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Life as an Entrepreneur

There are about 16% of Canadians who consider themselves as self-employed and the trend is increasing. There are many benefits and pitfalls for being self-employed. Although the thought of being in control over your schedule sounds appealing as an entrepreneur, there are other things to consider before making the deep dive into this adventure.

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The ability to claim expenses, ranging from transportation, telecom, car leases, computers, and meals, is a plus since an employee cannot reduce their income. However, claiming expenses is only beneficial if you have income. There are other expenses that you would otherwise not need to incur as an employee. These include supplies for the business, admin expenses, bank accounts, rent, taxes and registration fees. Keep in mind that business expenses should be reasonable and used to generate business income.

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In terms of flexible hours, successful entrepreneurs are extremely hard working and may work more hours than regular employees. The hours can vary depending on the type of business that the entrepreneur is working in. For example, real estate agents may work mostly during weeknights and weekends but can dedicate some time to research during the day. 

Stability is another factor that entrepreneurs must face. Although it can be a lucrative business, there are peaks and valleys with respect to the client base. There may be times when it is extremely busy and profitable while at other times, the economy slows to the point that the business cannot cover their fixed costs. As an employee, there is somewhat some stability including paid benefits but it does not prevent one from not getting laid off.

Before starting a business being self-employed, there are many factors to consider.  Once you are prepared, you can be ready to take the leap.

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