What is contributing to this move back into the home as a place of work? The songs and literature of the 60s and 70s speak of the coming of the Age of Aquarius. The astrological sign, Aquarius, signifies imagination, innovation, transmission of waves, communication, and technology.
Imaginative innovators have created a communication technology that allows an increasing number of people to return home to work. Norman Leach at the Winnipeg Chamber of Commerce states that a computer, a fax, and a cellular phone can do what office staff, desks, filing cabinets, and large offices once did. "This is the way business is going to be done in the future. One person can now run a consulting or architectural business."
People employed by the mega-corporations of the last fifty years are seeking a higher quality of family life. Their desire for independence, flexible working hours, low overhead and potential income, is contributing to their choice to venture into the home-based business world. This also has appeal to those who have been laid off, retired or unemployed.
The facts, based on data gathered by the Home-Based Business Project Committee, are staggering and dispel many myths. This project, which was initiated by the provincial governments with the assistance of the federal government, found that: 1 in 4 of all Canadian households run a home-based business; 50 percent are service providers while the rest are manufacturers and wholesalers; there are more males than females working at home; 22 percent are over 50 years of age; almost half of these businesses are in a non-urban area.
Home-based business is not a new phenomena. Childcare, handicrafts, plumbing and electrical businesses among others are common home-based businesses. The newcomers to the home-based sector lie in those fields where the computer has eliminated the need for support staff and office space, allowing a sole owner to run a business. And this is a key factor, given that it is illegal to hire employees who will be working on the home premises.
Can anyone successfully run a home-based business? Success needs to be assessed on an individual basis depending on one's values and goals. Edward J. Fasiska, Ph. D. researched the personality traits of entrepreneurs and corporate executives, comparing their preferences. A successful entrepreneur is considered to be a person who started and profitably operated at least one new business for a minimum of five years. Although the individuals surveyed were not likely home-based entrepreneurs, the results offer helpful information.
Successful entrepreneurs were found to be highly adaptable to different people and situations and willing to take risks to achieve future gain. They prioritized tasks in order to meet deadlines and were highly creative in their ability to think and act on new ideas and programs. When making decisions they strategically identify all the options and are equally able to be organized and follow a plan as well as spontaneously handle other situations. They are both goal and action oriented.
Mary Richards is a home-based business owner who protrays many of these characteristics. Utilizing the toys and games of her children, she began a child care and preschool program. Her education and experience as a teacher, along with clear, firm values has contributed to her success in communicating with parents, children and licensing authorities alike. Passionate in her decision to remain independent, flexible and true to her own beliefs, she states, "I feel strongly that there should be child care for parents who work part-time. Being licensed would inhibit me from doing so, because it is difficult to take part-timers and still make a go of an enterprise."
Mary believes that she has established the ideal business for herself. According to Richard Buskirk of UCLA the "model" business requires no financial outlay, has an identifiable market, and provides a service or product for which there is a perceived need. In addition, it has no government regulation that impacts the business, requires no additional employees, provides 100 percent gross margin and a product or service that is frequently purchased. The business has good publicity value and customers pay in advance.
Both Mary Richards and Irma Toews, a teacher of music and practitioner of the Alexander Technique, began their business with no financial assistance. Irma states that she never planned to have a business but circumstances necessitated it. She teaches voice and piano lessons from her home as well as at the Manitoba Conservatory of Music.
Exploring ways to cope with bursitis, Irma became intensely interested in the Alexander technique and now incorporates this relaxation method into her music teaching. Initially she marketed her business by word of mouth, but recently has advertised in a local newspaper. She states, "Having an additional technique has allowed me to branch out and help computer operators, actors, figure skaters and dancers learn to handle job-related tension."
If you are interested in starting a home-based business, Mary Fox, a counsellor at the Business Resource Centre, recommends "Do your homework first". Drafting a business plan is essential for obtaining financial assistance as well as ensuring the success of a business. At the Chamber of Commerce Norman Leach states, "3 out of 5 businesses are finished within 2 years, but not due to bankruptcy. In some instances owners obtain employment elsewhere. Most businesses fall because the concept or execution was wrong."
Perhaps owning a home-based business appeals to you but you don't have a good idea or the skills to begin such a venture. You don't know what a business plan is, never mind how to identify the marketing, financing and operating procedures necessary to establish a business. And the legalities of registering and licensing a business are overwhelming.
Don't despair. There is help and support in the Winnipeg community. Books and videos are available in libraries at the U of M Career Resource Centre, the Business Resource Centre and the Chamber of Commerce. Seminars and workshops are offered by the Business Resource Centre, the Chamber of Commerce, the YM/YWCA, and the Home-Based Business Network. Norman Leach was shocked at the interest in the Chamber of Commerce's first seminar, Starting a Home-Based Business. "We thought that perhaps 100 people would come. Six-hundred and seventy-five came."
While many university students despair at ever finding employment upon graduation and consider withdrawing and giving up, there are possibilities on the horizon. The transition into the twenty-first century is requiring everyone to stretch and learn to be flexible, adaptable, and innovative. With the increasing support to develop your own business, perhaps you will consider taking a risk. Learn how to surf the new wave and explore your potential for owning a home-based business.
Bibliographic Resources
Business Resource Centre. A Place To Start: Exploring New Business Ideas
and Opportunities. Book #17. Manitoba Industry, Trade and Tourism.
Business Resource Centre. Starting a Home-Based Business: Entrepreneur's Handbook. Manitoba Industry, Trade and Tourism.
Editors of Entrepreneur. Entrepreneur Magazine's Complete Guide to Owning a Home-Based Business. Bantam Books, New York, 1990.
Starting a Small Business in Manitoba: A Guide to the Basic Legal Requirements. Manitoba Industry, Trade and Tourism.
Home Business Report. A Canadian magazine published quarterly by HB Communications Group, Inc., #8-121 L'Amoreaus Drive, Scarborough, Ontario M1W 2J9. Home Business News: The Newsletter for the Homepreneur. Home-Based Business Network of Manitoba.
Orser, Barbara & James, Ted. Home Business: The New Reality. Prepared for the National Home-Based Business Project Committee. Entrepreneurship and Small Business Office -- Industry, Science and Technology Canada, 1992.
Community Resources
Career Resource Centre, 474 University Centre, University of Manitoba.
Business Resource Centre, 5th Floor, 155 Carlton, Winnipeg, Manitoba.
Manitoba Chamber of Commerce, Winnipeg, Manitoba, 942-2561, Library & Workshops.
YM/YWCA. Self Employment Assistance Courses.
Home-Based Business Network. 97 Wordsworth Bay, Winnipeg, 889-9068. Seminar Series on How to Start a Home-Based Business, How to Reduce Taxes, How to Manage Self for Success, etc.
This change is leading to the development of a new profession, the financial planner. A financial planner serves two roles.
First, a financial planner aids their clients in developing a road map for their financial success. This involves preparing current financial statements, analyzing current investments and insurance policies and preparing recommendations to meet financial objectives.
Second, most financial planners also provide additional services to their clients. This may include investment and insurance product sales, income tax preparation, and mortgage or loan brokerage.
Clients look to their financial planner as an advisor to guide them through today's maze of financial problems and income tax regulations. Living up to this expectation requires proper education and experience. Most financial planners have a university degree (commerce, economics, and education are the most common), however, industry professional studies provide the most practical education.
Most financial planners start their careers in a sales capacity with a large financial institution. After a few years, the individuals who gravitate to the area of financial planning usually leave large corporations to operate as self-employed professionals. However, many large fniancial institutions are now adding financial planners as staff professionals.
Information on careers in financial planning is available from the Career Resource Centre or contact The Canadian Association of Financial Planners.
These skills can be developed through your university courses, a part-time job, summer employment or a volunteer position. Brainstorm to find examples of these skills in your past:
Technical Skills
Generic Skills
Self-Management Skills
To help determine your skills, attend a Career Orientation at the Student Counselling and Career Centre to find out more about career testing and skills assessment or refer to the various resources in the Career Resource Centre, 474 University Centre.
A recent issue of Manitoba Prospects provides a ten year market outlook for over 200 occupations. Many occupations including chef, computer engineer, aircraft mechanic and chiropractor show above average prospects. Architects, broadcasters and professors are a few with below average prospects. Does a below average rating mean you should not consider this occupation?
Dr. Paul Phillips, Professor of Economics and Labour Studies at the University of Manitoba, acknowledges the difficulty in finding good general labour market and job prospect information. "Most of the material is either projection of past trends or futurology," he contends. He notes that many important trends have affected the world of work over the past decade.
Non-traditional forms of work including telecommuting, homework, self-employment and term-contracting are becoming more common, according to Dr. Phillips. Entrants into the work force may work from contract to contract without any type of benefit package. He also notes that there is significant increase in upper income workers working longer than 50 hours/week and an increase in lower income workers working short weeks, part-time or short years.
On a more positive note, he adds that "the most recent labour force data indicates that the economy is now creating more full-time jobs and less part-time". This is particularly true in the manufacturing sector. Dr. Phillips warns students not to expect public sector positions, traditionally a major source of employment of professional and graduate labour.
Ray Cote, Manager of the Career Planning and Placement Service, has noticed changes in on-campus recruitment over the past decade. Small local businesses, not large local companies, are increasingly searching out students. Mr. Cote notes that postings for computer programmers, analysts, and sales people are cropping up frequently on campus job boards. Demand exists, too, for customer service personnel in many industries including transportation, insurance, retail and telecommunications.
A realistic view of the labour market is useful for those struggling to make a career decision. Dr. Phillips recommends Perspectives, a quarterly of labour market articles published by Statistics Canada and Canadian Social Trends (Vols. 1-2). Information is also available in the Career Resource Centre.
A clear goal, work and volunteer experience, appropriate course work, a strong network, and a willingness to relocate are factors that can increase chances of employment, despite the outlook. Transferable skills and a contingency plan can make you more resilient when times get tough.
Small Business Task Force
Winnipeg Chamber of Commerce
500-167 Lombard Ave.
Winnipeg, MB
R3B 3E5
(204) 944-8484
Women's Enterprise Centre
240 Graham Ave., Main Floor
Winnipeg, MB
R3J 0J7
(204) 988-1860
Federal Business Development Bank
Student Summer Loan Program
1100-155 Carlton
Winnipeg, MB
R3C 3H8
(204) 983-7900