Freelance vs. Entrepreneurship

The workplace is changing. As we begin to steer away from the traditional 9-5, new options for employment are on the rise. Two of these options are freelancing and entrepreneurship. Often, the two terms are used interchangeably, which can cause confusion. In this blog post, we’ll go over the differences between freelancing and entrepreneurship.

Freelancer 

A freelancer is someone who uses their skills to work for their money. Whether it be writing or photography, freelancers are paid for projects; either by the hour or in one lump sum. Because freelancers work for themselves, they are able to set their own rate, decide which projects to work on, and manage their time however they’d like (goodbye 9-5!)

Freelancers are becoming more and more popular in the gig-economy, and the potential to be your own boss attracts many professionals entering the workforce or looking to change up their career. Although there are opportunities for long-term contracts for freelancers, it is generally a less stable than the traditional 9-5. In order to be a successful freelancer, you must be extremely self-motivated, have great time management, and be ready to plan. A freelancer’s compensation requires constant effort, so it is by no means an easy route to take.

The goal for freelancers is simple: work for self and have a steady and stable income.

Entrepreneur 

Entrepreneurship requires many of the same characteristics as freelance, but it is a bit more complicated. Entrepreneurs are the people who create businesses that go beyond the freelancing world. Entrepreneurs set up systems that do work for them — instead of working for their money, they set up businesses and hire employees that will generate passive income.

Some keys to successful entrepreneurship are a strong clientele, established systems that generate leads, and comprehensive team management. Entrepreneurship is more risky than freelance, because it requires larger investments, but the earning potential is significantly higher.

The goal for entrepreneurs: build a business that will continuously produce steady, growing profit.

Take Away:

Whether you are a freelancer, entrepreneur, or thinking about becoming either, it is important to establish a plan and stick to it. Working for yourself is not easy, and requires some serious self-discipline. There are also other unique elements of self-employment that should be taken into consideration (ex: taxes.) However, the working world is changing up quite a bit right now, and with the new decade right around the corner, now is the time to take risks.

Look for more insights on the world of freelancing, check out The Ultimate Freelancing Guide.