Either business model, you are the boss!
You’re in business for yourself and would not want it any other way. But people ask you what you do for a living, and you feel unsure how to describe your status. Do you describe yourself as a freelancer or a self-employed person?
Philosophically, they mean the same thing. A freelancer is self-employed, and a self-employed person is responsible for booking every job they can take to create a successful business.
A fundamental difference is the connotations between the two job titles. This statement does not mean one is right while the other is wrong. Quite the contrary. So, let’s lay all the cards out on the proverbial table and let you decide how to describe your employment status to others.
Three Questions to Ask Yourself When Defining if You Are a Freelancer or Self-Employed Person
When determining how you explain your business model, these three key factors differentiate between the two. Note: This advice is not official legal advice, nor am I a lawyer or an accountant. These are general differences; you should contact your business advisors for the final word.
1 – What is the nature of your business?
One determining factor lies in the very nature of your enterprise. How so?
Typically, freelancers provide creative ideas and services. To name just a few:
- Website design
- Copywriting
- Interior design
- Photography services
- Animation or graphic creation
- Social media manager
On the other hand, a self-employed person renders a more concrete offering. They are technically still a service provider, but their output is more tangible. Think of these self-employed persons:
- Plumber
- Carpenter
- Auto mechanic
- Hairstylist
- Café owner
- Sales representative
- Lawn care or landscaping technician
- Swimming pool installer
2 – Where do you conduct business?
Another differentiator between the self-employed versus freelancers is where they conduct commerce.
Those who describe their business as freelancing often works from home. Others utilize co-working spaces in an “office environment” filled with other freelancers.
However, those who identify their status as self-employment perform their primary functions outside of the house. Many have a brick-and-mortar location (think hair salon). Frequently, they interact with clients more directly in their day-to-day operations.
3 – Who do you work with?
People who label their work as freelancing tend to be lone wolves. These are solopreneurs who work best alone. They likely utilize Zoom or teleconferences to collaborate with clients or other project contributors. But by and large, they flourish when left to their own devices.
Conversely, a self-employed person might have a team that works with them. Moreover, if they do not yet have a team built, they are setting the framework for eventual expansion. Their services are apt to become too cumbersome to handle as a one-person operation for awfully long.
Remember, these are not hard and fast rules; you may be in the middle of these two descriptions. For example, a wedding photographer might spend hours capturing special moments for brides and grooms every Saturday. Then during the rest of the week, they may sequester themselves in a private space to make every image breathtaking.
Summing It Up: Which are you, a freelancer or a self-employed person?
You will find the way to describe your business best. And truthfully, you should hold your head up high regardless of how you apply these labels to yourself. At the end of the day, you’re the boss either way! Are you a small or medium-sized business without a dedicated content team? Let Word Innovations help–let’s connect today.