The reality can include those things, but there is an entirely separate skill set and workload to consider. Sales, administration, finance, HR — you can outsource some of these functions, but the ultimate responsibility falls to you.
It can also turn into a grind, said electrician Carly Steiman, between the trade labour and hustling for new work.
“You’re constantly networking,” she said. “You’re constantly selling yourself, tastefully. You are constantly learning.”
The benefits of incorporating your business
Steiman has been an electrician for 18 years. She incorporated herself after working in film production as a contractor and joining a film union in Toronto. The union told her there were advantages if she incorporated.
“So I went to a lawyer and accountant downtown and I did all the paperwork and then I was invoicing production companies, and I was doing residential service calls,” Steiman said.
Her company, Lady Electric, now serves Vancouver for residential and light commercial clients, but Steiman didn’t stop with one business. She launched the Tradeswomen Calendar & Exhibit for women in trades, a national campaign showcasing women in trades, including a touring exhibit. She also started Workbee Home Services, a home maintenance services firm to help busy families and seniors manage their properties.
“I think what being an entrepreneur unlocks is when you see a problem, you don’t just complain,” Steiman said, noting that Workbee was started because she felt the so-called “sandwich generation” and seniors were enormous and underserved markets.
“It breaks the ceiling that you can actually build a tool or solve the problem or improve a bottleneck. For me, I look at the economy and I’m like, ‘There is so much opportunity.’ I don’t look at the economy and complain and say, ‘There’s so many problems’ and do nothing about it.
The perils of being a business owner
That being said, being a business owner is humbling and arduous, Steiman added.
Just getting a new business off the ground can be a lot of work, said Barbara Knoblach, a financial planner with Money Coaches Canada.
A would-be entrepreneur needs to confirm there is enough demand for their work, have contacts and potential customers, have six months’ worth of expenses in savings, and ideally some jobs already lined up, as well as working capital to get a business started, she said in an email interview.
Aside from assembling your professional team — bookkeeper, accountant and financial planner, for instance — it’s also critical to charge enough for your work, Knoblach added.
“Depending on your trade, you may have considerable expenses for tools, equipment, vehicles, subcontractors, insurance and materials,” she said. “You also need to account for the time you spend on work that cannot be billed directly to your customers. If you don’t take these expenses into consideration, you may end up working very hard without making much money.”
You should also review options for health benefits and disability insurance. Without employer benefits, Knoblach said, you have to protect your health and income in case of illness or injury.
New business owners will frequently find themselves navigating novel scenarios, Knoblach said. If you have employees, what will you do if they call in sick before a big job? What happens when business slows down, or if customers are late to pay?
“At the same time, your operating expenses continue,” Knoblach pointed out.
