D. Smith: Creating your own work environment

Will the change to being your own boss will make you happy?

If you are not happy working for someone else, you can consider the options of being self-employed.

Ask yourself: Why are you not happy as an employee?

You need to establish if the change to being your own boss will make you happy.

Being your own boss can provide a feeling of independence and provide financial independence.

You have control of your own schedule and will be able to take time off when you want to.

Hopefully, these valuable points would become reality.

Choosing to be your own boss allows you to be creative and hardworking.

And for many business owners, you quickly become a “jack of all trades” as you will be responsible for all aspects of your business success.

There are many independent business owners who work longer hours than an employee does because of their drive to succeed or the need to get the job done.

You can reduce the cost of an employee or perhaps multiple employees if you are willing to be hands-on in your business.

Cash flow is one of the keys to surviving. You need income to pay for overhead costs, production costs and advertising.

It takes serious dollars to self-fund a business start-up.

It may take two or three years to secure a stable financial base in your business.

You need to do a budget to ensure the financial stability of your business plan.

It is important to establish a line of credit or business loan to fund your business.

Where will you get that money from? What interest rate will you pay?

Will you be able to access further capital in the future? What type of collateral do you have as security against debt in the business?

You want to maintain a good credit history so you can access future capital when needed.

Do you need to get life or disability insurance to cover your financial commitments and how much will this cost?

Make a list of what is needed to get started and the approximate overall cost.

You will need a business name, the required provincial or municipal licences, liability insurance, and bank accounts.

Advertising can be expensive forcing you to be  creative in trying to find ways to get the word out about your business.

Word of mouth advertising and happy customers are still among the best, and most affordable, ways to promote your business.

Many people start a home-based business on a part-time basis. When you have a home-based business, ensure you have the proper insurance coverage in force to protect yourself against a liability issue.

You do not want to risk being under-insured or maintaining home insurance coverage when it should be a blend of home and business insurance.

The business may eventually outgrow your home creating the need to find a retail storefront location.

There are government programs available to assist you in doing a business plan to help define many of the necessary details to get started and succeed.

Owning a business can be financially rewarding, and reward you with a greater sense of independence. Or, it can be a financial drain and time consuming process for you and your family.

Do your research and a business plan to see if owning your own business is the right choice for you.

Kelowna Capital News