations pay taxes on profits at the corporate level, and shareholders pay individual income taxes on dividends. State Taxes: In addition to federal taxes, C corporations are subject to varying state corporate income taxes, creating an average combined rate of about 26%. Filing Requirements: Corporations must file Form 1120 to report their income, gains, losses, deductions, and credits for the tax year. Understanding these aspects is essential for managing your corporation’s tax obligations effectively. Taxation for Pass-Through Entities When you operate a pass-through entity, such as a sole proprietorship, partnership, LLC, or S corporation, you’ll notice a distinct difference in how your business is taxed compared to C corporations. Pass-through entities don’t pay corporate income tax; instead, profits are passed through to you as the owner and taxed at individual income tax rates, which range from 10% to 37%. You’ll report this business income on your personal tax return using forms like Schedule C for sole proprietorships or Form 1065 for partnerships. Unlike C corporations, which face double taxation on profits and dividends, pass-through businesses avoid this by having profits taxed only once at the individual level. Furthermore, the Qualified Business Income (QBI) deduction allows eligible pass-through entities to deduct up to 20% of their qualified business income, potentially lowering your overall tax liability. This structure has led to a shift in the direction of pass-through entities as a more tax-efficient option. Federal vs. State Corporate Tax Rates Comprehending the differences between federal and state corporate tax rates is vital for businesses operating in the U.S. The federal corporate tax rate is a flat 21%, established by the Tax Cuts and Jobs Act (TCJA) of 2017. Conversely, state corporate tax rates vary considerably, impacting your overall tax burden. Here are some key points to take into account: Variability: 44 states and D.C. impose corporate taxes, averaging around 6.2%. Rates can be as low as 0% in Florida and as high as 13.3% in California. Incentives: Some states offer specific tax incentives or lower rates for certain types of businesses, which can reduce your tax liability. Effective Rate: When combined, federal and state rates can lead to an effective tax rate of approximately 26% for C corporations, depending on your state. Understanding these differences is fundamental for strategic financial planning. Calculating Corporate Taxes Calculating corporate taxes involves comprehension of how your taxable profits are determined and the various factors that influence your overall tax liability. In the U.S., corporate income tax is imposed at a flat federal rate of 21% on taxable profits, which you calculate by subtracting allowable deductions—like wages and depreciation—from your total receipts. If you’re a C corporation, you’ll need to file Form 1120 to report your income, expenses, and tax liability. Furthermore, states impose their own corporate income taxes, ranging from 0% to 9.80%, which can increase your total tax burden, especially if you operate in multiple jurisdictions. When factoring in state taxes, the average combined corporate tax rate can reach approximately 26%. Accurate recordkeeping is crucial for capturing all allowable deductions, as this directly impacts your taxable income and, in the end, the taxes you owe. Strategies for Minimizing Corporate Tax Liability Minimizing corporate tax liability requires a strategic approach to leverage available deductions and credits effectively. By implementing well-planned strategies, you can greatly reduce your tax burden. Here are three key strategies to contemplate: 1. Maximize Deductions: Take full advantage of allowable deductions such as wages, interest, and depreciation. These directly reduce your taxable income, adhering to Internal Revenue Code guidelines. 2. Utilize Tax Credits****: Explore tax credits, including those for increasing research activities. Unlike deductions, these credits directly offset taxes owed, providing a more substantial reduction in your overall tax liability. 3. Engage in Tax Planning****: Contemplate strategies like the Qualified Business Income (QBI) deduction for eligible pass-through entities, which can reduce qualifying business income by up to 20%. Frequently Asked Questions How Do Corporate Tax Brackets Work? Corporate tax brackets determine how much tax a corporation pays on its profits. In the U.S., C corporations face a flat federal rate of 21%, regardless of income level. This means all taxable profits are taxed uniformly. Moreover, state taxes can apply, varying widely across states. The shift to a territorial tax system means you’ll mainly pay taxes on domestic profits, impacting your overall tax obligations considerably. Comprehending this can help you plan effectively. How Do You Explain How Tax Brackets Work? Tax brackets work by dividing income into segments that are taxed at different rates. As your income rises, you enter higher brackets, which means you pay a higher tax rate only on the income within those brackets. For instance, if you earn more than a certain threshold, the income above that amount gets taxed at a higher rate. Comprehending these brackets helps you estimate tax liabilities and plan your finances effectively. How Do LLC Tax Brackets Work? LLC tax brackets depend on how your LLC is classified for tax purposes. If you’re a single-member LLC, you’ll report income on your personal tax return, subjecting it to individual tax brackets, ranging from 10% to 37% in 2025. Multi-member LLCs usually file as partnerships, and the income passes through to members’ returns. Furthermore, you might qualify for the Qualified Business Income deduction, potentially lowering your effective tax rate. State taxes could likewise apply. How Do You Calculate a Company’s Tax Rate? To calculate a company’s tax rate, you’ll first determine its taxable income by subtracting allowable deductions from total receipts. The corporate tax rate, currently 21% for C corporations in the U.S., then applies to this taxable income. Don’t forget to factor in state tax rates, which can vary widely. Furthermore, consider any special taxes, like the Base Erosion and Anti-abuse Tax, that may affect overall tax obligations. Proper adherence to IRS guidelines is essential. Conclusion In conclusion, comprehending company tax brackets is essential for effective corporate tax planning. C corporations face a flat federal tax rate of 21%, whereas state rates can vary, leading to an average combined rate of about 26%. Furthermore, factors like the Corporate Alternative Minimum Tax and Base Erosion and Anti-Abuse Tax can impact overall tax liability. By grasping these elements, businesses can better navigate their tax responsibilities and explore strategies to minimize their corporate tax burden. Image via Google Gemini This article, "What Are Company Tax Brackets and How Do They Work?" was first published on Small Business Trends View the full article

The 2026 MOVE Project aims to turn caregiving challenges into actionable insights for firms. Accounting ARC With Liz Mason, Donny Shimamoto, and Byron Patrick Center for Accounting Transformation Go PRO for members-only access to more Center for Accounting Transformation. View the full article

The 2026 MOVE Project aims to turn caregiving challenges into actionable insights for firms. Accounting ARC With Liz Mason, Donny Shimamoto, and Byron Patrick Center for Accounting Transformation Go PRO for members-only access to more Center for Accounting Transformation. View the full article