Block Got Its Start Selling Payment-Processing Hardware, but That’s Now Less Than 1% of the Business. You’ll Never Believe What Its Top Revenue Stream Is Now.

When financial technology (fintech) company Block (SQ -1.39%)went public in 2015, back when it was known as Square, it explained its business in its registration documents like this: “We started Square in February 2009 to enable anyone with a mobile device to accept card payments, anywhere, anytime.” The company had a square-shaped credit card reader that plugged right into smartphones and tablets.

Block has more hardware devices today, and many people think of these devices when thinking about the company. However, through the first three quarters of 2023, the company has only generated $125 million in hardware revenue. This means that hardware sales are a measly 0.7% of its $16.1 billion year-to-date revenue.

On the other end of the spectrum, revenue generated from Bitcoin (BTC -0.91%) accounted for 43% of Block’s year-to-date revenue — its largest revenue source. But surprisingly, the purpose of this Bitcoin revenue stream isn’t dissimilar to its hardware revenue stream, as I’ll explain.

How are fintech hardware and Bitcoin alike?

Gross profit compares the cost of an item against its sales price. Let’s say someone makes a pizza with $5 of ingredients. If they sell that pizza for $10, their gross profit is $5.

For Block’s hardware, it has a negative gross margin — the hardware costs more to make than the sales price. The company’s 2% gross margin for Bitcoin is better, but it’s still not a big money-maker.

Why go to all the effort of making hardware and processing Bitcoin transactions if you aren’t going to make money off of it?

Block views fintech hardware as a way to expand its merchant customer base with its Square ecosystem, and it views Bitcoin as a way to increase its consumer customer base with its Cash App ecosystem. It’s not uncommon for companies to willingly lose money on customer-acquisition strategies in order to make money down the line from something else. That’s what’s happening here.

For both Square and Cash App, Block generates transaction-based revenue, as well as subscription and services revenue. And these are higher-margin propositions.

For transaction-based revenue, Block’s gross margin is about 42% — not too shabby.

For revenue from subscriptions and services, Block’s gross margin is even better, at 81%. And what’s exciting is that, through the first three quarters of 2023, this revenue segment rose an impressive 33% from the same period of 2022, making it Block’s fastest-growing

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In This Business-Friendly State, Why Is It So Hard To Start A Private School?

Entrepreneurship is challenging in any sector, but education entrepreneurs often confront regulatory roadblocks and bureaucratic barriers that make launching a new school or innovative learning model particularly difficult.

Some of these roadblocks and barriers include occupational licensing requirements for new school founders, such as those in Nevada that prevent any non-state-licensed teacher or administrator from opening a secular private school. They can also include state accreditation requirements, like those in Iowa, that can prevent some schools, especially learner-centered ones, from operating.

These regulations can constrain the supply of new and creative schools, artificially limiting the education options available to families. This is particularly problematic now, as more states introduce or expand school choice programs that enable families dissatisfied with their assigned district school to exit and find an alternative. If existing or new regulations prevent those alternatives from sprouting, then the sustained success of school choice could be stymied.

Along with Nevada and Iowa, Tennessee is another state where it can be difficult to start a private school due to various accreditation and approval requirements. These regulations recently got even tighter.

Last year, the Tennessee Department of Education revised its rules for non-public school approval. Among the revisions were delineated seat time requirements of 6.5 hours a day, 180 days a year that can prevent flexible and creative scheduling. Additional annual assessment and state reporting protocols were added, and schools with fewer than 10 students were prohibited from getting started. These rules go into effect this academic year and can impact emerging schools like The Lab School of Memphis.

Launched in August 2021 by former public school teacher, Coi Morrison, The Lab School of Memphis is a small, regionally-accredited, secular K-6 private school that emphasizes project-based, learner-driven education in a nurturing environment with no grades or state testing. It was honored as a 2022 national semi-finalist for the prestigious Yass Prize for education innovation, as well as a VELA Education Fund “Next Step” grant recipient.

“I see these regulations as particularly threatening to new and would-be education entrepreneurs,” said Morrison, who also has an MBA. “Increased regulations for nonpublic schools threaten models like ours as they shift the focus to compliance for the sake of checking boxes, versus focusing on encouraging, embracing, and learning from new models

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Can I start a side business while receiving long-term disability benefits?


I’m currently on long-term disability because of mental health issues related to my workplace. I want to start a side business selling crafts on Etsy and at markets. If anything, my side hustle is helping to improve my mental health. But would earning income from it invalidate my long-term disability (LTD) payments?


Rajiv Haté, personal injury and disability lawyer, Kotak Law, Mississauga

Whether side income will affect your disability benefits depends on the language of your disability policy, as well as what stage you are at in your disability claim. Insurers will look at how much time and energy you are devoting to it and how much income you are earning. The insurer may view your side business as demonstrating you have the capacity to work, whether at your own occupation (if the job duties are similar to your own job) or in another occupation, and this could result in the denial of benefits. This is especially true if your claim is at the stage where the test for being considered “Totally Disabled” is whether you can perform “any occupation” (compared to when the test is whether you are able to perform your “own occupation”).

Some policies may allow you to have a side business without affecting your benefits if it is under a certain threshold. Other policies do not allow any kind of work while you are receiving benefits, unless specifically permitted by the insurer. Most policies allow for the deduction of any income you receive or earn from the long-term disability benefits payable. Therefore, even if it does not completely invalidate your payments, it may result in a reduction of the long-term disability payment. You should review your policy and consult with the insurer or a qualified legal professional if you are unsure how it will affect your claim.

If the side business will improve your mental health, you could obtain a medical note from your doctor confirming this.

If you start a side business, transparency is key. You should tell the insurer, as failure to disclose this information could lead to the denial of benefits or even the insurer seeking repayment if they determine that you purposely withheld this information and the side business shows that you are able to work and/or have been earning income.


Shikha Shukla, legal strategist, Osuji & Smith Lawyers, Calgary

The short

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One Hundred And One Finest Business Ideas You Can Start In 2021 And Generate Income On The Facet

Your pet business could be product- or service-based—selling accessories, meals, or toys, or providing grooming, walking, or coaching experience. You can curate products from a number of suppliers into your individual online retailer beneath a theme that focuses on a selected area of interest, like gear for yoga fanatics or water bowls for canine owners. When a customer buys a product from you, the order is distributed to your supplier, who fulfills it in your behalf. However, you are still answerable for your personal marketing and customer support. Dropshipping is a simple business to start and the first of our good business ideas.

Business Ideas

To distribute your eBook, you have to use your own web site and listing your eBook on the market on platforms corresponding to Lulu, Kindle, Smashwords, Kobo and tons of more. Most websites use inventory pictures, primarily pictures they purchase online from platforms corresponding to Shutterstock, Adobe Stock Photos and others to make use of on their websites and in advertising materials. Starting a businessis tough, it’s a long exhausting slog, and statistically, you’re destined to fail. But getting a business off the ground is only a problem you’ll face if you can provide you with a business idea, to begin with. [newline]I ran my own firm for about two years, nevertheless it took us three weeks and lots of ‘meetings’ at pubs to eventually give you something we wished to do.

How To Start A Small Business From Home

The idea is to create a platform to convey together all the ideas created through remix videos. This startup is constructing an app that enables “unbanked” consumers to borrow cash from people of their network of associates and acquaintances. An AI-based startup that allows you to take heed to your favorite songs without any promoting.

  • Whether these conferences take place in person or just about, consider scheduling a quantity of one-on-one meetings with the brand new employee’s supervisor throughout the primary few months of employment.
  • You additionally must nail down the business elements of the endeavor.
  • The SWOT framework can be constructed in record format, as free textual content, or, mostly, as a 4-cell desk, with quadrants dedicated to each element.
  • And because professional drone racers need skilled custom-built drones, now is the proper time to establish your name as a customized drone builder.

Keep an eye on its progression and start getting your ideas in place … Read more

10 Business Ideas For Faculty Students Which Would Possibly Be Easy To Start With

As a coach, you canteachtechniques to assist students entry their memories in a much calmer way. You may help them with respiration techniques to minimize back nervousness, and you’ll help them to revise in the lead up to the exams. People are living longer but they aren’t at all times as cell or unbiased as they want to be. Elderly care is an space where you can not solely make money but make a difference to many people’s lives.

Business Ideas

Another fellow entrepreneur, and one of Patel’s clients, is senior Bazile Panek, who’s majoring in Native American Studies and minoring in sustainability and entrepreneurship. Panek’s business is Niim, an organization that may promote socks with conventional designs created by Indigenous artists. The hardest part of starting HIVE was just leaping in and beginning it, mentioned Patel. The idea of being answerable for his personal shoppers with none professor or higher management behind him was daunting, he mentioned, but definitely worth the expertise. One of the nice methods of using know-how is the power to communicate and connect with different folks.

If You Can Establish Savvy Product Opportunities, This Business Idea Is For You

SWOT analysis assesses inner and exterior components, as well as current and future potential. • Immediately schedule one-on-one conferences with the supervisor. A examine by Microsoft Analytics found that staff who received little or no one-on-one time with direct managers were extra likely to be disengaged.

  • You will want to put cash into instruments and tools to work efficiently, and can need a suitable area at home to retailer these in a single day.
  • Plus, like all the the rest of these on-line business ideas, you could be an affiliate marketer from wherever you need, with the liberty and adaptability to decide on your individual hours and be your own boss.
  • Many folks have favorite gadgets of clothing that don’t fairly match and would welcome the chance to have the ability to put on them for an affordable fee.
  • When you feel that you’ve obtained enough momentum going, begin promoting make-up tutorials, make-up merchandise, and personalised tips.
  • And depending on the type of boat, it’s a good time to provide a serious cleaning every little thing else too–the decks, the sleeping quarters, the top, and the holds.

Virtual assistants function remotely and perform all manner of digital tasks for his or her busy shoppers. This could embody everything … Read more