Many of us have used a 'Pros and Cons' list to help us make an important decision. But is it the best way to come to a wise decision?
We could make a pros and cons list of using a pros and cons list, just for fun...
- provides a thorough dissection of the significant factors
- gets all the ideas out of your head
- it's a record of factors if you want to go back and second guess yourself
- easy way to consider options and the opinions of other parties
- can slow down decision making, which can cost you money or opportunities - analysis paralysis
- it equally weights all the factors - (whereas one Con could be more important than all the Pros, or vice-versa)
- it will help you rationalize a bad decision
Humans are wired to make choices based on deep-set and powerful emotional drivers. We then use logical data to rationalize and explain our decisions. 'I had to get that new $40000 truck - it gets better fuel economy than my old truck. And that old thing is gonna need new tires soon. I got a good trade in allowance and got a discount. I needed another tax write-off, and well, I couldn't afford not to do it!' Meanwhile some of our real reasons for getting it was because it's our favourite colour, it makes us feel successful, it can tow the camper better and it's pretty exciting to pull the trigger on a big purchase. But those reasons don't always go over too well with the accountant. Or our spouse.
There is a better way...
Who gets to decide whether a worker will act as an employee or as a sub-contractor? It should be a key concern to independent contractors.
Some workers prefer the stability of a steady pay cheque and the ease of having taxes, EI and CPP deducted and remitted on their behalf at source. Other workers prefer the flexibility and tax write-off potential of sub-contracting.
My preference was strongly towards having subs.It offered me motivated workers, flexibility in scheduling, simpler books and less pressure. It kept labour as a cost of sales, not overhead.
So who should decide....workers or employers?
Turns out, neither...
WHY: WORK SMARTER, NOT HARDER