Founder Resources Articles - Arielle Executive

Living Trusts In Australia (Explained In Under 5 Minutes) 4.7 (80)

Jody McDonald — Tue, 04 Feb 2025 23:58:57 +0000

Reading Time: 6 minutes

They’re not just for wealthy folks. Even if you’ve never looked into trusts before, you’re probably part of a trust right now, because superannuation funds are a type of trust.

In fact, there are a multitude of trust types, which can be confusing. Let’s examine the core trust types used in Australia and why they can be useful.

How Does A Trust Work?

When you create a trust, you:

Appoint a trustee or trustees (which can include yourself);
To oversee the management of the trusts assets;
For the benefit of others (you can also be a beneficiary).

The key components of a trust include:

The trustee/s: The person or organisation that legally owns and manages the assets held by the trust — including making investment decisions, organising distributions of assets/income, and filing the trust’s tax returns.
The beneficiary or beneficiaries: The person or people who receive income from assets held by the trust, or who take ownership of the assets held by the trust at the end of the trust’s term (aka its vesting date).
The trust deed: A document that clarifies the rules of the trust, such as what can be distributed and to who. You may not need a trust deed where the rules of the trust have been set out in a person’s Will.
The appointer: A person with the power to appoint and remove the trustee, and appoint a replacement. It could be the trustee themselves, the primary trust beneficiary, or a trusted advisor/person not involved in the trust.

A trust also requires a settlor, who sets up the trust — typically this is an accountant or lawyer you’ve chosen to help you through the process.

People opt for trusts to run businesses, manage shared investment portfolios, share generational wealth among their relatives, or as part of their Will to provide inheritances.

10+ Essential Types Of Trusts Used In Australia.

There are two main categories of trusts used in Australia to set-up a business or distribute wealth. These are:

Discretionary trusts: Also known as family trusts, a discretionary trust is one where the person in control of the assets held (the trustee) can use their own discretion in determining who to share the income/assets with and how much each beneficiary gets.
Fixed or Unit trusts: Have more definitive rules about how income is shared based on either a fixed entitlement, or the number of units allocated to each beneficiary (similar to how shareholders returns are delivered in line with the number of shares held).

You can also create what’s known as a hybrid trust with elements of both a discretionary trust and a fixed trust.

For instance, your trust deed might state that all trustees get an equal share of the interest earned on cash held by a trust.

However, the actual cash will be distributed at the trustee’s discretion when the trust is terminated — which might be triggered by the death of a family member.

Living Trust Vs Will.

Trusts originated in ancient Roman times with the legal concept of fideicommissum allowing for the transfer of wealth and property after death.

Then the idea of protecting transfers of wealth held during one’s lifetime arose during the middle ages in England.

In modern times, these two types of trusts remain in use: they’re called testamentary trusts and living trusts.

A living trust can refer to any trust you establish while you’re still alive, but it’s often talked about in relation to estate planning.

For instance, you might use:

A living trust (also known as an Inter vivos trust) to manage all your rental properties and shares, ensuring your favourite grandchildren can receive the rental and dividend income as distributions while you’re alive — and then take possession of the assets when you pass on.
A testamentary trust within your will, which only becomes activated — and controlled by your chosen trustee — upon your death. The trustee could then take care of the assets and distributions on behalf of a minor (e.g., a young grandchild) until they reach legal age.

A trust is viewed as a more watertight option than a Will, and helps avoid probate (legal proceedings), and challenges, which can be costly and time-consuming.

Important!

Assets held within a trust aren’t considered part of your estate when you die. They remain under the control of the trustee/s, who can directly transfer assets to beneficiaries.

A living trust might also be revocable or irrevocable, which refers to whether you can make amendments to the terms or not.

You can see how it gets confusing: the terms family trust, living trust, Inter vivos trust, discretionary trust, and revocable trust could all apply to one single trust.

Special Purpose Trusts, Investments And Super Funds.

There are various other labels used for trusts created for specific purposes, such as:

Special Disability trusts: Where the trustee manages assets for the benefit of a person with a disability that prevents them from managing their own assets.
Charitable trusts: Where the beneficiary or beneficiaries are a charitable organisation or cause, often done to take advantage of tax concessions on donations.
Blind trusts: Where the person who creates the trust and its beneficiaries have no knowledge of how the assets are being managed by the trustee — to reduce conflicts of interest.

In addition:

Many investment vehicles have the underling structure of a trust. This includes managed funds, ETFs and Real estate investment trusts (REITs) that may be unlisted or available to trade via a stock exchange. These are called public unit trusts.
All Australian super funds, including self-managed super funds (SMSFs) are structured as trusts — they hold and manage assets for the benefit of members.

FAQs Answered About Living Trusts.

Most people are confused about this.

What Assets Are Held By Trusts?

Commonly it’s cash/bank accounts, real estate, and investment accounts/stocks. It might also include things like valuable artwork, jewellery and other collectibles. It can also include digital assets like cryptocurrency.

What Are The Main Benefits Of A Living Trust?

Tax minimisation is a major benefit. Additionally, you might choose a trust over other types of arrangements to take advantage of:

Greater privacy, as it’s a private agreement. The trustee/s can be separate from the person/people who really own the trust or benefit from its assets.
Less compliance compared to companies that have to comply with ASIC regulations, lodge annual reports and organise independent audits.
Protecting assets from creditors and lawsuits, or people that might target beneficiaries (e.g., scammers, gold-diggers), because the assets aren’t directly held.

You can start to see why rich people love them!

Can I Buy A House Under A Family Trust?

Yes, property can be purchased using a family trust provided that’s possible within the rules of the trust deed. It could be a family home you’ll live in or an investment property.

A number of Australian banks and lenders will provide home loans to family trusts, but it can mean that all the trustees and beneficiaries need to provide identification and paperwork to complete the loan.

Different banks will also have different eligibility criteria.

Who Uses Trusts And Why?

Australian Tax Office statistics show there are 1.49m trusts and super funds in Australia, compared to 1.18m companies.

Above: ATO data from the 2021-22 income year shows the number of trusts and super funds in Australia is greater than the number of companies.

ATO data also shows the main type of trust established in Australia is discretionary/family trusts, which account for more than 80% of all trusts (2021-22 income year).

Important!

Depending on the trust deed, a family trust may not need to distribute all of its income annually, but that’s typically the goal.

Director of HLB Mann Judd advisory firm, Helena Yuan, said splitting the trust’s income across a family group can result in overall tax savings:

“A family trust in Australia is often seen as a flow-through entity, meaning trust income is usually taxed in the hands of beneficiaries who have a present entitlement to it…”

Beneficiaries pay the relevant personal tax rate via their individual tax returns, rather than the corporate tax rate.

Company Vs Trust Structure Explained.

Legally speaking, a trust is a relationship.

It’s an agreement between the trustee/s and the beneficiaries — and trustees are personally liable for all debts.

Trusts are treated as entities for taxation purposes, with a separate tax file number and the requirement for the trustee to lodge an income tax return.

Whereas companies are legal entities.

Chartered accountant Clinton Gibson from Carbon Group explains one key benefit of that:

“…your legal identity is separate from your business and as a result it will be your company, not you personally, that is responsible for your business’ contracts and risks.”

Gibson said that while trusts can be advantageous for minimising tax — particularly in relation to capital gains tax concessions — they can be expensive to operate, inflexible and result in tax burdens if managed poorly.

For example, you’ll pay the highest marginal tax rate on any trust profits that are not distributed to beneficiaries.

Trusts	Companies
Governed by a trust deed, which defines the rules and timespan.	Controlled by members and/or shareholders.
Run by the trustee/s, which can be a person or a company (known as a corporate trustee).	Run by directors and managers (who can be voted out or fired).
Lifespan of 50-80 years usually.	Potentially lasts forever.
Trustee/s personally liable for all debts (limited liability if its a corporate trustee).	Company, not you personally, is liable for business debts (your personal assets are protected).

Do You Need A Family Trust?

Trusts are popular but not necessarily the most convenient or cost-effective option. It may also not be worth the hassle if you don’t have significant assets to include in the trust.

They can cost thousands to establish and you’ll likely need ongoing professional support to ensure you’re managing the trust’s investments well, and meeting all your obligations as a trustee.

If you’re considering creating a trust, its best to get professional financial advice before you act.

Jody

Ultimate Guide To Finding An A-Player Business Partner 4.6 (52)

Steven McConnell — Tue, 28 Nov 2023 06:39:00 +0000

Reading Time: 6 minutes

Finding a great business partner is your #1 test as a business owner. More important than your business idea, your choice of a co-founder will either create a massive productivity boost or cripple your business.

Yet, most first-time business owners are terrible at choosing excellent business partners.

I sure was. Not knowing what to look for, I relied on mainstream advice (e.g., “pick your best friend!”) and paid with:

Unnecessary conflict with my business partner.
Unclear lines of responsibility.
Poor communication.
Low productivity.

Fifteen years and four successful businesses later, I’ve learned a lot about choosing great business partners and hope that by sharing my lessons, I’ll help you avoid some of my mistakes.

3 Key Characteristics Of Great Business Partners.

I assess my potential business partners through a 3-part checklist that I use to vet everyone on my team. I borrowed this idea from Naval Ravikant. In his view, you can never compromise on:

Intelligence (capacity to wrestle with complex issues).
Drive (desire to achieve outsized goals, and willingness to put in the required hours).
Integrity (ability to take full responsibility, strong preference for telling the truth rather than being a master of “positioning”).

Why are these non-negotiable when vetting a potential partner?

If your business partner isn’t smart, they’re headed in the wrong direction.
If your business partner isn’t driven, they won’t have enough grit (I’m sure you know a lot of smart, lazy people who don’t have big goals).
If your business partner doesn’t have integrity, you’re working end up with a smart, hard-working cheat who will eventually defraud you.

Expert Tip.

How do you score across these three criteria? Running a small business isn’t for everyone, and if you don’t over-index on these traits, it’s probably not for you, either.

How To Avoid Personality Clashes With Your Business Partner.

The Internet is full of reminders that you must find a business partner who offsets your weakness. Steve Jobs and Steve Wozniak are usually upheld as perfect examples of this business partnership style:

Business partner 1: charismatic salesman and people wrangler.
Business partner 2: nerdy technical genius.

Silicon Valley angel investors and VCs agree with this philosophy of choosing business partners, almost never funding solo founders.

(Related: Best Coworking Spaces In Sydney and Melbourne).

They understand that perfect people don’t exist.

If you ever decide to launch a tech startup using other people’s money, you’ll need to find a business partner.

I agree with this approach, but recommend that you go a level deeper.

People’s skills are dictated by their personalities, so you’re much better off focusing on the latter.

In other words, focus on the drivers of the behaviour, rather than the behaviour itself.

The big 5 personality traits are:

Extraversion.
Agreeableness.
Openness.
Conscientiousness.
Neuroticism.

You score on a spectrum from high to low on each of these, and you can test yourself (and your potential business partners) using a free online personality test (it takes about 5 minutes).

Use the insights to decide which roles you and your business partner will perform in the business. Some thoughts to guide you:

Great salespeople are usually high on extraversion and openness. A highly neurotic, low extraversion business partner isn’t likely to succeed in a sales role.
People who are low in conscientiousness tend to suffer from “shiny object syndrome” and abandon projects. If you’re low in this trait, find business partners who are the opposite – and put them in charge of making trains run on time.
Agreeableness is a trait of pleasant, “nice” people, but early-stage entrepreneurship is often rough, fast-paced and full of difficult conversations.
Early-stage business owners need to be high on openness, as an aversion to novel situations will tank the business. If you’re high on openness, you could consider a more cautious business partner to keep you in check.
Business is full of uncertainty, and highly neurotic business partners might find the environment too emotionally exhausting.

Who Is The CEO In Your Business Partnership?

Most business partnerships fail because two partners agree on a 50/50 equity distribution, assuming this translates to a 50/50 split in power.

This usually happens because both business partners avoid the difficult conversation that starts with:

“I think I should be in charge – here are my reasons why”.

You must pick a CEO.

Set up the equity, profit and debt structures in any way you wish, but the organisational structure must always have one person at the helm.

“But there are exceptions to this, Steven. Just look at Atlassian.”

Yes, there are exceptions to everything. Even Golden Retrievers have been known to bite people. But generally speaking, if you want a guard dog, you should buy a Doberman.

Important!

Update: As of January 2025, Scott Farquhar will step down as Atlassian’s joint CEO.

How To Prevent Resentments In Your Business Partnership.

Successful companies are built by rare people willing to make considerable sacrifices. The word sacrifice is very subjective, and co-founders must agree on the definition upfront to avoid future resentment.

For example, business partner A’s definition may be:

Do whatever it takes to succeed, even if I live as a monk for the next 3 years, working from 7am to 7pm and some weekends, without going to the gym, without partying and without buying nice things.

Meanwhile, business partner B may come from a cushy corporate job and view sacrifice as:

Do everything I can within the boundaries of 9am to 6pm, (except Tuesdays and Thursdays – soccer practice starts at 6!), weekends are reserved for the family.

Resist the temptation to sweep huge disparities in alignment under the rug.

They will lay dormant while your business is doing well, but will show their ugly head at the worst possible time – when your working relationship hits hard times (which it inevitably will).

What amount of sacrifice is correct?

If you’ve ever met a successful entrepreneur or been lucky enough to be mentored by one, you understand that they operate on a different level.

As Grant Cardone says, ‘Be obsessed or be average.’ I recommend you always optimise for maximum commitment and expect this from yourself and your business partner.

How To Pitch The Idea Of A Business Partnership To Someone.

How do you seduce a potential business partner into leaving a steady paid job or interesting university degree to join you in the mercurial waters of entrepreneurship with razor-thin odds of survival?

Meaning.

Your company needs to stand for something greater than itself, and it’s your job to sell this vision to potential business partners.

Richard Branson saw that consumers were receiving low value from haughty, established businesses that had no incentives to do better.

He created an irreverent, fun brand that didn’t take itself too seriously and delivered mountains of value to the consumer.

The story of Virgin became that of an underdog hero going up against powerful villains – and having fun doing it.

What will be the story of your small business, that gives meaning to its employees (and – gasp – your business partner)? To create one, you’ll need to decide on 3 components:

The Villains (your established competitors).
The Victims (your potential customers).
The Hero (your business).

Important!

Creating a vision isn’t a hack for finding a better business partner or attracting better talent (though it helps). If you’re thinking this way, you’ve already lost the game. Vision is the DNA of your business – your reason for being.

Final Words About Finding The Right Business Partner.

Finding a good business partner who is willing to join you on the entrepreneurial journey is not easy.

Despite the advice you read on this page, you’re likely to make a mistake when setting up your first partnership.

If that happens, fire fast.

Entrenched people issues aren’t solvable, and you’re much better off cutting ties with a business partner who isn’t on the same page as you (even if it gets messy), resetting, and starting over again – rather than wasting years on arguing, getting in each other’s way and suffering.

This is particularly true if you’re young and have no family commitments.

Under the age of 30, you can take on a huge amount of risk – because you have plenty of time to recover, and few other responsibilities than yourself.

Don’t squander that time by sticking with a less-than-ideal business partner.

Steven

How To Pay Overseas Contractors From Australia 4.9 (49)

Tommy Crabtree — Mon, 31 Jul 2023 09:25:14 +0000

Reading Time: 7 minutes

Paying overseas contractors can quickly become expensive and complicated if you don’t assess your options and investigate the hows and whys in granular detail.

If you’re considering hiring an overseas employee or currently employing foreign workers, you’ll need to think about payment providers, legal and tax obligations, superannuation requirements, and the pros and cons of doing so.

Below, we’ll explain the best ways to pay overseas contractors from Australia, saving you a lot of hassle and money.

And if you still think PayPal is the best payment provider… think again.

(Related: 9 Best Password Managers In Australia).

What To Consider When Hiring Overseas Contractors.

If you’re new to hiring foreign independent contractors, it’s important to know the differences when hiring domestic employees.

An independent contractor typically:	A domestic employee typically:
Takes on commercial risks and responsibility for their work.	Faces no commercial or financial risk for their work.
Supplies their own equipment to carry out their duties.	Is provided equipment and resources by their employer.
Decides the hours they work and when.	Works well-defined hours.
In some cases, they can subcontract to a third party.	Cannot delegate duties to third parties.

Dealing With Taxes For Overseas Contractors And Employees.

You’ll be pleased to know that foreign contractors are responsible for managing their own tax obligations, so in most cases, you won’t have to withhold tax from their payments.

There are a few exceptions, but most won’t apply to the vast majority of Australian businesses.

You only need to withhold taxes from payments made to overseas contractors if they’re royalties, unfranked dividends, or interest payments.

When hiring employees (not independent contractors), a firm must adhere to pay-as-you-go (PAYG) withholding obligations.

Legal Considerations When Hiring Overseas Contractors.

First, it’s a good idea to set up a contract with the independent contractor (the clue’s kind of in the name).

This way, you can proceed confidently with a framework of what’s expected.

Important!

It’s not a legal requirement to have a contract in place, but not having one could cause you a host of problems if a dispute arises.

In the contract, consider be sure to include the following:

Payment terms.
Key responsibilities and working hours required.
The scope and deliverables of the project.
Confidentiality when handling sensitive company information.
Ownership of intellectual property created during the project.

Expert Tip.

You can download free and customisable contractor agreement templates on websites like Rocket Lawyer and Law Depot. Sometimes, they charge a few extra dollars if you need complex clauses added.

How To Declare A Worker As A Contractor.

You’ll need to use ATO as a guide to declare your overseas worker as a contractor.

The ATO will inform you on how to make report payments and file tax forms, and it will tell you if you have any specific responsibilities for withholding tax.

Important!

You’ll be declaring contractors’ fees and expenses in your tax forms at the end of the tax year, so it’s critical that you maintain accurate records.

Do I Pay Superannuation To International Workers?

Your superannuation obligations, or lack thereof, depend on whether a worker is an employee or contractor and whether they’re an Australian resident.

1. Independent Contractors.

Independent contractors are responsible for managing their own superannuation, which means you don’t have to pay super contributions.

There’s another saving!

2. Australian Employees Working Overseas.

If you’re paying an Australian employee who’s working overseas, you’ll need to pay super contributions.

In some instances, you can apply for a certificate of coverage that exempts you from the requirement to pay super in a foreign country due to bilateral social security agreements with countries like the USA.

The bilateral agreements stipulate that the Australian business is only required to pay contributions in the employee’s home country.

Be Wary Of International Transfer Fees.

The likelihood is that you’ve been stung by international money transfer fees at some point. Travelling abroad tends to catch many of us out.

Important!

Whilst you might have a PayPal account for your everyday e-commerce shopping, it’s about the worst money transfer provider you can use when paying overseas contractors from Australia.

Later in this article, I’ll compare the main payment providers, but first, let’s look at the types of fees you’ll incur.

Transaction fees: A fee charged for processing each transaction.
Exchange rate fees: Generally the highest fee, the exchange rate fee is applied when you convert currencies.
Receiving fees: Some payment providers like PayPal charge merchant fees. Talk about greed!
Withdrawal fees: A fee that is charged when an account holder withdraws to their main bank account.
Other account fees: Some payment providers charge monthly subscriptions, account inactivity fees, and account setup fees.

Time Tracking Software Can Save You Time.

Overseas contractors who work by the hour often need to record their time using time-tracking applications like TimeDoctor and Clockify.

Some applications take screenshots and provide an overview of online activity, giving the employer full visibility over their overseas employees.

Pricing tends to be around $5-10 per month per user for TimeDoctor.

How To Send Money Overseas.

So you’ve reached the point where it’s time to pay your overseas independent contractor, and now it’s time to consider the best way to transfer the funds.

Maybe you think using your existing online bank account is a good option, but you’ll likely be hit with high fees for international money transfers. Instead, you need to look at specialist providers.

Which International Payment Providers Have The Lowest Fees?

Not all payment providers make their fees transparent, probably because they know savvy customers can easily compare their products to other competitors.

I even got into a heated discussion with an advisor at Volopay when they were reluctant to share their currency conversion fees.

They’re also very sketchy with their monthly subscription costs, and you have to schedule a meeting with their sales team to get a quote. Who’s even got time for that?

Whilst I’m willing to concede this could be an isolated instance – after all, I had a response in minutes – it’s worth looking at the fine print with a magnifying glass to ensure you won’t get stung by any hidden fees with these payment providers.

There is a distinct lack of transparency in the industry, so I’ve shed some light on the matter with a quick snapshot.

Provider	Monthly Fee	Int’l Transaction Fee	Conversion Fee (> mid-market rate)	Fee To Recipient	Currencies Available
PayPal	N/A	5%	4%	3.6%+$0.30	24
Payonner	N/A	Free to a Payonner account or 1%	0.5%	Free	7
Volopay	From $25/month	Swift Shared: $20; Swift Our: $40	0.3%	Swift Shared: $20	54+
Airwallex	N/A	$10-30	0.5%	Free	40+
Wise	N/A	From 0.43%	0.4%	Free	40+
Revolut	Free – $24.99	Free to a Revolut account or 1%	0.4%	Free	40+
Skrill	N/A	Up to 1%	Up to 4.99%	Free	40+

Important!

The mid-market rate (sometimes referred to as the interbank or middle rate) is the midpoint between the buy and sell prices of any two currencies at any time. Some currency conversion rates deliberately exclude this to seem as though they’re cheaper!

Why PayPal Is The Worst For Paying Contractors.

Paypal is amongst the easiest, fastest, and most popular ways to pay for goods and services online, but when it comes to paying foreign contractors, it’s eyewateringly expensive.

When you factor in the transaction, currency conversion, and receiver fees, you’re talking over 12% in fees.

That’s a huge chunk of your profit margin gone, just for paying someone to do their job.

While PayPal is widely adopted (with 435 million customers worldwide), and there’s also a good chance that the person you’re paying already has it, it’s a high price for convenience.

Why You Should Use International Money Transfer Services.

Though using your bank account to send payments might be more convenient, it will likely be the most expensive option. Australian business owners might want to consider using a money transfer service.

Companies such as World First, InstaReM, TorFX, OFX, CurrencyFair, and XE allow users to transfer payments directly to the recipient’s bank account through their call centres and online services.
Exchange providers like MoneyGram and Western Union allow the recipient to collect the money in person.

What About Multi-Currency Accounts?

You could also choose a multi-currency account that allows you to hold and pay out multiple types of currencies, so they can receive and send payments easily from international sources.

You wouldn’t have to convert the funds to Australian dollars immediately when receiving payments from other entities.
Instead, you could wait until the foreign exchange rates are favourable, then use the money to pay overseas contractors.

In doing so, you’re effectively cutting down on transfer and exchange fees.

Frequently Asked Questions About Paying An Overseas Contractor Overseas.

Business owners with overseas contractors usually want to know the following….

How Do I Pay An Overseas Contractor?

International transfers made through your bank can often catch you with hidden fees (transaction fees and currency conversion fees) that you’ll probably be unaware of until payment is processed.

You should look at holding an international wallet or merchant that provides lower fees – such as Payoneer, Wise, and Revolut.

What Are Some Exchange Rate Considerations When Paying An Overseas Contractor?

In addition to transaction fees and monthly subscription costs of using an international payment provider, you need to factor in exchange rate fluctuations.

For instance, if AUD 1,000 is worth USD 677 in June (an exchange rate of 0.677), and if the exchange rate drops to 0.0588 in July, your original AUD 1,000 will now only be worth USD 588 – a difference of USD 89.

How Can I Effectively Manage An Overseas Contractor?

If you’re worried about productivity levels due to the lack of visibility in managing an international operation, consider using an online collaboration tool like Trello, Monday.com, or ClickUp.

You’ll be able to manage project pipelines, automate workflows, and you can even integrate time-tracking applications that take screenshots periodically.

Are Overseas Contractors Tax-exempt?

If your Australian company hires independent contractors from abroad, you don’t generally need to withhold taxes from their payments.

It’s the responsibility of the contractor to fulfil their tax obligations in their country of residence.

What Are The Benefits Of Hiring Overseas Contractors?

When hiring overseas contractors, if managed correctly, you can unlock the following competitive advantages:

Cost-efficiency: international contractors often charge less than local contractors; you can hire people across the world on platforms like UpWork where competition is higher and labour rates are much lower.
Flexible working: hiring a full-time employee can be restrictive if your workweek varies from week to week. One month you may have too much work, the next too little; overseas freelancers are more flexible in their working arrangements.
Different perspectives: true diversity is the diversity of perspectives; if your team comprises people of similar backgrounds and beliefs, how can you ever hope to challenge and change the status quo? Avoid echo chambers.
Reduced administration: a lot of red tape and admin headache comes with hiring permanent domestic staff; you’ll have much less to worry about when it comes to payroll taxes, pensions, and other complex legal requirements.
International insight: if you’re looking to extend your operation to a new international territory, you can leverage the skills of a native and lean on their local knowledge of customer preferences and cultural nuances.

Final Word On Paying Overseas Contractors From Australia.

When paying overseas contractors from Australia, there are fewer legal stipulations that companies must adhere to when compared to hiring domestic employees, but Australian businesses should still protect their business by implementing a legally binding contract agreement.

Most Australian companies pay international contractors because of the cost-savings, but if you’re not careful, transaction fees can quickly eat away at your profit margin, so be choosy when deciding on your payment method.

Avoid using PayPal or your existing banking facilities just because they’re convenient.

Before engaging overseas contractors, ensure compliance with tax payments and classifications regarding whether someone is a contractor or an actual employee.

Tommy

How To Accept Credit Card Payments In Your Small Business 4.8 (46)

Steven McConnell — Fri, 31 Mar 2023 09:17:06 +0000

Reading Time: 7 minutes

Are you dreaming of running your own business? Whether online or in-store, you need to know how to accept credit card payments to maximise sales.

Running your own small business offers a range of benefits:

You choose your hours and where to work from.
You hire a team that suits your business values.
Growth and expansion align with your vision.
It is a fulfilling creative pursuit.
It’s a great way to make new connections and foster a community.

Accepting credit card payments can be challenging (especially in the start-up phase). We’re here to step you through it.

By the end of this article, you will feel clear on how to:

Decide which payment options suit your business best.
Set up your chosen payment option.
Transition your business to a cashless model.
Prevent fraud or risk with online payments.

Is It Essential To Accept Credit Card Payments?

As a small business in today’s society, it’s almost essential to accept credit card payments.

No, it’s not legally required, but you put your business at a significant disadvantage if you do not offer multiple payment options. These options include:

Credit card payment directly on your website.
Third-party payment options like Stripe or Square.
PayPal Checkout for online payments or PayPal Here for in-store.
Zippay, Afterpay, or Klarna.
BPAY.
Direct bank transfer.

Expert Tip.

Most people do not carry cash, with many experts predicting we will be a cashless nation by 2025. Even businesses like The Big Issue (which sells magazines on busy city streets) offer card payments to improve their accessibility.

What Are The Benefits Of Accepting Credit Card Payments?

Credit cards are a convenient and quick way to manage your finances online. They’re also the most used payment method worldwide, according to Shopify.

Streamline Your Sales.

Not only is it quicker for customers to pay with credit cards (important in busy shop environments). It’s much easier for you to manage your physical store through an online payment system.

Not convinced? Consider that without cash:

Customers won’t be fumbling for change.
You won’t need to balance a till.
You eliminate the need for daily bank trips for small change.
Employees can use the extra time to assist customers.
You maximise your sales with a diverse buyer demographic.

Important!

Whilst some customers may find the transition difficult, you can ensure adequate signage informs your customers that your business will be going cashless from a specific date! Consider text or email reminders, too, or read here for more tips.

Eliminate Transaction Errors.

One difficulty with cash payments is that discrepancies can quickly occur. The good news is this is almost impossible with credit card payments.

Credit cards will only process payments with adequate funds. Avoid awkward confrontations where customers hand you less cash than you owe. For tips on spotting a fraudulent credit card, read here.

(Related: 9 Best Password Managers In Australia).

Improve Your Small Business Image.

A business that supports multiple payment types attracts a broader range of customers. You are essentially saying, ‘We’re grateful for your business and will help you pay in a way that works best for you.’

You should keep in mind the following:

Operating on a cash-only model reduces your customer demographic.
You can develop a reputation for being a business that is difficult to purchase from when you do not offer multiple payment types.

Consider asking your customers (in the transition phase) which payment types they would best prefer. For inspiration from other businesses transitioning to cashless models, read here.

Global Trends Emphasise The Importance Of Going Digital.

The financial market has been rapidly changing over the past five years thanks to the introduction of Cryptocurrency and other online financial trading options.

Did You Know?

The global credit card payment market reached US$477 billion in 2021. The market is projected to reach a value of US$762 billion by 2027, according to a global report by the IMARC Group.

The above report highlighted the most popular worldwide providers:

Visa.
Mastercard.
Others (American Express, Independents, etc.).

In terms of what people are using their credit cards to spend on, trends show:

Food and Groceries.
Health and Pharmacy.
Restaurants and Bars.
Consumer Electronics.
Media and Entertainment.
Travel and Tourism.

If you are a small business in any of the above categories, consider updating your payment options sooner rather than later to maximise sales!

(Related: Ultimate Guide To Capex).

Is Your Business Eligible To Accept Credit Card Payments?

Before you go through the process of setting up credit card options, let’s first check your business’ eligibility.

Eligible businesses encompass almost every industry and include:

Brick-and-mortar establishments.
Online businesses.
Small companies.
Sole proprietor businesses.
Independent contractors (how to pay international contractors).
Mobile businesses.

Important!

If you’re unsure whether or not credit card payments will change your business’s financial structure, it’s best to speak to an accountant or financial planner about your specific circumstances. Don’t forget to choose the best accounting software, either.

What Steps Do You Need To Follow To Accept Credit Card Payments?

Below are our recommended steps for installing a credit card payment system for your small business. Of course, you can adapt this to your unique business.

1. Determine How You Will Accept Credit Card Payments.

Before you instal a credit card payment system, you must determine what types of credit card payments you will accept and how this best supports your type of customer.

Need help determining who your buyer is? Be sure to analyse:

Recent customer data.
Their purchase history.
Most popular products sold.
The average price of sale.
What times do people purchase, and why.

By measuring the above, you will be able to determine your customer’s buying habits which will then inform your choice of payment options.

2. Select A Credit Card Payment Processing System.

Your next step is to select a credit card payment processing system.

The system and provider you choose will impact several aspects of your business and should offer the capability to be set up both online and in-store.

When choosing payment options, be sure to check the following:

What types of cards do you accept (some systems do not accept all credit cards).
Your repayment fees for the type of transactions you process.

Expert Tip.

Finding a provider that seamlessly integrates payments on your website is best. This prevents payment processors from taking customers off-site to another window for payments. We love Stripe, Square, and Paypal.

3. Choose Which Type Of Payment Processing Systems Work Best For Your Business.

There are two types of payment processing systems you can purchase.

These are:

1. Merchant Account: How Does This Work?

You will need to open a merchant account with your bank to accept payments via credit cards.
You will need to validate your business details with the bank of your choice.
The merchant account looks like another account in your banking account and is easily accessible through online banking.

2. Payment Service Provider: How Does This Work?

Payment service providers are companies that allow you to accept credit cards without the creation of a merchant bank account.
They are ideal for small businesses because they have low credit card processing fees.
You should be mindful that these limit how much money you can accept at once (for example, PayPal has a maximum transfer of $10,000).

Expert Tip.

If your business is multiplying, you can always switch from a merchant account to a payment service provider. Be sure to check with your bank on the best way to do this.

4. Set Up Your Businesses’ Credit Card Payment Hardware And Software.

Once you determine the type of payment processing system you want to use, you are ready to set it up!

Our recommended steps are:

Purchase the hardware and software.
Check how long you have the right to use this (for some options, you must renew yearly).
Instal your chosen option. At your physical store, you will need to purchase a card reader that is EMV chip-enabled. Online, you will need to integrate the system into your chosen web hosting platform.
Refer to the instructions provided by your specific payment option.
Test that the equipment is installed correctly with a small payment.

There are several card readers on the market. We recommend one that accepts tap payments due to the volume of people that opt to pay with the banking features on phones.

5. Consider A Mobile Card Reader To Accept Credit Cards On Your Phone.

Another great option, particularly in the interim of your transition to a cashless business, is a mobile card reader. These will allow you to turn your mobile phone into a credit card machine.

We recommend:

Choosing a device that plugs into your mobile phone, provided by Paypal or Square.
Opting for a contactless chip reader to accept tap-and-go payments or a swipe/insert option for a physical card.

The disadvantage of mobile card readers is that you will need to be present to facilitate the payment. However, these options will work great for market stalls, freelance trade and beauty services, or small shop fronts.

How Does Accepting Credit Card Payments Online Differ From Those Accepted At Physical Stores?

Fortunately, it is much easier to set yourself up with an online payment system than to establish a payment system at a brick-and-mortar establishment.

To accept credit card payments online, you will need either a payment gateway or a digital storefront:

A payment gateway: This should be provided with the merchant account you set up with your bank or your payment service provider plan.
A digital storefront: The easiest way to set up one is to create one within your eCommerce platform provider, Shopify, WordPress, or Squarespace.

Whilst brick-and-mortar establishments can be very successful, there are downsides to accepting credit card payments.

These include:

Monthly service fees to the processing company.
Transaction fees on every payment you accept from customers. For Mastercard, these range from 1.55% to 2.6%, and for Visa, 1.43% to 2.4%.
Fraud, which can occur in over-the-phone payments (we do not recommend utilising this as a payment option).

(Related: How To Issue A Professional Invoice).

Are There Risks To Accepting Credit Card Payments?

Like any online activity, there are risks associated with credit card providers and services you choose to engage with.

However, in the scheme of challenges associated with your business, these are minimal and can be mitigated with regular reporting and safety checks.

The issues we see often are:

Processing fees and chargebacks make it more challenging for small businesses to maintain profit.
Fraud or cyber hacking can be challenging to predict. Ensure you engage with an IT expert to protect all devices associated with your business.

Accepting Credit And Debit Cards.

For your business to grow and thrive, it is essential to know how to accept credit card payments. Beyond that, you should consider offering multiple options and taking business in a way that best supports your customers.

With guides like this and some research into your business’s spending habits, it can be very achievable to set up your chosen credit card payment systems.

We recommend you shop for different options to find your best match. If in doubt, don’t be afraid to onboard a technical or IT solutions expert to assist you! We’re sure your sales will thank you in the long run.

Steven

How To Start A Small Business In Australia (2026 Guide) 4.8 (38)

Steven McConnell — Mon, 13 Feb 2023 07:58:00 +0000

Reading Time: 8 minutes

If you’ve been considering starting a small business in Australia, I’m here to help with a step-by-step blueprint. As someone who has started 5 businesses in the last 15 years (and currently running 3 of them), I am very familiar with the process.

Starting a small business is simultaneously exciting, terrifying, rewarding and exhausting. Don’t listen to people who wax on about delusions of:

Work-life balance.
Financial freedom.

You won’t have either of those in your first few years.

The good news is that the small business journey is more predictable than most people think.

By building the right processes, hiring the right people and making (mostly) good decisions, you can experience significant rewards. I’m here to show you how.

1. Choose The Problem Your Business Will Solve.

Can you summarise your business idea in one to two sentences? What sets your small business apart? If you feel the temptation to use superlatives, you need to think harder.

Examples of terrible small business ideas:

“Best grilled chicken in Sydney.”

“Cheapest running shoe store in Australia.”

These ideas are impossible to defend. Anyone can claim to be the best, and you’ll never out-compete Amazon or Rebel Sport on price – because you won’t match their economies of scale.

Here are better alternatives:

“Grilled chicken for bodybuilders on Keto diets (50 grams of protein and zero carbs in every serving).”

“Running shoes for marathon runners who pronate (complimentary entry to Sydney marathon with every shoe sold).

Important!

You won’t believe me when I say this, but your current business idea probably sucks. It will improve over time, as you collect more data points from the marketplace, your competitors and your mentors.

Key takeaways:

Decide who to tailor your product or service to them.
Conduct market research to determine if there is a demand for your product or service.
Analyse industry trends, competition, and potential customers to identify market problems or opportunities.

2. Decide Whether You Have The Guts.

Most people fail in business because they block their own success. For example, they’re unwilling to:

Fire their startup cofounder.
Performance manage an underperforming cousin in the family business.
Raise the price of the product, losing some customers in the process.
Drive people to work harder because you have an aggressive competitor in the space.
Start doing uncomfortable things (e.g., making cold calls).
Give away control (e.g., seek funding from an angel investor to fuel growth).

People who win in business are extreme, willing to make great sacrifices and hard decisions.

The quickest way to fail is to buy into the nirvana of work-life balance and expect not to face difficulty.

The #1 Mistake People Make When Starting A Business.

Most businesses fail because founders are unprepared for the sacrifices the business will demand from them.

3. Build A Basic Business Plan.

Resist the temptation to write an exhaustive, detailed business plan for your small business. Like your business idea, your business plan will change and evolve rapidly.

Anything you plan will be obsolete within a few weeks.

Expert Tip.

If you catch yourself spending days on your business plan (and creating pretty graphs), you’re procrastinating. You’re avoiding the hard and scary part of starting a business, which is driving revenue.

When starting a small business, all you need is a basic business plan that outlines:

Your business’ reason for existence (its vision and mission).
Your business’ values (what behaviours are acceptable?)
Financial goals your business plans to achieve (1, 3, 5 and 10 years).
Organisational chart that defines areas of accountability and reporting lines.

The need for a simple business plan is captured well in this tweet by the CEO of Strategyzer, Alex Osterwalder:

The only exception to this rule is when you fund your small business using private equity or a bank loan. Your financiers will ask for a detailed business plan to help them understand risks and opportunities.

A good business plan in that scenario must also include the following:

Your business model and structure.
Details of the service or product you will provide.
A run-through of the manufacturing and logistical details.
A marketing plan/strategy you will utilise in the early phases.

Bonus points for including the following:

An outline of the revenue streams you intend to use and how they will work.
Projected returns to show your investors how they will benefit from lending to you.
Financial outlines for the next three to five years, including income statements, balance sheets, and cash flow statements.
An outline of your business’s daily operations, including details about your supply chain, production process, and distribution strategy.

You can explore business plan examples here.

Expert Tip.

Keep all information clear, concise and quantified. You want to hook your investors in with a clear point of difference and ROI calculations. Show them how they can 5X their investment in 5 years.

4. Choose Your Business Structure.

Whether you start your own business or work for a start-up, deciding the proper structure for your small business is essential.

The options are as follows:

1. Sole Trader (sole proprietorship).

A sole trader is a business structure in which a single individual owns and operates the business.

Small business owners are responsible for all aspects of the company, including making decisions, managing operations, and assuming any financial risks.

2. Partnership.

This is an organisation of two or more individuals running a business (how to choose the right business partner?)

Partnerships are suitable if those behind the venture can provide access to a broader range of resources (such as capital, expertise, and networks).

Important!

Partnerships carry risks of limited lifespan or termination, as they rely on a mutually beneficial and positive relationship between partners.

3. Company (Pty Ltd).

This a legal entity in which people own shares in a business.

A company is an excellent option for those wanting to take on more equity or hold multiple ventures in Australia.

The downside – it has limited liability protection compared to other business structures. Those who own a stake are also liable for debts.

5. Check Your Legal Obligations.

I highly recommend engaging a professional to assess your legal obligations before starting a small business. The business structure you choose will determine your operation’s rules and regulations.

Establishing a small business in Australia has different requirements and demands. You must:

Acquire licenses and permits such as the Australian Business Number (ABN) to operate legally. Apply here.
Undergo registration under various authorities – for example, ensure you comply with the regulations of your particular state or territory.
Check how you are applicable for tax. As an entrepreneur, you are responsible for paying your taxes.

Important!

Small businesses must check if general insurance policies are required. This is a must-have to protect yourself, your employees, and the public.

6. Build Your Core Team.

A successful small business requires experienced team members with a growth mindset. You will add immense value by hiring the right employees from the start.

Neil Patel highlights that the third most common reason that most small business owners fail (a huge 23% of the time) is that they do not have the right team.

Here is my #1 rule for acquiring the best talent. Look for:

Smart people.
Who want to work hard.
And are honest.

Here’s why ALL of them are non-negotiable (nod to Naval Ravikant):

If the person is hardworking but not smart, they’ll rapidly move in the wrong direction.

If a person is smart but isn’t hard-working, they will be yet another failure to launch who had “so much potential”. All of us have friends like these.

If a person is smart and hardworking but not honest … well, they’re a crook who will look for ways to scam you.

Once you find the right people:

Ensure they’re clear on their roles and responsibilities.
Outline the goals and targets they need to achieve.
Invest in the right tools to support efficient work processes. These could include customer relationship management (CRM) software, accounting software and collaboration tools.

7. Leverage Freelancers.

You will save time by having on-demand help from people who possess skills that you don’t.

Instead of spending hours or days learning how to do something, or wasting time on hiring contractors each time, start Upwork contracts with the following types of freelancers, and dip into their expertise as needed.

Developer.

Find a generalist full-stack developer (Eastern Europeans offer the best balance of skill and cost – you can hire one for $20-30/hr) who will help you with website setup, hosting, basic WordPress modifications and troubleshooting.

Virtual Assistant.

This is one of the most critical early hires you will make. Philippine VAs are remarkably rigorous and will pick up administrative, repetitive, research-centric aspects of your workload for about $10/hr.

(Related: Best POS Systems In Australia).

The Philippines is about 3 hours behind the east coast of Australia, which works well from a workload perspective as there’s a lot of overlap in business hours.

Expert Tip.

You can finish your workday by delegating tasks to your Philipinnes-based VA, and finding them complete the next morning.

8. Choose A Business Name.

Choosing a business name can be difficult. It is a crucial part of your brand identity and can make a great first impression on new customers, so it is important to get it right.

When choosing a business name, choose one memorably that stands out from the competition.

Don’t choose a name that’s similar to other competing businesses.

It’s a good idea to avoid using complex words or phrases that are difficult to spell or pronounce. Also, choose a business name that reflects the services or products you offer. Vague and abstract names are easily forgotten.

9. Figure Out Your Finances.

Your small business will thrive or perish on finances.

You must calculate the fees associated with starting and running your business, including upfront and ongoing expenses. The total amount should be above your break-even point.

Base your budget and start-up costs on costings from the industry.
Clarify a figure you need to finance your business.
Consider small business loans, friends and family investments, or personal savings.

(Related: Ultimate Guide To Capex).

Once your business is up and running, keeping track of your financial performance is essential. This includes:

Issuing invoices correctly.
Tracking your income and expenses.
Analysing your profits and losses.
Making necessary adjustments to your budget or business strategy.

Tools such as Xero, Expensify and PlanGuru will help automate many of your processes.

10. Develop A Marketing Plan.

A marketing plan will increase your visibility, establish a presence in the market, and capture market share.

Developing a strategic plan that targets your short- and long-term goals is imperative.

Below are different angles you should consider:

Search Engine Optimisation (SEO):

Identify the keywords customers will use to find products or services like yours to rank well in search engines.
Employ the targeted keywords throughout your website content (page titles, headings, and meta descriptions).

Social Media Marketing (SMM):

Ensure your content is targeted to each specific audience on various social media platforms.
Schedule your content to roll out daily with planners like Later. The algorithm favours consistency over perfection.
Adapt and create future content to suit the analytics on your best-performing posts.

Advertising:

Traditional advertising and the press are effective tools for reaching a large audience quickly.
Consider TV, radio, newspapers, and magazines for campaign launches or specific offers.
Utilise online strategies such as paid ads to target users searching for similar products.

Bottom Line On Starting A New Business In Australia.

The steps to starting a small business in Australia may be overwhelming, but I hope that this guide will help you feel in control

Once you’ve prepared a detailed business plan that addresses the above elements of structure, finances, operations, and marketing – you should feel empowered and excited.

At every stage, continue to ask yourself one question, ‘How can my business make a greater impact?’ Then – get to work.

Steven

13 Best Home Business Ideas For 2026 4.7 (61)

Steven McConnell — Wed, 21 Dec 2022 22:15:00 +0000

Reading Time: 8 minutes

To start the year with a bang – we’re here with our best home business ideas to reinspire you for a great working year. Have you recently left a job or found yourself unable to work outside the home?

Ever wanted to be your own boss and run your own business?

Perhaps you’ve lost your job or decided that amidst the “great resignation”, what you’re doing isn’t for you anymore, or maybe you’re not sure what small business ideas work best.

There is an abundance of jobs you can do from the comfort of your home – whether you wish to work with individuals or corporations, you have options.

(Related: How To Start An e-Commerce Business).

1. Virtual Assistant.

If you’re looking for variety and fast-paced days that are never the same – a VA role is a great business idea!

As a virtual assistant, your days will involve the following:

Responding to emails.
Replying to calls/texts.
Scheduling appointments.
Diary management.
Managing a contact list.
Booking travel.
Perform market research.
Create presentations.

You can choose the corporations or business clients – check out Coursera’s step-by-step guide if this sounds like you!

Expert Tip.

Increase your income by charging a monthly retainer rather than an hourly rate.

2. Accountant Or Bookkeeper.

If you’re financially inclined, consider becoming an accountant or bookkeeper!

Financial small businesses require adaptation and understanding of the current market, but if you’re passionate, this is a great option to do from the comfort of your home.

So what’s the difference?

Bookkeeping is a direct record of all purchases and sales your business conducts.
Accounting is a subjective look at what that data means for your business. The best accountants partner with small businesses to advise on critical decisions like budgets, forecasts, tax strategy and accounting software decisions.

Note: An accountant can be considered a bookkeeper, but a bookkeeper can’t be an accountant without proper certification.

Our tips:

Take virtual or in-person clients or a combination of both to maximise your time.
Ensure you’re up to date with the latest software.
If you’re undertaking bookkeeping work, consider an accounting certification.

Did You Know?

A bookkeeper in Australia can earn anywhere between $35-$70p/h, whilst an accountant can earn up to $200 per hour!

3. Social Media Manager.

As social media platforms continue to explode, the need for social media managers is in hot demand. These roles are a necessity at almost every online company!

Your day-to-day would involve:

Managing platform-specific activity.
Scheduling posts across Instagram, Tik Tok, Facebook.
Market research against competitor brands.
Reporting on performance.
Utilising your digital marketing skills.
Content creation.

Each brand/business will have a social media best practice you will follow.

Some will require you to manage from start to end of each campaign, whilst others will require you to overlook only some touchpoints, with each task outsourced.

As a social media manager, you will stay on the pulse of digital and social media spaces – because things can change quickly.

You’ll be:

Obsessed with influencers and content creators.
Across brands in the same space, watching what they’re releasing.
Confident in social commentary.
Open to experimenting to see what the algorithm favours.

Most importantly – you’ll love a role as a social media manager if you’re a people person.

Most of your day will involve building long-lasting and authentic relationships between the client and their audience.

4. Content Creator.

One of the most elusive WFH roles – a content creator, has the proper flexibility to work from anywhere.

According to a 2019 survey, 86% of young Americans want to be influencers. Whilst a competitive industry, you can ensure you stand out from the crowd by:

Creating content that highlights your unique voice.
Allowing your personality to shine through.
Leveraging your passions/interests.
Relationship building with your audience (this will ensure your engagement remains high – which means higher rates once you build your audience).
Collaborating with brands or creators who hold a similar audience/following.

Expert Tip.

Consistency is key. Keep posting at the same time each day – the algorithm favours frequency over perfect quality.

Simply choose the platform you most enjoy and follow creators with similar content you want to create. Instagram, Tik Tok and Youtube all have their benefits.

To monetise your content:

Join affiliate marketing programs that offer commissions for promoting your favourite products.
Create paid UGC for a diverse range of brands.
Partner up with a brand to be an ambassador.
Offer paid partnerships on your content for brands to boost.

Like anything, content creation is genuinely about the long game! The more effort you pour into retaining a loyal and engaged audience, the more you can monetise any platform you choose.

(Related: 7 Best E-Commerce Platforms).

5. Blog Writer.

You can easily monetise your blog if you love writing and offer clear, valuable content. Blogging and content creation often go hand in hand, with many opting to leverage both.

Many blog sites, such as WordPress and Wix, can be created free, with premium options to remove ads and purchase your domain.

As a blogger, you will:

Choose your hours and where you work from.
Set up a website and pre-write articles to publish regularly.
Promote your blog on social media to boost views.
Utilise the same monetisation strategies as creators – affiliate links and brand deals.
Simultaneously write blog posts for clients to post on their websites (A great option if you don’t yet have an audience).

Important!

Consider placing display ads on your website to increase income from impressions and clicks.

6. Photography Business Or Video Editor.

A profitable business option is to photo or video edit from home! You can choose which clients you work with, polishing their work for an hourly rate or a set fee.

To do this, you’ll need the following:

A passion for photography and videography.
An understanding of the basics – lighting, angles, saturation, colour tone, framing, resolution etc.
Competency in popular editing programs such as Adobe Lightroom, Audition and Photoshop.

Many content creators have an editor to help them create more content!

Once you maximise your editing process, you can produce a batch of content for publishing whilst the creator delivers the next batch of content to edit.

7. Website Designer.

If you’re savvy with technology or have worked on websites before, start designing websites for clients. Recent reports prove that talented website designers are in high demand.

(Related: Best Website Builders In Australia).

You can work with business owners or individuals to bring their business ideas to life.

How does this work?

Charge a flat rate per website based on the hours it takes to produce.
Offer website maintenance to retain your clients after you finish the initial design.

8. Course Creator.

Consider leveraging your skills and experience to create and sell a course – this could be self-development, fitness, cooking, music or more.

First:

Conduct market research to ensure there’s a need for the course.

Then:

Create modules and sub-modules.
Research the requirements and information for each.
Record the content to be clear, engaging, and full of your personality.
Ensure editing is precise.
Launch the course.
Promote a sale to your ideal students and loyal audiences.

9. Coach Or Consultant.

Passing on your knowledge through a course is great – but you can extend this by working with one-on-one clients.

Consider becoming a coach or consultant in an industry you know best.

This could be sport, health, business or life coaching. Executive coaches can make up to $1,000 per hour!

The benefits of coaching include the following:

Work under your control – choose your clients and how often you meet with them.
Charge based on the value provided rather than hours worked.
Empower individuals to step up to their true potential.

This type of business is best for people with relevant experience who can leverage that to assist their clients. Read more here.

10. Children’s Tutor.

If you’re willing to work during after-school hours, consider tutoring! There are many children in need of guidance for their schoolwork – most of which you can reach out to in your neighbourhood.

The benefits of tutoring:

You can meet with clients in-person or online.
You can choose to tutor across one or multiple subjects.
Work with the child’s parents to include their current school work.
You could even run online classes.
This type of business has low startup costs.

Expert Tip.

Consider tutoring alongside another business or job. A few hours a week will ensure you have recurring revenue while working from home!

11. Etsy Store Owner.

For the craft-lovers, an Etsy store is a no-brainer! You can sell almost anything as long as it’s handmade. Etsy notes their best-sel are: clothing, jewellery, stickers, personalised items and craft supplies.

Before setting up Etsy:

Choose your products, leveraging your skills and passion.
Research the market to see what people are buying in your niche.
Optimise your product listings to show up in Etsy searches.
Create engaging copy to best sell your product; what makes it unique?
Take high-quality photographs that show off your product.
Offer sales to attract new audiences.
Organise shipping – you can ship the items to buyers around the country or the world.

12. Reseller.

You can start a reselling business if you enjoy shopping at thrift stores. According to The Conversation, many people prefer to shop second-hand and look for unique vintage fits to level up their wardrobe.

You can utilise platforms like Depop to resell thrift items for a higher price.

To excel as a reseller:

Look for brands that are hot in the market.
Buy on-trend items such as Vintage Tees and leather jackets.

All you need to do is pack and ship the item once it sells. Unlike many other businesses, this one can have a significant startup cost – but you can make a substantial profit once you sell multiple items.

Expert Tip.

Leverage your online brand by creating a website and Instagram for your store, plus sell items at local markets on the weekend.

13. Pet Sitter Or Dog Grooming Business.

For all animal lovers, it’s time to start a pet-sitting or dog-grooming business from home.

The benefits:

People bring their pets to you so you can continue working where you live.
You can travel to your client’s homes to check in on their pets and see multiple in one day.
Added exercise if you walk pets as part of the service!

Pet sitters can charge a daily rate or a standard fee based on the work involved in caring for someone’s pet.

You can charge up to $90 per night, according to PetCloud, plus additional rates for high-care animals who need medication or extra play and TLC.

You can take a course to learn the necessary skills for pet grooming and offer this as an add-on for your pet-sitting clients.

Important!

Offer weekend/holiday rates to those in your neighbourhood by printing flyers. Attract new clients by reaching out to community and neighbourhood Facebook groups.

What Does It Take To Run A Profitable Business?

There are a lot of moving components that need to work together to ensure profitability of your home business.

Among these include ensuring you’re catering to your target market, finding new employees, building relationships with your stakeholders (read my ultimate checklist for starting a business).

1. Don’t ignore your business finances.

You still need to keep tabs on your company’s financials, even if it’s not your area of expertise. You are responsible for keeping up with the company’s financial status at all times.

2. Keep an eye on your key performance indicators (KPIs).

Knowing which metrics to track and how to interpret fluctuations in outcomes is crucial for adjusting your business’s direction.

By keeping an eye on these metrics and gaining insight from the data, you can adjust your operations and react to external conditions.

3. Review your financial position monthly.

Learn to decipher your company’s financial statements to gain insight into your company’s general performance and the profitability of your various produce and service offerings.

How stable are your profit margins? Is there a rise in sales? Have you been successful so far? All of these details are crucial to consider.

4. Monitor your progress against your goals.

Though it’s great to have objectives for your company, you’ll miss valuable feedback and the chance to make adjustments if you don’t routinely check in on your progress toward those objectives.

Staying on track and accomplishing your objectives requires constant evaluation.

5. Ask for assistance when needed.

If you are in need of guidance, whether financial or strategic, but are short on resources, don’t be afraid to seek the assistance of an advisor.

Running a successful business success depends on your capacity to foresee the consequences of your decisions, and getting help from the right people can be an enabler of this.

Get Ready To Launch Your Business Idea!

If you love working from home and being your boss, the time is now. Don’t let another year pass you by in 2026, dreaming of home business ideas.

Take this time to note your skills and experience across different industries.

What do you have to offer that is unique and sparks joy? Create a plan to start and grow your new business venture and begin today.

Steven