Freelancing vs Business Ownership: What’s the Difference

After years of working at the grindstone to develop a career, you’ve decided that you’ve had enough. The nine to five work life isn’t for you, and you’re sick of answering to other people. You want to make your own decisions and pursue your passions instead. The first step for most people will be going back to college. Taking out a student loan and returning to school will give you a chance to develop the resume that’s perfect for someone who’s going it alone. You can learn business management skills, or just develop a sale-able talent. However, once you’ve got that skill, you’ll need to decide how to use it. You have two options outside of the traditional realm of work. One is entrepreneurship and the other is freelancing. So, what’s the difference?

What’s Freelancing?

A freelancer is someone who, for the most part, works as their own boss. When you go this route, you use those skills that you learned in college to deliver a crucial service to clients around the world. You might be a graphic artist designing websites for growing companies, or a voiceover expert. You could even decide to sell your skills as a consultant in a particular industry. Just like an owner, you get the option to choose your own hours, and decide which customers you work with. 

At the same time, you’re responsible for your own taxes, finding clients that are willing to pay you, and finding opportunities for yours to grow. Additionally, like a business owner, you also get to choose what you charge for your services. However, as a freelancer, you only get paid for the hours that you spend working. There are no paid holidays or vacations here. That means, for the most part, the value is measured by the hours that you can put in, and the amount you charge for your services. RailsCarma

What’s Running a Business?

Becoming an entrepreneur or business owner is similar in a lot of ways to freelancing. However, instead of selling your time through services that you perform, you sell a service that’s delivered by an entire team. You could also choose to sell products, instead, it’s totally up to you. The biggest difference between running a business and freelancing, is that when you’re freelancing, you only get paid when you’re doing something for a client. When you’re a business owner, you can make money when you’re asleep, because your company is constantly making cash, with or without your input. 

For many business owners, freelancing is the first step to success. During this initial step, you learn how to find clients, talk to people, and develop a brand. What’s more, it is great because you get to pursue your passions at your own pace. However, you stop making money the moment you stop working. If you want to create a business that continues to generate real value for you and other people that you’re involved with, then you don’t need to freelance – you need to start a business.