Feature -- by Mark Sproxton

Before jumping into self-employment, there are several things you will want to consider. What does self-employment mean to you and are you suited to this lifestyle? As with any employment decision, the proper time and research should be spent to make sure you're on the right track.

To begin, what does self-employment mean to you? It is a broadly used term that may refer to several situations:

Entrepreneurship - This type of self-employment refers to the individual who runs a business that sells a product or service and employs others. While this is the most risky form of self-employment, it also offers the most opportunity for growth and profit.

A One-person Enterprise - This differs from entrepreneurship in that the individual does not employ others. For this reason, it may often be a home-based business.

Consulting - A consultant may be working on several different projects for a number of clients. This offers a lot of variety and flexibility, but you must also be highly organized to complete all the necessary tasks.

Contracting - This is a grey area in terms of self-employment. Contracting involves working for an organization for a set period of time with no employee benefits. This is often viewed as another form of employment as opposed to self-employment due to the large number of companies that are using this method. If you fully expect to be leaving the organization at the end of your contract and are continually setting up other job prospects, you will be more likely perceived as self-employed.

Brokering - A broker markets other people's talents or products and earns their living by taking a fee for this service.

Talent Pooling - This situation occurs when several people with different skills and talents join together to complete a project. They will normally dissolve their working relationship once the project is completed.

Now that the types of self-employment have been examined, you need to determine if you have what it takes to be self-employed. Depending upon what article or book you read, there will be different characteristics that describe an entrepreneur. Simply scoring high on an entrepreneur quiz does not guarantee self-employment success. On the flip side, someone with fewer entrepreneurial qualities and a sound business idea and plan may be very successful. While the debate rages on, it is generally agreed that there are certain entrepreneurial qualities that will help you on your path to success. Some of these qualities may be a part of your personality, but it is always possible to learn or improve upon skills that you need to utilize.

Most people agree that a successful entrepreneur will possess most of the following attributes:

• Innovative: Do you think of ideas and solutions quickly? An innovative person will spot trends and opportunities and act on them.
• Open to Learning/Educated: While more and more entrepreneurs do have a post-secondary education, learning can come from a variety of sources. The important things is to be open to the possibility of learning and be aware of the different ways this can be accomplished.
• Open to Learning/Educated: While more and more entrepreneurs do have a post-secondary education, learning can come from a variety of sources. The important things is to be open to the possibility of learning and be aware of the different ways this can be accomplished.
• Flexible/adaptable: No set hours, no supervisor, no job description -- this all means that the unexpected could happen at any time. You have to able to react positively to change and keep on going.
• Self disciplined/organized: All of the drive and confidence in the world will not help you, if you cannot be self-disciplined in completing tasks. This takes a great amount of organization when you have no one but yourself to keep things moving.
• Willing to take calculated risks: A calculated risk is an action that is well thought out and likely to succeed. Being informed and having done sufficient research allows the entrepreneur the ability to take risks where they have some control over the outcome.
• Pro-active: Taking charge, making decisions -- these are both pro-active qualities. Entrepreneurs are self starters who are not dependent upon what others think of them.
• Self-confident: You must be optimistic and enthusiastic to achieve your goals. Believing in yourself and your abilities is an important quality.
• Willing to work long hours: Everyone's definition of long hours is different, but the bottom line is that self-employment is not a 9 to 5 job. You should be prepared to work until the job is done.

You may see these qualities in yourself. For more a more detailed look at the characteristics of an entrepreneur, check out the "Am I an Entrepreneur" Quiz from Western Economic Diversification Canada. Keep in mind, just because you score high or low in characteristics, does not mean you are destined for success or failure. Planning, research, a sound idea and funding opportunities are all part of the picture.

Now you've completed the entrepreneurial quiz, looked over the characteristics of an entrepreneur and might already be thinking about some business ideas. Of course, you do not operate in a vacuum, so the next step would be to look at the world around you. Now check out the article on the Calgary economic climate and see how you fit into all of it?