Freelancing and business share a lot in common. That’s why many people are capable of tackling both of them at a go. But which of the two should one invest more of their time in?
On this blogpost, I will try to demystify the strengths and weaknesses of each one of them so that you see where you need to invest most of your energy in online.
All the information I am going to share with you here is based on my experience freelancing on different freelancing platforms and running a video production business based in Nairobi Kenya.
First, I will start with the common things that freelancing and business share in common.
Common Things That Freelancers And Business People/Entrepreneurs Share
- Freedom To Make Choices – Freelancers and business people have freedom to make their choices. They choose when to work, what to work on, where to work, when to go for vacation e.t.c.
- Can Propose or Set Their Rates – When a client or prospect shares details of what they want done, freelancers or entrepreneurs can propose how much they will charge for their services. If the client agrees to it, they can set up a contract based on what has been agreed upon. This is the beauty of being either a freelancer or an entrepreneur.
- Unlimited Earnings – Freelancers and business people are capable of making a lot of money based on the amount of contracts they win. More contracts means more money.
- Can Work Anywhere – While a business person needs a permanent business establishment/location/offices for for them to operate, individuals who own online businesses offering services can work anywhere. This is the same case with freelancers, they can work anywhere.
- Can Partner In Projects– Freelancers and business people can collaborate together very well in business dealings. In many scenarios, the business owner is usually the employer while the freelancer is the contractor.
With this said, it exists important things that differentiates freelancing and business.
Difference Between Freelancing And Business
|You are limited on the who to contact for business. Most freelancers rely on invitations for interview and bidding on job posts on a freelancing platform.||1||Depends on your aggressiveness to look for business. You are free to identify and contact as many prospects as you can.|
|A freelancers is governed by a freelancing platform terms of service. Their profiles are at risk if they break certain rules.||2||Businesses are governed by the rules they set by the founders. Clients have the choice of either accepting or rejecting work offered to them.|
|Most of the project rates are set by the client. There is little freedom to make choices.||3||Business people send quotes based on the clients brief. They are free to quote the amount they want.|
|Growth is dependent on your past clients reviews. You have no control of any negative review you receive.||4||You have control on the reviews. You can grow depending how knowledgeable you are in a given assignment and not on what other people say about your services.|
|The clients you meet or have are yours as long as you remain on a given freelancing platform. You are not allowed to contact them outside the platform.||5||The clients who hires you are fully yours. You can communicate freely with them and ask for business.|
|If you are hired by many clients on a freelancing platforms, you are not allowed to sub-contract the same work to other freelancers unless you have a freelance agency on the same site.||6||You are the boss. You can contract and sub-contract with your set terms and conditions. This is the beauty of owning a business.|
|You are exempted from PAYE tax and only required to declare income tax on all your earnings annually. In some countries, income earned from a foreign country is not taxed.||7||Your business is governed by the tax laws of your country and you must be compliant to them. Failure to comply may result in your business being closed down. |
|The future of your success is at the mercies of the freelancing site you are in. If the site finds any small discrepancies in your account or a client reports your account for no reason, your account will be closed or suspended.||8||You hold the future of your business as you will grow from the repeat work from same clients. When you do good job, clients will recommend your services.|
As you can see business wins when it comes to a long term investment with high returns. However, its important to point out the roles that freelancing plays when starting up.
Why Freelancing Is Important When Starting Up An Online Business
Freelancing plays a major role when starting up an online business. Here is why it might be a good idea to invest your time in freelancing first before launching your online business.
- Raise Capital – At the early stages of starting an online business, one needs to invest money into building a system in form of a website. You can raise capital to build your online business offering freelance service online. The rule to this is; Don’t be carried away by the freelancing jobs to a point you forget about establishing your online business.
- Identify a niche Within Your Skills– Freelancing platforms is the home for different skillsets. If you succeed freelancing in a given niche, it’s a pointer that there is demand for that service and others that are trending on a given freelancing platform in the same niche. This way, you can position your services in the online market place with a lot of confidence.
- Income To Sustain Yourself – Before you start earning from your business, you need money for upkeep. This is the money that you can easily earn offering freelancing services.
And that is it from me. I hope this article was helpful to you.
Should people invest more of their time offering freelance services or doing business?
Share your thoughts in the comments section below.
And if you are looking for professional video production services, you can request a quote for free on Techtube Video Studio website. You will get a response within 12 hours.
Until next time, bye bye and take care.
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