Three headlines in the paper recently caught my eye:
- "Five-year-olds encouraged to set up their own businesses" - about the proposed Fiver Challenge scheme in the U.K. to promote entrepreneurial thinking in children.
- "Want flexible working? You are not alone" - a report that 70 per cent of full-time workers would like the option to work flexible hours and days.
- "The reclusive founder who knew his limits" - about Amancio Ortega, founder of the Zara fashion chain and the third wealthiest man in the world (he's worth $64 billion), who focuses on what he does best and hires others to do the rest.
I've always encouraged readers to consider having a self-employed sideline at any point in their lives, one which could possibly grow into a full-time occupation and even continue into semi-retirement.Why? Working for yourself gives you more control over your life and work, including that flexibility so many employees desire.
In my own case, I started out as an employee, developed a sideline that eventually did become my full-time work, and have been able to carry that on into semi-retirement.
Working as an employee can give you a fair amount of security, plus various job benefits. Having a self-employed sideline at the same time can provide tax benefits not normally available to an employee - like deductions and income-splitting (paying family members in a lower tax bracket to work for you).
Going out on your own can be risky, which is why I encourage you to start a sideline while you have a job to provide a regular income, while you learn to be an entrepreneur. But even after you retire, turning a hobby into an income-producing sideline can be fun and profitable.Small businesses are a vital part of our economy, so you can often find financial and mentoring support.
While senior executives can earn large incomes, most success stories involve people who started their own businesses like Virgin's Richard Branson, Zara's Ortega and so many others. Even if you aren't five years old, it's an approach to consider.
Mike Grenby is a columnist and independent personal financial advisor; he'll answer questions in this column as space allows but cannot reply personally. Email [email protected].
