The 5 Ways Regular Kiwis Are Buying Businesses

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Making Cents 59 min 1 speaker 3 chapters transcribed
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Why consider buying a business instead of starting one from scratch?

Frances Cook 0:00
If the job market is totally balked right now, what about if you created your own job by having your own business? And what if you did that with less risk? Instead of starting a business and hoping it works, you buy one with a proven track record. Look, sunshine and roses on that. It's clearly a little more complicated, but it's a solid idea that can really work if... You do it right. And someone who has ringside seats to that? Just short. She's the director of Vesta Finance, and she's seeing an interesting trend. Her clients are looking to buy businesses like an asset class, as if it was property or shares. So,
Jess Shaw 0:43
how does that even work? It's not just a job, it's not an income. If you're doing business right, you're building an asset and that is of value and you can do something with that in the end. Is this something that only rich people can do? Do I need a million dollars in cash to buy it? Like no, absolutely not. We can also actually lend against the business itself and a lot of people don't realise this.
Frances Cook 1:04
What about making sure you're not spending a lot of money to get yourself into a financial hole? Your earning is
Jess Shaw 1:10
uncapped. Yes, you maybe have to take a bit of a cut earlier on or earn nothing to begin with, but eventually you can make it whatever
Frances Cook 1:19
you want it to be. Well, welcome to Making Sense. It's the podcast for people who want financial freedom without giving up their coffee. I'm Frances Cook, financial journalist and fellow financial freedom seeker who makes money simple for you. Today... It's buying a whole new income stream in the form of buying a business. This episode of Making Sense is supported by Odoo, the affordable way to get your business working smarter. Go to odoo.com, that's O-D-O-O dot com for more. And I can keep giving you the money info that makes a difference to your life. Welcome, Jess. So nice to have you in because we were having a little chat after one of my previous episodes that went so well. People had more questions.
Frances Cook 2:25
You jumped in. You had some answers. And I said, I want to podcast. Let's lay them all out. But before we get into that, I want to start with you because you were on One of the teams for one of our country's biggest banks, you're on the business and commercial side. So you've been there in the thick of it, really helping people. Then you left to start your own business and you're working with people again, really closely, really helping them out. So you have this huge track record of helping people through some of the most difficult financial decisions. What do you think when you're looking at people and coming in, helping them with their money and their financial lives? What is one of the biggest things that you see that moves the needle for people and their money?
Jess Shaw 3:05
Finance is a really amazing career in terms of the fact that you get to look under the hood, right? You get to look at what people earn, how they spend their money, what they own, what they owe, and you also get to understand the financial decisions that have got them to where they are. So it's a real privilege to have that background and that understanding. And I think probably the biggest thing I see for clients is that they need to understand the key fundamentals of finance, which is what is going in, what is going out, and and really understanding your numbers. I think there's a lot around putting your head in the stand and kind of not taking control of that. But if you're going to make a real difference, you need to know that and need to build that through you.
Jess Shaw 3:44
I think the other thing as well is getting good advice. So you don't have to know everything, but you have to be able to identify that and then find the right people to help you through that. Yeah, which is such a
Frances Cook 3:56
tricky
Jess Shaw 3:57
one, isn't
Frances Cook 3:57
it? A couple of the things that you mentioned there is in terms of being willing to face some difficult things. We often do say that money isn't all numbers. So much of it is how you approach it. And that being unafraid to look at things and actually know what's coming in and going out.

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