Most people have no idea. In fact, most people think they are the same exact thing. But believe it or not, there are actually huge differences between these two.
What are the main differences between a freelancer and an entrepreneur?
A freelancer is a person who is basically still an employee. But instead of working for a boss in an office, they work for a bunch of different bosses. They are still responsible to these people and enjoy almost no benefits. As a freelancer, you’re supposed to have lots of free time. You’re supposed to be able to set your own schedule.
Being a freelancer is supposed to be fun. Sadly, for most people, it isn’t. You’re still chained to a desk watching the clock. Worse of all you’re still trading your time for money. Exactly like a person who has a normal job.
Why are entrepreneurs different?
Being an entrepreneur on the other hand is completely different. The big difference is that entrepreneurs own businesses. They sell products or services and get other people to do the work. This means their income is only dependent on how many products they sell. They can sell 10 or a 1000 and make 100X what the freelancer does, and in half the time.
They have more free time and can come and go as they please. As you can see this is a vastly better alternative.
But how do you know if you’re a freelancer or an entrepreneur?
Here are five ways to tell:
1. Do you know how to sell?
Do you know how to sell your services proactively instead of waiting around to be hired? Also, do you know how to get your asking price, and how to get as much money for your services as possible? Can you persuade and convince people to hire you? Entrepreneurs can do all of these things and more.
2. Do you see yourself as a business?
Are you simply a person who does XYZ for money. Or do you see yourself as a one man enterprise. Not only that, do you have the business skills to back this up. Can you read a balance sheet? Do you have other business skills.
3. Do you trade time for money?
If you have to trade time for money instead of selling products you’re a freelancer.
4. Do people treat you like an employee?
Most freelancers are treated poorly. They work for people who treat them like just another employee. This is a good clue to knowing if you’re a freelancer or employee. If people treat you like an employee you’re a freelancer. If you get respect you’re probably an entrepreneur.
5. Are you truly happy?
This is probably the biggest one. Are you actually happy? Most freelancers struggle to make ends meet. Meanwhile, entrepreneurs drive around in Ferrari’s with big grins on their faces.
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