On Becoming Self-Employed – Part 1
Posted by Gail | Filed under Good ideas
My friend Tasha is a fabulous … gee, I don’t know what to call her… sewer, seamstress, clothing designer? You see, Tasha has been sewing for a long time, always with a view to eventually doing her own line of outerwear. She’s really good at it. Meticulous. And recently, after many years of talking about it, Tasha decided to do it: build herself a line and flog it to the retail sector. She’s scared silly. But she’s going to do it anyway.
Being self-employed is a very interesting experience. Some people claim that they want to be the masters of their own fate and choose self-employment (as small business or a self-directed professional career) as their way to make it happen. And often, when people write about the joys of self-employment, they talk a lot about “freedom.”
I’ve been self-employed for 25 years and wouldn’t swap it for the world. But freedom, I have found, comes in many stripes and you have to be very clear on what you want to make self-employment work for you.
There’s the freedom from nine-to-five. Except, of course, for the fact that your clients all keep to a schedule and you need to make yours fit theirs. So while you may no longer need to punch a time-clock, you’re still going to have to make things work around a schedule of some sort.
There’s the freedom from having a boss. Except, of course, for the fact that every single client you have is your boss, and if you don’t do what they want when they want, they’ll fire you and that means no money.
There’s the freedom from the daily grind. Except, of course, for all the details of being self-employed and running a small business, which comes with enough grunt work to choke a horse.
That’s not to say you can’t have some of those things at some times. Sure, you can be free of nine-to-five when there’s nothing much going on. While an “employee” has to keep showing up even when there’s not much to do, you can go to the beach, do the groceries or hang out the laundry. And while an “employee” tends to be at the whim of The Boss, if you really don’t like a client, you can find another one so you don’t have to work for the ass again. As for the daily grind, well, some things are inevitable. But if you’re doing enough stuff you love, you can convince yourself its worth it.
Being your own boss can be scary. And it does carry some risks. If it starts of slow – or doesn’t work at all — there’s no safety net unless you’ve built up a whopping stash of cash to see you through. You could end up racking up debt if you don’t have a sound plan in place. And you may have to work 80 or 90 or 100 hours a week to get the sucker going. So anyone afraid of hard work should reconsider.
You also need to accept that you will make mistakes and that you have to learn from them. You must be willing, too, to try new things.
Not everyone has the personality, drive and determination to be self-employed. And not everyone can handle the solitude that comes from working alone, which is often a big part of being your own boss. Some people believe that those who make it work are born with an “entrepreneurial spirit” that regular employees just don’t have. I don’t know if I agree, but I know there are some people who just can’t deal with being chief cook and bottle washer. Be it a lack of discipline or the inability to cope with the stress of not having a regular paycheque, some folks just can’t cut it.
So, now it’s your turn. If you’re self-employed, what makes it work for you? Why’d you do it? And what has been your biggest challenge? Reward?
Tomorrow, Part 2.
October 28, 2009 at 7:23 am
I’ve been self-employed from time to time. To make this route successful I found it helped to take any workshops/programs that the government offered, also through places like your continuing education programs. And be realistic – it takes about 3 yrs to make a free lance venture viable. I diversified – doing some teaching, making some product and also delivering presentations. To get my name out there and build credibility I also wrote small articles for publications/journals where my target market existed. I finally packed it in when my kids complained I was either ‘the woman in the basement’ or away on the road hustling work. At this station of life I realized for myself I needed a steady stream of income and to be around for my young family. And I have absolutely no regrets for being my own boss for those wonderful 7 yrs. I did break even, but you can’t measure in dollars how fulfilled I am with that venture in my life.
October 28, 2009 at 7:38 am
What an interesting post – I can’t wait for tomorrow’s!
October 28, 2009 at 7:42 am
I don’t think I could ever take the plunge into self employment. I like the idea of a steady paycheque from my employer.
October 28, 2009 at 8:25 am
Time/freedom is my biggest gain.
Having to save up my own version of “unemployment insurance”, “sick benefits”, “pension” and keeping motivated are my toughest aspects.
If I’m not working, I’m not making any money — self employment motivates! There are days where I long for a salary but I’m in my 12th year and do not forsee it changing any time soon.
October 28, 2009 at 8:25 am
I’m not self employed, but my dad was for a very long time when I was a kid. He did quite well for himself. I remember very well waking him up several times because a customer called and needed him. And then out the door he went to go fix things…
It must have been very hard. He kicked much butt working.
October 28, 2009 at 8:27 am
you are a doctor or specialist thats fine.
Or Something in a racket business.
High mark up and low investment and overhead.
If you are a regular joe or jane with a idea and self emplyment then go out and seek a mortgage or such well good luck.
Currently there is no safety net for self emplyed people.
Additionally if you have a really good benefit plan where you are currently as emplyee and go to purchase one with self emplyment you will find that you can’t come close to it.
It will cost you a small fortune monthly in comparison.
For all the goodness of self emplyment theres dozens who have been there done that.
Just to open a busines legitimately costs a small fortune
Rent,liability insuance, business tax,incorporation, supplies, office needs
on and on.
If you borrow from a conventional lender its 5 bucks for every one loaned secuity wise.
You will likely have to put up security like your house.
Especially if incorporated.
Now if you retire fom a company with a good package and pension then you could afford to dable in self emplyment a bit maybe from home on something small at first.
October 28, 2009 at 8:29 am
I have been self employed for over 10yrs now. The scary parts are not having EI to fall back on, no paid maternity leaves, and you don’t qualify for a lot of the government programs like retraining. The part I hate the most is chasing people for money. In service industries this has to be the worst thing. The same people that wouldn’t dream of walking into a store and stealing a pack of gum are the same people that take forever to pay for the service you provided.
It has enabled me to stay home with my kids though. I don’t have to worry about sick days or PA days.
My husband also considered self employment but I don’t think my stomach could handle 2 irregular paycheques.
October 28, 2009 at 8:31 am
I would love to be self-employed. I am going to try to do it part-time to build up a client list and get my mortgage paid off before I completely take the plunge off the payroll. My biggest worries are finding clients and getting them to pay.
October 28, 2009 at 8:33 am
I have been self employed for 18 years now. I enjoy the freedom to skip aday when the family needs me or I just need a mental health day. On the reverse side; those days are zero earnings days. Have to keep those to a minimum. I do not reccomend self employment to anyone who is unable to juggle many balls at once. There are so many aspects of work that require time and different skills. Sometimes I wish for a regular job that I can check in and check out of. The only thing that keeps me here is flexible work hours.
October 28, 2009 at 8:48 am
After growing up with a parent who was self employed I don’t know if I believe in “freedom” as a part of the job. My dad works seven days a week. Saturday and Sunday are the only days where clients are not calling so he is able to get more reports done. It takes a lot of discipline to work from home. How do you decide whether it is more important to make supper and tidy the living room or to go get another hour of work done? Yes there are perks just like in any job, but I love the freedom of not having to work when I get home, my company pension, my guarenteed vacation days and all the perks of working for a large company.
October 28, 2009 at 8:59 am
I’m not self-employed but certainly admire those who take the plunge. You gotta have a business plan and do all the groundwork to make it a success. For those of us cubicle slaves, it’s a real daydream when the ‘boss’ acts like an *ss. My father was self-employed and did okay. My parents took a 3-4 month winter sabbatical (vacation) in the sunny south so I did always admire the freedom aspect but do know that it is so much hard work to keep a business up and running and profitable (or even break even). As Sandy and Sally also mentioned, getting clients to pay is another hassle which I think can’t be a fun part of being self-employed. Self-employment is about freedom and choice (much like financial planning) but with that comes much responsibility. Good luck to all the entrepreneurs out there.
October 28, 2009 at 9:17 am
Several members of my family have done/tried the self-employed route. Some have done extremely well, others have found it a total pain in the arse, especially getting people to pay for services rendered. I myself don’t like risk so I know self-employed is not for me.
Before I went on mat leave I worked in health care. That means 24 hours a day, 7 days a week. The idea of 9-5 is my daydream. No more waking up in the middle of the night because you’re on call, no more not knowing what day of the week it is because they’re all the same, no more nights/evening/day shifts. My husband also works a 24 hr 7 days a week job on shift and he also dreams of a regular schedule with no on call so that we can make plans for a family outing.
Our jobs have paid us very well but in the end the money still wasn’t worth it for the toll it takes on our lifestyle. Things have definitely improved now that I am home during 9-5 hours so I can get all the appointments done. That never ceases to annoy me that all the businesses I need are only open for that brief 8 hour period.
So I prefer working for someone 9-5 and having the EI safety net. I’ve never had a 9-5 job so to me it’s the ideal.
October 28, 2009 at 9:47 am
I’ve been self-employed for 11 years and I love it!! This post describes exactly where I’m at. I wouldn’t change a thing about what I do or the path I’ve taken because I’m exactly where I want and set out to be. The best part is the freedom of time… being able to be there when my daughter is sick or just handle different personal appointments or get groceries during the day is great. I’ve been working since I was 13 in all kinds of jobs and I wouldn’t change a thing about my work. I found working in an office working 9-5 (more like 8-7) drove me crazy. I hated it and every day I felt trapped!
You do have to love solitude though or at least be able to tolerate it. For me solitude is beautiful but I don’t feel that way every day. At first, it was very isolating when I started out but I found other mom’s and people that I could have a coffee with during the days when it got really bad, and I still do that. I’ve made sure to keep that sanity support system in place.
My husband is the opposite and loves a steady paycheck/structure and we’re fortunate that he has a good pension plan. I’m making my own pension plan (RRSP) and EI safety net (TFSA). I don’t think I will ever stop working though unless I have to. I think it’s true that some people are just born wired to be entrepreneurs.. I’m so excited that you are doing this series on being self-employed Gail! I’m looking forward to reading the rest of the series.
October 28, 2009 at 10:03 am
My husband has been self employed for 12 years. We have been together for almost that long. His business requires 24/7 support. Especially for the idiot that calls on a Sunday morning at 7am looking for a quote for 6 months down the road. Really? You couldn’t wait until Monday at 9am to find out how much it would be for your wedding in 6 months? Our problem is not so much the clients that are booked calling at all hours if there is problem but the people looking for quotes at all hours when they clearly could respect typical “business hours” for those inquiries.
My husband loves it. It has allowed us to have him stay home with our twins and not have to deal with daycare. He has built up the business enough that he is no longer a one man show and has drivers to send out to do the work and he can stay in the office. I do the bookkeeping.
We have been on only 2 trips – our honeymoon almost 9 years ago and a family vacation 4 years ago. When you are self employed and built up your company sometimes it isn’t easy to just shut it down and go on a vacation – especially in the industry that my husband is in.
I do wish that my husbands business was “big” enough to support us both – but it makes me nervous to have “all our eggs in one basket” especially while our children are so young (ie; benefits). Maybe one day we will have the “nest egg” (ie; emergency/savings accounts etc) big enough that we both can work for the company
October 28, 2009 at 11:00 am
My husband has been self employed for 8 years…basically all of our married life. He loves it. I agree with Joanne, that it’s very hard to shut it down to go on a holiday & that’s one thing we’re working at. It’s taken a long time to find some trustworthy employees who we could leave in charge in order to be able to leave. I love the flexibility though…being able to quit a bit early one day or take a Saturday off. I do the bookwork one thing I would love is to hear more from you about being self employed & how to separate business & personal…especially when the cheques are erratic. I’ve tried saying that we get a set amount each month…but then we’re a little short of work…or don’t get a cheque in time for payday…so then we pay ourselves less…well then the next one has to make up for it. I just would love some tips.
October 28, 2009 at 11:22 am
I have been self-employed for 4 years and one month…it has been interesting to say the least. I am now 31 and have had 2 babies (first got married) in that time. With no paid leave and paying someone else so I could leave really sucked! Especially last year when the person was incapable! I find I have less flexibility as I cannot bear to take a day off – I need people to see me as reliable and I have store hours I have to keep. I am hoping that in the next year I will see a little more profit – and is it really true that it can take up to 5 years to really see a profit? I have had many bumps in the road – have learned A TON from mistakes I’ve made – and I’ve made a couple big ones! I would love to hear some advice from some of the veterans out there – especially if you are in retail…
Why I did it? There was a lack of customer service and selection in the area and saw an opportunity!
Would I do it again knowing what I now know??? hmmm…sometimes the answer is yes, sometimes no! I won’t lie – and you still have a boss – it’s called Canada Revenue Agency!!! And they can be very strict – so be happy you only have to deal with some Joe Blow who’s having a bad day!
What I love about it….the satisfaction of helping someone find their dream gown and knowing that they thoroughly enjoyed their experience – that’s what I’m here for. Oh, and to make some money too!
October 28, 2009 at 11:26 am
…and I agree with Heidi – I have gotten much better keeping biz separate from personal (saw the show about the woman who made purses!!!) but some tips regarding how to deal with variable incomes would help a lot!
ei – If you have a really good month, is it a good idea to put a chunk of money into debt repayment to reduce interest etc and get up to date with “stuff” or to put a bunch away? I had a REALLY good May, now money is tight and am struggling a little – still making it, but so frustrating!!!
October 28, 2009 at 11:39 am
I am self emloyed as well, but I rely on a steady paycheck. Daycare has it’s perks and it’s problems. I didn’t feel the “freedom” because even if my child was sick it was easier to call grandma to take care of her than to have 5 different families rearrange their schedules. Getting to the bus stop 3 times a day and can’t be late because there was no room in the car to bring everyone to school. One thing I did was set a pay day every two weeks and had post dated cheques to deposit. It included a 5% vacation pay that I would automatically move to ING on payday. That way if anyone up and left I still had my vacation accumulating. You have to put alot in, love your job, be accountable and invest in healthy food and educational toys. It frustrates me when people say that if you want to stay at home “just take in some kids”. It’s sad that we assume that they are a commodity, something to make money off of. When looking for daycare look for someone who is genuinely interested in teaching your children and is qualified. Not someone out there who is just seeing it as an easy way to make a buck. Done ranting. Have a great day!
October 28, 2009 at 12:12 pm
I have been self-employed for 2 years and I love it. I quit the federal government after 20 years (yes, I know, I’m CRAZY), but for me it’s been worth it in terms of mental health. I am just not built for 9 to 5 and struggled every day of those 20 years to conform to the ‘way things are done’. I am a risk taker by nature, and was being stiffled at every turn in my job.
Is it easy – NO WAY, but for now, it’s the way to go for me. The biggest headaches are getting paid (it can take up to 2 months after a job is done) but once you know that, all it takes is planning. I incorporated my company and became an employee of my company so I get a regular paycheque. Sometimes the business account goes into overdraft (I have a LOC to cover that) because payments are slow in coming but after two years I finally have cash flow. The other big expenses are health insurance and coverage for EI (don’t get EI when self-employed) as well as making up for the pension I am no longer accumulating (I left my pension locked in with the government and I will collect it at 60 years of age, so I will have some stable income in retirement).
I love being able to work at my best times (which for me are late afternoon and evenings). I shudder to think of how much money the government wasted on me by insisting I be there at certain hours! Oh, I was there all right, but was I productive? Probably not. I find that with the work I do, I have cycles where I can easily fit in holidays (April is a dead month for me but it gives me time to recover from the January to March frenzy, which is my busiest time), summer slows down a bit as well.
October 28, 2009 at 12:12 pm
I am currently 5 months pregnant and will be finishing up a contract position prior to going on mat leve. My current plan is to take an extra 6 months off after my maternity leave until baby #1 starts school. Then I plan to start my own business.
My husband has a secure government job that we both love (me because of the great benefits and pension) and we can live (very tightly) on his salary. We also both have very good life and disability insurance.
I don’t expect to make millions working for myself, I just want to make enough for extra savings, home improvments and vacations. As a mother who is working full time I am really craving the flexibility that I think I will get from working for myself. I am not in denial about the time and work it will take, but I really think the benefits will outweigh the risks.
October 28, 2009 at 12:32 pm
@ Erin, just think long and hard about it – depending on the type of biz. Make sure you have researched adequately, and have a strong business plan! I have not truly experienced the joy of flexibility yet! I guess the best motto would be to “Plan for the worst, hope for the best”. Good luck, I would have done things a lot differently!
October 28, 2009 at 12:36 pm
i have 2 diverse pt. time self employed gigs and one pt. job as an employee. Because i am not the primary breadwinner i have the freedom to be a bit serendipitous in my approach to work. If the client interests me i can take them on otherwise i can refer. If the kids are sick i can stay home and work from there. Self employment does require enough discipline however, to keep the expenses and mileage accounted for and the seemngly unlimited paperwork…
i like the balance of the being the employee too…i can walk out the door at the end of the day with only the other two jobs to ruminate over.
October 28, 2009 at 1:04 pm
My husband is self-employed and I work for him – so I am kinda self-employed as well. There are benefits (we work the same hours) and risks (paycheques are dependent on clients). Probably our biggest issue – is vacations – when we take a vacation we don’t have an income and we are paying out money – it’s a little hard to adjust to. Having said that – we take two – one week vacations a year – you need to recharge the engine every once in a while.
Regardless of the risk and the stress – it has been well worth it – six years and going strong with the business.
October 28, 2009 at 1:18 pm
I was laid off a few months ago, and now I’ve decided to give self-employment a go. I’ve watched my husband do it for years, so I have some idea of what’s involved.
I am able to make it work because I do have that ’stash of cash’ thanks to my severance. So right now, it’s OK that I’m building and not making any money to speak of. I’m also able to make it work because my husband is working full-time right now.
The appeal for me is being able to work around my kids. While it’s not easy, for me it’s rewarding and worth the effort. And I think that’s the metric of whether your employment, self or otherwise, is working for you. Does the good outweigh the bad for the most part? For me, right now, it does.
October 28, 2009 at 1:23 pm
[...] This post was mentioned on Twitter by Don Wilson, Pam Brubaker. Pam Brubaker said: On Becoming Self-Employed – Part 1 « gailvazoxlade.com http://bit.ly/3947Zs [...]
October 28, 2009 at 2:21 pm
I tried self-employment but it was too hard on the kids. Long hours plus being home, but not available, sitting at a computer, was worse than working outside the home. Might try it again after they move out.
October 28, 2009 at 2:56 pm
I find this post very interesting.
My dad was self-employed and my mom did his company books etc. As a young kid I remember times where they were rolling in the money and times when money was very very tight which seemed to be more often than not. My dad and mom worked 7am-7pm and Saturdays dad worked too. I do remember my parents being gone alot more than my friends parents who worked for someone else.
My hubby-to-be and I often talk about ways we can become self-employed and have had a few ideas but we are nowhere near where we need to be to actually take it serious.
We are both quite happy where we are. We both get 4 weeks of paid vacation on top of our sick and personal days. I get a Christmas bonus and he gets quarterly bonuses. Both of our companies treat us very well. They are always taking us to dinner theatres, sending us to hockey games or givings us prizes. This year I won a $1500 travel voucher from my travel company (that they pay the taxes on at tax time) and last year he won season tickets to our football team. Both of companies are quite flexible in the fact that if we want to take off early or take a long lunch (in moderation of course) we can without it affecting our pay. We don’t dislike or are bored by what we do, but I definately wouldn’t say they are our “dream jobs”.
Now that I think about I don’t think I would make a very good self-employed person. I tend to have alot of anxiety with money so not knowing how much was coming in I think would be too hard on me.
However I do envy people who are self-employed doing something that they really really love and continue to love threw out their career. Not just something that they made a business because they enjoyed it at the time and now its just become “their job”.
October 28, 2009 at 2:56 pm
My husband has been self employed for 25+ years and it makes me laugh when people talk about “freedom”. Self employment for our family means never never turning down any work since you can never count on work coming in later. We rarely take holidays since it basically costs double (no income and holiday costs). I guess this is the “freedom” part. The freedom to pay for all our own dental/medical costs. The freedom to work long hours and weekends. The freedom, to hustle more work up, while working at current work, in order to keep money coming in.
I think some people have an unrealistic view of being self employed, I have lived it and it’s a really hard way to make a living, requiring many long hours and sacrificies. I’m lucky for having such a hard working husband but I see the toll it has taken on his body, yet he never complains. I would not wish this “freedom” of self employment on anyone without them knowing the truth.
October 28, 2009 at 3:00 pm
The last couple of posts tell it like it is.
October 28, 2009 at 3:31 pm
I have been self-employed “full-time” for just over a year now…but had actually started the business part-time since 2006. I love it…and wouldn’t trade it for anything, even though there are days when I long for a regular paycheque…though those seem to be the days when I’m having trouble collecting payments. I run a bookkeeping business which has given me the luxury of working from home and can pretty much make my own hours. And in June when I ended a bad 10-year relationship, I had the flexibility to be able to move from Calgary to Edmonton without too much hassle and still be able to keep about 90% of my clients. I wouldn’t say that being self-employed is all a field of roses, there are hard times and stressful things…like trying to be available days/nights/weekends so that my clients can reach me when it’s convenient for them, but being able to do things mostly on my own schedule has been amazing…and that I can work a part-time job to supplement my income when necessary because my own schedule is flexible has made a huge difference in my anxiety about my personal finances. I initially wanted this so that when I eventually have children, I can be home with them…and either hire someone to help me with the business or hire someone to help me with the children, but still be home and flexible for child-related scenarios. I would encourage anyone who is interested in being self-employed to take the plunge…but of course to be realistic about the expectations…especially in the beginning.
October 28, 2009 at 3:55 pm
I think it’s a matter of the “grass is always greener”. My parents ran their own business for years (Dad still does, while Mom works for a paycheque), and DH has long spoken of wanting to strike out on his own after working for others for yeas, but I hear the pros and cons of both sides, so I caution DH to think long and hard about it. As many have noted, the “freedom” is really a trade-off, and you have to decide if it is a worthwhile one for yourself and your family.
October 28, 2009 at 4:04 pm
i’ve been self employed for 2.5 years now, i don’t get maternity benefits, health coverage or disability insurance as i did with my previous employer.
the biggest eye opener for me was that as soon as you stop working, you stop earning money. meaning when i get up from my desk and go to the washroom, i’m not earning money anymore. whereas when i worked for a salary, i earned money when i took “mental breaks”, chatting to colleagues etc… however this is particular of my type of job where i am fee for service. others may find a way to create a passive income stream.
i also found out that money is not a motivator for me. i could work round the clock as there is plenty of work for me, but I don’t.
October 28, 2009 at 5:48 pm
My motivation for going freelance was my children. Not necessarily so I could spend all day with them (though that was a serious perk) but because daycare for an infant and Kindergartener were simple not available in my area! Enrolling my son in a school outside the catchment area just to get him a spot in a very expensive care facility and increase my commute, seemed insane. It forced my hand at full-time self employment. I had always done some side-contracts, and all I had to make up was the maternity leave that was expiring (we were used to living on that for a year).
It was surprisingly smooth moving into it since I already had dozens of contacts in the industry, it turns out they were looking for someone to pick up the little stuff that my office wouldn’t do! And thus I filled a niche and did not compete with my former employer. The worst of the learning curve was forming the discipline and time management to use my work hours properly (instead of laundry or vacuuming, or surfing the net) and pacing my work so that I didn’t have overload-panic-crazy deadlines (still learning that one). And of course, slow time is no-money time. There is no vacation pay, sick days or any of that. And just because a kid is home sick with the flu (or I am) doesn’t change the dealdine on the project… the only one to get it done is me, the client is counting on me getting it done on time.
Honestly if it were not for my husband’s help around the house and moral support for sticking to it, I probably would have gone back to the safety, benefits, steady paycheck and social network of the office environment when both the kids entered full-time school. I miss the “nice” jobs — most of the contracts I get as a little freelancer are kind of small…. they have to be! It’s just me, trying to keep happy customers, do the accounting, the sales, the production, and all the cooking and laundry too. A few years back I hired an assistant, and though the rewards were phenominal as far as the contracts I was able to complete and the turnaround I was able to provide and the $$. BUT my home life suffered — the 100 hour work weeks were all too common with an extra employee to worry about paying! Not the right thing for me.
For me, keeping it simple, not getting greedy and remembering the end goals are my best strategy for balancing self-employment and family.
October 28, 2009 at 6:15 pm
I work from home. I have two young children and this allows me the flexibility to work around them to some degree. Deadlines always creep in and there are times when they push me away from the computer to play. That makes me sad, but I think they are learning that what Mommy does is important to the family and that I may work sometimes instead of play, but I play more than I work most of the time.
The biggest challenge is the “creeping” that self employment brings when you work from home. The office is always around me and sometimes it is suffocating–there is no break. Additionally, working around kids’ schedules means working a full day with them, then starting my paid work after bedtimes until early morning. It can be totally draining. Recently I was talking with another freelancer and she asked if I’d go back to a “regular” job once the kids were in school full days. I think i responded in a nanosecond: Nope. No way in hell. Crazy as it is and as unnerving as the variable pay can be, this is the way I like my life. But its not for everyone and it does get lonely.
Its also taken quite a while to get a handle on how to manage money that is variable in coming in. Thanks to Gail’s previous post on self-employment, I’ve mostly figured it out. But still have a way to go to make it easier…this too shall come!
Good luck to anyone thinking of venturing into the self-employed waters!
October 28, 2009 at 8:48 pm
This is certainly one of the BEST, in-depth posts Gail has written recently, with a great, lively commentary by the users following it.
I’m 24 years old I have personally been self-employed since…well since I can recall. Since a young boy I always had a knack for simply “doing my own thing” that venturesome “entrepreneurial spirit” many self-employed people ascribe to.
I tried my hand at “regular” employment while always having an entrepreneurial endeavour on the side– from retail, to fast-food, to lawn-care, to painting — I’ve covered many regular fields, and just didn’t get the PERSONAL SATISFACTION that self-employment provides.
Now before I elaborate any further on the positives, I would like to point out that like the previous posters and as Gail advised; self-employment is certainly NOT for everyone! You must have:
1) A SOLID business plan
2) CASH stashed aside for over-head costs, taxes, initial invesments costs, for the “slow” periods, for sicks days,and ofcourse the unexpected.
3) SELF-DISCIPLINE is, if not, the most fundamental aspect of self-employment because there is simply NO income if you do not focus.
4) PERSONAL/ EMOTIONAL FLEXIBILITY: This means preparing to accept that there are going to be slow periods, as well as periods when you racing to meet customer demands — which means missing weekends and events when necessary — but it’s a part of the job.
5) A SOLID CLIENT BASE: It’s not enough just to have a plan, or do a few hours “here and there” because this is your financial life-stream, you must maintain excellent relations with clients to really see your business bloom — be it through regular customers and word-of-mouth.
All the same, I would not trade self-emplyment for the world! I enjoy the flexibility, the freedom, the power & control, the pleasure, and I always bear in mind that: what suits one man may certainly not suit another.
October 28, 2009 at 8:51 pm
I’ve been self employed for 6 years, I’ve learned a LOT about business.
Freedom? What’s that? If I don’t work, I don’t get paid. I have slow periods in my industry so I can plan on having some down time, but there is no money to do anything with unless I plan. Mostly though I end up planning on how to grow my business, become more efficient and am planning for the busy season (though research, testing and development).
Some days I long for that regular paycheque and easy – reliable cash flow. But then I think about what a basket case I’d be if I worked 9-5 and how little I’d see the kids.
What makes it work for me?
Flexibility. Loving what I do. Being highly organized is a must. Having a plan, a focus and a goal. The best thing for me is having my trusty excel worksheet with my current income and expenses up to date, finding ways to increase my profit and cut expenses, seeing my growth since last year and planning for more growth next year.
Why did I do it?
It was a hobby that turned into a business. It wasn’t until a few years ago that I decided I needed to treat it like a business (and therefore research what that meant for someone with a psychology degree, not a business one) and it was only recently that I forced myself to separate the business and household money (I know…I know). I find that I am being smarter about what I purchase though for the business. I’m much less generous with “experimenting” and much more shrewed with the planning.
Biggest Challenge:
Juggling the house, kids and everything that needs to be done while running a business. Oh, and putting everything out there to be judged by Fickle P. Public is hard too.
Reward:
Having repeat customers that praise my handcrafted soap, calling them works of art. Having people tell me their personal stories of how my products have helped them. Seeing my business grow. I had planned on a conservative 20% growth for the year, but by August was at 100% which meant real scrambling and a little extra financial tweaking to bring in more raw stock to make product.
October 28, 2009 at 8:52 pm
I think people have touched a bit on the fact that in a marriage/partnership relationship, many of them have one person working a ‘regular’ job and the other self employed. That scenario is probably the only reason i would consider working for myself. My husband has a secure job and I had always thought I’d go to work again when the kids are all in school, but now the thoughts roll over each other: what about when they’re sick? what about their days off? what about everybody who says that teens need a mom home more than younger children? A plan to work from home is starting to brew in my sub-conscience.
October 29, 2009 at 3:41 am
Thanks for the interesting post Gail. I’ve enjoyed all the responses.
I applaud all those adventurous, savvy and talented enough to try self-employment.
I never have and probably wouldn’t as I’m too much of a wuss. I’ve liked the regular pay cheque (I’ve only worked mornings) and being able to forget about work when I walk out the door (well, most days LOL)
I’m looking forward to Part Two.
October 29, 2009 at 10:04 am
I’ve been self-employed off and on for 11 years. Overall, I love it – the flexibility, the diversity, the 7-step commute to my office upstairs. The biggest downside for me is feeling that I can’t ever say no to something, for fear of dropping out of the loop.
October 29, 2009 at 1:38 pm
I’ve been self employed for nine years and have loved it for the most part.
It is scary that there is no EI option for us entrepreneurs and solopreneurs.
It is scary that when we don’t work, money doesn’t come in.
It is scary that there are no paid vacations, paid sick days, mat leave, stress leave, etc.
It is frustrating when you’ve delivered the job and the money STILL hasn’t arrived after thirty days.
It is essential that you wear all hats all the time.
It is easy to get mired in the day to day operations and lose sight of the big picture.
It is lovely that you can work from home and set your own hours.
It is wonderful that you can pick and choose clients.
It is a joy that you are making your own vision a reality instead of simply being an assistant in making someone else’s vision a reality.
Having said all of that, I have become very disenchanted with freelance lately. I love so many things about it but work has slowed to a dangerous pace and this is the second year it has slowed down come autumn. I know the economy has a lot to do with this slow pace, but I also realize that my training could be way more up-to-date and I worry that I’ve let some things slide and as a result, people are no longer calling.
You really must be vigilant at all times when working for yourself. If you get too mired in small picture stuff, the big picture stuff can pass you by without you realizing it and before you know it, you are floundering and wondering if going back to a steady paycheque would be a more sound solution.
November 1, 2009 at 6:09 pm
I am currently employed with fabulous benefits with all the bells and whistles anyone could ask for. I will be on mat leave in 2 months and during this year off, I am going to try to get a business off the ground in the hopes that after the year is complete, I can remain home and raise my children and grow my business.
I am using this maternity leave year with pay as a buffer to ensure I maintain an income while working to get my business going. As I have read the posts, I see how a lot of folks mention the lack of benefits associated with self-employment. This does concern me….A LOT because my husband is currently self-employed (very newly) and does not have any benefits – his come from my employer. And now with baby on the way, my concerns are even greater. I will be looking into Blue Cross and other methods of obtaining Health & Dental insurance privately for our family but I do know it is costly. I have paid sick days, stress leave, vacation, over time, training, education benefits and numerous other benefits at work and I worry if I choose this self-employed life, that I will never get the opporunity to work for an organization who offers such benefits again.
But if don’t take the risk on my own business, I will never know what could of been. I hope that during this first year, I can get a good handle on whether I can be successful and bring in enough money to maintain our current lifestyle.
I appreciate the responses to this post as it has given me some insight on things I didn’t think about and others I need to investigate further.