The Overlooked Opportunity For Getting Paid More

Hey team,

We all know wages have been flat for a while.

The job market’s rough, getting a raise is a tough ask, yet somehow everything around us keeps getting more expensive.

And because my job is literally talking to people about money, having chats with people in finance, in business, with regular people just trying to get ahead… I’m very lucky to end up with a pretty broad view of what’s happening at all different levels.

And I think there’s an overlooked opportunity on how some of us could increase our income.

I also think it won’t stay overlooked for long, which is why I want to talk to you about it now.

Because as people struggle with those flat wages, the pay rises that keep not coming, all while the cost-of-living keeps going up…

It’s often suggested to increase income by starting a business.

To get out on your own, take what you’re good at, and use it for yourself, instead of a bigger company, with the middle managers that need paying, and a bigger office rent.

To back yourself, and keep the profits for yourself. And yes, done right, that can really work.

But what if the underrated secret isn’t to START a business.

It’s to BUY one?

Because there’s a wave of Boomer businesses that have been trying to sell, so that their owners can retire.

They’re proven. They’re profitable. They’re just... run by someone who would like to kick back a bit.

And yet, I’ve been told over and over that these people are struggling to sell.

Which means, for anyone who’s been wanting to run a business, there’s a huge opportunity here to create something for themselves.

Buying a business, instead of starting one, is a cheat code that I think not many people have caught on to yet.

But they really should.

This is even one of the ways the middle class started.

It’s easy to take for granted now, but it wasn’t always a given to have this idea of the middle class - people who weren’t rich, but weren’t poor either, and had more control over their own destiny

The middle class was created from people who ran their own businesses, which was a pretty radical idea when it first came up a few hundred years ago.

The “petit bourgeois” were the small-scale business owners, the shopkeepers, the farmers, the independents.

Mum and Dad shops, with maybe the family living upstairs.

You could carve out your living, take your own risks, get the rewards. Instead of, y’know, being a peasant.

And so when I hear about the middle class getting squeezed out, my mind tends to come back to this.

That the middle class was created from people having their own businesses, an independent way of making money.

The original financial independence, if you will.

How the safety of a salary these days often means both getting less money, and getting less freedom.

I mean, how many of us have seen how much contractors, freelancers, and independents can charge? But then thought… not for me, though.

But why not? Why not for you?

To have a business that gives you more freedom, and enough extra income, nothing crazy.

Sometimes I think all the Instagram shouting about how to become a seven-figure business owner is part of the problem.

We’ve forgotten that you can make a great living, on your own terms, without it becoming a Huge Thing.

You can be nicely profitable as a small operation, not having to pay for layers of middle management above you, and more nimble when it’s just you, adapting your strategy without having to convince three layers of your boss, and bosses boss.

Honestly, having your fate in your own hands feels less risky to me, than trusting it to a company that often sees you as a line in a spreadsheet.

I do get that going out on your own can feel risky.

Businesses can, and do, fail.

How would you even know that your idea is a good one? That it can make money? That it can make enough money… for you? Your life? Your bills?

And this is where I think it becomes such an underrated option to buy, instead of starting a business.

You could start a business, test your idea, build it from the ground up.

Or, you could buy one with an already proven idea. An already profitable model. The paperwork to back it all up.

Now, why on earth would someone sell a business like that?

Because they’re tired. And looking to retire.

This is something that’s been whispered to me for so long, from so many different people, that I’m confident it’s a trend.

There are people in New Zealand right now, hitting retirement age, and wanting to kick back.

But they are struggling to find someone to take over the business they’ve built, nurtured, and love.

They don’t want to just shut it down. They also don’t want to keep working at the same pace.

Some of them are even willing to stay on, to help whoever takes it over.

They just don’t want to be the person who’s ultimately in charge, anymore.

I wanted to know if that was actually true beyond the people I’ve talked to though, so I reached out to Jeremy Pak, chartered accountant and founder of Velocity Capital.

He’s what I would call a business matchmaker - he helps people find the right person to take over their business, and keeps the transition smooth.

Jeremy has seen the same trend that I have. And also thinks it’s a missed opportunity.

The good news is, because it’s getting harder to find good buyers, he thinks anyone who’s wanting to buy a business is in a good spot for negotiating a deal.

He’s talked to employees in small businesses who’ve stepped up for the boss, and ended up creating a long-term succession plan where they’ll take over one day.

Or seen finance deals struck, where the seller agrees to a transition period of a few years, so that the profits of the business can help fund some of the sale.

These are things that make it so much more possible for a normal person to take over a successful business, without some windfall Lotto win funding them.

I had the best chat with Jeremy about what types of businesses are an underrated opportunity, how people fund buying a business, and what makes the difference between it working out or not.

If you’ve ever wondered if you could find an easier way to supercharge your income, and step into the business world, I think this is the episode for you.

Check it out on the latest Making Cents podcast on YouTube here, or get it in your ears through all the podcast apps, including Spotify and Apple Podcasts.

Bit of a theme on earning more this week, but the next one is for those with a side hustle!

Because maybe you’re just wanting to earn a little more on the side. It goes well (yay!), you get some decent money coming in from it, but then it all gets a little… overwhelming.

That success can be a curse if you don’t have systems in place to handle it.

At least, that’s what this week’s letter writer has found!

They’ve never considered themselves a numbers person, and they’re finding it hard to keep track of what they’re earning from where, and worried they’re setting themselves up for trouble.

When that letter landed in my inbox, I felt for them. Can we get the success without the stress, please?

James Gibson, head of Revolut Business, was in New Zealand briefly, so I just had to pull him into the hot seat to get his thoughts on this issue.

There are ways to make the finances of business easier for yourself, and at an earlier stage in the side hustle process than you might think.

So make sure you tune in for this one to keep the perks of a little extra side cash, without the headaches.

It’s out on Thursday, so make sure you’re subscribed on Apple Podcasts, Spotify, or YouTube.

And if you have a question about anything money, email me! ask@francescook.co.nz

Until next time.

- Frances

P.S. I’m a financial journalist of over 10 years, and qualified as a financial advisor, specialising in investments.

However, please remember that this newsletter is general educational information, and not individualised financial advice. If you’d like to talk to a financial advisor, I have a podcast on how to find a good one.