You can certainly grow your project on your own with all of the DIY marketing and distribution services available. I would argue that building your career DIY for a few years before entering into a contract is vital because you will have more knowledge and clout to negotiate with.
It is possible to make a living through DIY effort, but you are only one person with so much time, energy and resources. Whether or not you ought to work with a record label is entirely dependent on your personal music career goals. Record labels can be a great business partner to help you grow your career if you are ready.