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elf-Employment Benefits Resource Centre
Taking the path less travelled
Blair Smith, BA, CA
Contract Administrator
At least once in lifetime everyone’s wondered what it would be like to be their own boss. Many Canadians are finding out. Today one in five members of Canada’s work force is self-employed. That number is expected to reach one in four within the next decade.
The attractions of self-employment are obvious – set your own work hours, keep all the profits of your labours, pursue assignments and jobs that keenly interest you.
The flipside of this rosy ideal, however, is the fact that you are running a business. Your hours tend to be long – certainly not the nine-to-five routine of a wage slave. You have to constantly seek out new business opportunities, deal with a multitude of people – clients, prospective clients, suppliers – and always worry about the bottom line.
In the end, anyone considering embarking on self-employment or starting their own business should take a long hard look at what that challenge entails, and ask if it’s really a life for you.
To succeed at your own business you must be determined, driven, hard working. Entrepreneurs put in long hours building and maintaining their businesses. They have to track down the latest lead when most would rather be golfing. They have to be prepared to accept personal sacrifice, as friends and family members rarely get to see them that often.
Self-employment also requires a special individual. Entrepreneurs are self-starters, willing and eager to learn new skills as the market requires. Most entrepreneurs handle their own marketing and sales, financial planning and accounting responsibilities.
The self-employed need the patience and temperament of diplomats, especially when dealing with clients or creditors, lawyers and accountants.
If convinced you have what it takes to be an entrepreneur, there are additional hurdles to clear. Starting your own business can involve substantial financial risk. You’ll need money to cover initial start-up costs, as well as cash reserves for those first few months waiting for your invoices to get paid. More often than not, most must take out a loan, which could involve putting up your house as collateral.
At the same time you’re responsible for every aspect of your financial health. Self-employment doesn’t come with a benefits package or pension. The self-employed must proved for their health insurance and retirement plan. They’re responsible for their bookkeeping and filing quarterly taxes. And when you’re not working, you’re not making money, meaning you can often rarely afford a vacation or even a sick day.
If none of this has dissuaded you from the path of entrepreneurship, you may have what it takes to succeed. And this career choice does carry its own benefits.
As a self-employed entrepreneur, you are your own boss. You make the decisions involving how you want to work and live your life. You can pursue the type of work that interests you, and learn new skills while performing a variety of tasks.
Self-employment also brings tangible benefits such as lowering your operating costs, especially if you work from home and can claim a portion of your rent and utilities on your income tax returns.
Ultimately, the final decision rests on whether you truly want to, like an increasing number of Canadians, strike out on your own and build the kind of career you want on your terms.
Since December of 2002 Blair Smith has been working with some of Thunder Bay’s newest and smallest business through the JumpStart Self Employment Program. This program assists entrepreneurs The JumpStart resource centre provides meaningful, practical and personal support for entrepreneurs on the Self-Employment Benefits program in Thunder Bay, Ontario.
