Should You Be A Freelancer or A Business Owner?
Do you know that you want to work for yourself but aren’t sure to what extent? If you are choosing between being a freelancer and owning a business, your first concern should be whether or not you want to continue to work for someone else. While you can pick and choose the gigs you take, you are still working by the hour or a flat rate and given a deadline. Take a look at some differences between being a freelancer and owning your own business.
A Freelancer Cannot Scale Their Business
Unless you have found a way to duplicate yourself, your work as a freelancer can only be done by you, one project at a time. Earn money this way and you find yourself still under the pay model of time traded for work. The worst part of this is that it never ends. There is a ceiling on how much money you make, even if you raise your rates and market yourself as an expert. Certain services and professions have a limit on what people will pay for it. Ever feel like there aren’t enough hours in the day? Being freelancer can intensify this, as you can only work for so many hours.
Freelancers get paid for their work. If you’re a freelance copywriter, you get paid when you work. Entrepreneurs use other people’s money to build a business bigger than themselves so that they can get paid when they sleep.
A Small Business Owner Needs More to Begin
Owning a business requires investment in time and money before profits can be seen. Big expenses like overhead tend to non-existent for the freelancer. Dishing out fees for businesses licenses, website and tools are an integral part of owning a business. In regards to time, a business owner can put in days worth of hours before seeing any profit, whereas a freelancer can get paid as soon as their invoice is received.
Freelancing Leads to Business Ownership
First-hand experiences you endure while being a freelancer can change the course of your business once you switch to being an owner. Lessons on selling yourself, your services and ways to get yourself paid when you need it are integral skills that cannot be bought. The opportunity to prepare for unforeseen circumstances can prevent loss in time and finances. If you had a chance to immerse yourself in a market you are attempting to penetrate, would you feel more comfortable starting a business doing it?
Freelancing Is Not For Everyone
You do not have to be freelancer first before starting a business. You may have resources and the correct plan to execute a small business without spinning your wheels first freelancing. A step by step guide will do the trick! Check out Action Mavens Free 30 Step Checklist for an outline of how to get started.