Welcome to a new week. This is to appreciate all the comments and feedback from our readers. Please keep them coming, suggestions are equally welcome.
This week, we continue our discussions on the opportunities the corona virus pandemic offers us, specifically the income generating ones.
As we noted last week, “every opportunity is a big opportunity” and since financial management is not only about cost-cutting but also about maximizing earning opportunities; it falls on us to grasp every opportunity the COVID 19 crisis presents us.
Some of the income generating opportunities/businesses are:
- Delivery services: The pandemic and the lockdown that followed globally was a boon tothose in this line of business. From making food deliveries to ensuring that people stuck at home get other essential items, deliveries became essential services.
Given that many businesses have also switched (and are still switching) operations from brick and mortar stores to online presence, followed by the need to fulfill orders being made, we expect the demand for these services particularly those of dispatch drivers to continue for a long time.
- Video editing services: The lockdown helped accelerate the demand for video editors as business owners and creatives needed to ensure they generate awareness and demand for their products and services. Increased use of social media in general during the lockdown, also contributed in no small measure.
As more content is being created, there is a growing demand for video editing. The need to ensure that high quality output is derived means the demand for video editing services will be required for some time to come.
The global market for audio and video editing software is expected to be $2 billion by the end of the year. Bloomberg magazine has also noted that the valuation and revenues of video software companies has grown since the beginning of the year.
- Sale and distribution of content creation equipment: As noted above, there is an increase in businesses transitioning from physical stores to online stores; this development has led to a significant growth in the market for product photography gadgets and accessories (stands, backdrops and props) and it is expected to remain so as online stores grow and businesses compete for a share of the consumer’s wallet.
- Website and content creation: Many website designers and content creators will testify that business has been good as many dinosaur businesses scrambled to become “Y2020 compliant”.
As existing businesses transition or refresh their websites and new ones are being established, there definitely will be demand for these services.
- Shopping services: As more and more people keep away from physical markets due to health and hygiene concern, the demand for the services of “personal shoppers for foodstuff and groceries” has grown.
Rather than visit the markets, especially in the crowded ones; many people are willing to pay to outsource these activities particularly because of the obvious lack of social distancing and the health implications currently associated with crowded spaces. It is expected that due to the convenience and time savings, demand for this service is sure to remain for some time.
- Protective wear: Although we have relaxed the lockdown conditions, the need for protective wear, especially face masksand shields, willnot abate anytime soon since it is expected that the eradication of the effects of the corona virus will likely take years.
Since health experts believe the country is yet to reach its peak coupled with reduced observance of social distancing activities; the demand for face masks, gloves and outer wear is expected to increase rather than decrease in the coming days and months.
- Cleaning Products: If there was one thing this pandemicdid for many people, it is that it has reinforced the need to wash our hands regularly, and to disinfect our surroundings.
This means that the demand for cleaning products – liquid soaps, detergents and sanitizers for individuals and businesses will not decrease any time soon.
- Freelancing of existing competencies/skills/talents: Given the fact that many professionals have lost their jobs and those still working may need to augment their income; opportunities abound on various platforms to offer their services.
Typically, freelancers tend to be in the IT sector but given that many companies (small and medium scaled businesses) and individuals are willing to patronize other professionals in a bid to save costs; a gap exists thereby making freelancing in other sectors lucrative.
For example, a banker can help write loan applications, review offer letters and advice on how to negotiate better rates. A lawyer can offer legal services for or give general legal advice. Proofreading of documents and articles is another activity that can be freelanced. Same for tax management services. Examples abound.
One advantage freelancers have is that their services can be patronized from any location. These platforms are also not locally based and so afford the opportunity of earning foreign currency.
Like we discussed last week, these opportunities are not exhaustive and are meant encourage discussion and encourage someone to think outside the box about an alternative or extra way of earning income. Comments are welcome on the club’s slack account.
- Interesting facts:
- Jide Zeitlin: As the Forbes article described him, Mr. Zeitlin is the indeed the lucky one.
He is the Chairman and CEO of Tapestry Inc, (formerly known as Coach Inc) and 1 of only 4 black CEOs of Fortune 500 companies in America. He is also the Chairman of Nigerian Sovereign Investment Authority (NSIA).
As his name denotes, he is of Nigeria descent – Oyo State to be exact. His mother was a single mother who worked for an expatriate (American) couple in Lagos while he stayed behind with relatives in Ibadan.
He visited his mother in Lagos one weekend and struck up a friendship with the couple’s eldest daughter. Rather than allow him to return to Ibadan, the couple offered to send him to the same school as their daughter and his mother, wanting the best for him agreed.
Eighteen months after, the family was due to move to Pakistan and asked if he wanted to come along and he agreed which meant that the Zeitlins became his legal guardians and his name had to be changed; once again his mother consented as she wanted him to have opportunities she couldn’t offer.
This step, afforded him the privilege of schooling in America, working in Goldman Sachs (becoming a partner as well as the global operating officer of investment banking) amongst others.
In my opinion, his story reinforces the fact that time and chance truly happens!
- $8 billion: According to Forbes magazine, this is the amount Goggle pays Apple annually to be the default search engine on its iPhone and other Apple devices. That is what you will call passive income of life!
Till next week, please remember that corona virus is real and keep staying safe.