So, you have your own business but are you really an Entrepreneur? Or rather a better question to ask yourself is do you want to be an Entrepreneur? Let us start with defining what the differences are and then make decisions on what fits your lifestyle best.
Freelancer:
A freelancer is someone who trades time for money. This is where most entrepreneurs start and a lot of people never leave. At this stage you’re doing the work, “in the weeds” so to speak. You may still have employees in the company but the majority of you time is spent doing actual work that brings in revenue. A good test of seeing if this is where you are in business is the 1-month test. Could you take a month off from the day to day of the business and come back without having the business shut down. If the answer is no then you are definitely a freelancer.
For a lot of people this is why they start a business. They have a skill set and realize that they can make money doing it themselves. This is common and not a bad place to be. If you enjoy the work and can make a comfortable living why not just keep freelancing. The downfall of this is that you are essentially just trading a salary job for a non-salary job. Instead of having just one client, the company you work for, you may now have a dozen clients. The pros of this is one client will not break your company/lifestyle, unless you only rely on only one client. However, there is no set salary as clients may come and go from time to time.
So how is Entrepreneurship different?
Entrepreneur:
An Entrepreneur builds systems. They turn the freelancer tasks into a well running machine. The entrepreneur is not necessary for the day to day work. They can pass the 1-month test. The processes they have created allow them to take time off and machine/business can keep running without shutting down. The days are spent keeping the machine running and coaching others while refining and creating more efficient processes.
Many people strive for this level within their business, and this is the most common misconception of why people go into business for themselves. This does not mean that the company becomes a passive income stream. Quite the opposite. The business is much more like a finely tuned car. It must constantly be monitored and adjusted to make sure that it stays on course. Sure, the entrepreneur may pass the 1-month test but it does not mean the company is growing while they are gone. Quite the opposite may be occurring. The processes that were put in place may be slowly eroding and need to be modified as trends and needs change. At this stage of the business you are the captain steering the ship. It is floating and moving but will need constant adjustment and course correction to keep going forward and growing.
Conclusion:
Most business start as an opportunity presents itself and people begin to freelance. It is up to each individual to decide what they want and why they started. To many the freelancer is a great place to stay. It allows them to capitalize on their strength and do what they love. Moving from freelancer to entrepreneur is a big step and requires a completely different skill set. So: dream, plan, and execute.