Private Debt Market Expected To Double By 2025, According To Industry Experts

From a ‘fringe’ asset class to nimble backbone of Australia’s booming non-bank and construction sector, the growth of Australia’s private debt market has been nothing short of phenomenal over the last decade. And it’s not gone unnoticed globally, with US fund management giant Apollo Global Management taking a 50% stake in a local non-bank lender Max Cap this month.

“It’s certainly a sign the sector is coming of age,” says AltX Co-CEO Nick Raphaely, who founded his alternative investment platform in the aftermath of the GFC. “Investors no longer question whether the asset class has merits – they are more interested in whether the deal matches what they’re looking for in terms of risk and return.”

And what they’re looking for right now is yield.

“When we think about our mandate, our first job is to protect capital for worth clients, and in a low-interest environment they are happy to dedicate a significant proportion to private debt because it has a reasonable return,” says Nick.

Investors in this asset class can earn up to three or four times what retail investors might get on conservative fixed-income positions. For wholesale clients who can manage semi-liquidity, private debt deals, and fund structures are very attractive.

As Director of KPMG’s Debt Advisory Services, Matt McKenna has seen what he calls a “significant” emergence in private debt over the past 5 years, and non-bank lending. “Increasingly, we are seeing alternative pools of capital fund our clients’ transactions, as they seek greater levels of flexibility than more traditional financing arrangements can provide,” he says.

“From an investor perspective, there’s also limited cash returns in the current interest rate environment. So we’re seeing investors seeking out the yield they’re missing in aspects of their portfolio through other asset classes, which includes private debt funds.”

Rapid growth post-GFC

Globally, private debt is projected to increase 11.4% annually to $1.46 trillion by the end of 2025. According to Preqin, Australia’s private capital market offers one of the most attractive risk/return profiles globally, and assets under management rose steadily in 2020 to a record $77 billion.

“We estimate the commercial lending market is around $300 billion, and non-bank lending is about 10% of that,” says Domenic Lo Surdo, Joint Managing Director Stamford Capital. “I think it could easily double in the next five years.”

As one of Australia’s leading commercial brokers, Stamford Capital has seen a steady shift in borrower appetite to work with non-bank lenders. “It’s all about speed of execution and flexibility, as well as capacity to deliver on terms outside where banks are able to trade,” Domenic says.

The private debt market was effectively decimated by the GFC when government-guaranteed bank deposits ended the traditional debenture model and foreign banks exited the market. So how has the new non-bank sector grown so quickly?

“Australia has a limited number of large banks, and they can never cover the entire commercial lending landscape – they would simply be over-concentrated in one asset class,” explains Nick. “But without debt funding, the bricks and mortar of Australia simply wouldn’t exist.”

Domenic says there were no non-bank lenders operating in construction funding immediately after the GFC. “With policy and regulatory constraints on the banking sector, the private debt market has evolved to include new entrants, different products, and a growing appetite for risk. And as it matures, the price gap between the bank and non-bank capital continues to compress.”

Stamford Capital’s 2021 Debt Capital Markets Survey highlighted the intensifying competition for deals amongst non-bank lenders, with two-thirds of respondents expecting non-banks to increase construction lending activity.

Domenic says Stamford gets calls every week from new private lenders and is very careful to only work with those who will keep delivering certainty through a project. “There are opportunistic players, very short-term in their thinking. We only want to work with those who will still be around in 10 years’ time.”

Matt agrees, saying “it almost feels like every week someone is calling me from a new credit fund… while we expect the borrower demand for private debt to continue to expand, at the same time I expect to see a level of consolidation on the supply side given there are so many alternative capital providers chasing similar opportunities.”

The hunt for yield

While demand for capital has remained constant, it’s clear the supply side of the equation has taken off. “There’s a huge amount of liquidity in the market at the moment, looking to find a home,” says Matt. “Even private equity houses, which have traditionally focused on acquisitions and equity investments, are establishing credit funds to deploy excess capital into other asset classes on behalf of investors.”

“Money goes where it’s treated best, and money is getting a lot of love in private real estate debt these days,” notes Nick. He’s seeing investors funding single deals through platforms like AltX, or through funds. SMSFs and super funds are turning more and more to this asset class. Listed vehicles are also raising debt capital on the ASX.

“This will only lead to further growth and market participation,” he says.

A recent survey of AltX investors indicated that 56% intend to increase their allocation to this asset class over the next 12 months.

“Investors we speak to want to feel comfortable if they end up owning the asset,” says Nick. “And real estate is very easy to understand and clarify risk around. People tend to be a lot more patient with this asset class because there is a certain outcome.”

Matt agrees the structural protection of real estate debt is a plus for investors. “There’s a lot of familiarity with the underlying asset class, and whether it’s residential or commercial real estate investors have a better understanding of the mortgage security.”

Nick says institutional interest in private debt is an indication this asset class is at a tipping point.

“It’s like any cycle: first to engage are the early adopters, then investors with bigger cheques who want to wait and see, and eventually the institutional money arrives when it’s fully proven. We’re now fast approaching the third wave.”

About AltX

AltX (www.altx.com.au) is a market-leading alternative investment platform. Founded in 2012 and headquartered in Sydney, AltX provides bespoke access to alternative income-generating products which have traditionally been inaccessible to individual investors.  AltX has funded in excess of $2bn of transactions since inception with zero loss of investor capital.

This article was sourced from a media release sent by Medianet

Photo by RODNAE Productions from Pexels

5 Good Reasons Wealthy People Love Patek Philippe

Patek Philippe, a traditional Swiss watchmaking brand, enjoys an aura of covetable glamour that originates from its lavish traditions of watchmaking and its exquisite polished, handcrafted timepieces.

In this article, we will walk you through 5 compelling reasons that make Patek Philippe an incredibly popular choice amongst rich collectors. Here, take a look:

A Symbol of Exclusivity

Research reveals that since 1839, Patek Philippe has made and sold less than 1 million watches, which allows this luxury Swiss watchmaker to enjoy an immensely covetable brand appeal. Patek watches take around nine months to be manufactured, while the more exquisite pieces are produced in a period of over two years. The growing demand and the sought-after models have given the brand an affluent status that allows rich people to set themselves apart in the crowd.

Hand-Finished Beauty

Philip Patek watches are known for their finesse and beauty. These intensely charming timepieces are admired because of their stunning hand-finished components. The Swiss watchmaker infuses each design with an iconic detailing that captivates the admirers with its distinctive and high-end glamour. From the dynamic batons to the hand-finished hands, and the overall design, it is the little details that allow a Patek watch to leave the onlookers struck by its sleek appeal.

It’s an Investment

Many savvy collectors invest in Patek watches as an investment, and both vintage and modern watches promise a spectacular resale value. History stands witness to the fact that Patek watches bought back in the 1950s or 1970s, for instance, the Calatrava, and the 5131 Cloisonné Enamel, sold twice more than their original retail price.

Be part of a Legacy

Patek Philippe maintains an archive for every single watch made since 1839, and it allows watch enthusiasts revel in the confidence of being a proud member of the Patek community. The archives have meticulously documented the history of each and every watch that has ever been produced by the celebrated Swiss watchmaker, allowing the purchaser to be a part of a legacy shared with royal family members, heads of states, and celebrities.

Traditional Watchmaking Traditions

Rich people adore Patek Philippe for its rich legacy and its traditional watch and case-making techniques that date all the way back to the 1800s. This iconic brand continues to dominate the market of luxury watches with its meticulous preservation of centuries’ old watchmaking techniques, handcraftsmanship, and alluring designs.

Photo by Antony Trivet from Pexels

Finalists Officially Announced For The Australian Women’s Weekly Women of the Future Awards

The Australian Women’s Weekly, in partnership with La Trobe Financial, is proud to present our six outstanding young finalists, selected from a competitive field of entrants in the ninth annual Women of the Future Awards.

Since 2013, the awards have been helping exceptional young women aged between 18 and 34 develop projects that transform lives. This year there was a spectacular array of impressive entries, with strong themes around disability, conservation, and consent.

The Women of the Future Finalists are:

·      Hannah Diviney of Missing Perspectives (NSW), a global publishing platform that seeks to address the marginalisation of women and girls across news, media, and democracy decision-making on a global scale.

·      Camille Goldstone-Henry of Xylo Systems (NSW), a cloud-based platform to connect, track and manage conservation projects.

·      Angelique Wan of Consent Labs (NSW), a youth-led not-for-profit organisation that revolutionises the discussion around sexual consent, harassment, and assault.

·      Mannie Kaur Verma of Veer Foundation (VIC), an organisation that works to prevent domestic violence and support victims in marginalised communities.

·      Molly Rogers and Emma Clegg of JAM the label (VIC), a clothing brand born out of the need for inclusive clothing for young people with disabilities.

·      Martina Ucnikova and Jessica Smith of She Runs (WA), a not-for-profit that supports women’s political and civic participation through the power of education and connection.

Their incredible stories are showcased in the December issue of The Australian Women’s Weekly, on sale Thursday, 4th November. In addition, each finalist will appear in a new a six-part series on podcast Short Black with Sandra Sully. Each Tuesday from October 26, the 10 News First acclaimed journalist, presenter and women’s advocate sits down with these emerging young entrepreneurs and campaigners to talk about their passion and determination to help make a difference.

The Editor-in-Chief of The Australian Women’s Weekly, Nicole Byers, said: “This year, we had a record number of entries and I am proud to announce our six finalists. They are inspirational, they all do incredible work, they are committed, smart, and full of excellent ideas and they’re shaping the way to help create positive change for a better future.”

The finalists will be flown to Sydney to attend the prestigious Women of the Future event on December 1, a much-anticipated date in the diary of some of Australia’s most influential and change-making women. The overall winner will be announced and receive more than $100,000 in cash and prizes to assist in reaching her business goals.

The panel of judges tasked with choosing one winner for the awards this year are: Ita Buttrose (AC OBE, Chair of the ABC); Yasmin Poole (Youth Advocate and Plan International Australia Ambassador); Julie Bishop (Australian National University Chancellor and Former Foreign Minister); Narelda Jacobs (Network 10 presenter and journalist); Tanya Plibersek (Federal Shadow Minister for Education and Women); Nicole Byers (Editor-in-Chief of The Australian Women’s Weekly and group Publisher Women’s Lifestyle & Food at Are Media); and Caterina Nesci (Director of ESG and International Partnerships at La Trobe Financial).

The Australian E-Commerce Market Is Projected To Reach US$70bn In 2025

Australia’s e-commerce market has been witnessing high growth during the past few years, supported by growing Internet penetration, availability of secure online payment systems as well an increasing number of online shoppers. The COVID-19 pandemic has further accelerated the shift from offline to online sales and subsequently the market is expected to reach A$91.5bn (US$70bn) in 2025, says GlobalData, a leading data, and analytics company.

According to GlobalData’s E-Commerce Analytics, e-commerce sales in Australia, which grew by 16.8% in 2020, are estimated to grow by 13.4% to reach A$60.6bn (US$46.7bn) in 2021.

While sectors such as travel and accommodation were affected due to the lockdown and travel restrictions, strong growth was seen in online purchases of retail goods such as groceries and electronics.

Shivani Gupta, Banking and Payments Senior Analyst at GlobalData, comments: “The pandemic accelerated e-commerce activities in the country as wary consumers are staying home to avoid exposing themselves to disease vectors. This trend will continue driven by rise in new online shoppers.”

As Australian consumers continue to embrace online shopping, it will support the growth of electronic payments. According to GlobalData’s 2021 Financial Services Consumer Survey* for online purchases, payment cards account for 37.2% of all the e-commerce sales in Australia. Alternative payment solutions such as PayPal, POLi, Afterpay, and Apple Pay collectively account for 43.3%.

‘Buy now, pay later’ is a popular payment option among Australians, particularly millennials. According to GlobalData survey, Afterpay accounts for 7.7% of total e-commerce payments in 2021.

Ms Shivani concludes: “The pandemic has brought a permanent shift in consumer buying behavior from in-store to online shopping, which has accelerated digital payments adoption and benefiting alternative payment solutions.”

Please Note 

  • Quotes are provided by Shivani Gupta, Banking and Payments Senior Analyst at GlobalData
  • Information is based on GlobalData’s E-Commerce Analytics.
  • *GlobalData’s 2021 Financial Services Consumer Survey was carried out in Q1 and Q2 2021. Over 52,742 respondents aged 18+ were surveyed across 42 countries.
  • This press release was written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology, and professional services sectors.

This article was sourced from a media release sent by GlobalData

Australian Companies Win Big At 18th Annual Stevie Awards for Women in Business

The Stevie® Awards for Women in Business, which shine a spotlight on female executives, entrepreneurs, employees, and organizations run by women, announced the 2021 winners.

The 18th annual Stevie Awards for Women in Business is an international competition produced by the creators of the prestigious International Business Awards® and American Business Awards®. The Stevie is widely regarded as the world’s premier business award.

More than 40 Australian organizations and individuals have won the Stevie Awards for Women in Business.

The Audacious Agency from the Gold Coast submitted nominations on behalf of Stevie-winning clients. Their clients won 27 Stevie Awards overall including seven Gold Stevies, 10 Silvers, and 10 Bronzes. The Audacious Agency won the program’s highest honor, the Grand Stevie Award, for the success of their client’s nominations.

Kids on the Spectrum (Melbourne, Victoria) won two Gold and one Silver Stevie Award. Kids on the Spectrum-Australian autism directory was launched in 2019 to provide parents a free national online directory to assist them in locating inclusive services, products, and events for their autistic family members. The directory’s founder, Anita Aherne felt the urgency to provide valuable free information with an aim of improving autistic outcomes in Australia.

Aherne said “Being acknowledged for developing Australia’s first national autism directory is exciting and overwhelming. To have Kids on the Spectrum awarded three Stevie awards is definitely a highlight of our business journey so far.”

Natalie Brennan, General Manager of Muffin Break in Sydney won two Gold Stevies Awards for Woman of the Year and Most Innovative Woman of the Year – Franchising. Muffin Break first opened its doors in Queensland in 1989. In 2021, with over 200 stores in Australia, all stores are locally owned & operated by our franchise partners who are proud of the communities they serve and the products they offer.

More than 1,800 nominations from organizations and individuals around the world were submitted to the awards this year for consideration in categories including COVID-19 Response, Entrepreneur of the Year, Executive of the Year, Most Innovative Company of the Year, and Startup of the Year, among others. More than 160 business professionals working in eight specialized judging committees determined the Gold, Silver, and Bronze Stevie Award winners.

This article was sourced from a media release sent by Maggie Miller of Stevie Awards.

How To Get Your Loved One A Gift That’s Personally Picked This Christmas

With an 80% increase in gifting during the pandemic lockdown period, this female-founded Aussie gifting startup, PersonallyPicked has seen exponential growth over the past year. Demand continues to grow for unique and fabulous gift options for loved ones being sent, “just because”.

As the name suggests, PersonallyPicked allows customers to curate the perfect gift for their friend, colleague, or loved one, selecting from over 150 incredible gift options. For those more indecisive or in need of a little gifting inspo – there are ready-made gift boxes for a quick solution.

That said, PersonallyPicked says that over 95% of their customers choose to build their own personalised gift box – offering a gift that, as the name states, is personally picked for them.

Some of the most popular gift items during the current lockdowns have included drinks such as Melbourne Martini cocktails in a jar, Just a Glass Wines, and T2 teas, as Aussies enjoy a tipple or two from home – be it toasty and warm, or fresh and fruity.

Additionally, people are spreading the fun, with activity-related gifts rising in popularity during the lockdown. Many Australians are sending Journey of Something puzzles, quiz games, and cocktail recipe books to keep people entertained at home. It seems we’re also quite keen to pamper friends and family with beauty and wellness products such as the Aunty Honey Heat Packs, Lapcos Face Masks, and Huxter Bath Salts in rather high demand.

PersonallyPicked Co-Founder Samantha Lynn said, “Customers are sending gifts not for any particular occasion, but just because loved ones were going through difficult times and as a way to re-connect and bring joy. We have also had a huge uplift in corporate clients and businesses organising gifts for their staff who were working hard in lockdown at home, which is really great to see.”

Over the last 12 months, PersonallyPicked has seen a 250% increase in sales, with the online gifting trend seeing no sign of slowing down.

PersonallyPicked offers a range of bright, colourful, and unique packaging options that stand out from the crowd. The best part, each gift box is personalised with the recipient’s name for the ultimate personalised experience.

For more information or to order your own PersonallyPicked gift box, head to: www.personallypicked.com.au

Meet The Shepreneur Behind The Cover Of The October 2021 Issue Of MoneyCentral Magazine: Em Hardwicke

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It took Em Hardwicke 40 years and the birth of her beautiful son to be truly comfortable in her own self, to love the person she is, and to be proud of her achievements and successes in life. Em’s son is her world. He is what inspires and motivates Em every day and she wants her son to know that anything is possible with passion, determination, and hard work.

It is this passion, determination, and hard work that has got her through some tough times and has given her the strength and courage to take on some big dreams and physical challenges over the years. She has trekked Kokoda, Everest Base Camp, Mont Blanc, Mt Meru and Mt Kilimanjaro. She has also competed in several ultra-marathons including the Ultra-Trail Australia 50km and 100km. She does these things, not to stand on a podium or to break any records – but to remind herself of what she is capable of and of the beauty this world has to offer. Doing these things reminds Em to always be the best version of herself.

For Em, like for so many others, 2020 was a year never to be forgotten… Australia battled the Snowy Mountains bushfires in January then COVID in March which saw her get stood down from her job and ultimately made redundant – leaving her without work and her family not knowing what was next.

Not one to let a setback deter her from achieving her goals, She refocussed and at the age of 46, after 25 years in Event Management, she’s now embarking on a career in Real Estate and Property Management, which is exciting for her giving her a new focus. However, she also couldn’t let all of her knowledge and experience in event management go to waste, so she took the opportunity to rebrand and relaunch. Hence, her Event Management Consulting business, Meraki Events and Public Relations as well as The Meraki Academy of Personal Development and Coaching were born.

MoneyCentral magazine recently caught up with Em to discuss her journey as an entrepreneur and here’s what went down:

When did your entrepreneurial flair first reveal itself?

I have always had determination and have always been a bit of a self-starter, but I guess my entrepreneurial flair first revealed itself after a stint living and working overseas and when I returned home to Australia there wasn’t much full-time work available within my industry. So I decided to set up my own business and freelance – this gave me a lot of flexibility and the opportunity to take on a number of projects at the same time and really diversify my skills and experience in different areas, making me more employable and more valuable within the Event Management industry.

In addition to working full time, I have four small businesses of my own… Meraki Events & Public Relations, The Meraki Academy of Personal Development & Coaching, Soul Purpose Body Products, and Jindy Treats.

Photographed by: STUDIO 49 / TONY PALLISER 2021

How did your life look like before being an entrepreneur?

I have always loved being busy and have always loved having variety in my days and in my work, so I think the biggest change I noticed when working for myself was the ability to be able to choose the projects I wanted to work on and the variety that my workdays took on.

As an entrepreneur, what is it that motivates and drives you?

Definitely the rewarding feeling when you pitch and land a new client… or when a new retailer chooses to take on your product. But I think the biggest motivator for me is customer satisfaction. I have always said that customer satisfaction is paramount to my success. If my customers and clients aren’t happy or aren’t satisfied with my work or my products, then I am not doing my job!

In one word, describe your life as an entrepreneur and explain why.

Passionate and Determined! Okay, so I know that is two words, but I truly believe I have passion and determination in equal measure.

It has not always been an easy ride and there have been disappointments along the way, but I have always got up, dusted myself off, and landed on my feet and I know it is my passion and determination that has allowed me to do that.

Photographed by: STUDIO 49 / TONY PALLISER 2021

What were your top three motivations for starting your business?

Circumstance, necessity, and opportunity… that combined with absolutely loving what I do and doing what I love.

What do you put your success down to?

Passion, determination, hard work, and a strong work ethic. It is also important to know your clients and be clear on the services and/or products you have to offer. Don’t spread yourself too thin – you are better off being really good at some things than mediocre at many things.

What would you say are the key elements for starting and running a successful business?

For me, it was all about having a clear plan about the products/services each of my businesses was to focus on and a clear target market. Without clarity, there is no direction. Without direction, you have no destination. I once read a quote that has stuck with me and always reminds me what is missing when I find myself stuck, or in a rut.

“Clarity has purpose and strength and brings with it the undeniable ability to move forthwith into our chosen direction.”

This is when I stop, reflect, refocus and gain the clarity I need to move forward.

Photographed by: STUDIO 49 / TONY PALLISER 2021

What are the three biggest challenges you have faced growing the business and how did you overcome them?

I think there are always different challenges at different times. When I first started my business, my biggest challenge was getting my foot in the door and getting people to take a chance on me, particularly if I was completely unknown to them.

Another challenge for me was not selling myself short or undercutting myself just to get a job – you have to know your worth and be able to sell that to a prospective client.

Overcoming these challenges was a challenge in itself as it largely came down to believing in myself and not taking the knockbacks and lost contracts personally.

I found as I won pitches and landed contracts, the door opened a little wider each time. I also did a lot of research about salaries, wages, and contract rates, and how to quote a job fairly so the client felt they were getting great service at a rate that was affordable, but I was also still charging at a rate that I knew I was worth for the work I was doing.

Knowledge and confidence was a big factor in overcoming these challenges.

Knowing the market, knowing your worth, and being confident in your ability.

Does the loneliness of the entrepreneur really exist? Is there such a thing?

I have never found entrepreneurship a lonely venture. Perhaps this is because I have always surrounded myself with a lot of people and have also, more often than not, had another job to give me some stability and human interaction while I have been starting and building my businesses.

Photographed by: STUDIO 49 / TONY PALLISER 2021

As you grew the business, what have been some of the most important leadership lessons you have learned?

Be clear on what your definition of success is for your business and do what is necessary to achieve those successes. Your definition of success will always change as the business grows, but so too does the plan and actions needed to achieve the new goals set for yourself and for your business.

My businesses are still small and all still growing at a pace I am happy and comfortable with. One of the biggest lessons I have learned along the way is to never let my business become bigger than I can, or want to, handle. I always remind myself that a business doesn’t have to be BIG conglomerates to be successful.

The other important leadership lesson I learned at a very young age, and one I apply to all aspects of my life. Always treat people the way you would like to be and would expect to be treated, and NEVER ask someone to do something you wouldn’t be willing to do yourself.

What do you hope to see happen in the near future for small businesses all over the world?

I truly believe small business needs to be nurtured and supported. There is absolutely a place in society and the world for big business and multi-national firms and operations, but I also believe that big businesses and multi-national firms are not the place for everyone, and nor should they be.

The pandemic has, in the blink of an eye, totally destroyed so many small businesses around the world and destroyed the lives of the people whose blood, sweat, and tears have gone into building these businesses.

I would love to see some of the big businesses and multi-national firms around the world, whose businesses have remained largely unaffected by the global pandemic, establish a series of small business grants to support many of these small businesses re-establish and re-build. There are a lot of amazing business minds in this world whose businesses have failed, by no fault of their own. Small business is an important part of society and all contribute to a country’s economy, but do not have the support and backing of deep pockets to keep them afloat when times get tough.

Photographed by: STUDIO 49 / TONY PALLISER 2021

4 Home-Based Business Ideas That’ll Let You Work From Home

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With the rise of home-based business opportunities as a result of the pandemic, more and more people are discovering ways to become entrepreneurs with their businesses based at home. Generally, if you’re resourceful enough, you can easily start working on your business ideas from home using your existing space and means. People create many types of businesses to operate from home and we’ll cover some of the most popular ideas here:

Virtual / In-Person Teacher

  • Music teacher: teach an instrument such as guitar, violin, or piano. Plan to offer your services on different teaching platforms and offer private lessons as well as group lessons.
  • Dance teacher: teach modern dance, ballet, or ballroom dancing. Offer different types of schedules for kids and adults. It is important you have all the proper equipment so your online lessons look highly professional.
  • Art teacher: teach drawing and illustration, painting, or sculpture. Define which are technique you are best at and create a schedule of all the different hours available you have.
  • Language instructor: teach Spanish, Chinese, Latin, or French. Be sure you completely dominate the language you are planning to teach.
  • Tutor: Tutor either elementary or high school students in subjects that you are degreed in, such as math, English, or chemistry.
  • Yoga instructor: teach virtual yoga and meditation techniques.
  • Blogging: Whether you decide to become a blogger and create new and rich content there are many ways to make money blogging. Creating your own blog can be a different and fun activity where you will be able to experiment with your creativity.
  • Freelancing photography: Consider the type of photography you want to do and what are the most popular requirements needed from your potential clients.

E-commerce Seller

You can operate an e-commerce company from your home. You can purchase products in bulk and sell them online. You’ll partner with a warehouse where your products will be shipped from. You can also perform all services related to e-commerce and expand as you need to. When choosing products, consider how much space you’ll need to accommodate this type of operation.

Homemade Products

Many home-based business owners sell products that they create, such as:

  • Candles: A candle company may be the best business for anyone passionate about wicks, soy blends, and achieving the perfect scent. You can offer soy candles, scented candles, beeswax candles, paraffin candles, and more.
  • Baked goods: Bakeries have been around for a long time, but recently they have grown in popularity. Entrepreneurs have taken their cakes, cupcakes, and cookies from home and open regular bakeries and restaurants, and even franchises that make. Creating cupcakes, artisan bread,  cookies, wedding cakes, and more could be a great way to start.
  • Jewelry: Making people’s personalities come alive through jewelry is a very fulfilling creative pursuit. Think about creating beaded bracelets, necklaces, earrings, rings. etc.
  • Essential oils offer many opportunities for creativity and reward. Own a business or buy wholesale oils to resell on your own.
  • A lot of people know how to knit, but it’s generally considered a new fad or lost art. It’s not clear to them how to make money with it. You can start by creating hats, scarves, mittens, or sweaters.

Services

You may base your business on providing services to customers either in person or online depending on the services you offer, which might include:

  • Makeup tutorials: Teaching how to properly use makeup and providing some confidence tips might be a loving activity, not only for you but also for your potential clients. Even showing how to apply lashes properly would be a great way to get started.
  • Dog walking: Taking care of furry babies and just having a long walk outdoors could definitely bring you great benefits.
  • Personal trainer: While training for your own personal goals, you are also helping others to achieve theirs.
  • Virtual assistant: if organizing and scheduling your day is a passion of yours, you should definitely offer these services to people that don’t have that same passion or patience as you do.
  • Clients of personal shoppers usually buy clothing and accessories for themselves. A personal shopper may work directly for a client or their stylist; other personal shopper employment is available through boutiques and departments stores.
  • Housecleaner: This is a great opportunity if you are passionate about cleaning and decluttering. These services have a high demand.

A curious fact, Recently India has become the hotspot for foreigners for starting an Indian Subsidiary and Ebizfiling is a one-stop solution for a Company Registration in India by a foreigner. Know the benefits of starting a business in India.

Home Office Essentials

When developing your business, you’ll want to create a home office where you can ‘set up shop’ and manage all the important aspects of operating your business. Here are some home office essentials to consider:

Good Lighting

Be sure that you have good lighting so that you can work without straining your eyes. You may want to have better overhead lighting installed by an electrician. Or, you can add more lamps to the space to ensure that you have great lighting even on dark and dreary days.

Adjustable Desk

An adjustable desk is ideal for a home office. You can use your desk for various tasks that may be related to your business.  A standup desk is also a great feature if you’re concerned about fitness. You’ll burn more calories by standing up to work.

Comfortable Furniture

Try to invest in a quality ergonomic office chair. You’ll be spending a lot of time in your home office, so be sure to have comfortable and supportive furnishings for yourself and anyone else who may be working with you. You may also need filing cabinets, a workbench, or other furnishings related to the type of work you perform.

Decor

Office decor may not seem essential, but it can enhance your mood each day. Remember, your office is your place of work. Decorate it in a way that inspires and motivates you to be productive. Although you don’t want to add much in the way of clutter, some thoughtful decorative pieces will add personal warmth to your office.

Plants

House plants can make your home office feel cozy and welcoming. However, that’s not all. Many houseplants feature air-purifying properties. Add plants to your office space like aloe vera or spider plants to keep the air smelling clean and fresh. Consider plants of various sizes to add a dynamic look to the space.

Equipment

You’ll likely need basic office equipment and may require other equipment or gear related to your products or services. For instance, if you perform sewing services, you will need a high-quality sewing machine. Typically, you’ll need office equipment such as:

  • Computer or laptop
  • Internet (consider business internet service) pocket wifi could also be a great option.
  • Business Phone
  • Printer
  • Copy machine
  • Headphones
  • Adding machine/calculator
  • Postage scale

These are just a few ideas. You’ll need to brainstorm to ensure you have all the equipment you need for your operation.

Quiet Space

When laying out your office, be sure to choose a space with an adequate room as well as an area where you can work without interruption. If you live in a bustling household, you’ll need a place where you can work without distractions. A quiet space away from children or the television room would be ideal.

Office Bar

Although you can always visit your kitchen, you might want to create an office bar where you have a coffee maker, healthy snacks, and even a small refrigerator to keep water or other beverages cold. This way, you can keep your work items separate from the household’s supplies.

Use these tips to create your home business. Be sure to give yourself adequate time to address each aspect of your business’s development. Once your business is up and rolling, you’ll also want to consult with an accountant to ensure that you understand your tax obligations.

Source: Porch

Photo by Andrea Piacquadio from Pexels

The Surefire Guide To Starting And Successfully Running A Home Business

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Some of today’s most prominent businesses were started at home, and many of today’s successful business owners are content to operate their businesses from their home office, garage, or on-site warehouse. 

A small business may be defined as a “privately owned corporation, partnership, or sole proprietorship with fewer employees and less annual revenue than a corporation or regular-sized business.” Therefore, a small home business can be defined as such; only its operation occurs at the proprietor’s residence or in the residential setting of one of the employees. 

Many people decide to start a small home business to earn extra income or simply to go into business for themselves. Many small businesses are run from homes today, ranging from financial consulting and baking to salon services and tutoring. Whether you’re interested in selling products or providing services from your home, the following information will help you get started and probably answer some questions you might have and know some pros and cons. Of course, if you have little ones at home, starting a business alongside them can be a challenge – but not impossible! Parenting while working from home can actually be enjoyable, while also setting a positive example for your children to learn from.

Benefits and Advantages of a Home-Based Business

If you’re thinking about launching a home business, you’ll want to explore the many enjoyable advantages and benefits. In fact, many of these benefits persuade people to start a home business in the first place. 

Time with Family

Many people prefer to work from home so that they can be around for the family. Small business owners can be on-site to keep an eye on older relatives who may need occasional assistance. They can be at home when children are let out of school, and they can enjoy flexible hours to quickly leave home and attend kids’ events like after-school track meets or basketball games. Even if you are a “pet parent,” staying at home jobs or starting your own business will be ideal for taking care and sharing more time with the people you love or your furry loved ones. 

Zero Commute Time

The average American spends an hour per day commuting to and from work. That adds up to 20 hours per week. Many people spend even more time commuting, enduring the stress of heavy traffic, inclement weather, and crowded busses or trains. There is also the substantial cost associated with work commutes. Being at home will reduce these extra costs since you will be able to cook and eat at home, avoid traffic, lower your gas budget or any other transportation budget. This would be the perfect time to start eating clean and having a healthy diet, adding more activities that will keep you productive such as meditating instead of being stuck in traffic. 

Save on Commercial Rent

When you run your business from home, you can save the cost of rent. If you operate your business in a commercial space, you’d be required to pay rent as well as utilities and insurance. You can avoid this type of overhead by operating your business online from your home. You can reinvest the money you save on commercial rent back into your business in some other form, such as digital marketing

Multitask between Your Professional and Personal Lives

While it may take some practice to juggle tasks associated with your business and personal life skillfully, you can undoubtedly multitask when running a home business. You can break from your work to throw in a load of laundry or prep for dinner on your lunch break. You can create a daily dynamic schedule that includes tasks related to your business and household needs. Moreover, you may easily fit a wide range of tasks into your day without the commute time, such as exercising.

Be More Productive

Because your business belongs to you, you’re likely to feel a tremendous investment in its success. So, you’re apt to work hard and be highly productive. Moreover, there won’t be any other employees (unless you decide to hire them) or a boss around to distract you from your tasks. Consequently, you can more easily stick to your workday plans. When you run your own business, you can set your own goals in terms of productivity and develop the strategies to achieve them that work best for you. You definitely are able to become your own boss! A great way to get started would be creating a schedule you know you will follow every day. It must have realistic metrics so you can stay motivated throughout this new journey. While making your schedule, you might want to add some household activities that might take around 15 minutes to complete or maybe just take an outdoor walk or read that book you have purchased and haven’t had the chance to open it—organizing your agenda and working at home will a great experience. It doesn’t matter if you are a morning or evening person.

Getting Started

Starting a business is an exciting prospect, but there are a lot of details to address. By staying organized and tackling all necessary tasks, you can set your business model up for a successful launch.

Define Your Business

Take time to define your business clearly. Will you sell products, services, or both? Although you may already have a good idea of what you want to do, you’ll want to think in terms of specifics once you’re serious about starting a small home business. Take time to brainstorm through some ideas and make a list of the possibilities you’re most interested in pursuing. Once you have a shortlist, you can research your options and take a look at the marketplace to determine if there’s a need for your offerings. Take into consideration also what are you good at, baking, cooking, singing, tutoring, numbers, dropshipping, etc. this will help you to keep motivated and have a business project that you will enjoy and won’t see it as a boring work task that you just have to perform. 

Brainstorm Your Business Name

Take time to choose a business name carefully. You’ll want to choose a name that’s easy for customers to spell and remember. It makes sense to select a web-friendly name in this digital age and nothing too similar to your competitors’ names. While there are business name-generating apps available that you can try, you might also want to make a list of possible names for your business and run them past family and friends to get their thoughts. You can even ask your close friends and family to suggest options as a way of helping you brainstorm.

Identify Your Target Audience

Who are you trying to sell to? Defining your target audience, whether it’s local homeowners or teenagers nationwide, will help you market your business effectively. When you have a target demographic in mind, you can create more targeted strategies for engaging potential customers. Therefore, you must identify your product or service’s target audience before you begin marketing efforts for the brand. The group will include existing customers as well as potential customers.  

Your target market does not necessarily consist of everyone who may be interested in your products. It’s important to identify the people you want to reach through your brand marketing efforts, whether you’re using digital marketing campaigns or advertisements or on social media channels.

Understanding your target audience and their pain points allows you to create content more effectively and target advertisements with the right marketing message for each segment.

Develop Your Business Plan

Creating a business plan is a crucial step for developing your home business. It can include every aspect of your business, guiding both its launch and operation. Some key elements of your business plan should include:

  • Company description: provide a summary of what your company does. Company descriptions give an overview of key aspects of your business, such as what you do and what sets you apart from the competition. Your business description should clearly explain what you do.
  • Breakdown of your products and services: The product or service section of your business plan should emphasize the value you offer clients or customers.
  • Executive summary: provide a formal business summary, one that could appear in professional business directories.
  • Marketing and sales plan: describe how you intend to market your company (i.e., digital and traditional sales measures)
  • Competitive analysis: analyze the marketplace you intend to operate in; know how you fit in and who your competitors are. 
  • Operating plan: describe how you plan to run your business and list company departments and managing personnel.

Financial Considerations

You’ll need to carefully evaluate your finances and develop a budget related to your startup expenses and business operation. Don’t forget to add in costs for items like marketing, insurance, and other necessities associated with the types of products or services you’ll sell. Determine whether or not you’ll need to apply for a business loan. For entrepreneurs who are starting new businesses, personally funded venture capital is often the first thing they consider. While this is common at the beginning, it is essential to separate your personal and professional funds when your business is growing and earning cash, not only for tax purposes but also to protect your credit and eliminate unnecessary stress.

Legal Business Structure

Take time to determine your business’s legal stature and structure. Do you intend to own your business as a private proprietor or to create a corporation? Learn about the different structures and decide which is best suited for you and your business.

Business Licensure

What type of license will you need to operate your business? Be sure to calculate the cost of your license into your startup costs. Although there are general business licenses, there are also specialty licenses that may apply to your business. Check here to learn more about specific types of business licenses.

Branding Campaign

Marketing is essential for any business but definitely a home business. You won’t have the benefit of being in a commercial area where you can post commercial signage. You’ll need to create a marketing plan that includes both traditional and digital marketing initiatives. Branding is the idea that if you display a positive message about your company to enough people for long enough, they’ll think about you when it’s time to make a purchase.

Source: Porch.com

Photo by RODNAE Productions from Pexels

Meet The Entrepreneur Behind The Cover Of The September 2021 Issue Of MoneyCentral Magazine: Danish Sayanee

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A veteran entrepreneur, Danish Sayanee is an internationally published author with 3 books published under his name on platforms such as Amazon, Barnes and Noble, and Simon & Schuster. He is known for his innovative developments and affiliations in technology and STEAM/STEM integration at the school level – some of these affiliations include Microsoft, Google, STEM-ED Coalition, Common-Sense Education, and more. On top of that, he’s also the co-founder and director of the Institute of Excellence in Learning and Teaching.

A highly sought-after trainer, Danish is an internationally certified and licensed TESOL trainer from the Arizona University; he’s Pakistan’s very first CommonSense Educator, and he’s a Cambridge English trained agent which entails him to counsel students, teachers, and professionals on the importance of Cambridge English Certification. In fact, he has incredibly trained 3000 individuals including teachers, students, and other professionals. Danish also happens to be the first National Geographic Educator in Pakistan.

Danish has completed Business and Leadership Management from the Michigan University and he is also a Microsoft Educator, Adobe’s Master Trainer, and Intel’s Technology Partner, who’s currently working on his Teacher Training Licensing Program from London Teacher Training College OFQUAL Affiliated program.

MoneyCentral Magazine recently caught up with Danish to discuss his journey to entrepreneurship and here’s what went down:

What are your standards for success? Is it a certain dollar figure?

My benchmarks for success are not measured by anything especially not by the monetary success of a man. I have set the standards of my success on two principles:

1. Your Effort should match your vision
2. Be true to your vision

I have stuck by these principles, worked hard, tried my level best not to deviate from my vision, and climb ascend Mount Success.

What do you think made you successful in business?

I was born not to be the sort of person who can comply with the rules that others set for him, rather, from an early age, I have been able to make people do what I wanted them to do, I feel that this being able to delegate, and process who does what best is a key factor that made me successful in business. Another thing is the fact that I can jump from the mountains but I can still stick to a vision. Often, businesses simply fail, or people running them fail because they lose sight of their vision.

How would you define true entrepreneurship?

The truest form of entrepreneurship is when a person can identify a true social gap and fill it up with a unique and innovative idea.

What inspired you to develop your idea?

I have always been a compassionate person by nature, this enables me to look at society from a unique perspective and this is the very perspective that I am able to translate into ideas. So far, my analysis of societal needs has been pretty much on point, and I hope that this will continue to be the case.

What were the main challenges you faced at the early stages of your business? And do you still encounter them to this day?

Challenges have and will always be part of my life, they are part of every person’s life. In Pakistan, the situation for budding entrepreneurs is tough, it is cutthroat most of the time. Some of the major challenges I have faced is the lack of investment availability, people are not willing to invest in businesses that will reap a profit in the long run but at a steady pace. Nowadays, people want instant gratification when it comes to reaping their investments.

What keeps you going even in hard times?

Interesting question! I guess the fear of failure is a huge motivator for me that keeps me going but another motivator is that I am a largely stubborn human being and hate giving up, this keeps me going on.

What are your thoughts on entrepreneurship for young people especially in an economy where jobs are harder to find?

Unlike what many people believe, entrepreneurship hasn’t arrived, it is here to stay, and entrepreneurship is the element that will create opportunities for Generation Z.

What strategies did you first use to market your business?

Hah! You will probably laugh when you hear what I have to say on this. I had no ideas about marketing strategies in those days, I had no idea how a business was supposed to be run. I relied heavily on social media platforms to spread our word and to introduce the business and promote it. As time went by, we invested in paid marketing and again we had no idea how it actually worked! In the end, all I can be grateful for is that our wild guesswork paid off.

How have your priorities changed from when you first started?

No, I guess not, my priorities have not drastically evolved over the years, but I have realized that for a man to succeed in a business, he needs to learn to give as much leverage to his team as they deserve, and not let them take advantage of you. I have always prioritized empathy and sustainability and have tried to ensure that I achieve the two.

Knowing what you know now, is there anything you would have done differently when you were first starting out?

Nah! I think I wouldn’t have succeeded as much as I have if I go back and undo my learning opportunities, I have grown and matured with time and my mistakes, my missed chances, even the moments of despair have taught me to be a better man and an even better entrepreneur.