So the idea of this post started due to a feature story on “freelancing” in my local technology magazine, Spider. The assumptions in the magazine about freelancing not being the same as entrepreneurship really felt wrong to me. Ever since I started my freelance career, I knew that I wanted to treat it as a “business” and made a conscious effort to do so. Therefore, I feel obligated to address the points made by the writer in the magazine and present my viewpoint.
Let me start by quoting parts of the story that I take exception to:
“Freelancing is not entrepreneurship”
Under this heading, the author goes on to state that:
“Entrepreneurs are people who launch risky and innovative business ventures, in order to pursue new economic opportunities. Meanwhile freelancers may launch their careers without setting up their own firms; in a way this makes freelancing a low-risk enterprise, as opposed to entrepreneurship.
Moreover, entrepreneurs may hire specialists to manage their company’s organizational functions, like marketing or finance. Freelancers, on the contrary, tend to act as lone wolves – managing all aspects of their work themselves, including accounting, business development and following up on receipts from clients.”
Let’s tackle these claims.
Freelancing is a business. It is a business that may or may not include the founder at its helm. It is a business that works just like any standard brick and mortar business – that is, you fill a need, you develop a service, you sell to customers, you get paid. Freelancing in its essence is no different than running a retail store (the only difference being that you are offering a virtual service while the retail store is offering a physical product). But all the other arms of business are there: buyers, sellers, middlemen, overheads, etc.
If anything, freelancing is even riskier than just “another business venture” because the work and money may not be consistent and because the freelancer has to learn multiple trades (selling , marketing, book-keeping, customer relationship management, etc) to survive.
One of the main differences I see between successful freelancers and not-so-successful freelancers is that of entrepreneurial thinking. An entrepreneur, by definition forms businesses that are not dependent on him. In other words, they are scalable. When a freelancer starts to think like an entrepreneur, that’s where the real magic happens.
So just how does a freelancer think like an entrepreneur/business owner?
A successful freelancer must do the following (just like an entrepreneur):
Make a Business Plan
A fly by the pants approach will work only so long as your luck holds out. If you wish to freelance for money and economic support, you MUST have a business plan which lays out your goals, and strategies and timelines for meeting those goals. Included in your business plan must be a marketing plan, which determines your promotional strategies, whether organic or paid.
Take your Freelancing Business Seriously
If you’re going to be lackadaisical about it, you’ll get wishy-washy results. Success follows those with determination and clarity of thinking. The minute you start taking your business as a serious entity is when you will start seeing serious results (monetary and otherwise). Take your business seriously by staying focused on your goals, staying motivated in the face of setbacks, and completing the action steps necessary for your strategies. Other people (including clients, friends, team members, parents, relatives, etc) will take your business seriously if you do.
Invest back into the Business (and in you)
A portion of your incoming cash must go towards building your business – its infrastructure, equipment, people, training, etc. While a freelance business may require little overheads, a freelancer cannot forgo the constant learning and professional development that is needed to stay ahead of the curve. The successful freelance entrepreneur must invest back in the business by investing in himself and his team. He can do this by reading books in his field, attending conferences, staying abreast of marketing and business development trends and by understanding and analyzing business trends.
Excel at Marketing, Client Management & Leadership
At its heart, every successful business owner needs to be a great marketer and a great leader. A successful freelancer will also hold influence within his sphere, be known as an expert on his subject and be a thought-leader in his field. He may do this via his blog, or with his outstanding referrals, or in any other way in which his expertise takes tangible form.
Build Value; Build a Brand
Every successful freelancer knows that running a one-man show is not scalable and not healthy for the long term. Therefore he must focus on building products and value that will exist long after his services cease to exist. Successful freelancers do just that – they take out products built upon their expertise. These products may be in digital form (such as e-books, podcasts, etc) or they may be in tangible form. Whatever your method, everything you do will come under your umbrella brand. Your reputation, your services, your products, the level of trust clients have in your business – all form the basis of your brand.
Build a Team
A key part of this magazine’s contention is that freelancers work solo, and even if a freelancer works with others, it is solely in a collaborative role. This is not true. The world’s best freelancers build a team around themselves and in spite of themselves. The best freelance businesses can rely on their team and their brand, not their founder. Successful freelance businesses don’t fall apart when the owner gets sick, is injured or is otherwise incapacitated. Freelance businesses can choose to register themselves legally as proprietorships or partnerships.
Be Organized
Successful freelance business owners follow the 80/20 Pareto Principle and spend 80% of their time doing 20% of the high-yield tasks. That may mean they outsource parts of their business, hire virtual assistants, etc – just like any other business owner!
Take Time Off
Burnt-out is a very real possibility in the world of business. Every freelancer must consciously take time away from the business as a way to rejuvenate, relax and gain perspective.
Bottom line: you cannot afford to be “just a freelancer”; you must think of your freelancing as a business and work with the same passion and drive that fuels any business-owner.
The magazine article goes on to say that “freelancing is not entrepreneurship, consulting, outsourcing or part-time work.” I disagree. I think that a really talented freelancer is all that: entrepreneur, consultant and outsourcer working part-time (or full time) hours!
Let me start by quoting parts of the story that I take exception to:
“Freelancing is not entrepreneurship”
Under this heading, the author goes on to state that:
“Entrepreneurs are people who launch risky and innovative business ventures, in order to pursue new economic opportunities. Meanwhile freelancers may launch their careers without setting up their own firms; in a way this makes freelancing a low-risk enterprise, as opposed to entrepreneurship.
Moreover, entrepreneurs may hire specialists to manage their company’s organizational functions, like marketing or finance. Freelancers, on the contrary, tend to act as lone wolves – managing all aspects of their work themselves, including accounting, business development and following up on receipts from clients.”
Let’s tackle these claims.
Freelancing is a business. It is a business that may or may not include the founder at its helm. It is a business that works just like any standard brick and mortar business – that is, you fill a need, you develop a service, you sell to customers, you get paid. Freelancing in its essence is no different than running a retail store (the only difference being that you are offering a virtual service while the retail store is offering a physical product). But all the other arms of business are there: buyers, sellers, middlemen, overheads, etc.
If anything, freelancing is even riskier than just “another business venture” because the work and money may not be consistent and because the freelancer has to learn multiple trades (selling , marketing, book-keeping, customer relationship management, etc) to survive.
One of the main differences I see between successful freelancers and not-so-successful freelancers is that of entrepreneurial thinking. An entrepreneur, by definition forms businesses that are not dependent on him. In other words, they are scalable. When a freelancer starts to think like an entrepreneur, that’s where the real magic happens.
So just how does a freelancer think like an entrepreneur/business owner?
A successful freelancer must do the following (just like an entrepreneur):
Make a Business Plan
A fly by the pants approach will work only so long as your luck holds out. If you wish to freelance for money and economic support, you MUST have a business plan which lays out your goals, and strategies and timelines for meeting those goals. Included in your business plan must be a marketing plan, which determines your promotional strategies, whether organic or paid.
Take your Freelancing Business Seriously
If you’re going to be lackadaisical about it, you’ll get wishy-washy results. Success follows those with determination and clarity of thinking. The minute you start taking your business as a serious entity is when you will start seeing serious results (monetary and otherwise). Take your business seriously by staying focused on your goals, staying motivated in the face of setbacks, and completing the action steps necessary for your strategies. Other people (including clients, friends, team members, parents, relatives, etc) will take your business seriously if you do.
Invest back into the Business (and in you)
A portion of your incoming cash must go towards building your business – its infrastructure, equipment, people, training, etc. While a freelance business may require little overheads, a freelancer cannot forgo the constant learning and professional development that is needed to stay ahead of the curve. The successful freelance entrepreneur must invest back in the business by investing in himself and his team. He can do this by reading books in his field, attending conferences, staying abreast of marketing and business development trends and by understanding and analyzing business trends.
Excel at Marketing, Client Management & Leadership
At its heart, every successful business owner needs to be a great marketer and a great leader. A successful freelancer will also hold influence within his sphere, be known as an expert on his subject and be a thought-leader in his field. He may do this via his blog, or with his outstanding referrals, or in any other way in which his expertise takes tangible form.
Build Value; Build a Brand
Every successful freelancer knows that running a one-man show is not scalable and not healthy for the long term. Therefore he must focus on building products and value that will exist long after his services cease to exist. Successful freelancers do just that – they take out products built upon their expertise. These products may be in digital form (such as e-books, podcasts, etc) or they may be in tangible form. Whatever your method, everything you do will come under your umbrella brand. Your reputation, your services, your products, the level of trust clients have in your business – all form the basis of your brand.
Build a Team
A key part of this magazine’s contention is that freelancers work solo, and even if a freelancer works with others, it is solely in a collaborative role. This is not true. The world’s best freelancers build a team around themselves and in spite of themselves. The best freelance businesses can rely on their team and their brand, not their founder. Successful freelance businesses don’t fall apart when the owner gets sick, is injured or is otherwise incapacitated. Freelance businesses can choose to register themselves legally as proprietorships or partnerships.
Be Organized
Successful freelance business owners follow the 80/20 Pareto Principle and spend 80% of their time doing 20% of the high-yield tasks. That may mean they outsource parts of their business, hire virtual assistants, etc – just like any other business owner!
Take Time Off
Burnt-out is a very real possibility in the world of business. Every freelancer must consciously take time away from the business as a way to rejuvenate, relax and gain perspective.
Bottom line: you cannot afford to be “just a freelancer”; you must think of your freelancing as a business and work with the same passion and drive that fuels any business-owner.
The magazine article goes on to say that “freelancing is not entrepreneurship, consulting, outsourcing or part-time work.” I disagree. I think that a really talented freelancer is all that: entrepreneur, consultant and outsourcer working part-time (or full time) hours!
No comments:
Post a Comment