Welcome to Episode 1 of the Freelancers and Entrepreneurs podcast!
Freelancer or entrepreneur Which one are you?
Here is the full transcript:
0:07 Hi there. I’m Paul Urwin and welcome to the Freelancers and Entrepreneurs podcast where freelancing meets entrepreneurship and business. We discuss clients, sales marketing, outsourcing, mindset, and much, much more. Find out more at freelancers and entrepreneurs.com.
0:30 Hi there, Paul here and welcome to Episode One of the freelancers and entrepreneurs podcast. If you are a freelancer or entrepreneur, looking to take your business to the next level, well, you’ve come to the right place. This is the show for you. In this episode, I’m going to be talking about the differences and similarities between freelancing and entrepreneurship. And I thought I’d start with a couple of definitions from the dictionary. That’s right. A couple of boring but
1:00 Important definitions. So, according to Merriam Webster fantastic dictionary, a freelancer is a person who pursues a profession without being associated with an organization. While an entrepreneur is one who organizes managers and assumes the risks of a business or enterprise. So pretty straightforward, right? a freelancer is someone who works for themselves, essentially, essentially has different clients while an entrepreneur is someone who starts a company and takes the risks associated with that company. Well, from that definition, they sound quite different. But actually, I think in practice, there’s a whole range of people somewhere in between Freelancer and entrepreneur. And if that sounds like you, then I have a feeling that you’ve come to the right place. There’s also a term out there that’s more frequently used these days, and that term is solopreneur. A solopreneur
2:00 Is someone who is very similar to an entrepreneur, but someone who builds a business on their own without a team, so they are more likely to carry out more of the tasks themselves. So again, that’s another definition that perhaps is somewhere between freelancer and entrepreneur. So today, I just want to really explore those definitions a little bit more and talk about what it means to be a freelancer and what it means to be an entrepreneur. And I would start off by saying, There’s absolutely no right answer to this at all. It’s more about finding the right answer for you. Where do you feel comfortable and are you where you want to be right now? So what does a freelancer do? Well, a freelancer essentially exchanges dollars for hours. It’s someone who’s going to be working on a particular task in a particular profession. You might be a writer, you might be a designer, you might be a translator, something like that, but you aren’t going
3:00 To be exchanging your time for a payment, and normally a freelancer is going to have a number of different clients a portfolio of clients. Now the great thing about being a freelancer is that you don’t have to work nine to five in a job, you don’t have a boss, you are independent, all those kinds of things. So that’s absolutely fantastic. But in terms of income, that usually is a limit. So as time goes on, you can probably increase your hourly rate, you can get better and better clients, but at some point there is going to limit is going to arrive and it will be difficult for most freelancers to break through that limit and earn even more money. Some of the advantages of being a freelancer include the fact that if you really love what you do, if you love being a writer, or if you love being a designer, then as a freelancer, you are really able to
4:00 Focus on your profession, you don’t have to deal with some of the other things that that are involved in running a company like making payments or dealing with some of those problems that always come up as an entrepreneur. So you’re going to have fewer distractions and fewer management issues, but you will have that income limitation. Now, as an entrepreneur, you’re going to be building a team usually, and you’re going to be employing some kind of leverage. And what do I mean by that? Well, you might have a team of people working for you, who are you producing or carrying out a particular task and that is going to enable you to service or to provide solutions to more clients. So as a result of that leverage, and building a team and servicing more clients, you are going to be able to increase your income usually. Now that doesn’t mean it’s easy.
5:00 But normally entrepreneurs are not going to have any kind of income cap, because if they can build the team in the right way and provide solutions to more and more clients, well, then there really is no limit to how far you can grow your company. But of course, it comes with quite a few downsides for many people. Anyway, you’re going to have to learn how to manage other people, you’re going to have to take responsibility. For example, if you are a writer, and you hire other writers, and then you submit some of that writing to a client and the client doesn’t like it, well, then you’re going to have to take responsibility for that piece of writing, even though you didn’t do it yourself. You might have reviewed it, but at the end of the day, if you are the entrepreneur, if you are the boss, you are going to have to take responsibility for everything that goes on within your company. And some freelancers don’t like that. They don’t like that responsibility. They prefer to focus on themselves and they prefer
6:00 To focus on on their own business, but their own business is is them. So that can be a great approach as well. Definitely as an entrepreneur, you can lose the ability to focus on your core activity. So once again, if you are a designer, or if you are a writer, or if you’re a photographer, then as you become an entrepreneur, and as your business grows, then you are more likely to focus on other areas. You’re going to be focusing on hiring and firing, you’re going to be developing more clients, focusing more on sales and marketing. So a whole host of other activities which can actually take you away from your core activity. You can’t build a company without making some sacrifices. And for many, that is a significant sacrifice, and that is why many freelancers choose to stay as freelancers. I think that’s one of the one of the main reasons actually
7:00 As an entrepreneur, you can sometimes experience higher levels of stress as you are definitely taking more risk. But I think a lot of those stressful moments as well apply equally to freelancers moments when there’s nothing coming into your inbox or moments when you have lots of clients at once, or moments when you don’t have any clients at all. So I think lots of stress related issues are common between both freelancers and entrepreneurs.
7:33 One of the disadvantages of working as a freelancer is that when you stop working, you are simply not going to be making any money because you are the person who produces the money in your business. So if you go on holiday for a few weeks, or if you want to go away for a month, then it is unlikely that you’re going to be able to make much income during that time. There are other ways to make
8:00 income as a freelancer so it is possible to to make some additional income. But generally speaking, you’re not going to be able to make money while you are not working. Whereas as an entrepreneur, you can actually achieve that you can actually set up some processes, you can set up a team and you can actually produce money from a business that doesn’t rely entirely on you as an entrepreneur, you definitely have this significant growth potential you can triple your income or even more after some people status is important. So as an entrepreneur, as a business owner, people have a certain status that they associate with that sometimes and I’m not talking about that photo of an entrepreneur getting off a private jet I think that’s a bit far fetched for most people but certainly as a business owner one is able to talk to other business owners at the on the same level if you like, and that for some people
9:00 is important in terms of status for others, it’s simply important to be the very best freelancer, they can possibly be the very best photographer, their very best brighter, or whatever it may be. So. So I think status is more important to some people than for others. as a freelancer when you eventually stopped working, if you are the business, then then there’s not going to be much of a business left without you. And that’s fine. Again, for many people. If you if you move into retirement and you’ve had a great career, then you can simply hand over a few clients to one of your colleagues and, and retire peacefully or move on to something else quite happily. So it certainly works. But as an entrepreneur, you do have the opportunity to create a company or to build a business that can work without you and therefore at some point you could actually sell that business that entity that business has a value with
10:00 You because if you set it up correctly, it can actually make a profit without you. So that’s that’s an important difference as well, I think. So when we look at this whole freelancing and entrepreneurship spectrum, and it is a spectrum, there’s a whole range, I would say that there are people out there who are really pure freelancers who work on their own, who have their business, and yet really are freelancing, the most traditional interpretation of the word right through to right through to entrepreneurs who focus from day one on on on building a business and often on building a big business, on scaling on venture capital on all those kinds of things. But there’s this whole range in between so many freelancers who will outsource one or two bits of work and essentially create a business there or free
11:00 Answers who will make a progression or freelancers who will make a progression over time to becoming an entrepreneur to building a small or mid sized business? There really is no right answer in all of this, as I said at the beginning, but it is important to understand what you want to achieve. Do you want to be a freelancer? Do you want to be an entrepreneur? Do you want to? Do you want to move along that spectrum? Or are you completely happy with where you are now? And if you do want to move along that spectrum, do you understand some of the challenges that await as you start to hire people for your business? Do you understand how difficult it might be to remove yourself from certain aspects of the business? Because I think as an entrepreneur, sometimes you need to get out of your own way in order to allow your company or your entity to grow. How do you feel
12:00 about sales and marketing. I think that’s another key question in all of this because as a freelancer or as an entrepreneur, you definitely need to focus on sales and marketing on getting more clients into your business. And if you do remain as a freelancer and you’re perfectly happy as a freelancer, do you still see yourself as a business? Have you moved out of that employee mindset and deed still see yourself as a business even though it is a one man or one woman business? I think that is another important consideration. So all things to think about all things to think about as we move along this journey of discussing freelancing and entrepreneurship. Well, I hope you found those words useful and please let me know where you are on this spectrum. It’s really important for me that you let me know and that you can help me to develop this product.
13:00 cost in the right way. So how do you feel about freelancing? How do you feel about entrepreneurship? Are you a freelancer? Are you an entrepreneur? And where do you want to go from where you are right now? Where do you want to go in the future? please get in touch via the website that’s www dot, freelancers and entrepreneurs.com there is a contact form on their alternatively you can contact me via Twitter. My Twitter handle is at Paul em earlier. And that’s at pa you l m. You are w i n roll em. We let me have your questions. Let me have your observations. I can’t wait to hear from you. And I can’t wait to talk about even more issues related to both freelancing and entrepreneurship. So thank you very much for listening. Finally, if you enjoyed today’s episode, I invite you to check out the resources for freelancers and entrepreneurs on our
14:00 website WWW dot freelancers and entrepreneurs.com if you really want to take action, visit the homepage and sign up for the completely free training on how to get more clients. That’s it for me all the best and until next time.