Being self-employed requires a lot of planning, a bit of risk and a little creativity. But there’s no substitute for actually getting out there and doing it - being your own boss.
Here at One Stop Mortgage Corp. we work with self-employed people all the time because it can be hard to get a loan or mortgage when you don’t have regular income from an employer. Starting there, here are a couple other pros and cons of taking the self-employed plunge.
Pro: Following Your Passion
Anyone given the opportunity to work in a field in which they’re passionate will choose that job every time. Self-employed people still need to work for a living, but they work in a field they love. Doing work you enjoy makes it a lot easier to get better at that work, too - this is why the carpenter who built your kitchen cabinets is so dedicated to his job, this is why your local florist takes her time wrapping the perfect bouquets.
Con: Work That Ebbs & Flows
If you’re not bringing in a bi-weekly salary by putting in 40 hours each week in an office, then swings in the amount of work and the quality of work you’re doing are unavoidable.
Many sub-contractors fall into the trap of looking only at the here and now and forgetting to plan for the future. One job or client can pay off in a big way, but what about next month when that project is completed?
Pro (& Con?): Your Work, Your Rules
When you work for yourself you get to make the rules.
- mission statement
These are all common values and characteristics of any job, employee or otherwise, but when you’re the boss, it’s up to you to create values by which you operate.
Why is this potentially a con as well? Because there’s a lot to be said for knowledge acquired outside your individual sphere of influence. Pretending to know everything is a crutch, and it’s the reason cities like Vancouver create meet-up groups for sub-contractors and people who work for themselves.
Con: Mortgages & Loans From a Bank
Why is it so difficult to get approved for a mortgage by the bank when you’re self-employed?
Because banks in Canada are automated. Banks require a simple bottom line, a collection of numbers and criteria to give customers the green light. When you’re your own boss and making money job-to-job or client-to-client, those boxes aren’t checked off with the bank.
Fortunately the alternative financing world doesn’t operate strictly on automation. Real life situations and circumstances are taken into consideration so people who work for themselves can get mortgages and loans just like any employee would.
Being your own boss often sounds too good to be true (and in a lot of ways it is), but there are draw-backs that can be overcome as long as you plan properly.
Contractors and the self-employed may work differently and bring in revenue in different ways than employees, but once the job is done, the results are all the same - homes, vehicles, renovations and even New Year’s parties.