Monday, April 1, 2013

Freelance vs Entrepreneur

A lot of people don't realize the difference between freelancers and entrepreneurs, or that there is even a difference at all. If you are going to work for yourself though, you need to understand if you are going to be a freelancer or entrepreneur because it makes a big difference on how you are going to make money. You also need to understand the difference in order to determine what you want to actually be, because you CANNOT BE BOTH!

Freelancers work for other people (even though you are your own boss). They must acquire a client, and that client pays them to do work for them. It's much like being a contractor but you get to set your own schedule (sometimes) and choose what type of work you want to work on. Usually their paycheck is proportionate to how many hours they put in.

Entrepreneurs work for themselves. They also have to pay themselves, so they have to figure out how to generate money from what they are working on. They get to set their own schedule, but the pay is not proportionate to the amount of hours they put in. The focus for an entrepreneur is not the direct implementation of the product, but everything else that goes with selling and marketing that product. They have to have a bigger picture understanding and cannot get caught in the smaller details.

Determine what your strengths are and also what you actually enjoy doing. If you love being in code or Photoshop and coming up with great new ideas for a product, you probably should stick to freelance. If you enjoy the business aspect and understand how to generate cash flow, then you should look at being an entrepreneur.

I'll write more about each one in future posts, so stay tuned!