The latest job statistics surprised a lot of experts.  The Canadian economy created 35,900 jobs when a drop of 50,000 was expected.  Does this mean that the “Great Recession” is over and we can go back to our pre-recession binge of spending and borrowing as if there was no tomorrow?  Well, unfortunately the seemingly good news was greeted with considerable skepticism in some quarters.

It seems that the majority of those new jobs were created by out of work people manufacturing their own jobs.  While this might show that the entrepreneurial spirit is alive and well in Canada and individual initiative has triumphed over adversity, it might also show that many have simply given up looking for a full-time job.

Other shakeups in the economy have spurred an increase in new business opportunities.  Past downturns in the Alberta oil patch led to petroleum geologists and others starting their own consultancy companies.  Many junior mining companies got their start when major employers shed jobs and Canadian mining expertise was exported around the globe.  The same phenomena was seen in the tech sector after the dot.com bust.  During the 1990s recession self-created jobs were reportedly a major source of new jobs.

Not to discourage the budding entrepreneurs among us, but the sobering news is that for most of those creating their own jobs the rate of success is mixed at best.

So, if we can’t count on traditional employers to give us our jobs back any time soon, what can we do to give us a better chance of success in creating our own jobs?  Fortunately there are some sources of help: Business Development Bank of Canada; Small Business BC.  Similar programs are offered in other provinces and even individual cities. If you qualify for unemployment insurance check out the self-employment program offered through the government.

No matter how brilliant your idea is for a self-designed job or business, you will still need to keep a few essential things in mind:

1.)    Make sure your own personal finances are given top priority. Look closely at your debts, expenses and income requirements for the next 6 months to a year;

2.)    Create a simple but realistic personal financial plan – before you create a business plan;

3.)    Develop a business plan for your idea. There are free or inexpensive software programs available online. Libraries and various business centres have numerous books to assist you. The above-mentioned agencies can also direct you to further sources of help;

4.)    How are you going to fund your enterprise? Are you seeking outside funding, re-financing your house; borrowing from friends, family or other associates? Remember that most commercial lenders are unlikely to finance someone who is not putting up some of their own capital.

5.)    Seek out professional advice before venturing too far. While you have to be wary of naysayers, there are also potential supporters as well.

Creating your own job can be a great idea.  Adversity can indeed be the mother of invention, but it also requires some practicality to go along with your bold vision. Above all do your homework.  The better prepared you are the more likely you are to gain support for your vision from financers, clients, friends and family. Now go forth and prosper! – Karin Mizgala

Karin Mizgala is a Vancouver-based fee-for-service financial planner with an MBA and a degree in psychology. She’s the President of LifeDesign Financial and co-founder of the Women’s Financial Learning Centre.