Have you started freelancing on the side then decided “hey, this could actually be a business!” and need to get serious?
There are several aspects to consider when you need to choose between freelancing or running a small business. You need to think about who your target audience will be, what services you can provide for them, whether you want to work solo or bring in a team, what are your long term future goals, and where you see yourself in five years time. It may seem overwhelming, but these are the questions that can help determine how you “brand” yourself.
What is a Freelancer Vs. A Business Owner?
Looking at whether you set yourself up as a freelancer vs. a business owner, here are some important points to consider:
- Do you want to work alone or are you looking to hire employees?
- If your business grows quickly, will it be a good thing OR are you willing to do away with new opportunities and grow at your own speed?
- Are you prepared to go through complicated paperwork, financial challenges, and legal filings that come along with establishing and running a business? Or, would you rather not pay attention to these, keep it simple and concentrate on delivering quality work to the clients?
You might assume that freelancers and business owners are on the same line. As a matter of fact, both roles have distinct risks, responsibilities, and goals.
A freelancer works individually as a contractor for different clients paying by the project or by the hour. The goal of a freelancer is to fill in the available time by securing tasks that pay well and serve to be dependable sources of work.
In most cases, freelancers do not require any formal registration or business license with the government for operating. However, it is always a great idea to check with your state’s rules as well. The best part is that freelancers get to work at their own will – preferably at a coworking space.
A coworking space is the perfect set-up for freelancers who are dedicated to working on their own projects but don’t want to be by themselves at home. If your home is not suitable for a home office, or you do not have the space or inclination to work from home or out of a cafe, a coworking space is ideal. To read more about the benefits of coworking, click here.
On the other hand, a small business owner might start out working alone. However, he or she might eventually consider hiring employees while building the business into something major for ensuring constant and stable growth.
Small business owners emphasise less on the delivery of the desired products or services – that remains up to the employees of the business enterprise. They are more focused on running and growing the venture.
Small business owners are also expected to deal with employee issues, regulations, and business taxes throughout the journey. Funding the business also remains a major challenge as business owners start out. On the other hand, freelancers tend to operate with minimum overhead.
When Do You Make the Switch from a Freelancer to a Business Owner?
As a freelancer, how do you know when it is time to transition to the next stage of being classified as a “business owner”? This is a tough question! Here are some tips that will help:
- Analyse Your Goals and Priorities
If you genuinely dream about waking up whenever you want, working from anywhere you choose, and having your own selection of clients – then being a full-time freelancer is the ideal solution. - Assess the Right Time
If you started freelancing without understanding your niche, you might have come across new interests through several trials and errors. As such, you can also accelerate your freelancing operation to focus on something that interests your niche and double-down to make it a more serious venture. - Your Growth Can Decide For You
Are you finding that you have more clients than you know what to do with and need help in fulfilling all the requirements? You might be on your way to full blown business leader and need a team to help you.
Ways to Become More Professional As A Freelancer
Develop Your Online Presence
You can create a strong digital presence on multiple platforms. Additionally, you can also design a professional website to call yours. When you nurture a strong network, it offers you access to prospective clients to allow your professional experience to excel.
Work from a Professional Address
While the notion of working from home might entice you as a freelancer, still having a dedicated professional address to work from can be the cherry on the top. Preferably, choose from working from a coworking space to avoid the overall overheads and boost productivity.
Treat Yourself as the Boss
Whether or not you register a company, you can still be your own CEO. Freelancing, as a career, allows you to be your own master in whatever you do.
Network and Develop Your Professional Community
This comes hand in hand with working from a coworking space as the built-in network of like-minded people are waiting for people just like you to join in! New work, connections with prospective clients and professionals are made daily in such communities.
Whether you are comfortable with calling yourself a freelancer, and loving the freelancer way of working and living OR you know you are destined to build a business around your skills and ideas, and want to grow into a business owner, you are exactly where you need to be right now. The world is changing in how we approach work and life and at JAGA we’re all for it. Work situations and work locations to suit a flexible schedule is something we are very passionate about and we invite you to come and visit our two Canberra locations: Allara Street and Swanson Court to see them for yourself.
