Latest news with #selfemployment
Telegraph
a day ago
- Business
- Telegraph
‘I only earn £300 a month. How will I ever save?'
Receive personalised tips on how to improve your financial situation, for free. Here's how to apply or fill in the form below. For the past seven years, Jess Muxlowe has been learning to live with a brain tumour. Now, at 25, she's found a lifestyle that suits her, allowing her to quit her job and spend more time with her two-year-old daughter Freya. After studying theology and philosophy at Birmingham Newman University, Muxlowe worked as an administrator for her local council for a year before realising that a nine-to-five schedule did not suit her medical needs. A self-confessed bookworm, Muxlowe has instead managed to incorporate her love of reading into earning money. She sells books online, at events, through her local community, and in schools for Usborne Community Partnership, earning £300 a month. Usborne Community Partnerships is part of the publishing company of the same name, and allows people to work for themselves selling books. Muxlowe has sold 23,000 in just five months, and is aiming for 50,000 by the end of the year. Becoming self-employed and reducing her hours means she can attend medical appointments, even if they come through at short notice after being stuck on a waiting list for months. Her partner, Lee Bond, is the breadwinner. He works as a forklift truck driver and earns around £1,400 a month. Bond's wages cover household bills and Muxlowe's the food shop. She considers herself thrifty and is careful with day-to-day spending. She bulk buys food and freezes future meals, as well as using Facebook marketplace and Vinted to buy furniture and clothing. But when it comes to financial planning, Muxlowe isn't sure where to start. She doesn't know if she saved into a pension when employed by the council. Meanwhile, taking a significant pay cut, having earned £1,200 a month at the council, and the expenses of raising a child mean any savings have been depleted. Fortunately, the family of three lives in Muxlowe's mother-in-law's home, in Walsall, rent-free. Bond's mother works two jobs and moved out of the property so that the young family could live there. She rents a property with her partner instead. Long-term, Muxlowe hopes they will be able to get a mortgage and buy the property they're living in. But with such a reduced income stream, she wants to know how to prioritise her finances, and whether they should start contributing to a rainy day fund, saving for a mortgage, or building a retirement pot first. Will Stevens, head of wealth planning at Killik & Co Saving in your 20s can be a daunting task, including knowing whether to prioritise planning for retirement or focus on more immediate needs, such as saving for a home. This can be even more difficult when earnings are commission linked or you're working part-time. One thing that can help is having a budget that allows you to plan and understand where your savings should be prioritised. First and foremost, Muxlowe should prioritise a rainy day fund, making sure she has three to six months of expenditure set aside in cash, saved in the bank or in an instant access savings account for emergencies. While more immediate costs might need to come first, it's also important to strike a balance with saving for retirement, where early contributions can benefit from long-term compounding. By breaking down the timeline between her immediate, near future and long-term needs, she can begin to understand how much is needed towards each objective. Fortunately, there is also an option that can help with both: the lifetime Isa. The lifetime Isa has an allowance of £4,000 per year, which is part of your whole year Isa allowance of £20,000, and the Government then contributes 25pc on top. The Lifetime Isa must be used for your first home purchase – and there are restrictions, including a value limit of £450,000 – or it can be used to fund your retirement. If you make withdrawals for any other reason, you could lose the government contribution. Equally, a conventional Isa and pension combination will also work effectively to save towards both, but getting the balance right between the two can be difficult. It's important to note that she should take less risk with her money where it's needed for near-future costs, and she can take more risk and focus on equities for longer-term objectives like retirement planning to deliver real returns over the years. Nicola Crosbie, director at Moran Wealth Management, a St. James's Place partner practice Muxlowe's initial focus should be concentrated around building up her cash reserves to cover any emergencies or short-term needs, and savings for a house deposit. I would start by looking at the income the household generates and their fixed and discretionary outgoings. This can help determine a budget for savings each month. Muxlowe should view this as a household task and look at the bigger picture – living rent-free awards an opportunity to monopolise and rebuild your reserves. I would recommend that some of their income be earmarked for an emergency fund. Assuming they are both first-time buyers, she should consider lifetime Isas to build up a deposit. You can save £4,000 each year up to the age of 50, and the Government will add a 25pc bonus to your savings up to £1,000 every year. At this stage, I would prioritise savings over retirement goals – I would not forget that being self-employed means she needs to take control over her own provisions. Muxlowe should contact her old employer to understand if she was enrolled in any pension schemes to ensure she knows what her starting point is. If she's struggling to find any details, she can use the pension tracing service for lost schemes. Muxlowe should also ensure her National Insurance payments are up to date and being paid towards building her state pension provisions. If she feels she can pay into a pension, and still realise her savings goals for a property, Muxlowe should consider a personal pension plan. Being self-employed, she needs to arrange this herself. Your pension provider claims tax relief from the Government at the basic 20pc rate and adds it to your pension pot – this is limited to 100pc of what you earn. I would advise that the main priority is to build the routine of regular savings and develop more awareness of what is possible with monies in/monies out to save. Understanding her goals for a house purchase is essential – what she needs and the timescales.
Forbes
3 days ago
- Health
- Forbes
Self-Employment Linked to Lower Heart Disease Risk
New study suggests self-employment may reduce the risk of heart disease. Every 33 seconds, someone in the U.S. dies from cardiovascular disease, according to the CDC. Yet a new 2025 UCLA analysis of 20,000 working adults finds that self-employment, especially for women, is linked to significantly lower rates of obesity, inactivity, and poor sleep, three of the biggest drivers of heart trouble. Here's what that means for anyone considering self-employment, including a side hustle, gig work, or simply pushing for more flexibility in their day job. The UCLA study used data from the National Health and Nutrition Examination Survey (NHANES), a rigorous national dataset that combines in-person exams, objective health measures, and detailed questionnaires. Researchers analyzed factors such as body mass index (BMI), blood pressure, exercise frequency, and sleep patterns, providing a comprehensive view of participants' heart health. Here's what the researchers discovered: Why might self-employment boost women's health? The study's authors and outside experts point to the job-demand-control model—a theory that suggests autonomy (control over tasks and schedules) buffers against job stress and its physiological effects. 'There is a relationship between self-employment and heart disease risk factors and this relationship seems to be stronger in women relative to men,' said lead author Dr. Kimberly Narain, assistant professor-in-residence of medicine at the David Geffen School of Medicine at UCLA. 'It is imperative to increase our understanding of how the work environment gets under our skin so we can come up with ways to ensure that everyone has access to a healthy work environment.' Research from Harvard and other institutions consistently finds that high job control is associated with better cardiovascular outcomes, especially for women. Consider what a typical day looks like for someone self-employed: By contrast, traditional employment often involves stricter schedules, mandatory meetings, and fewer opportunities to tailor work to one's well-being. While women enjoyed clear benefits, the study found that men did not experience the same heart health advantages from self-employment. In fact, Black and Hispanic men who were self-employed had similar or even worse risk profiles than their employed peers. Experts suggest several possible explanations: This nuance matters because self-employment is not a universal cure-all, and policies to support healthier work should be mindful of structural and demographic differences. Heart disease remains the top killer of American women, but it's also among the most preventable. According to the CDC, small changes in weight, activity, and sleep can dramatically lower risk. Employers who care about the well-being—and long-term productivity—of their teams can make a difference by: If you're self-employed, or thinking about it ,you can maximize the health benefits of autonomy with a few mindful steps: The science is clear. Autonomy at work isn't just about productivity or job satisfaction. It could be a literal lifesaver. If you've ever considered a side hustle, self-employment, or simply pushing for more flexibility in your day job, now is the time. Your heart may thank you for it. 1. What is the connection between self-employment and heart disease risk? Research suggests that self-employed women experience lower rates of obesity, physical inactivity, and insufficient sleep, all major heart disease risk factors, compared to traditionally employed women. 2. Does self-employment improve heart health for men, too? The 2025 UCLA study found that self-employed men did not experience the same heart health benefits as women, and results varied significantly by race and ethnicity. 3. What explains the health advantage for self-employed women? Experts believe increased autonomy and schedule flexibility allow self-employed women to prioritize physical activity, sleep, and healthy habits, reducing their heart disease risk. 4. Are there downsides to self-employment for health? Self-employment can bring financial instability, stress, and, for some, reduced access to healthcare or social support, so not all aspects are beneficial for health. 5. What other research supports these findings? A 2023 Harvard study published in the American Journal of Public Health linked job autonomy and flexible work arrangements to lower rates of hypertension and cardiovascular events. 6. What can employers do to help employees reduce heart disease risk? Offering flexible hours, true results-based work, and health-supportive benefits can help all employees adopt heart-healthy behaviors. 7. How can self-employed workers protect their heart health? Experts recommend building financial stability, scheduling regular exercise and sleep, prioritizing preventive care, and maintaining social connections for long-term well-being.
Fast Company
4 days ago
- Business
- Fast Company
How to think about retirement if you don't have a traditional full-time job
Retirement planning is typically framed around full-time employment. 401(k)s or pension plans are attractive benefits for people in the corporate world. Those people can open their monthly statements and watch their retirement accounts grow steadily over time. But for the 16.8 million people in the U.S. who are self-employed (myself included), retirement planning looks different. Over the past two years, 1.4 million people have turned to self-employment. Whether that's due to layoffs, voluntary quitting, or other reasons, the number is steadily increasing—and there aren't a lot of resources available for people trying to figure out retirement planning on their own. While retirement is not something self-employed people can ignore, the whole concept of ending work on a certain date and drawing money from your retirement accounts may not be what some people have in mind. The traditional retirement model doesn't apply If you're self-employed, you know a lot of factors can make retirement savings tricky. Your income is irregular, you forego a 401(k) plan's employer match, and the process to make contributions might be more manual. When I first became self-employed a few years ago, retirement was something I started thinking about in the first year. However, I also spent more than 15 years working in the banking industry, so it was no surprise that finances were on my mind. I had to research a solo 401(k), figure out how to open the account, and start making contributions when I could. But as I've watched my little self-employed 401(k) grow over the years, I've also wondered: Am I even working toward the same retirement goal I had when I was working a corporate job? Or have my financial needs in retirement changed? Redefining a retirement lifestyle I've known many people in my life who have literally counted the days until retirement. They couldn't wait to stop working. By contrast, many self-employed people love their work—especially creatives. It's an integral part of their identities. I'm a freelance writer, so does retirement mean I . . . stop writing? It's hard to imagine. Retirement feels like a fuzzy concept. As self-employed people look into the future, retirement might look less like a 'full stop' and more like a 'slow down' or akin to 'selective work.' It may include passion projects, consulting, or mentoring—but not giving up work altogether. With this in mind, the retirement calculation is different. Rather than assuming you have zero income during retirement, you instead consider that you'd have less income. Planning for an undefined ending You won't have an office retirement party. No one will give you an engraved watch or clock celebrating your years of service with a company. (But, by all means, get yourself a gift!) Without a particular end date in mind, think instead of how you might step back—and at what age? It's important to intentionally plan what you want your next chapters to look like. Retirement for the self-employed requires more self-direction, but you also get to define your own path. You already did that once, when you started your own business. You can do that again as you plan for retirement.
Forbes
02-06-2025
- Business
- Forbes
How Three Women Turned Everyday Life Into Digital Gold
Creating a successful digital business can be the perfect form of self-employment. It brings with it the ability to work from home and generate unlimited income from selling products and services you truly believe in. However, the obstacle for many is coming up with a winning digital business idea. But what if I were to tell you that some of the best business ideas can come from converting what you're doing now into a thriving online business? It's possible, and below are the stories of three entrepreneurs who have done just that. None of the three women needed to step outside their existing skillset to make it happen. Brittany Kline founded The Savvy Mama in 2022, focusing it on helping overwhelmed moms go from chaos to control by teaching practical systems to simplify daily life—whether it's meal planning, organizing their homes, or building sustainable routines. The site offers digital products like planners, printables, and challenges, as well as monthly membership with training, resources and community support. Brittany Kline, The Savvy Mama, proudly displays programs and organizers offered on her web site Kline was able to develop The Savvy Mama from combination of experiences coming from two completely different directions. First, she and her husband, Kelan, already had an existing online venture, The Savvy Couple blog, a site they launched back in 2016. It's dedicated to helping ordinary people make money online, giving her a foundation in digital and affiliate marketing, blogging, and building an online community. Brittany leaned heavily on that experience when launching The Savvy Mama, but she also knew this brand needed to be even more personal and heart centered. That's where Brittany's second skill set entered the equation. As a mom herself, she was keenly aware of the needs and challenges faced by millions of moms around the world. Moms are the ultimate multi-taskers taking care of children, planning and maintaining schedules, helping kids with schoolwork, providing transportation, keeping the household budget under control, finding time for themselves and their spouses, and more often than not, maintaining employment outside the home. 'The best digital product comes from your existing expertise' advises Forbes Senior Contributor, Jodie Cook. 'If you're a marketing consultant, perhaps it's campaign templates. If you're a fitness coach, it might be training programs. A top coach can make the AI version of them to replicate their coaching without physically being there. Listen to what your audience already asks for. Pay attention to the questions that repeatedly come up in your work.' Kline built The Savvy Mama to build a brand, a community, and a full suite of products designed specifically to help overwhelmed moms simplify their lives and feel empowered again. 'It's been incredible to watch how what started with a handful of planners has grown into a full movement helping moms all over the world go from chaos to control,' she reports. Income for the platform is generated through blog ad revenue (around $10,000 per month), membership subscriptions (roughly $12,000 per month), and digital product sales, which have ranged from $10,000 to as high as $128,000 in a single month. According to Kline, The Savvy Mama generated $157,000 in total revenue in 2022, its first year of operation. That was followed by $638,000 in 2023 and $619,000 in 2024. For 2025, the site's year-to-date revenue is already over $500,000. Kline has largely promoted The Savvy Mama through social media platforms, including her Instagram and YouTube channels. Like many successful entrepreneurs, Brittany Kline is happy to share advice with others who want to launch their own online businesses. Her advice: 'Start messy and stay consistent,' Kline adds. 'You don't need to have it all figured out—you just need to be one step ahead of the person you're helping. Pick a niche you truly care about and serve that person like you're talking to your past self. Most important: focus on helping before selling.' Are there any pitfalls she warns newbies to be aware of? 'Shiny object syndrome is real,' Kline warns. 'Stay in your lane. It's easy to get distracted by what everyone else is doing, but you'll grow faster by focusing on your person, your solution, and refining your process. Also—don't burn out trying to do everything. Build systems early!' The Legal Paige is a virtual legal education platform and contract template shop designed specifically for small business owners and entrepreneurs. It provides attorney-drafted contract templates, legal resources, and educational content to help businesses get legally legit without the overwhelming cost of hiring a traditional law firm. Paige Griffith shares the message of small businesses getting the proper legal protection on The ... More Legal Paige The site was launched by Paige Griffith, who decided that there must be a source for necessary legal documents specifically for small businesses and at an affordable price point. While there are several online sources for common, personal legal documents, like wills, trusts and real estate contracts, far less is offered for the types of business documents needed by entrepreneurs and small businesses. Much like Brittany Kline, Griffith's foray into building a digital business was the result of two skill sets. A licensed attorney with a J.D. from the University of Montana School of Law, Griffith practiced law in areas like civil litigation and small business law. Griffith worked as a law firm and federal law clerk while moonlighting in the evenings and weekends as a family and wedding photographer. In the combination of the two occupations, she saw firsthand how costly legal mistakes could be for small businesses; mistakes that often could've been prevented with simple education and better contracts. 'I realized there was a huge gap between traditional law firms and entrepreneurs who needed accessible, affordable legal help,' Griffith recalls. 'That gap inspired me to create The Legal Paige. Entrepreneurs, particularly those in the wedding and industry service-based space, also are super creative individuals that shove the hard stuff with running a business under the rug for another day. They just didn't know what they didn't know so I knew a go-to legal resource for them would help immensely with the backend of running their business.' The Legal Paige earns income through digital product sales and occasional live workshops and speaking engagements. Griffith reports The Legal Paige has generated between $850,000 and $1 million-plus in revenue each year over the last five years. To generate income Griffith has created The Legal Paige to use a structured approach designed to cover all conceivable small business needs. 'For any new business, I always preach what I call the 'Triangle of Protection'," she advises. 'First, get solid contracts in place; second, form an LLC to separate personal and business liability; and third, secure good business insurance. Once those three foundations are laid, then you can think about brand protection like trademarks and copyright registrations. Skipping these steps can leave a new business vulnerable from the start.' From the start, Griffith has intended The Legal Paige to empower small business owners to feel confident and protected. On a practical level, that means taking what can be an intimidating subject—the legal back-end of your small business and legal contracts—and making it understandable, approachable, and actually useful for real-world situations. The site gives away a large amount of legal education for free through blogs, podcasts, emails, and free resources. The purpose is to instill trust with her audience and showcase The Legal Paige's business' values, morals, and ethics of accessible legal information at every touch-point. 'Once you know what you want to sell and how you'll deliver it to your customers, you need to figure out who your customers are,' recommends Forbes Senior Staff Writer, Small Business, Liz Masoner. 'For example, specific to e-commerce, you'll need to consider whether your customers are local or global. A small local grocery store may find a loyal customer base across the country for locally made products such as regional BBQ sauces.' Griffith recommends starting by truly understanding your audience's needs and speaking their language. 'Legal expertise is important,' she cautions. 'But being able to explain complex topics in simple, relatable ways is what will make you stand out and build trust.' Griffith also emphasizes the importance of figuring out your unique selling proposition. 'You have to find your unique way of connecting with people,' she advises. 'And network like crazy. Word of mouth means everything in the online space, even more than traditional advertising. That's why I spent years as a guest expert in other educators' memberships, online courses, and open Q&As, just to get my name out there and expertise in front of them.' Griffith emphasizes a four-step approach to building a digital business: Griffith added that it also took a strong understanding of digital marketing, e-commerce platforms, and online business operations. Ease of use for customers was a huge priority from the beginning. Finally, Griffith continually investing back into the business, especially into building a solid team to run operations and marketing lanes to grow sustainably and provide a top-tier customer experience. Alexis Rankin owns a coaching and consulting business that helps realtors, brokerage owners, and entrepreneurs increase profitability, build teams, and strategically grow their businesses. She recently took the leap of faith in opening a marketing arm of her business, called NurturPro. The business offers brokerage owner clients the ability to recruit more agents with the help of marketing and automation. Alexis Rankin of NurturPro helps businesses and entrepreneurs increase profitability, build teams, ... More and strategically grow their businesses from her favorite chair Rankin served as the past president of Keller Williams Realty in Boise, Idaho, and was recognized by Keller Williams International out of over a thousand offices as the number one president when it came to overall growth. She is a Master Practitioner in Neuro-Linguistic Programming, taking steps similar to Tony Robbins in investing in her credentials as an expert behind the business. Over the last three years Rankin reports that the consulting business has been generating roughly $400,000 per year in revenue, while NurturPro launched in January of 2025, and is already bringing in a five-figure revenue per month. 'I have always been very entrepreneurial and struggled with another grown adult telling me when I could and couldn't take my lunches,' Rankin confesses. 'My increasing disdain of being told what to do ultimately led me to take a leap of faith and leave my successful 9-5 as the previous president of Keller Williams Realty in Boise, and start my own coaching and consulting company.' Rankin's mission is to help people change their lives and build a life by design. Whether it's more money or more time doing what they love or with their families, helping people achieve their dreams ultimately allows her to achieve her goals as well. 'There is a lot of grit and rejection you're going to need to expect and accept when starting a new business,' offers Rankin. 'Leverage and delegation to the right people is critical and can make or break a company early on.' Are there any specific resources Rankin recommends to new businesses in the field? 'Leveraging AI to help configure certain marketing campaigns,' she advises. 'Examples include SOPs (standard operating procedures) and specific systems within your organization. Best standard practices being a reliable CRM (customer relationship management) and a robust follow-up system with the help of automation for prospecting and following up as you grow.' Indeed, AI is becoming increasingly important in running nearly all ventures, including small businesses. 'Start by auditing your current sales process,' recommends Forbes Senior Contributor, Jodie Cook. 'Install an AI tool like Conversica or Connect it to your CRM. Set clear criteria for lead scoring. Build message templates that sound human. Train your team to work alongside the AI. Track conversion rates to fine-tune the system.' Rankin strives to be multi-million dollar company in revenue by the end of 2025. That will be accomplished by leveraging the team-building aspect of the coaching business by helping real estate agents and brokerage owners globally implement her team building models and systems. She plans to use a more affordable group coaching setting while continuing to excel in offering automated marketing solutions to brokerage owners to increase their profitability and agent count through NurturPro. There are several strategies common to all three of these entrepreneurs that can be beneficial to anyone looking to build a digital business: You can be sure these strategies work in creating a successful digital business because they're already being implemented by rising digital entrepreneurs, like Brittany Kline, Paige Griffith, and Alexis Rankin.
Yahoo
25-05-2025
- Business
- Yahoo
Baby Boomer retirement trend uncovers unexpected opportunity in $3.5 trillion inheritance transfer: 'Big money'
Inheriting the family business could be seen as a golden ticket or an anchor. There are millions of Australians caught in the 9-5 grind who may assume they don't have the opportunity to make that decision. But the $3.5 trillion intergenerational wealth transfer won't just happen as Australians die and leave money behind. The wealth transfer will happen as Baby Boomers retire, leaving a wave of well-established family-run businesses ready to be taken over. Business consultancy firm NewCents founder Nick Richards told Yahoo Finance younger Australians who have spent decades establishing their own career paths may not be as fast to jump into the family business as generations before, exposing a lucrative opportunity for those ready to buy in. If your heart isn't set on building something from the ground-up, there's money to be made. "There's this tsunami of businesses that are beginning to come on the market as people retire, and that gives an opportunity for people who might have worked in corporate and want to be self-employed," he said. "There's big money here. RELATED Money mistake that cost woman $40,000 home and marriage: 'Husband's betrayal' Forgotten ATO deductions that can boost your tax refund by $974 Aussies given fresh $100 energy bill rebate in $50 million cost-of-living promise "But it's important to do your due diligence on it, because a business is like a living you don't look after it, it dies and then there's zero value." In generations gone by, small businesses would usually be passed down through the family. However, thanks to the internet, you can now purchase that same family-run business from the other side of the country. Scanning just one site where these businesses are bought and sold shows you could pick up a brand in virtually any niche. Whether it's a Subway franchise restaurant, an e-commerce business, a publishing firm, or even a nutritional dog food delivery service, there's no shortage of sectors you could get into. According to the small business ombudsman, there's a little more than 2.5 million small businesses currently operating in Australia who have between one and 19 staff. That's more than 97 per cent of the total number of businesses in the country. More than 22 per cent of these business operators are 60 or older, meaning there could soon be 569,710 brands coming up for sale soon from retiring owners. Richards said this trend, which has been called the Silver Tsunami, has been slowly gathering pace over the last few years, but is set to explode as many reach retirement age. But he explained why it's not as simple as picking anything at random and hoping it'll highlighted some of the things that he looks out for if he was to purchase a business. "If they mention the financial performance or profitability in an ad, it means it's good," he told Yahoo Finance. "Because you want to show your strengths, right?" While you could buy something in any sector, the NewCents founder said picking a business in a recession-proof and artificial intelligence-proof industry is ideal. "I wouldn't touch many white collar businesses these days because a lot of them will get wiped by AI," he said. "I like trade-adjacent businesses, like fence installations or pest control. "Pest control is a great example because it's fairly recession-proof. You get a recurring income because people need it every year, they don't want cockroaches, and it's not that expensive." He added that "boring" businesses are usually the best avenue. "The sexier the business, the more people who want to do it," Richards said. "Pest control is not sexy at all, but if you had a good pest control business and a good database, you'd kill it." If the job ad specifies that the owner is looking to retire, has health issues, or just wants more free time then that's usually a "green flag". In Richards' experience, people usually sell businesses when they're not doing well financially. However, if it's just someone looking to offload their hard work to someone willing to take the reigns then it's a much better sign. When you buy a business, the owner will usually provide the profit and loss statements from the past three years. It gives buyers an understanding of the financials and can expose things like seasonal fluctuations as well as whether there's been consistent growth. Richards said you need to pay close attention to this as it will make or break your decision. "You want it all to be pretty much the same for three years," he said. "If there's a huge amount of growth in three years, then the question is, is the growth sustainable? "If there's a huge decline, then the question is, what's causing the decline and will it continue? "But if you look at it and they turn over $1 million a year every year for three years, and they net $250,000 for three years, then you've probably got a fairly stable business." He added that another factor is also essential to consider. "I'd look at if the business was completely owner-dependent," he said. "Imagine a gym, personal trainer, or physio as examples, those businesses are generally built around a single person or a couple, and people go for the community, the owners and everyone. "So if the business is completely driven by the owner's presence, it's very difficult to buy or sell it, because half the people might leave." You can buy businesses from licensed brokers, just like you would a house, but you can also get one on Facebook or Gumtree. This isn't aren't necessarily red flags, as the owner might just be looking for a low-key sale, but it can carry some risk. "They're probably not a very big business," Richards said. "And it's probably not at a professional level. "It has pros in the fact that you might get a better deal because the owner doesn't know the hell they're doing, but the con is you might get ripped off because it's the Wild West. "If a broker knows a business is collapsing, they won't sell it." Considering how much information there is out there, and the ability to find manufacturers, suppliers, or clients with the touch of a button, it can be tempting to start your own business. But Richards said buying a business makes sense if there is a "high-barrier" to entry. He gave the example of getting a swimwear business for $300,000. Unless that brand had an "incredible" presence in the market, you'd be better off starting your own for $50,000 because you can get most of your products done by someone else. But he said something like a truck and trailer business would be "very hard to start" for the average Aussie because you need a lot of infrastructure, distribution agreements, and other aspects. Richards warned that you should have at least some knowledge about the sector before buying. "You need to understand the mechanics of the business in order to get it to run properly," he said. "If it's a reasonably simple business, you can learn it, so it's not too bad, but generally, I discourage people if they're thinking of buying a business in an industry they have no familiarity with because there's just too many ways for it to go wrong." He said you might get ripped off from suppliers or a manager that you hire might not run it in the right way. If you don't know any better, you could be accidentally running your new baby into the ground. He's seen plenty of people wanting to buy something without any prior experience that requires virtually no effort and will generate them passive income. "Bro, that doesn't exist," he said. It's also worth noting that owning your own business might allow you to escape the corporate ladder, but you could end putting in many more hours than 9-5. If you want it to succeed and grow, you could have many long, hard nights ahead.
