Freelancer or Entrepreneur?

Yesterday, I got a call from a gentleman who is considering starting a business. We batted some lingo back and forth, covered some different business ideas, and tried to define his passion (more on that tomorrow). 

After our half-hour phone call, I started crafting a list of questions to send over to him to narrow down what he's really after. One of the questions was to make the decision of who he wants to be: an entrepreneur or a freelancer?

If you're in (or going into) business, this distinction should be made early on. If not today, certainly by tomorrow.

By definition, a freelancer is someone who works for different companies at different times, rather an being permanently employed by one company. In other words, I, the freelancer will provide the customer with a certain service or product, in exchange for a dollar amount we agree on. Freelancers are often designers, artists, musicians, contractors, etc.

An entrepreneur, on the other hand, builds a business bigger than himself. His business turns a profit while he's sleeping, or in Cancun, or bicycling. In the early stages of business, the entrepreneur acts as a freelancer. He does the sales, the accounting, the production, the marketing, the warranty work, the forecasting.. Everything there is to do in a small business. Where he becomes an entrepreneur is when he hires people who can do all of these jobs better than he can. This frees him up to work on the business, not just in the business (or to hang out at the beach with his family).

There's no right or wrong answer, but there needs to be an answer. Too often, start-ups fail because someone who thinks she's an entrepreneur works her head off trying to make the business make enough money so she can finally get away. Upon her return, she is dismayed to find out that her employees unknowingly sabotaged her operation, because no one knew how to do everything she knew how to do.

On the flip side, a freelancer has less to lose. If he doesn't show up to consult his client's HR department, he doesn't get paid. If his client's website doesn't get finished, he has no one to blame but himself. If he does show up to consult, he gets paid. It's a much simpler way to do business, but for some, it doesn't give them the freedom they're looking for.

Take a look at where you're at (or where you'd like to be), and make that distinction. It can change the course of your business's growth, and consequently, your life.

If you want me to guide you through this definition process, zip me an email using the form on the right!