Ten ways to leave your job

By VIKKI BLAND

If people on salaries spend half their time dreaming about self-employment, it's a fair bet the self-employed hanker for a reliable income and salaried employee perks.

However, self-employment remains a popular work choice in New Zealand with Department of Labour research showing more people are turning to self-employment for work flexibility. In the quarter to June 2004, 12.7 per cent of the working population (around 250,000 people) were self-employed earning an average weekly income of $873.

Loran and Tony Reid, retail proprietors of The Longboard Shop on Auckland's North Shore, say there are positives and negatives to self-employment.

"You deal with people in a real and genuine manner as opposed to having to follow a corporate formula or philosophy. You are also independently flexible. However, retail is a consuming work environment weighed down by invasive and numerous Government statutory requirements," he says.

The paperwork required to meet income tax, ACC, GST and employment laws is regularly cited by the self-employed as a hindrance to their success. Fluctuating incomes can also cause stress for those trying to meet regular mortgage payments or buy stock at the right time.

However, for those who are self-employed, do not employ staff, and those with relatively simple operations and low overheads, the venture can be a path to personal freedom and accountability.

In June, Orewa music teacher Ross Brown told the Herald how financial security took a back seat in his life when he gave up a graphic arts career to become a music tutor and to coach the sports team of his 6-year-old.

"You could never pay me enough money for the time I spend with my boy. I am not going to be one of those self-employed people who work [constantly]," said Brown.

So if you want to leave your job and go self-employed, where does one start? The first thing is to decide what you want to do, which often comes down to doing something you are good at and have a passion for - perhaps even developing a hobby into a paying job. (But then you have to find another hobby.) You have to do what you love as a self-employed person or it won't work.

To help you decide the best way forward, we have put together 10 solid starting points for you to consider. Good luck.

Retail

There are more than 49,000 retail outlets; the vast majority of these (around 41,500) are independently owned and operated.

Training: working for, or closely observing, successful retail operations. Formal retail management training is available.

More information: New Zealand Retailers Association


Etail

Selling or doing business via an internet site is a growing trend. Most people begin while employed elsewhere then manage the website fulltime when it can deliver sufficient income.

Training: solid knowledge of target web audience; understanding of web hosting, web design, search engine and security technologies.

More information: NetGuide

Franchises

There are more than 350 franchise systems in New Zealand; 74 per cent are home-grown. Franchising employs more than 40,000 people and those who sell franchises (franchisors) have a vested interest in the success of the franchisee and so often offer help and guidance. But it can sometimes mean working to a strict system that curtails the entrepreneurial spirit.

Training: Typically provided by the franchisor

More information: Franchise Association of New Zealand


Freelance

Often these are sole traders who work when they want or when work is available. There is no provision for annual leave or sick leave. It's a no work - no pay career.

Training: freelancers are typically highly skilled in their fields before opting to be self-employed.

More information: Search out trade associations at the library, in the telephone directory, or website search.

Contracting and trades

Contractors are engaged fulltime or part-time with work periods and payment guaranteed in advance. Employment agencies can provide work to specialist and executive contractors. Tradespeople such as plumbers and painters can work on contract or for individuals.

Training: Contractors are expected to be fully skilled before they apply for work.

More information: Search out trade associations at the library, in the telephone directory or website search.

Manufacturing

Manufacturing comprises some 22,000 businesses employing about 240,000 people. Excluding processed primary products, manufacturing contributes 40 per cent of export earnings and 17 per cent of New Zealand's gross domestic product.

Training: Many academic and on the job courses are available, according to industry.

More information: Employers and Manufacturers Association


Home-help and child-minding

Includes thousands of people self-employed but contracted by ACC or working casually to provide home-help and child-minding services. The job offers low pay, but wide entry opportunities.

Training: life skills, personal values including commonsense, honesty. First aid certification may be required.

More information: WorkSite


Exporting

The value of New Zealand's merchandise exports for the year ended December 2003 was $28.34 billion, a decrease over the previous year as a result of New Zealand's strengthening dollar. The growth export markets for that year were Papua New Guinea (55 per cent), Denmark (68 per cent) and Russia (37 per cent).

Training: regular events and "get started" courses advertised through Export Association, NZ Trade and Enterprise publications or regional Chamber of Commerce.

More information: MarketNZ


Teaching

Flexible and often rewarding self employment. Numbers are difficult to estimate due to casual and undeclared tutoring. There are options to work during the day or at evening classes.

Training: An acceptable level of proficiency and/or qualification in the subject or skill being tutored.

More information: Tutors Home


Property

There are about 15,000 real estate sales people in New Zealand and it is a highly competitive career.

Training: Certificate of Approval from the Real Estate Licensing Board. A National Certificate in Real Estate can be gained through tertiary providers.

More information: Real Estate Institute of New Zealand


* This is just a brief list of the trades you can explore in self employment.


WorkSite

IRD