It may seem like discussing the differences between being a freelancer and having a freelance business are a bit like discussing the differences between the taste of Coke and the taste of Pepsi: most people think the differences are substantial, but in reality, few people can stand up to the standard taste test. However, when a friend recently asked me why I decided to do the latter instead of the former, I didn’t really have to search far for an answer. For me, the differences are substantial and change the entire way I approach this crazy scheme I call a career.
Start at the End
I think the primary differences between freelancing and running a “business” are in the way you structure an exit strategy. Most individual freelancers either plan to work forever, create a self-employed 401(k), or simply don’t think about one at all. However, because we have set up our company as a freelance writing business, we are essentially building a recognizable name with an extensive client list. The end goal is to find a way to make this business self-sustaining so that Lorna and I can either step away to enjoy our retirements or sell the enterprise to another budding writer-turned-entrepreneur.
How Much Do You Love the Work?
Of course, that’s not the only difference. Freelancing is like any other career – spend a good 10 or 20 years at it, and there’s a good chance you’ll get burned out. I like to think that having a freelance business saves me from a portion of this burnout. Already, I find myself splitting my time between writing, editing, marketing, project management, and accounting. This mixture comes in handy when I just cannot write one more SEO article for the week, and it also allows me the flexibility to choose which projects I want to work on and which ones I’d rather not do (while still meeting all my clients’ needs).
Let’s Talk about the Money
I am open to a lively debate here, but I really think that a freelancing business is more profitable than individual freelancing. We all talk about feasts and famines, but the fact of the matter is, if you can keep your client roster full, you stand a better chance of keeping those famines at bay. An individual freelancer is necessarily restricted by the amount of man-hours he or she is physically (and mentally) capable of working. A freelancing business is only restricted by the number of independent contractors it has to draw from. And while leaving your independent contractors hanging in the event of a famine so that you can hog all the clients to yourself isn’t a very nice business practice, it can work in your favor – especially if you encourage your independent contractors to diversify their own sources of work instead of relying solely on you for support.
Of course, there’s also the small matter of the financial benefits of running a larger business. Large corporations are run by CEOs who make millions of dollars a year for a reason: there’s money at the top. If you can build your own empire through which you automatically get to play top dog, chances are you’ll be pulling in bigger figures at the end.
Where’s Your Passion?
Lorna and I have this dream of running a freelance business that is not only successful, but that pays an actual living wage and encourages WAHMs (and other professional types) to fulfill their own personal dreams. We want to run an eco-friendly company that gives back to the community, practices ethical business, and serves as a model for others.
This doesn’t make us any better than the freelancer who wants to get a good byline and make it into Oprah Magazine (hey, we want that, too); it simply means that we’re looking for something a little different out of our careers.
So, Which is Better?
Neither, I’m afraid. While running a freelance business has its perks, there are drawbacks, too. There are heaps of added administrative tasks, all the risks associated with independent contractors who don’t meet their deadlines and clients who don’t pay up, and legal and tax-related responsibilities to consider, as well.
At the end of the day, it all boils down to what you want out of your self-made career. Money is good, retirement plans are better, but no one can tell you what to do but you.
Hey, that’s why we do this at all, right?
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Christina Lemmey is the mother of two school-aged girls, a wife, and the owner of 
As a freelancer, I`ve considered starting a freelance business, but to be honest, it`s not really for me. I love to write, but I like being free to do a lot of other things, as well, which I don`t think would happen if I were to immerse myself in a full-fledged business.
The difference between freelancing and having a freelance business is this:
A solo freelancer can never stop. Who’d take over or help out?
A solo freelancer can never grow. He or she only has two hands and one brain – that’s restrictive.
A solo freelancer has to put in many more hours, wearing all the hats to make it work. A business relies on many people to accomplish the tasks.
A solo freelancer faces obstacles, like perception of ability. A business can tackle anything.
A solo freelancer can never watch a business live on. They have to be there to do the work all the time. Retirement? Yeah right.
Doing it alone isn’t the way to go. Set up a business that can grow, expand, take on new teammates and reach dreams you’d never otherwise experience.
I’m not a freelancer. I’m a business owner. And thankful for it.
James Chartrand – Men with Penss last blog post..Interview with Pen Man #3: Charlie Pabst Goes Naked
@James – I feel like maybe you’re dismissing the people who don’t want to have a business. As you’ve said before, there’s a difference between owning a business and owning a job. For some people, the latter is what they desire, and there’s nothing wrong with that. People have different aspirations, and bigger isn’t always better.
@ Lorna – Not at all.
If you own a job, that’s great – that means, therefore, that you’re not freelancing, really. You’re an employee of someone else.
You cannot freelance without owning a business. Freelancing *is* business ownership. Otherwise, who markets? Who gains clients? Who does the accounting? If it’s the freelancer, then that’s a business, not a job.
Keep in mind that my comment didn’t say one is better than the other. What I listed was potential areas of concerns for solo freelancers and considerations that are important to think about.
That isn’t dismissive – that’s helpful. No?
James Chartrand – Men with Penss last blog post..Interview with Pen Man #3: Charlie Pabst Goes Naked
@James – I guess when you said “Doing it alone isn’t the way to go,” it seemed like you were dismissing people who chose that route. I agree that you can’t freelance without owning a business becuase there are tax implications and such, which is why this post and the responses confused me a bit; but I get the idea of what is being said, and some people would much rather take on projects found by someone else (or even do a little job hunting themselves) but skip the whole outsourcing/project management/payroll/etc. thing. I think that is totally valid, it’s just not the path we’re taking.
Anyway, I recognize that you are trying to offer constructive thoughts to help others make their decision, and we appreciate you getting involved in the conversation. I’m sure no one around here is shocked if we have a difference of opinion.
I like the answer. I’m proud to have made the blog.
I guess my desire in writing now is to develop my writing, to learn, and to put words on paper (or screen) so that I purposefully make my own path towards something I love. And, I am not ready to say that running a business will help me find something I love.
Freelancer = you only work occasionally.
Freelancer Business = you own all those freelancer to work for you.
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