Is it worth it to become an entrepreneur right now?
Hi Christine,
I just started my career, but I’ve been feeling like maybe working for a big corporation wasn’t the right choice for me. At the same time, I’m also scared about going out on my own and becoming an entrepreneur. I’ve read so many statistics about how most entrepreneurs fail within the first year. Do you think it is worth it?
— Sally
Great question, Sally – one that a lot of people are pondering now that life has changed due to COVID. Entrepreneurs, these day, are like hard-core Navy SEALs - they just never give up! But there are some differences between genders, according to Industry Canada.
Women entrepreneurs tend to focus more on longterm relationships when building and designing their businesses to ultimately grow over time. Men, on the other hand, have a propensity for rapid growth and the preparation for a future sale of the business. They tend to look for a means to generate future opportunities and measure their success more so on monetary gains.
According to Industry Canada, women want to be business owners to create more freedom and flexibility, more family time, and they tend to have a higher degree of confidence about multitasking and managing every aspect of the business; much more than their same-aged male counterparts.
While self-employment is not for everyone, and certainly not for the faint of heart, Canada needs our entrepreneurs. They help drive the economy by creating future products, services and jobs. If you are a seasoned business owner or, like Sally, thinking of creating a life change to become a new entrepreneur, it is a good idea to establish an annual business plan which clearly outlines how your business will function and grow.
Most entrepreneurs use their savings to start their business, but now is the time to consider other various ways of sourcing capital. Commercial lending rates, just like residential mortgage rates, are at an all-time low. It will be important for you to find a good financial partner within your commercial bank. Someone that has experience and can provide a formal written financial plan to include both business and personal assets so you can see the full picture of how to build your business, your wealth and your future wellbeing.
Don’t be afraid to demand a higher level of service. You want a comprehensive approach, regular contact, and good banking services and products for your personal and business needs. You’re working hard at building a business, so get the banks to work hard to get your business!
Good luck and best wishes, Money Lady
Written by Christine Ibbotson, Author of the best-selling book, How to Retire Debt Free & Wealthy, and a new book, Don’t Panic – How to Manage your Finances and Financial Anxieties During and After the Coronavirus, available at all bookstores across Canada. If you have a money question, please email on website: www. askthemoneylady.ca