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Is Work-From-Home a Threat to Canadian Jobs - Follow Up

Firstly, I would like to thank Harley Finkelstein, President of Shopify, for taking the time to respond to my post regarding the future of IT jobs. You can read his response here. I'd also like to give him credit for taking the time in responding to your questions.
In his reply, something that stood out to me was this quote:
By being digital by default we are able to hire from all over the world opening up the opportunity to a global talent pool to help us lead.
This confirms my original concern. That tech companies, including Facebook, Twitter, and Google, might be getting ready to decentralize their IT teams across the globe.
To my original post, some people made some very valid points.
The quality is bad and it takes too long
Yes, this is a very common experience among people who are either hiring freelancers or agencies to do the work. It's common for freelancers to work on multiple projects and not meet a deadline, and it's common for agencies to deliver poor quality code because there is often miscommunication between the agency's sales/project manager and their coding team.
Having a DEDICATED employee or offshore Shopify team is different. If Shopify decides tomorrow to hire a NodeJS developer from Pakistan, the employee will be proud to be a "Shopifolk", and dedicate 100% of his/her working hours towards the company. They would be proud to tell people they work for Shopify. During the hiring process, the employee would also be subject to the rigorous coding tests to ensure the company is getting the best-of-the-best from around the world. If they are very stringent, the company may also require the developer to install AI-powered activity monitoring tools while working since they will be on billable hours.

It's hard to work across time zones
This is a great point, however unlike most office jobs, technology jobs are pretty independent. Sure, there is some element of collaboration when discussing project requirements. After that however, developers work fairly independently for days, managing deadlines and committing code using tools like JIRA and GitHub.

There is a language barrier
I think a company like Shopify can attract some of the best coders from around the world who speak English as well as they can code. Most project communication would be done through email or collaboration tools. Thinking long term, like 10 years from now, the world's English is only going to get better, making language less of a barrier.

Hiring someone foreign is as expensive as hiring a Canadian
I am not sure about this. Sure, metro cities like Mumbai, Manila, and Moscow might be expensive, but there are many Tier 2 and Tier 3 cities that have very affordable living costs, cheap rent, and reliable internet. Many of them might even choose to live at home with their parents until they are married, a very common practice among Asian cultures.

Canada IS the outsourced market. US companies outsource jobs to us because we're cheaper
Okay, so we can agree that US tech companies outsourced American tech jobs to Canadians because of our cheaper currency, saving them 1/3 of the cost compared to hiring an American. Let's hope they don't further put profits over people, and outsource those jobs even further to drive down costs.

Canadians now have the option to work for global companies
This is definitely a great possibility for us Canadians. From a cost perspective however, Canadian employees may be seen as expensive on the global market. Let's say a Canadian Shopify employee currently being paid $6000/month in Canada leaves their job. Shopify puts that job on their Careers page and hires an amazing NodeJS developer from Philippines for $1,000/month. After 3 years, the employee from Philippines leaves their job. How inclined is Shopify to hire someone in Canada again for $6,000/month (6x more than the previous employee)?

In my original post, the points many of you made are very valid for today's work environment. However we need to think 10 years from now. What we believe are present barriers to hiring dedicated offshore remote tech employees are at risk of being solved in the long run. Our government needs to work on protecting our technology jobs because they are at risk of being shipped offshore much faster than our manufacturing jobs were. While this may not be a priority for our government at the moment, I hope protecting our IT sector will be a priority for them in the coming years.
submitted by hrishi11 to PersonalFinanceCanada

Behind the scenes of a small freelance editing and writing business (2019) - Revenues, profits, and advice

I thought it might be interesting for other freelancers to see behind the scenes of a freelance business. I hope it allows for some helpful comparison for other established freelancers, and as inspiration for those starting out that freelancing can provide a reasonable income. I know that there are likely many other freelancers out there doing better than us, and I'd love to know your secrets!
I originally posted about the finances behind the business in 2016, and I thought it would be helpful to provide an update. These facts and figures are for 2019, prior to COVID. I’ll post 2020 figures next year, but I’m currently projecting our income and profits for 2020 will be about 20% - 25% lower as a result of COVID (hence why an emergency budget is so important).
First, a little history. My wife and I have been running a freelance business for the last 14 years. Until 2016, we focused purely on proofreading and copy editing. In 2016, I decided to add freelance writing to what we offered, mainly to diversify revenue streams. Between 2016 and 2019, we managed to up our revenue each year, both due to taking on more work and raising rates. We work exclusively from home.

Here's an overview of how we did in 2019, starting with the financials. All figures are approximate, rounded, and shown in US dollars.

Total revenue: $146K

  • Revenue from proofreading / editing: $25K
  • Revenue from freelance writing: $120K
  • Revenue per day from writing: $500
  • Revenue per day from editing: $100

* Total revenue per day: $600

Total business expenses (excl taxes): $24K

  • Health insurance premiums: $11K
  • Accounting fees: $3K (I had some complex tax matters that I resolved in 2019, fees are for that and EOY filings)
  • Computer software and subscriptions etc: $2K (SaaS subscriptions, web hosting, etc)
  • Bank and credit card charges: $2K
  • Office costs: $2K
  • Business donations to charity: $1K
  • Internet and phone: $1K

* Other expenses: $2K

Total profits (pre-tax): $122K

Taxes (payroll / self employment, federal, state): c. $33K

Take Home Pay after Taxes: $89K, $7.5K a month

Living Expenses: $4.5K a month, $55K a year

  • We have paid off our mortgage and don’t carry debt.
  • We don't have kids, which significantly reduces our expenses.

* We do have “emergency” savings to cover six months of expenses.

Disposable Income: $3.3K a month, 39K a year

  • We spend 20% - 30% of this on charitable donations, larger projects, and fun stuff.

* 70% - 80% of this disposable income is invested over the medium to long term, mainly in retirement accounts. Only 15 years away from retirement and need to build those funds up!

2019 Revenue by Major Clients

  • Currency exchange business: $30K
  • Marketing agency for business formation: $26K
  • Fiverr Pro freelance platform: $19K
  • Marketing agency for cybersecurity and other clients: $14K
  • Marketing agency for SaaS: $12K
  • Supply chain business: $10K

* Ecommerce marketplace: $8K

Lessons learned

  • Diversification - Diversify among niches and clients as much as is reasonably possible. Don’t rely on one particular client for the majority of your income. Needless to say, the currency exchange business that was my biggest client in 2019 has not used me at all since March 2020, due to COVID. I definitely recommend multiple revenue streams for any freelancer, so you can protect your income.
  • Independence - The only freelance platform that we use is Fiverr Pro which we were invited to join. Fiverr Pro is for professionally priced freelance services, so we can charge as much on there as we do for off-platform work. We haven’t used other freelance platforms like Upwork or Freelancer.
  • Specialization - A narrow focus on specific niches and topics was key to success. On the proofreading / copy editing side, that means non-fiction, medical, and training. On the writing side, that means tech, business, and finance. Specializing means you can often charge more, and helps you get work in the first place.
  • Confidence - If you’re good at what you do, have the confidence to ask for higher rates. My B2B clients are happy to pay my rates for the level of service they get. The ideal position to be in as a freelancer is that you set the rates, not the clients.
  • Pricing - We always price by the project or per word - That works much better for our clients than hourly pricing. Additionally, if you can work fast and maintain quality, that often results in higher per hour fees. For example, if you can write a 1,500 word blog post for $200 in 90 minutes, that's an hourly fee of $125. Additionally, I started writing at 10c a word and slowly increased the rate every year, until the c. 35c a word I am on now. That feels like a sweet spot for my current level of expertise, and works for clients.
  • Automation and efficiency - Automation is really important. Less time spent on admin means more time that's chargeable to clients. Key efficiencies for us include IFTTT for scanning job boards and emailing leads, Zapier for transferring information between online services, FreeAgent for accounting, invoicing, expenses, payroll etc, TickTIck for project and task management, and Google Docs for working with clients.
  • Finances - It's really, really important to stay on top of finances, so you can see where you're making money, your key expenses, your financial outlook etc. We also have around six months of household expenses as an "emergency budget" which definitely helps our peace-of-mind!
  • Professionalism - This is vital. Presenting yourself as a professional businessperson, with confidence and poise is vital. In other words, it's not just about the work itself, it's about everything around that. Good communications, suggestions to the client, getting contracts in place, always meeting deadlines, following up - It all makes a difference.
  • Clients - Do everything you can to find regular clients. One of the biggest time sucks for a freelancer is seeking out new leads and applying to them. If you can get clients who use you on a regular basis, that's good for your bank balance, and for reducing time you spend looking for new gigs. For me, the revelation was marketing agencies, who find clients for you!
  • Finding leads: Find a lead generation tool that works for you. Much of my lead generation came to applying for very specialist jobs through job boards that I was highly qualified for. In 2020, I completely rebuilt my website and portfolio to concentrate solely on inbound leads, and get between 3 and 5 serious inquiries a month.
  • Work and life balance - Through all of this, it's important to keep a good work and life balance, especially in times of COVID!
  • Puppies - Pets are a wonder for freelancers. Perfect for the breaks you take, the love you share, and the need to get out and take them for walks (at least for dogs and wombats.) They're great for mental and physical health.
That’s it! I hope you’ve found this helpful and illuminating. Please let me know your thoughts, and I am happy to answer any questions.
submitted by paul_caspian to freelance

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