Watching a documentary on Warren Buffett yesterday made me think about the length of my working life and how my self-employment idea sits within this context... I'm a Calvinist so I like the idea of being productive till the very end, doing something I enjoy. If I'm lucky enough to work until 80, that means I have almost 50 years left in my career, either employed or self-employed. (Warren Buffett is 79)
1.Do I still want to nbe working for someone else at 50, 60 or 70?
2.If I don't think my employed life is satisfying, is it too late to change careers or retrain, considering I would like to work (enjoyably) for 40 more years?
Asking myself these questions makes the idea of retraining an obvious choice to lead to self-employment if my current employment does not offer a convertible route to self-employment. It is definitely not too late for anyone under 40 to change careers and become self-employed.
The options for retraining for self-employment is quite wide. Being active in sports, I often wonder if doing something related to fitness, like becoming a self-employed fitness instructor or therapist is the right idea.
The idea of inventing something and taking it to market is even more attractive as a long term self-employment option. I'm quite certain that being an one-woman architecture practice is not quite an economically-sustainable self employment idea so changing careers and retraining is probably the best option as a self-employment idea.
Friday, 30 October 2009
Wednesday, 21 October 2009
Self Employment in Developed Nations vs Emerging Economies
My inspiring trip to Istanbul has encouraged me to make a few important decisions about my self-employment idea - I'm going to have a serious stab at setting up my architecture practice. Apart from this, I've also come up with a few interesting theories about the idea of self-employment.
Istanbul has made me think about the differences between the proportion of self-employed vs employed in emerging economies in comparison with developed nations. Common sense dictates that a higher proportion of people in developed nations are employed because of the better employment opportunities on offer. Plus, with fairer employment laws and greater employee rights, employment is a much easier option for most people. This is the different in less-developed nations where there are fewer employment opportunities and being self-employed is in many cases the only option.
Many businesses in old Istanbul are established more than 50 years ago. For instance, the oldest Turkish delight shop in Istanbul is 232 years old (est. 1777). What's the formula for their business longevity? Apart from low operating costs and uncompromising product quality, I think it might be because there is a strong culture of self-employment there.
Being employed is a relatively new idea compared to self-employment, only becoming widespread beginning with the industrial revolution and the rise of division of labour.
People thinking of self-employment and starting up are often reminded that 80% of new businesses don't survive for more than 5 years. It conjures an image of businesses going bankrupt but I think people give up self-employment because they find after a few years that it so much easier to be employed, and not because their self-employment idea is a dead end. Therefore, do not be deterred by this statistic.
Istanbul has made me think about the differences between the proportion of self-employed vs employed in emerging economies in comparison with developed nations. Common sense dictates that a higher proportion of people in developed nations are employed because of the better employment opportunities on offer. Plus, with fairer employment laws and greater employee rights, employment is a much easier option for most people. This is the different in less-developed nations where there are fewer employment opportunities and being self-employed is in many cases the only option.
Many businesses in old Istanbul are established more than 50 years ago. For instance, the oldest Turkish delight shop in Istanbul is 232 years old (est. 1777). What's the formula for their business longevity? Apart from low operating costs and uncompromising product quality, I think it might be because there is a strong culture of self-employment there.
Being employed is a relatively new idea compared to self-employment, only becoming widespread beginning with the industrial revolution and the rise of division of labour.
People thinking of self-employment and starting up are often reminded that 80% of new businesses don't survive for more than 5 years. It conjures an image of businesses going bankrupt but I think people give up self-employment because they find after a few years that it so much easier to be employed, and not because their self-employment idea is a dead end. Therefore, do not be deterred by this statistic.
Sunday, 11 October 2009
Encouraging Formation of New Self Employment Ideas
When I read about how entrepreneurs make their self-employment idea a great success, I often ask, "How come I can't come up with an idea this brilliant?" Perhaps the story is less simple in reality but I do question why I haven't got the 'juices' to come up with the 'perfect' self-employment idea yet. I'm a professional designer an yet I'm still unable to come up with a self-employment idea after 5 months.
I've decide to take action to expedite the process of coming up with a self-employment idea - going on a short break. I'm off to Istanbul for 5 days and I've promised myself that I won't spend time thinking about self-employment ideas (like I do everyday) while I'm there and just free my mind to allow ideas to come into it.
Perhaps I've been painting myself into a corner thinking along the same lines trying to find the right self-employment idea. I'm a believer in subconscious idea-generation so I'll put it to the test. I won't even bring my business and self-employment self-help books with me.
I've also given myself a deadline to come up with a self-employment idea and implement it one week after I return. I'll report back on whether the plan has worked. For next few days it'll be Turkish delight, watermelon-flavoured nargiles and ancient baths for me.
I've decide to take action to expedite the process of coming up with a self-employment idea - going on a short break. I'm off to Istanbul for 5 days and I've promised myself that I won't spend time thinking about self-employment ideas (like I do everyday) while I'm there and just free my mind to allow ideas to come into it.
Perhaps I've been painting myself into a corner thinking along the same lines trying to find the right self-employment idea. I'm a believer in subconscious idea-generation so I'll put it to the test. I won't even bring my business and self-employment self-help books with me.
I've also given myself a deadline to come up with a self-employment idea and implement it one week after I return. I'll report back on whether the plan has worked. For next few days it'll be Turkish delight, watermelon-flavoured nargiles and ancient baths for me.
Thursday, 8 October 2009
Self Employment Idea - Multi Level Marketing Schemes
I've met many people who are considering multi-level marketing schemes for their self-employment idea at business startup and self-employment seminars. I can understand the attraction although it's not something for me. And I come from Malaysia, the 7th largest multi-level marketing country in the world (a very high rank, considering it's not a big population). When I was living there, I was often pestered to sign up as a 'downline' or to buy their products.
Multi-level marketing schemes are attractive because it gives people a structured, easy-entry, no skills required, self-employment format, with support from a shiny big, usually American, company. After little training, you start selling. The product itself is immaterial, it could be skincare/cosmetics (Nu Skin, Avon), health supplements, etc. An example of a very successful multi-level marketing scheme company is Amway, which sells everything from chewing gum to the kitchen sink.
We all know how it works. But ask yourself the question, why this route to self-employment?
Some multi-level marketing schemes are genuine self-employment opportunities, but some are ponzi schemes, so, beware. Irregardless of whether they are ethical, multi-level marketing schemes only provide a short term solution to the problem of wanting to be self-employed. It offers a quick fix. No imagination or research required. Most of all, to be avoided at all cost - it will dent your integrity if you attempt to push sales on your friends and family.
I also don't see working on multi-level marketing schemes as self-employment. You actually work on commission for the big corporation who supplies you with the products and dictates your quotas and commission. The company of course tries to disguise this by reinforcing that you are empowered and successfully self-employed through the many training seminars offered.
Ask yourself these questions before you decide to make multi-level marketing schemes your self-employment idea:
1) Do I want to just escape the usual 9 to 5 or do I really want to be doing something that's uniquely me, I'm passionate about and fulfill a need?
2) Do I want to be associated with a corporation and working under it's umbrella?
3) Do I know when people are just saying what I want to hear? Am I easily persuaded into thinking great rewards can be achieved without any entry barriers or competition?
4) Is financial reward the most important aspect of self-employment?
Multi-level marketing schemes are attractive because it gives people a structured, easy-entry, no skills required, self-employment format, with support from a shiny big, usually American, company. After little training, you start selling. The product itself is immaterial, it could be skincare/cosmetics (Nu Skin, Avon), health supplements, etc. An example of a very successful multi-level marketing scheme company is Amway, which sells everything from chewing gum to the kitchen sink.
We all know how it works. But ask yourself the question, why this route to self-employment?
Some multi-level marketing schemes are genuine self-employment opportunities, but some are ponzi schemes, so, beware. Irregardless of whether they are ethical, multi-level marketing schemes only provide a short term solution to the problem of wanting to be self-employed. It offers a quick fix. No imagination or research required. Most of all, to be avoided at all cost - it will dent your integrity if you attempt to push sales on your friends and family.
I also don't see working on multi-level marketing schemes as self-employment. You actually work on commission for the big corporation who supplies you with the products and dictates your quotas and commission. The company of course tries to disguise this by reinforcing that you are empowered and successfully self-employed through the many training seminars offered.
Ask yourself these questions before you decide to make multi-level marketing schemes your self-employment idea:
1) Do I want to just escape the usual 9 to 5 or do I really want to be doing something that's uniquely me, I'm passionate about and fulfill a need?
2) Do I want to be associated with a corporation and working under it's umbrella?
3) Do I know when people are just saying what I want to hear? Am I easily persuaded into thinking great rewards can be achieved without any entry barriers or competition?
4) Is financial reward the most important aspect of self-employment?
Sunday, 4 October 2009
Recession-Proof Self-Employment Ideas #3
The last in the series of my recession-proof self-employment ideas:
4. Become a matchmaker- Market research has shown that over the last 2 years, 25-40 year olds are increasingly desiring long-term relationships, especially in the recession. The demand for this group to find partners and settle down is a self-employment opportunity - be a modern matchmaker. The idea is to not come across as trying too hard. Instead become a single events organiser. Use websites like Meetup.com to advertise your singles activities, be it picnics, sailing or wine tasting. This self-employment idea is incredibly satisfying (when you see results), everyday is different and you can use your energy and creativity to maximise your self-employment potential. One tip - if you can get more male participants to sign up, your self-employment idea will be an even greater success.
5. Open your house up as an informal restaurant or tea room - If you have space to entertain in your own home, why not make it a self employment opportunity? The home restaurant trend is sprouting everywhere across the US and UK. Invitations can be posted on social networking sites like Facebook. In 'Jamie in America', restaurateur Jamie Oliver visited a New Jersey home restaurant where USD30 and a bottle of wine got you into a banquet at the organisers house, along with about a dozen other guests. You can combine it with self-employment idea #4 and make it a matchmaking event too. This self-employment opportunity can start on a part time basis on weekends and see where this takes you. But try to stay legal.
6. Become a tattoo artist - Demand for tattoos is growing. Tattoos are now mainstream. People are getting tattoos done younger and more frequently. Remember it is easier to succeed becoming self-employed in a field where there is significant growth. If you are good with your hands, love tattoos and fancy using your creativity for self-employment, get some training from a tattoo artist and you are set. If you fancy self-employment abroad, Eastern Europe and the ex-soviet states are particularly attractive for tattoo artists as the tattooing trend is just starting there.
4. Become a matchmaker- Market research has shown that over the last 2 years, 25-40 year olds are increasingly desiring long-term relationships, especially in the recession. The demand for this group to find partners and settle down is a self-employment opportunity - be a modern matchmaker. The idea is to not come across as trying too hard. Instead become a single events organiser. Use websites like Meetup.com to advertise your singles activities, be it picnics, sailing or wine tasting. This self-employment idea is incredibly satisfying (when you see results), everyday is different and you can use your energy and creativity to maximise your self-employment potential. One tip - if you can get more male participants to sign up, your self-employment idea will be an even greater success.
5. Open your house up as an informal restaurant or tea room - If you have space to entertain in your own home, why not make it a self employment opportunity? The home restaurant trend is sprouting everywhere across the US and UK. Invitations can be posted on social networking sites like Facebook. In 'Jamie in America', restaurateur Jamie Oliver visited a New Jersey home restaurant where USD30 and a bottle of wine got you into a banquet at the organisers house, along with about a dozen other guests. You can combine it with self-employment idea #4 and make it a matchmaking event too. This self-employment opportunity can start on a part time basis on weekends and see where this takes you. But try to stay legal.
6. Become a tattoo artist - Demand for tattoos is growing. Tattoos are now mainstream. People are getting tattoos done younger and more frequently. Remember it is easier to succeed becoming self-employed in a field where there is significant growth. If you are good with your hands, love tattoos and fancy using your creativity for self-employment, get some training from a tattoo artist and you are set. If you fancy self-employment abroad, Eastern Europe and the ex-soviet states are particularly attractive for tattoo artists as the tattooing trend is just starting there.
Friday, 2 October 2009
Recession-Proof Self Employment Ideas #2
Continued from yesterday's "Recession-Proof Self Employment Ideas #1"
2. Anything to do with child care and learning- Even stay-at-home parents will to pay for a good babysitter and private teacher (not only for their child, but to give themselves a short break). People are having children, maybe not thinking of having as many, during the recession. I often do evening babysitting and after the children go to bed, I do research on self employment ideas, and get paid for my time. A piano teacher for children under 8 can earn £20 (USD32) for a half-an-hour's lesson. Opening up your own nursery or daycare once you have your child-minding qualifications in place is a great self employment idea as the demand for quality childcare is great, plus you get lots of holidays (Easter, term breaks and Christmas). I know a couple who own a nearby nursery that has a 2-year waiting list.
3. Property development- I know, you must think I'm crazy. The thing is, a recession is the only time when it's a buyer's market and bargains are to be found, unlike in the boom times when competition was keen for good properties. If you have some savings, go to auctions and try to find a plot of land or derelict property, in a desirable neighborhood with good transport links. 'Employ' yourself to do up the property and sell it on. Think also of making the property stand out by making it green and energy-efficient. It doesn't have to cost much. If the area is good and you've upgraded the property to a good standard, there will be buyers for it, and even if you have to wait until things pick up, the profit should be around what you would make in full time employment for 1-2 years. You could rent it out while you are waiting for the market to improve. I want badly to take up this self-employment idea, if only I had enough money to buy anything in London at an auction!
3 more recession-proof self-employment ideas ideas tomorrow ...
2. Anything to do with child care and learning- Even stay-at-home parents will to pay for a good babysitter and private teacher (not only for their child, but to give themselves a short break). People are having children, maybe not thinking of having as many, during the recession. I often do evening babysitting and after the children go to bed, I do research on self employment ideas, and get paid for my time. A piano teacher for children under 8 can earn £20 (USD32) for a half-an-hour's lesson. Opening up your own nursery or daycare once you have your child-minding qualifications in place is a great self employment idea as the demand for quality childcare is great, plus you get lots of holidays (Easter, term breaks and Christmas). I know a couple who own a nearby nursery that has a 2-year waiting list.
3. Property development- I know, you must think I'm crazy. The thing is, a recession is the only time when it's a buyer's market and bargains are to be found, unlike in the boom times when competition was keen for good properties. If you have some savings, go to auctions and try to find a plot of land or derelict property, in a desirable neighborhood with good transport links. 'Employ' yourself to do up the property and sell it on. Think also of making the property stand out by making it green and energy-efficient. It doesn't have to cost much. If the area is good and you've upgraded the property to a good standard, there will be buyers for it, and even if you have to wait until things pick up, the profit should be around what you would make in full time employment for 1-2 years. You could rent it out while you are waiting for the market to improve. I want badly to take up this self-employment idea, if only I had enough money to buy anything in London at an auction!
3 more recession-proof self-employment ideas ideas tomorrow ...
Thursday, 1 October 2009
Recession-Proof Self-Employment Ideas #1
I have been asked to address the popular topic of recession proof self-employment ideas by some readers. Which self-employment ideas would be untouched by the recession?
My friend just emailed me from Moscow, where she's been for over 3 weeks waiting for her new passport. The processing time has doubled because some staff at the passport office have been made redundant. So we can rule out working for the soviet government as recession proof...
I was curious to find out if those self-employed in the food and beverage business, particularly cafes in London, have seen their business affected by the recession. Everytime I buy something from a cafe (not coffee-after researching my cupcake cafe idea, I've been put off buying my usual latte) I always ask the owner/staff if today was a busy day, which day is the busiest, what's their best-selling product and if there were less customers now in the recession. The answer to whether there are less customers is"no/not really" everytime.
My friend just emailed me from Moscow, where she's been for over 3 weeks waiting for her new passport. The processing time has doubled because some staff at the passport office have been made redundant. So we can rule out working for the soviet government as recession proof...
I was curious to find out if those self-employed in the food and beverage business, particularly cafes in London, have seen their business affected by the recession. Everytime I buy something from a cafe (not coffee-after researching my cupcake cafe idea, I've been put off buying my usual latte) I always ask the owner/staff if today was a busy day, which day is the busiest, what's their best-selling product and if there were less customers now in the recession. The answer to whether there are less customers is"no/not really" everytime.
Based on my observations, I have a theory that all businesses that operate on a cash basis for items costing less than £5 (USD8) are more-or-less unaffected by the recession and their customers continue with their usual pattern of spending. Also, the lower the overheads, the more robust a business is in a recession. Small businesses also have a better chance at survival by adapting quickily to the changes in demand due to the recession.
If you are looking at self-employment ideas in this recession then here are some suggestions:
1. Weekend market stall trader - low overheads for stall rental and public liability insurance, cash-based business. You can sell anything from food to books, to second hand objects. If you make your food yourself in the your own kitchen, then it's even more profitable- no middlemen. Sell something that has a high profit margin, i.e. something that costs you very little to make or get but the regular retail price for it is high. examples are coffee, second hand items which you restore yourself, gourmet olives etc. Best of all you can do it part time in the weekends. I know a lot of established shops that have started as market stalls. Christmas is coming so book that stall at your local market early!
Cont'd with #2 tomorrow...
If you are looking at self-employment ideas in this recession then here are some suggestions:
1. Weekend market stall trader - low overheads for stall rental and public liability insurance, cash-based business. You can sell anything from food to books, to second hand objects. If you make your food yourself in the your own kitchen, then it's even more profitable- no middlemen. Sell something that has a high profit margin, i.e. something that costs you very little to make or get but the regular retail price for it is high. examples are coffee, second hand items which you restore yourself, gourmet olives etc. Best of all you can do it part time in the weekends. I know a lot of established shops that have started as market stalls. Christmas is coming so book that stall at your local market early!
Cont'd with #2 tomorrow...
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