The allure of being your own boss has been very popular in the past few years. We all have met at least one person who has left their 9 to 5 desk job to pursue their passion or start their own business.
That being said, not everybody realizes that going out on your own does not always mean that you need to launch your own company. It can also mean working as a self-employed professional or on a per-project basis.
So, we thought it was time to clarify the difference between freelance and business and how to figure out which path is more suited for your personal and professional preferences.
Freelancing vs. Entrepreneurship: The Key Difference
In most simple terms, as a freelancer, you get paid for the work you do. For instance, if you are a freelance writer, you will receive money in return for every article you write. On the other hand, entrepreneurs need others to invest in their business idea by catering to the specific needs of a target audience. They can make money by making their business profitable.
As a student, regardless of which path you choose, you will need to ensure that you have enough time and resources to meet the demands of a side hustle. One way to do this is by seeking the help of academic platforms with your class assignments and such. For instance, you can always get professionals to write a paper for me on WritePaper to be able to dedicate more time to gaining work experience or developing your business venture. It shouldn’t come as a surprise that a majority of students resort to such websites to graduate in flying colors.
To provide you with a clearer picture, here we compare freelancing and entrepreneurship based on a number of factors that commonly affect student lives.
Time and Dedication
It is true that no matter what you are doing, the results are better if you dedicate your focus to the task at hand. However, there is no question that some jobs demand more time and attention than others.
In that regard, freelancing might seem like a simpler alternative. If you choose this path, your only concern is finding clients and delivering good quality of work. That too, with freelancing platforms these days, if you are able to provide top-quality work, you will be able to land clients easily.
On the other hand, being an entrepreneur is not an easy job. There are many aspects to think about, from what problem you are solving to finding investors, product development, marketing, and more. However, if you play your cards right, this can be more lucrative than being a freelancer.
The Risk Factor
It goes without saying that being an entrepreneur comes with certain risks. You are taking a chance with not just your money but also your investors’. There is also the chance that the market does not react positively to your product or idea. In addition to all these, you also have to deal with competition and keep upgrading your marketing strategies.
At the other end of the scale, freelancing is relatively risk-free. In fact, the only issues you are likely to face are with clients. And it is always possible to find other employers in the same niche. If you are able to allocate some time from your student schedule, freelancing can be one of the easy ways to make money.
If you are choosing the entrepreneurial path, you should be looking at it as a long-term investment. You are building a business, and this might mean that you might have to wait for a few years before you start to make a decent profit. That is if you are successful at it. And once you hit your target, you will have plenty of room to grow.
However, if you want to make instant money, freelancing would be the way to go. You will get paid every step along the way, and with sufficient work, you can earn a continuous stream of money. As you gain more experience, you can increase the price of your services or hire a team to work with. In many ways, your freelancing career can turn out to be a business in the future.
Predictability and Flexibility
As a freelancer, you are in total control of what you do, and even when you do it. You will be able to take up jobs based on your class schedules and choose not to accept any new projects during exams. It can certainly be advantageous to you as a student.
On the contrary, if you are to run a business, it is nearly impossible to predict how things will turn out. Your sales might be exceptional one month and slow the next. You might control a small part of your business, but there are several aspects that are totally outside your grasp. For example, if the market is to take a shift and your business fails to align with the consumers’ needs, you could be facing losses.
This can put immense pressure on you, and if you are still in college, you will have to deal with both academics and the demands of your business needs.
Teamwork vs. Individual Game
If you pursue freelancing, there is no need for you to rely on others to get work done. Unless you are swamped with new projects, you do not have to hire another team member. With sufficient time, you can truly be your own business.
But being an entrepreneur is far from that. Regardless of whether you are the sole investor or not, you will need to work with a team to make sure that you get the right results. For instance, if you are launching an app as a developer, you will need an accountant, a marketing specialist, and others to build a solid team. You will also need to make room for other ideas and learn to acknowledge and appreciate others’ contributions.
If you think you work best alone, then you might want to take some time before you think of starting a business.
Freelancing vs. Entrepreneurship – What’s the Verdict
To sum up, entrepreneurship comes with a long list of risks. On the other hand, freelancing might seem like the safer option, especially if you are a student.
More importantly, you will not be facing monetary losses by starting out as a freelancer. Whereas in comparison, entrepreneurship is undeniably riskier. However, if you have a compelling idea and a viable market, then it would be better to launch your business at the right time, even if you are in college.
The market evolves every day, and by the time you graduate and find investors, it might be too late to start with your business idea. Ultimately, it comes down to what your short-term and long-term goals are.
In all likeliness, if you thrive as a freelancer, you might be launching your own company in due course and calling yourself a businessperson. But if you do not want to wait around that long, then you will be better off trying your luck as an entrepreneur while in college.
Written by Lara Harper