MAKING ENDS MEET

I thought it best to share an extract from the October/November issue of our newsletter, INSIGHTS.

The global financial crisis has brought about a new mindset for many Australians. Now more than ever, people are becoming more resourceful to ensure their finances stay on track.

The web provides a whole world of tips to stay stylish and fashionable on a tight budget. Entertaining in the home is becoming more prevalent, spawned by the increasing cost of food, the desire to maintain close relationships, and maybe even the MasterChef phenomenon. Frugality has replaced conspicuous consumption. People are trying to make more out of less and in some cases, supplementing their regular household income in creative ways. In an economic environment where job and financial security is a concern, old fashioned Australian entrepreneurism is coming to the fore. Here are some of the money making activities Australians are taking up.

Direct selling
No longer solely the realm of entrepreneurs, retirees, stay at home mums, even the full time employed are getting into direct sales. Nutrimetics has had a 40% increase in the number of consultants and Tupperware Australia has seen 16% more demonstrators join its ranks in the past six months. That’s because direct selling is one industry that booms when the economy is weaker. John Holloway from the Direct Sellers Association explains that a downturn in the economy is beneficial to the industry, “During recessions, we see an increase in the number of people searching for alternative ways to make an income by joining our companies.” This mode of generating income is very attractive to people who like to work flexible hours and be their own boss, and the start up costs are very low. Direct sales representatives are independent contractors who typically sell their products in homes and do not have a retail storefront. They are not employees of the company they’re selling products for. Direct sellers are their own bosses and can put as much or as little effort into growing their business as they choose, which can be appealing for those with other responsibilities.

Other money making ideas
•• walking and washing dogs
•• babysitting young children
•• catering or baking cakes for parties
•• house sitting and pet sitting
•• cleaning homes
•• gardening and yard work
•• running errands for professionals or families
•• letting out a room to an international student
•• odd jobs handyman.

Homemade items
The rising popularity of art and craft also appears to defy poorer economic conditions. The trend away from mass produced and environmentally harmful products has created a ‘handmade movement’. Once seen as the domain of granny and nanna, crafts such as sewing, toy making and knitting are making a comeback among people of all ages. Apart from the obvious benefits of providing an outlet for creativity, people also do it to be green and sustainable and even to make money. At the local level, outdoor markets are a popular place for creative folks to offload their wares. According to Peter Holman, General Manager of Eumundi market, the largest outdoor market in Australia, both shopping and selling at markets is becoming increasingly popular. “When times appear tough more people tend to shop in areas they perceive as being more reasonably priced, such as the markets.” However, buying and selling handmade goods has also taken on a new twist in the modern world. Artists and craftsman are taking advantage of the internet to form online clubs, swap ideas or photos and to sell online. Etsy.com is an online marketplace for all things handmade boasting 2.8 million members and over 250,000 sellers world-wide. Globally, there are currently 4 million items listed and $102 million worth of goods have been sold as at the end of July 2009. If you have a creative talent, the opportunities for growing a handmade business seem endless.

Bed and breakfasts
Running a bed and breakfast (b&b) has been a popular dream for many people approaching retirement and for good reason. It allows the owner to work from home while still earning an income, stay socially connected and meet a broad range of people from all over the globe. The popularity of bed and breakfasts as side businesses or even as a full time occupation is on the rise. If you’d like to know more, many community colleges around Australia now offer short courses in becoming a b&b owner.

Turn your clutter into cash
Most households contain a pile of unused items at the back of the closet or lurking in the garage which could be put to better use. Selling these unwanted items can help in two ways – reducing clutter and generating cash. Research from eBay Australia suggests that on average, Australians have $3,000 worth of unused household items which could immediately be sold. This extra cash could be used to help pay the bills, save for that special treat or trade up to buy something you really want or need. Look around your home and ponder these statistics. On an average day in Australia, a piece of women’s clothing is sold every 15 seconds on eBay and an antique is sold every 4 minutes and 3 seconds.1 Many people are using eBay not just for selling unwanted odds and ends but as a sales channel for their small business. Just three years ago, over 52,700 eBay sellers in Australia derived their primary or secondary source of income from selling on eBay.com.au. Every cloud has a silver lining, and the silver lining of this economic slowdown is that thrift and frugality are driving a new entrepreneurial trend. If you’re looking for ways to boost your income and make ends meet, the sky is the limit.
1 eBay Marketplaces Quarterly Fast Facts, 31 December 2008

Wouldn’t it be good to have that extra cash in time for Christmas?