The latest buzzword in the current job market is “Freelancing“. When we compare a Freelancer with a Businessman, both face specific pros and cons in their workspace. Before heading into this discussion which has priority on the other, let us briefly introduce Business and Freelancing.
How can you define a Business?
A business refers to an organization that carries out Professional tasks and ventures for the uplift and success of the corporation. Business is a legal process to earn profit. It’s composed of three units, i.e. Production, Sale and Purchase.
Furthermore, the business has different shapes and types, like a Corporate Business, LLC (Limited Liability Company), Partnership based Project or Sole proprietorship.
What is Freelancing?
Freelancing is also a business that falls under the sole proprietorship category. A Sole proprietorship business is an independent business controlled and organized by one individual.
Why do companies need freelancers?
Despite the growing recognition that more corporations are hiring unaffiliated workers or temporary contract agents, there needs to be more research on how a freelancer can provide a value-added service to an organization more decently. Many facts and figures determine that freelancers replace employees in most organizations. They are assigned to do similar chores already provided by company workers. Recently, another perspective of freelancers has emerged: uncompetitive and metamorphosed workers who can turn a failed business into a nimble and entrepreneurial one by creating job opportunities for the employees. There’s so much a freelancer can do to uplift and expand your business.
In contrast, if we do comparative analyses, we will know that conventional full-time employees are more expensive than freelancers. Company owners are responsible for giving compensation to their workers other than fixed wages. It includes paid time off, health plans, life insurance, and profit sharing. On the other hand, hire a freelancer and eliminate all these additional costs.
So, What Should Be A Freshman’s Choice?
Understanding the pros and cons of each business entity helps you figure out which option is right for you.
Freelancing has many positive aspects in itself. Freelancers have the unique skill of earning money. In many fields, freelancers can earn money at a much swifter pace than entrepreneurs. The main reason is that a businessman takes time to get up his business and make it profitable. For example, most of the new websites in the market earn less or zero money at least three to six months after their launch. Freelancers are associated with the net job creation in any company; however, their lifestyle has more freedom-oriented than traditional full-time employees.
On the contrary side, the founder of any business or startup spends money to build an organization for him. A business needs an idea for a kickstart. It involves a lot of time, energy, critical thinking, and investment. A company takes ownership of every issue and problem related to its organization and hires a team to cope with any difficulty.
How to transition From Freelancer to Entrepreneurship:
The journey from freelancing to entrepreneurship can be smooth. For many people, Freelancing is considered the first milestone in business ownership. After gaining experience in this field for a few years, it’s a good idea to step into the next stage and become an entrepreneur. For this, you need to have some main points in your mind. These points will help you a lot in this transition.
Market Research is a must: Research is the key to success. Before getting any niche for business purposes:
Do your research and keep in mind all the problems and solutions regarding the product.
Brainstorm the key ideas regarding the product.
Try to come up with something unique and inspiring.
Robotize your expertise: You must find variable ways to enhance and automate your freelancing expertise.
Hire compassionate people: A freelancer usually does all tasks independently. When you step into entrepreneurship, you should hire like-minded people to leverage your time.
Determine Your Worth: As a freelancer, you sometimes cut back on the rates to get more projects and eventually start losing your worth. You have to change this mindset to become a worthy and successful businessman.
Approach Time Differently: Freelancers work according to their flexible schedules. Entrepreneurs should understand that they must work throughout the week until their business becomes manageable.
Become Opiniated: Being an entrepreneur, learn to say ‘no’ when required. It is essential because it means you can differentiate between success and failure.
Don’t Quit Freelancing Altogether: Some people think stopping one thing before starting another venture is better. On the contrary, I would suggest it is better not to cut off your income immediately unless your new business has settled down.
Have savings: Another actionable tip is even if your business is booming, you should set aside a specific amount in a separate account each month. This way, you will be confident and stress-free that if the tables turn around and your business faces some rocky situation, you can manage your expenses with your savings.
Networking: You know the worth of networking, so this is the time to take it to the next level. To be successful in any industry, you should encircle yourself with trustworthy people.
Incorporate Technology in your System: Technology can increase the efficiency of your system. Put your system in the right place to determine your future success.
Search the Right Information: Becoming an entrepreneur is not a piece of cake. You need to work hard and focus on your goals. Many platforms will help you access excellent tips, techniques, and all the correct information, which leads to success.
Take Action: You are all set to take a leap and get into action. The journey from freelancing to entrepreneurship is daunting yet achievable. Build your momentum and move forward. Nothing can stop you.
Freelancers have a profound impact on businesses. Moving from a Self Employed freelancer to a Business Owner is a step in the right direction. However, Freelancing can be a great career itself. It all depends on how much time and effort you can put into your work. Your commitment will decide your growth.