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JMMB encourages employment and entrepreneurship for staff

BY DENNISE WILLIAMS
Contributor

Wednesday, September 27, 2017

Holding down a full-time job and working on the side is an economic reality that can be frowned upon in some workplaces. But not all.

The Global Entrepreneurship Monitor (GEM) notes in its 2017 report that 97 per cent of Jamaicans earn less than $3.03 million per year. And so the search for additional ways to earn is likely to preoccupy the mind of the average employee.

To date, JMMB Group is the only company that acknowledges this formally.

In its 2017 annual report, JMMB writes, “Team members throughout the Group have realised and pursued their passions outside of JMMB and started their own businesses in the following categories - accounting, catering & baking, decorating & events, music, etc.”

And so it may be that JMMB Group is on the forefront of a quietly growing trend for companies to support their workers' outside economic interests while expecting them to continue to deliver on corporate objectives.

That said, the pathway to profits usually depends on what you think you're good at. Below we have a panel of experts who share their ideas on five means by which people can make additional money while keeping their 9 to 5 job.

According to Dino Hinds, director of Micro Financing Solutions, there are three main types of income:

(a) Active income - earned by working and getting a salary;

(b) Portfolio income - income generated by selling an investment at a higher price than it was bought;

(c) Passive income - income generated from an asset you have bought or created with little or no other input on your part.

Hinds explained, “To expand your income while working a 9 to 5 job, you need to explore options that are not time-consuming and will also give you the flexibility to spend time with family. Therefore people should look to earn either portfolio income or passive income. Here are some options one could consider to earn additional income:

(a) Rental Income - opportunities are available in both the residential and commercial industry to earn rental income;

(b) Developing and selling intellectual property - one could write a book, develop an app for a phone or learn to become a graphic artist;

(c) Buy and sell assets where one can look to invest in the financial markets and trade assets such as stocks, bonds or foreign exchange to earn income;

(d) For others lacking the skills to trade financial assets, profits can be made from buying and selling items such as beauty supplies, clothes, etc.”

Another route to earn additional income while keeping your job is to buy a business rather than start one from scratch.

There are some legal issues that would have to be considered, however. Attorney-at-law Robert Taylor points out that it is critical to incorporate a limited liability company; this gives the protection of a separate legal personality.

He also notes: “If the business is large enough, appoint directors that can be trusted and are qualified to provide guidance and succession for the business. And if there is more than one owner, ensure that a shareholders' or partnership agreement is in place specifying how the partnership will operate. For example, what level of expenditure requires joint or individual approval, whether shares of an existing shareholder can be sold to a third party, or must be first offered to an existing shareholder.”

If you choose to buy a business, Taylor advises, “Due diligence, due diligence, due diligence.” You must know what you are getting into. Below are specific steps that Taylor recommends:

(a) Execute an Agreement for Sale of Business, preferably, Agreement for Sale of Assets;

(b) Remember it is important to include provision for due diligence period;

(c) Provide for payment of deposit towards the purchase price to have seller take the business off market;

(d) Include a clause that provides for rescission where due diligence is not favourable, and preferably return of gratuitous deposit;

(e) Get financial payment terms, if possible;

(f) Review any leases in place or any contracts that will be assumed (for example, supply contracts) to ensure that the terms are favourable and will support the sustainability of the acquired business;

(g) Review tax returns, financial statements, accounts payable and receivable;

(h) Have former employees made redundant and determine who you would want to rehire after interviews;

(i) Have the seller provide a guarantee that information provided is factual.

And finally, should you decide that you would rather seek a higher-paying job, Dr Carolyn Hayle of the UWI suggests three such possibilities:

“Biomedical engineer is a career that pays US$77,400 per year, according to Boston.com. And the demand for this career is growing due to the ageing of the population. An increasing focus on health issues will drive demand for better medical devices and equipment designed by biomedical engineers.”

Next on Hayle's list is network systems and data communications analyst, which is estimated to pay US$66,310 per year.

And finally, one could consider becoming a home health aide, which is estimated to pay US$21,440 per year.

The average cost of studying to qualify as a biomedical engineer or a network systems analyst is $600,000 per year for four years. And the home health aide is a short course of three months that will run about $150,000.00.

And should you only want to buy stocks to make additional money, investment manager Denise Marshall Miller of VM Wealth suggests buying the stock of National Commercial Bank Jamaica (NCBJ). Notably, NCBJ subsidiary NCB Capital Markets owns 26.296 per cent of JMMB.

Marshall Miller notes, “National Commercial Bank is Jamaica's largest and most profitable bank. The profits are driven by 'fees and commission income'. Profits for the 9-month period increased nearly 50 per cent to $14.72 billion. The company is well on its way for a record year. Expansion into Barbados and the Dominican Republic by NCB Capital Markets could help boost long-term profitability. And so we like this stock and think that if you were to purchase this stock it would grow in value and help you make money over the long term.”