money

Food Insecurity Negatively Affects the Economy, and Therefore the Stock Market

Fact checked by Vikki Velasquez
Reviewed by JeFreda R. Brown

Food insecurity is considered an economic and social issue but generally not one that affects the stock market. Its ramifications nonetheless involve the food, retail, and consumer goods sectors and it can be a symptom of broader economic problems including poverty, unemployment, and inflation.

The struggle of households to put food on the table can also indirectly influence stock valuations and investment returns. The tendrils of food insecurity effectively stretch into the core mechanisms of the stock market, affecting consumer behavior, corporate earnings, and even investor sentiment.

Key Takeaways

• Food insecurity is a lack of access to affordable food.
• It’s an ongoing problem in the developed and developing world including more than 10% of American households.
• Food insecurity can affect consumer spending which can in turn dampen corporate earnings and stock valuations.
• Socially responsible investing can offer a pathway for investors to help combat food insecurity while achieving financial returns.
• Food insecurity disproportionately impacts lower-income and minority households so investors can’t solve the problem alone.

What Is Food Insecurity?

Food insecurity is a lack of reliable access to affordable food. It’s a complex condition that involves economic, social, and geographic factors. A household is facing food insecurity if it’s uncertain about where its next meal will come from or has to choose between food and other basic needs like healthcare or housing.

It begins at the household level where the struggle to afford food frequently leads to reduced spending in other areas. Families often cut expenditures in other sectors such as retail, entertainment, and healthcare when they cut back on food spending.

This decline in consumer spending has a cascading effect on businesses. Companies that rely on consumer demand can see revenues drop, resulting in lower profit margins. These diminished earnings can negatively influence their stock prices.

Areas referred to as “food deserts” have limited access to affordable and nutritious food, making it harder for residents to maintain a healthy diet. Some counties in the U.S. don’t have a single grocery store, mainly in the Great Plains and Midwest regions.

Important

Food insecurity in the U.S. increased from 12.8% of households in 2022 to 13.5% in 2023 and 8.4% or 11.2 million households had low food security at that time, according to government statistics.

How Food Insecurity Affects the Stock Market

Food insecurity can set off a chain reaction that eventually reaches the stock market. The stocks of companies in certain sectors are more exposed to the consequences than others, however.

Companies in the food and beverage industry may experience decreased sales as consumers turn to cheaper options or no options at all. Retailers, particularly those selling nonessential items, can experience a slump in demand. Even the healthcare sector can be impacted as food-insecure individuals delay or forgo medical treatments because of financial constraints, affecting the revenue streams of healthcare companies.

Food insecurity can also influence investor sentiment. Rising levels of food insecurity can indicate economic instability, making investors more cautious. This might be seen in reduced investments in stocks that are considered to be riskier, contributing to market volatility.

The Effect of Other Factors

Consumer spending isn’t the only factor that affects corporate earnings and stock valuations. The relationship between food insecurity, corporate earnings, and stock valuations is neither straightforward nor deterministic.

Other factors such as supply shocks, technological innovations, competition, regulations, taxes, interest rates, exchange rates, or geopolitical events can significantly affect the profitability and attractiveness of varying businesses and industries.

What Food Insecurity Means for Investors

Investors traditionally look at indicators like price-to-earnings (P/E) ratios, dividend yields, and earnings reports to assess the health and potential profitability of stocks. These remain important but incorporating food insecurity data can add another layer to risk evaluation.

Understanding that certain sectors like food and retail are more sensitive to fluctuations in food insecurity levels allows investors to weigh their portfolios accordingly. Stocks in these sectors might become riskier when and if food insecurity rises. Food insecurity can vary significantly by region as well. Investing in companies with heavy exposure to areas with high levels of food insecurity might also be seen as a higher risk.

Food insecurity frequently correlates with broader economic conditions. High levels of food insecurity could be an early warning sign of a looming recession. Investors can be better equipped to navigate market downturns or capitalize on emerging opportunities when they keep an eye on this metric.

Donating a part of your gains to socially responsible investments such as nonprofit organizations working to combat food security can provide help as well as tax advantages. Charitable donations are tax-deductible in many jurisdictions and at the federal level and this can help offset some of the capital gains tax you might otherwise owe on your investments.

Fighting Food Insecurity

Governments worldwide use various strategies to combat food insecurity, each tailored to their respective nations’ distinctive challenges and resources. Their methods can be different but the goals are generally the same: to ensure that all citizens have reliable access to sufficient, healthy food.

This includes setting up and supporting direct food programs like food banks and food vouchers such as the Supplemental Nutrition Assistance Program (SNAP) in the United States. Providing free or subsidized meals in schools is another way to directly alleviate food insecurity among children and, by extension, their families.

Note

Investors can have a role in the fight against food insecurity. Not only do they frequently have the financial resources to make a difference but they can also influence corporate behavior and public policy.

Investors can try to influence change by consciously choosing to invest in companies that are committed to reducing food insecurity. Look for companies with clearly defined corporate social responsibility (CSR) programs to reduce food insecurity or related issues like poverty. This could range from food companies sourcing their products sustainably to technology companies that develop platforms that help redistribute excess food.

Companies that report their social impact metrics transparently can help you see what they’re doing. Investing in companies with strong social initiatives isn’t just about doing good. It can also benefit your portfolio. Research has shown that companies with strong CSR initiatives frequently have a lower cost of capital, lower volatility, and higher profitability.

How Does Food Insecurity Impact the Economy?

Food insecurity reduces consumer spending among those who are struggling and this can contribute to lower economic growth. The public costs of addressing health and educational disparities caused by food insecurity can also weigh on the economy to a certain degree.

Where Does Food Insecurity Have the Greatest Impact?

Food insecurity has the most significant impact in low-income communities and countries with high poverty rates. These areas are frequently ensnared in a cycle of poverty and food insecurity that hampers economic development.

Countries that were facing critical levels of food insecurity in 2022 include Afghanistan, the Central African Republic, the Democratic Republic of the Congo, Ethiopia, Haiti, Honduras, Somalia, South Sudan, Sudan, Syria, and Yemen.

How Can Food Insecurity Impact the Workforce?

Food insecurity can lead to health problems and decreased productivity among workers, affecting individual lives and overall economic output. Employees are more likely to miss work or perform at suboptimal levels, leading to decreased productivity, when they face health issues because of inadequate nutrition.

Why Is Food Insecurity a Problem in the U.S.?

The U.S. grapples with food insecurity despite being a wealthy nation because of income and wealth disparities, structural inequalities, and inadequate social safety nets. Official statistics reported that more than 27% of American households faced some degree of food insecurity during 2023. It affected 36 million households.

What Has the U.S. Done About Food Insecurity?

The U.S. government has taken steps to better address food insecurity, particularly during the COVID-19 pandemic. It provided stimulus packages, extensions of unemployment benefits, and expansions of food assistance programs. These were mostly short-term solutions, however. They weren’t meant to address the systemic issues that lead to food insecurity.

Programs like SNAP exist but they often provide insufficient support to completely alleviate food insecurity.

The Bottom Line

Food insecurity is a problem affecting millions of Americans and many millions more around the world. This lack of access or affordability to food isn’t an isolated problem. It has far-reaching implications that may include influencing the stock market. Understanding this connection can help investors make more informed decisions and potentially contribute to solutions that alleviate this pressing issue.

Submitting the Free Application for Federal Student Aid (FAFSA) is key in order to qualify for financial aid, including federal student loans. The FAFSA is used to determine whether a student is eligible for any direct loans or Pell Grants, both of which can make earning a degree more affordable. Other strategies for maximizing your student aid include reducing your taxable income and reaching out to a school’s financial aid office.

Key Takeaways

• Filling out the Free Application for Federal Student Aid (FAFSA) form early may unlock additional need-based aid.
• Your eligibility for aid is largely based on how much your family earns, though there are other factors that can affect how much you’ll be offered.
• Neglecting to file the FAFSA may mean leaving aid on the table, so it’s worth submitting an application even if you assume you won’t qualify for anything.

1. File as Early as Possible

Certain federal loans and grants are first-come, first-served, so you’ll want to fill out the Free Application for Federal Student Aid (FAFSA) as early as possible.

The deadline for the 2025–2026 FAFSA application is 11:59 p.m. Central Time on June 30, 2026. Any necessary application updates or corrections must be submitted by 11:59 p.m. Central Time on Sept. 12, 2026. However, the deadline for submitting the FAFSA set by a school may differ from the federal one, so it’s worth checking the timelines for every university you’re applying to.

Parents might assume they have to wait to file their upcoming tax return before completing their child’s FAFSA. However, under the current rules, tax information from two years before the award year is used when calculating aid eligibility.

Note

With consent and approval, federal tax return information can be automatically shared when completing the FAFSA, streamlining the whole process.

2. Reduce Your Taxable Income

The information provided when you fill out the FAFSA is used to determine your Student Aid Index (SAI), which is the estimated amount that both the student and their parents can feasibly contribute toward paying higher education costs.

Generally, the lower your SAI is, the better. The factor that carries the most weight in the calculation of your SAI is your family’s income, so (if possible) keep your family’s taxable income as low as possible in the base year in order to qualify for more need-based financial aid.

One method to achieve a lower taxable income is to postpone the sale of any securities from which you’ll make a profit. Parents should also consider delaying any early withdrawals from their retirement accounts.

3. Leverage the Parent’s Assets

The FAFSA assumes that a student’s contributions toward their education will be greater than those of their parents, meaning that the former’s assets will have a bigger impact on their SAI. As such, a parent may want to consider setting up a Coverdell Education Savings Account (ESA) and/or 529 plan on their child’s behalf. Because these accounts are treated as the parent’s assets (so long as the student is their dependent), the hit to their SAI will be relatively small.

4. Apply, Even if You Think You Won’t Qualify

Regardless of your financial situation, you should fill out the FAFSA even if you have doubts about whether you’ll qualify for financial aid. The needs analysis formula is complicated, and some states and schools utilize the information in your FAFSA to determine their own financial aid offers. So your family having a substantial income doesn’t guarantee that you’ll be ineligible for aid, but failing to submit an application makes that possibility much more likely.

5. Look Beyond the FAFSA

The FAFSA is a crucial lifeline for students, but it isn’t the only option available to them. Financial aid counselors are typically able to disburse aid as they deem appropriate, and the applicant’s SAI might not be the sole factor in their decision.

Generally, the more interested a university is in a particular student, the more likely it is to offer them additional financial aid. It’s worth asking the financial aid office of each school that your child is considering what grants and other forms of assistance it offers, and whether or not your child is likely to be eligible.

The Bottom Line

Attending college is expensive, but being proactive about securing funding can help make it more affordable. Filing the FAFSA as early as possible, making smart financial decisions for your family, and consulting with the financial aid offices of each school you’re considering can unlock scholarships, grants, and other forms of financial aid that you might never have known you could qualify for.

Getting a personal loan online can be as easy as uploading a couple documents to a lender’s website and providing some basic personal information. If approved, you could see the new funds in your bank account within days—yours to spend on practically anything. To secure a favorable deal with minimal hiccups, there are some additional steps to follow.

Key Takeaways

• To get a personal loan online, all you need are a few documents that verify your identity and show you have a stable financial background.
• The better your income, debt-to-income (DTI) ratio, and credit score, the more likely you are to be approved and the better the loan terms you can get.
• Use personal loans to consolidate debt or fund unexpected expenses, major life events, or home improvements.

How to Get a Personal Loan Online

Your chance of getting a personal loan—on the best possible terms—largely depends on how well you follow these six steps and best practices:

1. Get your finances in order: Lenders won’t extend you a personal loan without reviewing your credit history, so check yours first and dispute any errors you find. You can pull a free report from each of the three major credit reporting agencies once per week by accessing AnnualCreditReport.com.
2. Shop around and compare lenders: Many lenders—potentially including your current bank or credit union—advertise their basic loan terms and eligibility requirements on their websites. Compare these along with any online reviews and ratings from past borrowers.
3. Get pre-qualified: Once you have a shortlist of potential lenders, find out which ones will let you pre-qualify. Pre-qualification requires you to provide some basic information and agree to a soft credit check in order to secure a preliminary loan estimate.
4. Choose a lender and apply: Based on the results of your research, select the lender that has the best offer for you and then submit an application. This typically requires a hard credit check and uploading documents to verify your identity, address, income, and financial situation.
5. Review the loan offer: Once approved, carefully review the loan offer to ensure you understand the terms and cost, including any fees. Also be sure to double-check for any changes from your pre-approval estimate.
6. Accept the loan: If everything looks good, sign the closing documents to collect your loan funds (typically as a lump sum) and start making monthly payments. Most lenders let you schedule automatic payments to help you avoid late fees.

Once you close on a personal loan, you could receive the loan funds anywhere from a week later to the same day, depending on the lender.

How to Choose a Personal Loan Online

Now that you know how to get a personal loan, let’s dive deeper into how to evaluate and compare loan offers. After all, subtle differences can have a significant impact on a loan’s final cost and your overall borrowing experience. Here are some factors to consider.

Loan Size

Before you spend too much time entertaining a loan offer, make sure it’s large enough to meet your needs. For example, if you require $25,000 to renovate your kitchen but the lender has a $20,000 loan maximum, then you may want to look elsewhere.

However, you also don’t want to borrow more than you need. If a lender sets a minimum loan amount of $2,500 and you only require $2,000, that could be more debt than you want to take on and/or have the ability to repay.

Loan Cost

Pay special attention to each loan’s interest rate—even a small difference can greatly affect the total cost. For instance, a seven-year loan for $30,000 with a 10% annual percentage rate (APR) will cost approximately $11,835 in interest over the life of the loan, while the same loan with an 11% APR costs about $13,149.

Also be sure to check for any origination fees, late fees, and other charges that could increase the loan’s cost. Avoid loans with prepayment penalties, which penalize you for paying the loan off early, offsetting any interest savings.

Use a loan calculator to determine total loan cost based on the amount, term, and interest rate. This way, you can rule out unfavorable loan offers more quickly.

Loan Term

The loan term is the time you have to repay the debt. Longer terms generally mean lower monthly payments but higher total interest costs, while loans with shorter terms have higher monthly payments but lower total interest costs. To save on interest, pick the shortest loan term for which you can afford the monthly payment.

Lender Reputation

On top of securing favorable loan terms, it’s just as important to work with a reputable lender. For example, check what past borrowers have to say about each lender you’re considering on third-party review sites like the Better Business Bureau.

User Experience

Online loans are all about speed and convenience. The application process prior to closing and the loan servicing afterward should require minimal effort on your part. To see how different lenders stack up in this regard, explore their websites and mobile apps.

You may also want to contact the lender’s customer service department to see how quick (and willing) it is to answer your questions. Be sure to ask how long loan disbursements typically take. Look out for red flags, such as long hold times, pushy sales tactics, or a lack of transparency.

Negotiation

It’s worth checking if there’s room for negotiation regarding interest rates, fees, etc. While some lenders won’t budge, others will, especially if you have a strong borrower profile and quotes from other lenders.

What’s Needed to Get a Personal Loan Online?

Of course, just as you’ll want to vet lenders before applying for a loan, they’ll want to confirm that you’re a trustworthy borrower who will repay your debt in full and on time. As a result, they typically require the following:

• A copy of your driver’s license, passport, birth certificate, or other form of identification
• Proof of address, such as a utility bill, lease agreement, or property tax bill
• Your contact information, such as your phone number or email address
• W-2 forms, tax returns, pay stubs, 1099s, or other proof of income
• Bank and/or debt statements
• Access to your credit report 

When reviewing your information, lenders look for proof of a stable income to ensure you can keep up with your monthly payments. They’ll also check that your total debt-to-income (DTI) ratio won’t exceed a certain threshold. This lessens the chance that you’ll be taking on more debt than you can handle. Finally, most lenders have a minimum credit score requirement of 580 or higher to minimize the risk of you defaulting on the loan.

That said, the better your credit score, DTI ratio, and income, the more likely you are to be approved for a personal loan and offered more favorable loan terms. 

If you have a poor credit history, you may still be able to get a personal loan. It’ll just come with a higher interest rate.

When to Get a Personal Loan Online

Depending on the situation, getting a personal loan can be either a smart move or a risky one. Here are some scenarios when taking out a loan might make sense:

• Debt consolidation: Consolidating higher-interest debts (such as credit card balances) into a personal loan can save money and simplify payments. 
• Emergency expenses: An unexpected medical bill or car repair could justify getting a personal loan—especially if it means avoiding higher-interest credit card debt.
• Major life events: Funding a wedding, funeral, move, or other significant event with a personal loan can make sense if you have a solid repayment plan.
• Home improvements: Renovating your house can raise its value, potentially beyond the cost of a personal loan.

In contrast, using a personal loan to fund discretionary spending on vacations, luxury items, or entertainment is often a bad idea. You’d be taking on unnecessary debt, which could damage your credit and lead to long-term financial strain.

A few alternatives to getting a personal loan include:

• Home equity loan: As the name suggests, a home equity loan lets you borrow against the equity in your home. It may offer a better rate than a personal loan, but you could lose your house if you default. 
• Home equity line of credit (HELOC): This option is similar to a home equity loan, except that it’s a revolving line of credit instead of a lump sum.
• Balance transfer credit card: This is a credit card with a low or 0% introductory APR that can help you consolidate and pay off other credit card balances faster.
• 401(k) loan: This essentially lets you take money out of your 401(k), which you pay back via automatic payroll deductions.

The Bottom Line

Getting a personal loan online can be a fast and convenient way to get cash for a worthwhile purpose. In order to borrow responsibly, you must carefully compare loan offers and read the fine print. Ultimately, you should only take out a loan if you have a good reason to do so, a solid repayment plan, and the confidence that the potential benefits outweigh the costs.

Reviewed by Marguerita Cheng

BlackBerry Limited (BB), known as Research in Motion (RIM) until January 2013, has a long history of extreme success and failure. It’s credited by many as creating the first smartphone. And at its peak in January 2010, there were 41 million BlackBerry subscribers worldwide.

But the rise of Google’s Android platform and Apple’s iOS caused it to decline in popularity by nearly three-quarters. BlackBerry’s stock price effectively tanked from highs of $147 to around $4 to $5 as of February 2025.

How did a high-flying revolutionary tech company get eclipsed so badly? A movie, released in Canada in May 2023, told the tale.

Key Takeaways

• BlackBerry pioneered handheld devices but has lost market share to larger rivals like Apple.
• The company, formerly known as Research in Motion, grew by leaps and bounds from 1999 to 2007, as its innovative product lines were well received.
• The launch of the touchscreen iPhone in 2007 triggered a dramatic shift away from BlackBerry handheld devices.
• Hopes for a turnaround have been dashed as the company grapples with intense competition from larger technology companies.
• BlackBerry has lost more than half of its market value in two years.
• “BlackBerry,” a movie about the company’s founders, premiered in Canada on May 12, 2023.

History of BlackBerry

The pioneer in bringing email services to handheld mobiles, with its trademark QWERTY keyboard, BlackBerry became an instant darling of world leaders, corporate honchos, and the rich and famous alike. Indeed, owning a BlackBerry device was once a status symbol, and BlackBerry addiction was a prevalent condition.

The always-on, always-connected wireless world that allowed secure and reliable access to emails turned out to be very useful for businesses. The first prominent release from BlackBerry, the Inter@ctive Pager 950, was in 1998. It had a small-sized screen, keyboard buttons, and the iconic trackball that allowed seamless syncing and continuous access to corporate emails. It became an instant hit, and then there was no looking back.

In 1999, the company introduced the 850 pager, which supported “push email” from the Microsoft Corp. (MSFT) exchange server, and in 2000, BlackBerry launched the first smartphone, called the BlackBerry 957.

Attributed to increased use by enterprises and governments, RIM’s revenues grew by leaps and bounds from 1999 to 2001. The company continued to expand functionality in the BlackBerry Enterprise Server (BES) and BlackBerry OS. The golden period of 2001 to 2007 saw BlackBerry’s global expansion and the addition of new products to its portfolio. After successfully gaining a foothold in the enterprise market, BlackBerry expanded into the consumer market. The BlackBerry Pearl series was very successful, and subsequent releases of the Curve and Bold product lines were well received.

Note

“BlackBerry,” the movie, tells the story of the founders who created the world’s first smartphone. The satirical history is loosely based on the book “Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry,” by Sean Silcoff and Jacquie McNish. It premiered in Canada on May 12, 2023.

The Game Changer

BlackBerry’s stock price peaked at an all-time high of $147 in mid-2008. A year earlier, Apple Inc. (AAPL) introduced its iPhone—the first prominent touchscreen phone. BlackBerry ignored it initially, perceiving it to be an enhanced mobile phone with playful features targeted at younger consumers. However, iPhone was a huge hit—and this was the start of BlackBerry’s demise.

Not just aimed at individuals, the iPhone managed to attract business leaders, penetrating BlackBerry’s core market, which was soon flooded with many similar email-enabled smartphones from other manufacturers. Yet, BlackBerry managed to maintain its status as a “business email device.” People used to carry two phones: a BlackBerry for business and another personal phone.

BlackBerry introduced Storm in 2008, its first touchscreen phone to compete with the iPhone. But after high initial sales, complaints started pouring in about the device’s performance. This was the first time that investors, analysts, and the media started to worry about the business prospects of BlackBerry.

The Swings

In 2009, RIM secured first place in Fortune’s 100 fastest-growing companies. In January 2010, Comscore reported RIM having the largest market share (43%) in the U.S. smartphone market. Its global user base stood at 41 million subscribers. Unfortunately, that was the peak of market penetration for RIM in the United States. After that, the company continued to lose ground to rival operating systems—the Apple iOS and Google’s (GOOG) Android—and was never able to make it back.

By November 2012, BlackBerry’s U.S. market share had dropped to just 7.3%, with Google and Apple claiming 53.7% and 35%, respectively. Despite declining U.S. sales, BlackBerry continued to have success globally. It reported 77 million users globally during the last quarter of 2012, demonstrating its success in global expansion.

Owing to these local losses vs. global success, the stock displayed high volatility. The worst year was 2011, as BlackBerry’s stock price tanked around 80% amid declining market share. Continued earnings losses resulted in further declines—most prominently the first-quarter loss in 2014 of $84 million, which led to a roughly 30% decline in the share price on the day after the announcement.

Corporate Comeback

The high volatility in the stock is attributed to several comeback attempts, corporate developments, associated recommendations by analysts, and competitor developments. In April 2010, RIM acquired the real-time operating system QNX, which formed the basis of the BlackBerry Tablet OS. The BlackBerry Playbook tablet was introduced on the QNX platform. Unfortunately, it turned out to be a total failure due to its high price, limited features, and poor performance.

The next generation of BlackBerry phones were announced in 2011, but the eventual product—the BlackBerry 10—failed to catch on. Nonetheless, based on interim forecasts that the BlackBerry 10 would surpass sales predictions, the company’s stock saw an upswing of 46% between October and November 2012. By January 2013, the stock had risen another 12%, and the volatility continued.

Wide positive swings were observed a couple of times during the first half of 2014. Those were based on announcements of BlackBerry transforming from mobile devices to a mobile solutions company. Those plans yielded less-than-meaningful results.

Another swing came in January 2015, when it was reported that Samsung was interested in buying BlackBerry. This led to a 30% spike in the latter’s share price. However, the jump proved to be a short-term blip, as the stock resumed a downtrend through 2015 and 2016.

44%

Enterprise software sales represent almost half of BlackBerry’s revenue in 2020.

Hopes for a dramatic turnaround at BlackBerry have been dashed repeatedly. The stock rallied to a closing high of $14.40 in January 2018—almost doubling value after two years of gains. Since then, however, the stock has lost more than half of its market value, as the company’s mobile business has been decimated by the competition and it has been forced to shift its focus its efforts toward other segments like enterprise software.

Will BlackBerry Survive?

In its current iteration, BlackBerry Limited is a provider of cybersecurity and Internet of Things (IoT) services, having effectively given up on smartphones as a business. On Feb. 29, 2024, the company filed its annual report for fiscal year (FY) 2024. they reported a total revenue of $853 million, with IoT revenue of $215 million and cybersecurity revenue of $378 million. The fiscal year 2024 revenue for the company’s IoT business showed $9 million increase year-over-year (YOY) revenue.

It is possible, often even necessary, for a technology company to change its stripes. Google and Meta (formerly Facebook) (META) have blazed trails in that arena. BlackBerry, however, will not only have to morph but will also have to overcome its reputation as a failed smartphone maker. Time, as they say, will tell whether BlackBerry is up to these tasks. Stay tuned.

What Business Is BlackBerry in Now That It Has Stopped Making Smartphones?

Currently, BlackBerry Limited is primarily a provider of cybersecurity and Internet of Things (IoT) services. The company recently reported FY2024 total revenue of $853 million.

Why Did BlackBerry Smartphones Fail?

Competition, in a nutshell. The introduction of the Apple iPhone, which BlackBerry didn’t take seriously, caused a loss of market share that BlackBerry couldn’t recover from. More competitors entered the smartphone space, eventually crowding BlackBerry out.

When Was the BlackBerry Movie Out?

“BlackBerry,” which premiered across Canada on May 12, 2023, told the story of the three men who took an idea and turned it into the world’s first smartphone. The movie, described as more satire than history, is loosely based on the 2015 book “Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry.”

The Bottom Line

BlackBerry is an example of the big risks associated with the highly dynamic technology sector. None of the industry rankings, predictions, or recommendations seems to fit the BlackBerry stock play. Long-term investors have been burned, while only a few traders may have made money on the wide swings. Unless confirmed news of solid acquisition or partnership comes in, this stock will likely remain a pure trader’s play.

ETFs are a type of investment fund, while robo-advisors are a type of digital financial advisor

Fact checked by Suzanne Kvilhaug
Reviewed by Katie Miller

ETFs vs. Robo-Advisors: An Overview

Robo-advisors provide automated, algorithm-driven financial planning and investment services without human supervision and help investors optimize their portfolios.

Exchange-traded funds (ETFs) are similar to mutual and index funds in that they hold shares of companies that meet a strategy or follow an index, and investors can purchase shares of the fund during market hours at real-time prices.

Key Takeaways

• Exchange-traded funds (ETFs) give investors flexibility and control to target specific sectors.
• Robo-advisors help automate decision-making and recommend investments that align with your goals and preferences.
• Robo-advisors might have higher fees than ETFs, but they usually remain lower than a human advisor’s.

ETF

Like mutual funds, exchange-traded funds (ETFs) are pooled investments of a basket of financial instruments. However, unlike mutual funds, ETFs trade on exchanges like individual stocks, fluctuating in value throughout the trading day. ETFs provide a cost-effective and liquid vehicle for investing in multiple underlying assets to target a specific sector or sectors.

When ETFs were introduced in the 1990s, they provided a low-cost, easy way to invest in a group of securities or a market index. ETFs have remained popular, with growth expected to double through 2027.

Investors can find ETFs focusing on stocks, commodities, and bonds, or choose a fund that tracks a broad market index like the iShares Russell 3000 Fund (IWV), which tracks the Russell 3000. Investors can choose a specific sector like energy and invest through an ETF like the Energy Select Sector SPDR Fund (XLE).

Note

In January 2024, the Securities and Exchange Commission (SEC) approved eleven spot bitcoin ETFs listed on the NYSE Arca, Cboe BZX, and Nasdaq exchanges. In May 2024, it effectively approved ether spot ETFs to trade on the same exchanges.

 

Advantages and Disadvantages

Pros

• Easy to trade

• Very flexible

• Low fees

• Huge array of ETFs available

Cons

• Can require a lot of legwork

• Need to monitor portfolio

• Expenses and transaction costs may eat into profits

ETFs provide an easy-to-trade and low-fee vehicle for investing in a basket of securities. The vast array of ETFs available—tracking everything from broad swaths of the market to specific industries and investment themes—opens the door to a seemingly infinite realm of possibilities.

However, investing in ETFs can require a lot of legwork and research. While ETF fees tend to be reasonable, paying for a fund’s administrative and operating expenses can eat into profits. To counter this and attract interest, many brokerage platforms offer commission-free ETF trading.

Robo-Advisor

As its name implies, a robo-advisor is an automated alternative to traditional financial advice. First launched in 2008, the digital platforms are designed to help investors build customized portfolios based on their financial goals.

A robo-advisor uses algorithms to deliver personalized investment planning services. Investors typically complete an online survey that assesses financial goals, time horizons, and risk tolerance. Then, the robo-advisor uses proprietary data to construct a portfolio to meet that investor’s needs.

Working with a robo-advisor allows investors to access professional investment management services at a lower price than a human advisor. Some robo-advisors can even automate other aspects of an individual’s strategy like tax-loss harvesting, or strategically selling assets at a loss to offset taxable gains on other investments.

Advantages and Disadvantages

Pros

• Low-cost alternative to human financial advisors

• Personalized portfolios

• Offer strategies like tax-loss harvesting and rebalancing

Cons

• Lack human touch

• Limited set of investments and strategies available

• May not be able to see the whole picture

Robo-advisors offer a significant cost advantage compared with traditional, human financial advisors. Most robo-advisors adopt Modern Portfolio Theory (MPT), aiming to maximize returns while sticking within the investor’s threshold for risk, and algorithmically developing a strategy tailored to an individual’s needs.

Some robo-advisors can help investors adjust their portfolios via rebalancing and tax-loss harvesting. However, they lack the human touch and cannot see the full picture when analyzing an individual’s financial situation.

Key Differences

The main distinction between an ETF and a robo-advisor revolves around the level of guidance it provides. ETFs allow you to focus your portfolio on certain sectors, but you must decide which funds to buy. A robo-advisor allows you to automate investment decisions by recommending a portfolio customized to help meet your investment goals.

Most ETFs are passively managed, designed to replicate the performance of an underlying index. The ETFs that operate with active management strategies typically have a higher expense ratio—the percentage that you pay in administrative and operating expenses and fees.

Robo-advisors typically use ETFs to construct a portfolio that aligns with their client’s goals and preferences. In other words, if you choose a robo-advisory service, you’ll likely be purchasing shares of ETFs, so choosing a robo-advisor doesn’t necessarily keep you out of ETFs.

Are Robo-Advisors Better than Trading?

Robo-advisors give guidance on investing and can automatically maintain a portfolio over time. Algorithmic trading is designed to conduct many trades when certain criteria are met or to take advantage of incremental price changes throughout a trading day using multiple trades.

Do Robo-Advisors Outperform the S&P 500?

Robo-advisors sometimes do and sometimes don’t outperform the S&P 500. It depends on the investing guidance they are given and market conditions, among many other factors.

What Is One of the Biggest Downfalls of Robo-Advisors?

Robo-advisors are programmed a certain way and take your input when choosing your investments. They may not be “aware” of conditions that affect the markets, where a human advisor would be aware of them.

The Bottom Line

ETFs and robo-advisors are tools for investing. ETFs provide low-cost, diversified exposure to a collection of assets, typically designed to replicate the performance of an underlying market index. Robo-advisors are digital platforms that can help investors tailor a portfolio that aligns with their goals and at a lower cost than working with a human advisor.

Bookkeeping can be daunting. There are various tasks to juggle, and getting it wrong could have serious implications.

Fortunately, established processes exist to help businesses and entrepreneurs accurately record and report financial activities. One of them is the accounting cycle. This eight-step repeatable guide is a basic checklist of what to do during each accounting period. All phases are covered, from identifying and recording transactions to checking for discrepancies, making adjustments, and creating financial statements. We take you through these important steps below.

Key Takeaways

• The accounting cycle is an eight-step repeatable process essential for accurate financial reporting.
• It starts with identifying transactions, creating a record, and then allocating each transaction to an account in the general ledger.
• At the end of the accounting period, any discrepancies need to be determined, including total debits not equaling total credits.
• Next, adjustment entries are made to correct any errors and account for accruals, deferrals, and estimates.
• Finally, the financial statements are generated and published, the books are closed, and the process starts again.

What Is the Accounting Cycle?

The accounting cycle is an eight-step guide to ensure the accuracy and conformity of financial statements. It walks companies and their accountants through each of the bookkeeping tasks that must be completed every accounting period to track transactions, starting with their identification and ending with creating financial statements and closing the books.

This guide breaks down the accounting process into easy-to-follow steps that are repeatable every time a new accounting period begins. They are standardized for use across all types of business. The accounting cycle is compatible with technology and can be implemented by companies using accrual or cash accounting and double or single-entry accounting. In the case of the latter, some steps can be ignored.

The length of each cycle depends on how often a company chooses to analyze its performance or is required to lay out its accounts. Some companies have monthly internal accounting periods. Others report quarterly or annually.

Once an accounting period ends, a new one begins, and the process starts over again.

Step 1: Identifying Transactions

The accounting cycle begins by identifying transactions. All transactions must be accounted for, whether they involve a sale, refund, inventory order, debt payoff, asset purchase, or other activity.

The necessary information includes transaction dates and monetary figures paid or received. Sales data is logged automatically for companies using point of sale (POS) technology.

Important

Automated software can streamline the accounting cycle.

Step 2: Recording Journal Entries

After a transaction is identified, a record of it needs to be created. This is done through a journal entry. The journal functions as a running record of a business’s financial transactions. It states the date of each transaction, how much money was involved, and the accounts affected.

The timing for recording transactions depends on whether the company uses accrual or cash accounting. With cash accounting, transactions are recorded when cash changes hands. With accrual accounting, journal entries are made when a good or service is provided rather than when it is paid for.

When recording transactions, remember to keep them in chronological order and, if using double-entry accounting, which most businesses do, make two entries each time. For every transaction, there must be a credit and a debit. A credit in one account offsets a debit in another, so all credits must equal the sum of all debits.

Step 3: Posting to the General Ledger

Once a transaction is recorded as a journal entry, it should be posted to an account in the general ledger, which is an old-fashioned term for a record-keeping system for a company’s financial data.

In the general ledger, all accounting activities are summarized and sorted into one of the following subcategories: assets, liabilities, owners’ equity, revenues, and expenses. This makes it easier to track finances and identify, for example, how much cash a company has or how much it’s spending or owes.

Step 4: Preparing a Trial Balance

After all transactions are logged in the general ledger, the next step is to make sure the entries balance out, meaning total debits equal total credits. This is done by building a trial balance.

A trial balance is a bookkeeping worksheet that compiles the balances of ledgers into debit and credit account columns. With the data laid out this way, it’s easy to see if the numbers match up. If they don’t and there are more debits than credits or vice versa, there’s an error.

The trial balance is usually created at the end of the accounting period, whether monthly, quarterly, or annually.

Step 5: Analyzing the Worksheet

In this phase, worksheets are investigated for any discrepancies.

If the debts and credits on the trial balance don’t match, the person keeping the books must get to the bottom of the error and adjust accordingly. That’s not the only analysis required. Even if the trial balance is balanced, there still may be errors, such as missing transactions or those classified incorrectly.

Step 6: Making Adjustments

If any discrepancies are spotted, adjustment entries must be made to remedy them. Companies using accrual accounting need to account for accruals, deferrals, and estimates, such as an allowance for doubtful accounts.

Accruals occur when payment is made after a good or service is delivered, while deferrals occur when the payment is executed before the good or service is delivered.

With cash accounting, the transaction is recorded when the payment is made. With accrual accounting, the log date is the date the service is provided, received, or earned.

Of course, not all goods or services are provided in a day. Often, an assignment or service can stretch over weeks or months. When a transaction starts in one accounting period and ends in another, an adjusting journal entry is required to ensure it is accounted for correctly.

Step 7: Generating Financial Statements

Once all the necessary entries and adjustments for the accounting period have been made, it’s time to generate financial statements. These formal records of a company’s financial activities must follow a specific template. In most cases, a company’s financials are communicated in the following three statements:

•  Balance sheet: This is where a company’s assets, liabilities, and shareholder equity are reported. The balance sheet says what a company owns and owes, as well as the amount invested by shareholders at a specific time.
• Income statement: This is where a company reports its revenue, income, and expenses over a set period. From this, it’s possible to determine whether it made a profit or a loss.
• Cash flow statement: This details how cash entered and left the business during the reporting period.

Step 8: Closing the Books

After the financial statements are completed, it’s time to close the books. This can be a good time to reflect and compare the firm’s performance with other periods and peers. Further analysis could reveal areas for improvement and highlight where the company has done well.

The closing of the books also marks the start of the next accounting period. The cycle is complete, and it’s time to begin the process again, starting with step one.

The Bottom Line

A business’s financial activities need to be accurately recorded and reported not only for internal use but also to meet legal and regulatory requirements. The accounting cycle, an eight-step guide on the various bookkeeping phases, helps make that daunting task more manageable.

The accounting cycle is adaptable to different accounting methods, such as accrual or cash accounting, and can be partially automated through software. It starts by identifying transactions and creating a proper record of them in the ledger, then shifts to checking for errors and making necessary adjustments before generating financial statements and closing the books.

How to secure business financing

Fact checked by Suzanne Kvilhaug
Reviewed by Andrew Schmidt

A business plan is a strategic document that outlines a company’s goals and details the strategies it will use to achieve them. It serves as a blueprint for the company, guiding a business through its marketing, financial, and operational decisions. Some business plans are more detailed than others, but they’re used by all types of businesses, from large, established companies to small startups.

You might consider using a traditional business plan format if you’re detail-oriented, require a comprehensive plan, or are seeking financing from conventional sources such as banks.

Your business plan can demonstrate your comprehensive understanding of your market and business model, and your realistic approach to achieving your goals. Although a business plan might not be mandatory for securing all types of loans, crafting one can significantly improve your chances of obtaining financing.

Key Takeaways

• Many lenders will require you to write a business plan to support your loan application.
• Though every business plan is different, there are a number of sections that appear in every business plan.
• A good business plan will define your company’s strategic priorities for the coming years and explain how you’ll try to achieve growth.
• Lenders will assess your plan against the “five Cs” of small business credit: character, capacity, capital, conditions, and collateral.

Why Do I Need a Business Plan?

There are many reasons why all businesses should have a business plan. It can improve the way that your company operates, but a well-written plan is also invaluable for attracting investment.

On an operational level, a well-written business plan has several advantages. A good plan will explain how a company is going to develop over time and will lay out the risks and contingencies that it may encounter along the way. It empowers you to tackle challenges and make crucial business decisions, including marketing and competitive analysis, customer and market evaluation, and logistics and operations plans.

A business plan serves as a crucial strategic guide, helping executives stay focused on their long-term goals despite daily operational challenges. It also provides a benchmark for measuring success, offering a clear direction for business progress.

Furthermore, business plans are valuable when it comes to dealing with external organizations. For example, banks and venture capital firms often require a viable business plan before considering whether they’ll provide capital to new businesses.

Important

Even with a proven track record and collateral, lenders often require a comprehensive business plan before offering financing. They aim to minimize their risk by ensuring that a business has a serious and viable plan to generate revenue and repay the loan, so supplement your business plan with profit and loss statements, cash flow budgets, and net worth statements to strengthen the case for financing.

Sections of a Business Plan

Every business is unique, and each business plan reflects that diversity. However, most business plans include several standard sections. Common sections include an executive summary, a company overview or description, products and services, market analysis, a marketing and sales plan, an operational plan, and details about the management team. When applying for a loan, it’s also crucial to include a section for funding requests along with financial statements.

Let’s look at each section in more detail.

Executive Summary

The executive summary is a summary of the information in the rest of your business plan, but it’s also where you can create interest in your business.

Provide a concise, detailed overview of your company, explaining the type of business and the reasons for its likely success. Include your mission statement, a description of your products or services, and key information about your leadership team, workforce, and location.

It’s also important to present essential financial data and outline your strategic plans for growth, especially if you’re seeking financing. This section should capture the essence of your business and its strategic direction to engage and inform potential investors or lenders.

Company Overview

Use this section to offer a comprehensive overview of your company. Delve into the specific problems your business addresses and outline the particular consumers, organizations, or businesses you aim to serve.

You can also highlight the competitive advantages that position your business for success. Mention any experts or key employees on your team, the strategic location of your operations, or any other strengths that may give your company an edge. This part of the business plan is your opportunity to showcase your company’s unique attributes and strengths.

Products and Services

In this section, describe the products or services your company provides. It’s not necessary to delve into technical details, but it’s important to highlight the appeal and value of your offerings. Explain how they benefit customers and outline their life cycle to illustrate their long-term viability and sustainability.

Also, you can discuss any measures to protect your intellectual property, such as copyrights or patents. This demonstrates the uniqueness and security of your products or services. If your company is involved in research and development, describe these efforts in detail to show your dedication to innovation and growth—key elements in attracting financial support.

Include details about how your products are made or how your services are provided—information that is valuable to lenders, especially if you’re seeking financing to expand your business. Understanding your production processes or service delivery methods helps lenders assess the efficiency and scalability of your operations.

Market Analysis

A market analysis is a core section of your business plan. Here, you need to demonstrate that you understand the market you’re operating in, and how you’re different from your competitors. If you can find statistics on your market, particularly on how it’s projected to grow over the next few years, include them in this section.

Marketing and Sales Plan

This section should detail your plans for attracting new customers and how you intend to engage with them. Outline your sales objectives and describe how they align with your planned marketing and advertising efforts.

If you aim to expand into new markets or target customers you haven’t reached previously, you should discuss both the risks and opportunities associated with these ventures. This analysis shows a comprehensive understanding of your market expansion strategy, which is crucial for lenders to evaluate your potential for business growth.

Operational Plan

This section explains the basic requirements of running your business on a day-to-day basis. Your exact requirements will vary depending on the type of business you run, but be as specific as possible.

If you need to rent office space, for example, you should include the cost in your operational plan. You should also include the cost of staff, equipment, and any raw materials required to run your business.

Management Team

The management team section is one of the most important sections in your business plan if you are applying for a loan. Your lender will want reassurance that you have a skilled, experienced, competent, and reliable senior management team in place.

Note

Even if you have a small team, you should explain what makes each person qualified for their position. If you have a large team, you should include an organizational chart to explain how your team is structured.

Funding Request

When applying for a loan, it’s crucial to include a detailed funding request. Specify how much money you need, whether you’re seeking debt or equity, the terms you desire, and the duration of the funding.

The most important part of the funding request section is to clearly outline how you’ll use the funds, whether to purchase equipment or materials, cover payroll, or manage specific bills until revenue improves, and therefore allow you to repay your loan.

Financial Statements

You can support your funding request with robust financial projections to demonstrate your business’s stability and potential for financial success. It’s best to include income statements, balance sheets, and cash flow statements for the past three to five years. Graphs and charts are often a useful addition to this section, because they allow your lender to understand your finances at a glance.

The overall goal of providing financial statements is to show that your business is profitable and stable. Include three to five years of income statements, cash flow statements, and balance sheets. It can also be useful to provide further analysis, as well as projections of how your business will grow in the coming years.

What Do Lenders Look for in a Business Plan?

Lenders want to see that your business is stable, that you understand the market you are operating in, and that you have realistic plans for growth.

Your lender will base their decision on what are known as the “five Cs.” These are:

• Character: You can stress your good character in your executive summary, company overview, and management team section.
• Capacity: This is, essentially, your ability to repay the loan. To assess this, your lender will look at your growth plans, funding request, and financial statements.
• Capital: This is the amount of money you already have in your business. The larger and more established your business is, the more likely you are to be approved for finance, so highlight your capital throughout your business plan.
• Conditions: Conditions refer to market conditions. In your market analysis, you should be able to prove that your business is well-positioned in relation to your target market and competitors.
• Collateral: Depending on your loan, you may be asked to provide collateral, so you should provide information on the assets you own in your operational plan.

How Long Does It Take to Write a Business Plan?

Writing a business plan can vary in duration depending on your specific business needs, but it’s crucial to dedicate enough time to ensure its accuracy and comprehensiveness. A business plan offers benefits beyond securing a loan; it serves as a strategic blueprint for guiding your business’s direction. According to a Harvard study, the optimal period for developing a business plan is about three months.

What Should You Avoid When Writing a Business Plan?

One common mistake business owners make when drafting a business plan is overestimating their growth potential. Lenders often recognize and are wary of overly optimistic projections. It’s crucial to provide honest financial forecasts, thorough market research, and realistic customer evaluations. These elements should reflect genuine market demand and competition, avoiding reliance on overly optimistic predictions.

Should I Hire Someone to Write a Business Plan for My Business?

While you can hire someone to write a business plan for your business, writing it yourself is often more advantageous. You likely have a deeper understanding of your business than an external consultant would. The U.S. Small Business Administration (SBA) provides a sample business plan template you can use for ideas on how to create a traditional business plan.

What’s New About Writing Business Plans in 2025?

Platforms and tools that use artificial intelligence (AI) are increasing in popularity to help write business plans. They can conduct market research, generate sales forecasts with greater accuracy, and streamline repetitive tasks (e.g., automating performance reports). However, although AI tools can improve efficiency, whatever they generate should still get a human review.

The Bottom Line

Writing a business plan can benefit your business, whether you are applying for a loan or not. A good business plan can help you develop strategic priorities and stick to them. It describes how you are going to grow your business, which can be valuable to lenders, who will want to see that you are able to repay a loan that you are applying for.

Fact checked by Vikki Velasquez
Reviewed by Samantha Silberstein

Search engine optimization (SEO) is the process of improving visibility on a search engine such as Google, Yahoo!, or Bing. SEO is an important aspect of any digital marketing strategy and online presence.

For small businesses, improving SEO is a relatively inexpensive and accessible tactic to make information about the business and its offerings easier to find online. This, in turn, can help improve its web traffic and drive more customers to the business.

In particular, optimizing for local SEO can be a powerful way to ensure a business reaches customers in the area, particularly for businesses with brick-and-mortar locations.

Key Takeaways

• SEO is a key part of improving a business’s online visibility and attracting organic web traffic to drive more visitors and potential customers.
• Google Analytics, Google Search Console, Google Keyword Planner, and Google Business Profile are all tools that can help optimize a small business’s SEO.
• Keyword research can help small business owners identify the most relevant search terms for their business and improve the SEO ranking of their online content.
• SEO tactics include optimizing on-page content such as page URLs, title and body tags, alt text, meta descriptions, and keywords.
• Local SEO strategies and link building can further improve a small business’s online presence.

SEO vs. Local SEO

SEO describes the general process of improving online searchability, while local SEO is focused on making search ranking improvements in a local geographical area.

Benefits of SEO for Small Businesses

For small businesses, optimizing SEO can have many positive impacts, including:

• Increased web traffic: This is especially important for ecommerce businesses, but it can also indirectly lead to increased foot traffic to brick-and-mortar locations.
• Better online visibility: A higher SEO ranking can improve the position in which a business’s website is listed on a search engine. Listings that appear closer to the top and on the first page of search engine results are more likely to be visited by users. Only 0.63% of Google Search users clicked on results from the second page of Google, according to a 2025 Backlinko report.
• Improved user experience: SEO rankings are based on how useful the algorithm deems a result to be, so many of the best practices associated with SEO are also good for organizing and describing information on the web more generally.

How to Improve SEO as a Small Business

Although taking advantage of SEO best practices is a multistage and long-term process, here are some steps that any small business can take to improve its SEO ranking fairly quickly.

1. Make a Quality Website

A website’s quality can be evaluated across different criteria, which will vary depending on the industry and nature of the business. However, most good websites will be clear, functional, and easy to use, and offer a true representation of the business’s brand. From an SEO perspective, a good website contains the information or solution that potential customers are looking for.

2. Set Up Google Analytics and Google Search Console

Once you have a website, follow these steps to set up a free Google Analytics account.

1. Create a Google Analytics account: This will include adjusting the settings for which data you decide to share with Google.
2. Add a property to the account: This is essentially a category for the business in question. At this stage, you’ll add your reporting time zone, currency, industry category, and business size, and select how you intend to use Google Analytics.
3. Add a data stream: This is your business’s website URL. Here, you can also enable or disable further data collection, referred to as “enhanced measurement.”
4. Add tags to set up data collection: There are direct and indirect ways to do this, depending on how your website is built or hosted.
5. Configure additional settings: Completing this extra step can help ensure that you collect the data you need to measure the results you seek. Google has a checklist of common configurations and their outcomes.

After setting up a Google Analytics account, signing up for Google Search Console can help you measure search traffic for your website, determine and fix issues, and improve your performance in Google Search results, free of charge.

Here’s how to do it.

1. Make a Google account.
2. Add your website to Search Console: You’ll also need to verify that you are the site’s owner, as it will display confidential information and allow you to make changes that impact how your site is displayed on Google.
3. Get familiar with Search Console and Google Search: Google offers a basic guide to Search Console usage and Google Search, both of which it recommends getting acquainted with to understand the reports and data that Search Console generates.
4. Check Search Console monthly and whenever your site content changes: Users will receive email alerts informing them of any unusual events occurring with their website (which may indicate hacking or other problems), so there’s no need to review data daily. However, Google recommends logging in to look at the Search Console dashboard every month as a health check of your website, as well as whenever new content is added to your site.

3. Set Up a Google Business Profile

A Google Business Profile is another free tool that business owners can use to help people find their business on Google Search and Google Maps.

Setting up a Google Business Profile is relatively easy and offers many useful pieces of information to potential customers. Here’s how to set one up.

1. Sign up for a Google Business Profile.
2. Verify your business on Google: Once you sign up, Google will ask you to verify your business through phone, text, email, and/or video. Often, it will also review verifications and will send a notification once the review is complete.
3. Ensure your information is complete and up to date. Providing correct and comprehensive information about your business helps customers find and understand your business.

4. Do Basic Keyword Research

Keyword research is the process of identifying keywords and phrases that are relevant to your business. These include words that people may use when searching for information about a business and its offerings online. Much of SEO is about optimizing for keywords, so ensuring that your website contains them will contribute to a more prominent online presence for your business.

Many tools are available that assist with keyword analysis and research, both free and paid. Google Keyword Planner is one free tool that is useful for researching, identifying, and targeting keywords that are relevant to your business. Whichever tool you use, a keyword-targeting strategy should balance the competitiveness of ranking for a certain keyword or phrase with the number of monthly searches it gets.

For example, certain keywords that are relevant to your business might have little competition associated with them, but a relatively good monthly search volume. These would be good candidates to include in your keyword strategy.

5. Optimize On-Page Elements

On-page elements are different components of your website, including content, site architecture elements, and HTML elements.

Here are some key on-page elements that every small business should strive to optimize for SEO.

• Page URLs: These should be simple and short, and contain relevant keywords.
• Page titles: Also referred to as title tags, these indicate to visitors and search engines what the page is about. The main keyword for each page should be included in the page title.
• Headers: Also called body tags, these help organize and structure a page’s content for readers and search engines. Headers should be relevant to the content and include keywords when possible.
• Alt text: Adding alt text to images helps search engines and those using screen reader software understand what your images are about.
• Meta descriptions: These appear underneath a title in search engine results. Meta descriptions should both accurately describe the page and entice users to click on it, and they are a good place to include relevant keywords.
• Content: SEO-optimized content includes keywords that are relevant to the business throughout text and alt text. Images, videos, and other visual content also contribute to SEO ranking, as they make the content more scannable and enhance the website’s visual appeal.

6. Create Relevant, High-Quality Content

Search engines use several other criteria to assess and rank websites: expertise, experience, authoritativeness, and trustworthiness (EEAT).

Examples of how high-quality, relevant content might incorporate and demonstrate these criteria include:

• Expertise: bios; credentials
• Experience: photos; real-life examples
• Authoritativeness: good-quality backlinks; regular posting of new information on a subject; bios; credentials
• Trustworthiness: transparent crediting and citing; accurate information; user reviews or testimonials on third-party sites; good site security

SEO-optimized content will also include relevant keywords in page URLs, page titles, headers, alt text, meta descriptions, and body paragraphs. It’s recommended to break up long sections of text with relevant headers as well as into sections and lists to make content easy to read, understand, and scan. It’s also good practice to avoid publishing duplicate content across different pages.

7. Incorporate a Link-Building Strategy

Link building is another tactic that can improve a small business’s search engine ranking. There are two types of link building:

• Internal link building means including links to pages within your own website. It offers a good experience to users and demonstrates to search engines that your website has hierarchy and structure.
• External link building is the practice of getting other websites to link to your website. Search engines evaluate backlinks as an indicator of credibility and authority, so it’s important to choose high-quality, trusted websites and avoid purchasing links, as using low-quality backlinks can negatively affect your SEO score.

There are many strategies for acquiring good-quality backlinks, some of which could be considered part of a wider digital public relations strategy. Some relatively easy ones include:

• Applying or asking for your website to be listed on a resources, directory, or business association members page
• Creating high-quality content, sharing it with people who might be interested in it, and asking for them to link to it
• Providing testimonials to other businesses and letting them know so they can link to your content
• Reaching out to suppliers that have a “retailers” or “dealers” page and asking for your business’s website to be listed there

8. Take Advantage of Local SEO

Local SEO is an important tool for any small business that wants to attract local customers. Google reports that 76% of those who searched on their smartphones for something nearby visited a business within a day, and 28% of searches for something nearby resulted in a purchase.

The most important techniques and tools when optimizing for local search include:

• A Google My Business profile
• Online reviews
• Comprehensive, consistent, and up-to-date business information in online directories
• Location pages on your website (for brick-and-mortar locations)
• Locally focused content
• A mobile-friendly website and content. Many people use their phones to look up business information such as reviews, location, and contact details.

9. Measure and Track SEO Performance

Although many SEO changes can be implemented quite quickly, it can take a while for these changes to pay off. Also, SEO rankings are not static, as new content is constantly being published online. As such, it’s important to monitor, measure, and track SEO performance and adjust your strategy and content accordingly; this ensures that your website is performing well, especially relative to those of your competitors.

Google Analytics and Google Search Console are two free tools that can generate reports and offer data on SEO performance. There are many other paid tools and agencies that specialize in SEO performance as well.

What Does SEO Stand for?

SEO stands for search engine optimization, and it refers to the strategies and tactics associated with helping your website and online content stand out and rank highly in search engine results.

Why Is Local SEO Important for Small Businesses?

Local SEO should be a major focus for small businesses, especially those that have a brick-and-mortar location, as it helps make businesses easy to find. Google reports that 28% of those who searched for something nearby ended up making a purchase, and 76% of those who used their smartphone to search for something nearby visited a business within a day.

Is SEO Worth It for a Small Business?

SEO is a valuable tool in any small business’s digital marketing tool kit. It’s a relatively inexpensive and accessible way to make your business easy to find online and your website easy to use.

What Tools Can Small Businesses Use to Measure and Track Their SEO Performance?

There are many free and paid tools available for tracking and measuring SEO performance. Google offers several useful free tools, including Google Analytics, Google Search Console, and Google My Business.

What Are the Key On-Page Elements to Optimize for SEO?

On-page elements that should be optimized include page URLs, page titles (also known as title tags), headers (also known as body tags), alt text, meta descriptions, and page content.

The Bottom Line

Small businesses that implement and dedicate time to an SEO strategy can see many benefits. The most recent reports available state that 53.3% of all website traffic came from organic searches, and that 90.55% of global traffic came from Google Search, Google Images, and Google Maps.

Taking advantage of SEO best practices involves a few steps, including setting up and optimizing a website, signing up for free tools to monitor and track performance, setting up free online business profiles, conducting keyword research, creating quality content, and creating a link-building strategy. However, these small investments can have a huge payoff for a small business through increased visibility and traffic, better online experience, new customers, and increased sales.

Retirement communities are increasingly popular among older adults seeking a comfortable, supportive lifestyle during their later years. They cater to individuals at different stages of aging by offering a range of living options and care, from independent living for those who are self-sufficient to assisted living and nursing homes for those requiring daily assistance with medical and personal needs.

However, deciding whether to move into a retirement community can come with significant costs, leaving many questioning whether these communities are worth the investment.

Key Takeaways

• Retirement communities offer various living options, each catering to different levels of care and lifestyle preferences.
• Consider the type of community, cost, location, amenities/services, and reputation when deciding if a retirement community is worth the investment.
• Costs associated with retirement communities may include entrance and monthly fees.

What to Consider When Moving Into a Retirement Community

Moving into a retirement community is a big decision that requires careful consideration of several factors, including the type of community you want, its cost, its location, and its amenities.

Start by researching your retirement community options, as each type of community varies in cost, amenities, activities, care options, and more.

• Active adult communities: Best for seniors 55 and up who want to maintain an independent and active lifestyle
• Independent living communities: Designed for seniors who do not require medical care or daily assistance
• Assisted living communities: Ideal for seniors who do not require full-time medical care but still need assistance with daily activities such as bathing and dressing
• Nursing homes: These provide 24/7 care for individuals who require medical attention and assistance with daily living activities.
• Continuing care retirement communities (CCRCs): These offer individuals a place to age in one location while transitioning to assisted living or nursing home options based on their medical needs.

Cost of a Community

The cost of living in a retirement community varies based on several factors, including:

Entrance Fees and Deposits

Entrance fees are one-time fees paid upon move-in and can vary depending on the community. For example, at a CCRC, entrance fees typically range from $9,000 (for the memory care segment) to more than $2 million (for a high-end CCRC), with an average initial payment of around $402,000.

Should the resident move out or pass away, a partial refund of the entrance fees may be granted to the individual or their estate. Carefully review your contract, refund policy, and conditions before moving in.

Monthly Fees

Monthly fees cover the cost of housekeeping, transportation, and other services and amenities. At CCRCs, monthly fees range from $2,500 to $6,000, but they can go up depending on the level of care needed.

Insurance can cover certain costs associated with living in retirement communities. Medicare, for example, can cover the cost of skilled nursing care, but it doesn’t cover custodial care or assistance with daily activities like dressing and bathing.

Medicaid and private long-term care insurance can provide additional coverage, depending on the individual’s circumstances and the insurance. Additionally, there’s potential to earn some savings during tax season, especially if medical expenses are paid out of pocket.

“Retirees should definitely consider the tax advantages of moving into a retirement community,” said Remy Dou, CFP and co-founder of Retirement Planning Center Advisory Group.

“For one, some of the costs related to living in the community, especially medical and long-term care expenses, might be deductible as medical expenses. On top of that, certain states offer property tax exemptions or reductions for seniors, which can ease the financial burden. It’s important to check out local tax breaks and see how they might apply to your situation to maximize savings.”

Own vs. Rent Your Housing

The cost can be influenced by whether you plan to rent or buy, as well as the floor plan and the size of the unit. So carefully weigh your needs vs. your options.

Type of Community

Consider how prices can vary based on the type of community. Independent living is typically more affordable than assisted living or nursing homes, which can cost from $64,000 to $117,000 annually.

“You’ll want to ensure that the costs fit comfortably within your financial plan, whether it’s monthly fees, entrance fees, or extra charges for things like healthcare. If you’re looking at a for-profit community, keep in mind that their contracts might change over time, which could impact your expenses,” said Dou.

Location Matters

Retirement communities are located nationwide, offering a wide range of options. The location of a retirement community impacts your lifestyle and overall quality of life as you age. It affects your access to family and friends, healthcare, recreational activities, and more.

Additionally, factors like climate and safety should play a part in your decision.

What Amenities or Services Do You Need?

The amenities and services available to retirement community residents are part of the allure. Offerings vary based on the community, but you’ll see a range of health and wellness, recreational, medical, and security options, including:

• Fitness centers
• Indoor and/or outdoor swimming pools
• Housekeeping
• Restaurants or cafes
• Games room
• Arts and crafts
• Security
• Maintenance
• Transportation
• Healthcare services
• Salons and/or barbershops
• Green spaces, such as patios and gardens

“It’s essential to make sure that the lifestyle you want matches the amenities and services offered by the retirement community. A good way to do this is by comparing the cost of services provided within the community versus what you would pay for them outside of it,” Dou recommended.

Research a Community’s Reputation

It’s important to consider the retirement community’s reputation, as this can give you insight into the quality of care and service and overall resident satisfaction. Google reviews and Trustpilot are great places to look if you want to know what people say before making big decisions. Search Google News for any negative reports about the facility.

If you can’t seem to get a clear picture from reviews and ratings, confirm whether or not the retirement community is accredited. This speaks to its quality and reliability. For example, CARF International ensures that accredited communities meet a high standard of care and that residents are provided with a safe, supportive environment.

“It’s also a good idea to research the community’s financial stability; after all, you want to avoid any situations, like bankruptcy, that could result in eviction or losing your entrance fee,” Dou told Investopedia.

Best Senior Living Facilities

Seniorly worked with Skypoint to mine and analyze customer and family reviews of senior living facilities to create a sentiment rating that includes staff ratings and overall resident satisfaction. They say their awards include only those communities with a sentiment rating in the top five percent and be free of serious licensing violations or recent negative media coverage. Their top 20 locations include:

1. Aegis Living Greenwood in Seattle, WA
2. Arbor Terrace Mount Laurel in Mount Laurel Township, NJ
3. Bardwell Residences in Aurora, IL
4. Creekside Village Retirement Residence in Beaverton, OR
5. Crofton Manor Inn in Long Beach, CA
6. Five Star Premier Residences of Dallas in Texas
7. Grossmont Gardens Senior Living in La Mesa, CA
8. Islan House in Mercer Island, WA
9. La Siena in Phoenix, AZ
10. Maravilla Scottsdale in Scottsdale, AZ
11. Merrill Gardens at Solivita Marketplace in Kissimmee, FL
12. MorningStar of Fountain Hills in Fountain Hills, AZ
13. Pacifica Senior Living Palm Springs in Palm Springs, CA
14. Summerfield Senior Living in Bradenton, FL
15. TerraBella Myrtle Beach in Myrtle Beach, SC
16. The El Dorado in Richardson, TX
17. The Hacienda at The Canyon in Tuscon, AZ
18. The Heritage Tradition in Sun City West, AZ
19. The Palms at Plantation in Plantation, FL
20. Truewood by Merrill, Cottonwood Heights in Cottonwood Heights, UT

The Bottom Line

A retirement community can be ideal for those who value convenience, community, and support. Since the options include communities that cater to various stages of aging, it’s possible to find a living arrangement that aligns with your changing needs, ensuring ongoing comfort. Take time to explore your options, comparing your needs and budget to what you’ll get in return.

Fact checked by Vikki Velasquez

People relocate for many reasons, personal and professional, but the latest report from the Tax Foundation on the most popular U.S. destination states suggests three big factors rule: lower cost of living, lower taxes, and plenty of sunshine.

Of the top ten destinations in the report, most but not all have comparatively low state taxes. Most have lower housing costs than the East Coast and West Coast states. Seven out of the ten states are located firmly in the Sun Belt.

The Tax Foundation report issued in January 2025 was based on U.S. Census Bureau data gathered from July 1, 2023, through June 30, 2024.

Key Takeaways

• The top destination, South Carolina, has a 6% state sales tax and a top state income tax rate of 6.2% but relatively modest home prices.
• Other states on the list of top destinations include Idaho, Delaware, North Carolina, Tennessee, Nevada, Alabama, Montana, Arizona, and Arkansas.
• Many of the top destination states are located in the Sun Belt, offering both sunshine and financial benefits.
• Alabama had the lowest housing costs on the list, with an average home price of $228,101 in 2024.

#1 South Carolina

South Carolina’s population grew by 1.26% from 2023 to 2024, according to U.S. Census data. United Van Lines listed this state at #3 in its 48^th Annual National Movers Study released in January 2025.

The Tax Foundation ranked South Carolina’s overall tax burden at #33 out of 50 in its 2025 State Tax Competitiveness Index, with #1 being the best state and #50 being the worst. South Carolina’s state sales tax rate is 6.00%. Its top marginal individual income tax rate is 6.2%.

The average house price in South Carolina was $297,794 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#2 Idaho

Idaho is #2 on the Tax Foundation’s most moved-to list with a 0.83% growth rate. Realtor.com puts it at #5, however.

The median listing price for a home here is $579,900 as of January 2025 with an average monthly house payment of $3,040.

You’ll have to save some tax dollars to live comfortably here. Tax Foundation places Idaho’s overall tax burden at a fairly competitive #11.

Its state sales tax rate matches South Carolina’s at 6.00% but its top marginal individual income tax rate is a bit lower at 5.695%.

The average house price in Idaho was $454,300 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#3 Delaware

Delaware saw a growth rate of 0.79% from 2023 to 2024, according to the Tax Foundation report. United Van Lines placed this state at #2 on its list noting that more than 50% of the newcomers were age 65 and older and 12% were arriving from New York.

Delaware’s top personal income tax rate is 6.60% on incomes over $60,000 although this drops to 5.55% on incomes under $60,000. The state has no state or local sales taxes.

The average house price in Delaware was $388,163 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#4 North Carolina

South Carolina’s neighbor to the north comes in at #4 on the Tax Foundation migration list at 0.76%.

Realtor.com puts the median home listing price in North Carolina at $428,750 with an average monthly payment of $2,248. United Van Lines gives the state its #5 spot.

North Carolina is kind to its residents when it comes to taxes. It’s a flat tax state so the same rate applies to everyone regardless of income. The rate was 4.50% for tax year 2024 and that’s a reduced rate from the year before. The state’s sales tax rate is 4.75% but county rates can add to that.

The average house price in North Carolina was $330,819 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#5 Tennessee

Tennessee saw an inbound rate of 0.68% according to the Tax Foundation report.

The state has no income tax. Its combined state and local sales tax rate is pretty significant at 9.55%. The state portion of that is a cringeworthy 7.0%.

Tennessee nonetheless comes in at #8 on the Tax Foundation 2025 State Tax Competitiveness Index thanks to its lack of an income tax.

The average house price in Tennessee was $321,434 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#6 Nevada

Nevada is #6 on the Tax Foundation report. It’s another state that doesn’t impose an income tax. It’s #17 on its 2025 State Tax Competitiveness Index.

The state-level sales tax rate is 6.85% but local jurisdictions can add on their own.

The average house price in Nevada was $443,203 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#7 Alabama

Alabama comes in at #7 on the Tax Foundation inward migration list. It’s #6 on the United Van Lines National Movers Study.

Alabama’s combined state and local sales tax rate is a walloping 9.29%. The state-level sales tax makes up just 4.0% of that total so where you buy can save you some money.

Alabama is known for its very low property tax rates. The highest income tax rate is 5% on taxable income of over $3,000 for single filers and $6,000 for married taxpayers who file joint returns.

The average house price in Alabama was $228,101 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#8 Montana

Montana takes the #8 spot on the Tax Foundation Census data list.

They’re not going there for the income tax breaks. Fidelity Investments indicates that this state imposes some of the highest income tax rates in the country on personal income as of December 2024.

Nonetheless, Montana comes in at #5 on the Tax Foundation 2025 State Tax Competitiveness Index. The state’s top marginal individual income tax rate is 5.9% as of 2025. Montana doesn’t have a general-use sales tax, however, making it more tax-friendly overall.

The average house price in Montana was $468,194 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#9 Arizona

Arizona is #9 on the Tax Foundation Census data list. The state comes in a spot lower at #10 on the United Van Lines 2024 National Movers Study.

Arizona offers a very friendly flat income tax rate of just 2.5%, a new development as of tax year 2024. The state sales tax rate is up there at 5.6%, and Arizona cities can level sales taxes as well.

The average house price in Arizona was $431,491 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

#10 Arkansas

Arkansas comes in at #10 on the Tax Foundation list.

Its combined state and local sales tax rate is 9.45%, with 6.5% of that going to the state.

This state has cut its top individual income tax rate to 3.9% from 4.4%, however.

Tip

Realtor.com indicates that the median listing price of Arkansas homes is $285,000 with an average monthly payment of about $1,494.

The average house price in Arkansas was $209,250 in 2024, compared to an average house price of $773,362 in California and $394,728 in Florida, according to Norada, a real estate investors’ site.

The Bottom Line

The migration to these states reflects a growing preference for affordable living, lower taxes, and favorable climates. By understanding state taxes, you can better decide what location best suits your financial needs.