Own business vs. freelancing? It is a common question that crosses the minds of so many people every day. If we look at the stats, we will know that the young generation is taking over the world. But without proper guidance, people feel so confused and mix things up. So, let’s learn what these are with the possible pros and cons.
- Difference between own business vs. freelancing:
- Difference between own business vs. freelancing: Pros and cons:
- Final verdict:
Difference between own business vs. freelancing:
Mainly there are two types of positions that people choose to earn money. It is everyone’s goal to make more money. But each person wants to select a field where they can earn more by maintaining a work-life balance. However, before starting any business, ask the following questions from yourself:
- Do you want to work alone or with the helpers?
- Are you prepared to deal with the work-related complications on your own?
- Do you have the ability to manage finances, legal matters, and other hassles?
After finding answers to these critical questions, you can head further to select one field. The best field is the one that goes with your skills.
Who is a freelancer?
In simple words, a freelancer is the one who decides to offer remote services. However, the freelancer charges per hour, per project, or according to the expertise level. If you are the one who wants assistance, then you can find all types of freelancers out there. Thus, the top remote services include web design, development, writing, virtual assistant, etc. There are many websites like Fiverr, Upwork, and others where you can offer freelance services. Apart from this, you can launch your website where you can assist people in projects.
What is Own business?
Own business is a term that we use if someone is using personal resources to start something. However, in this situation, the owner will be responsible for all actions and profit. For instance, they are liable to hire, manage, engage and pay employees. Apart from this, the business owner deals with the taxes, managing paystubs, legal matters, and all other things.
Difference between own business vs. freelancing: Pros and cons:
In the previous section, we mentioned the basic definition of own business and freelancing. But many other points describe the difference between both. So, here are positive and negative points of both types:
Pros of freelancing:
We need to focus on one thing:
Freelancing is comparatively an easy job where you only need to pay attention to one dimension. According to the Seth Godin:
“Freelancing is the simplest and easiest job to take a new start.”
Generally, freelancers don’t need to worry about details and other processes. The freelancers work according to the information that business owners provide them. For instance, if someone is a freelance writer, that person will write content as per the instructions provided by the business owner.
Earn money projectwise:
It’s not wrong to say that freelancers earn quick money. In freelancing, they receive the money right after the completed project. Hence, the freelancers aren’t responsible for whether the project gets successful or not. For instance, a game developer will receive the money without caring if the game attracted an audience or not.
The other main advantage of freelancing is work-related flexibility. Here you don’t need to worry about time management. However, you can even work on the weekdays or at night. So, work-related flexibility is such a blessing in freelancing.
You can control workload:
The other advantage of freelance projects is that you have control over the workload. For instance, if you are getting more tasks, you can stop taking more unless you get more time.
Pros of own business:
If you are enthusiastic, then having your own business is not less than a blessing. However, with your own business, you have unlimited growth opportunities, and you can reach any level where you want. However, the only thing you need is the correct planning, forecasting ability, and proper check.
You receive payment again and again:
It is one of the most positive points of having your own business. In your own business, you receive the reward of your company again and again. For instance, if you own a software house, you will get rewards from that software repeatedly.
You are your boss:
I don’t think there is anything better than being your boss. It means you don’t take dictations and decide where you will spend time. However, the benefit is that you give more time to the activity that you think is more beneficial.
Own business vs. freelancing: Cons of both types:
We can’t conclude the topic without discussing the cons of own business vs. freelancing. So, here is the chart that is depicting the cons:
You don’t have control over your work
It takes more time
Pay only once
It takes time to earn money
Unpredictability in income
Apart from this, in freelancing, there could be more gaps in the work. On the other hand, handling your own business is a one-person show.
We mentioned all pros and cons to present the best picture of your own business vs. freelancing. So, it depends on many factors like personality, goals, and time to decide between both. But whether it is own business or freelancing, both involve risks and drawbacks.
Takes less time
One time service
Multiple time service
Pay again and again
However, it is vital to take one step further and try to put effort into things you decide to do. Later, you will enjoy the fruit of your hard work. If you are fed up with a 9-5 job, then start with freelancing, then move forward towards your own business. Your own business provides better and long-term earning opportunities. Moreover, business is an asset that will help you in the long term.