Self-employment
Are you entrepreneurial material?More than 40% of Canadians say starting a business is the most rewarding career path. |
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 [ 2007-10-18 ] |
To find out, take this test by eCareerFit, the career assessment experts.
(Comstock)
That was the finding of a December 2005 report by the Canadian Federation of Independent Business (CFIB), the professional association of more than 100,000 small businesses nationwide.
The report also found that the number of self-employed Canadians increased by 30% from 1990 to 2004, and that 55% of entrepreneurs choose self-employment for reasons such as independence and balancing work and family.
This growing interest in entrepreneurship is what drives Small Business Week, which takes place Oct. 14 to 20. In its 28th year, the event is held by the Business Develop-ment Bank of Canada (www.bdc.ca), a loans, investment and consulting service for Canadian entrepreneurs.
The event recognizes the important contribution small businesses make to the Canadian economy by holding various training and professional development opportunities for entrepreneurs across the country.
Small businesses may offer their owners many perks, but taking the entrepreneurial leap is far from straightforward.There are risks to take, research to conduct and careful self-reflection to do before you can reap the rewards of self-employment.
Aspiring entrepreneurs need to consider the following factors:
DO YOUR HOMEWORK
Before plunging into self-employment, consider all the research and planning you'll first need to do.
If you already have a killer idea for a new or different product or service, you'll need to analyse similar ideas already on the market, says Kevin Dane, vice-president and area manager, Toronto branch, Business Development Bank of Canada (BDC).
You'll use all your research to develop a business plan, a critical document that will help you establish and achieve your goals, he says.
"I get many calls on Monday mornings from people who were talking to friends and family on the weekend and want to know how to do this," Dane says. "It's important do to the planning. Anybody who has started a business and been successful has taken the time to do the research to understand what the key factors to their success will be."
BE A PEOPLE PERSON
"You have to have an ability to interact well with people to be successful in your own business," Dane says.
It's the "no man is an island" philosophy: you need to know your strengths and abilities and what you can manage on your own, he says. And hire or collaborate with others to facilitate other areas of your business, he adds.
People skills will also come in handy with all the professional networking you'll need to do, which Dane says is critical to building your network of contacts, gaining valuable insights and promoting your business.
Professional associations, boards of trade and local chambers of commerce are great places to network, he adds.
EVALUATE YOUR FUNDS
When it comes to effectively running a small business, Dane says, it's all about "Show me the money."
"From a risk standpoint, you have to be well-capitalized and have a rainy day fund so you don't run out of money 12 or 18 months down the road," he says.
Evaluate how much you yourself can invest, then talk to family and friends about investing in your business, he says.
The more start-up capital you have, the better off you'll be when approaching banks, private investors and government agencies for more funds.
THINK BIG, BE BRAVE
Much of your success will depend on your ability to deal with risk, as it can take time for your business to turn a stable profit, he says.
You also need to have a strong vision of what you want to achieve, and an abundance of self-motivation to get you there.
"Running a business is very different from having a job," Dane says. "You need to consider your tolerance for risk and your ability for visioning. Also, you can't be afraid to knock on doors to build your business."
The Business Development Bank of Canada features an Entrepreneurial Self-Assessment on its website that individuals may take to help measure their entrepreneurial potential. To take the assessment, visit www.bdc.ca.
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