Understanding the Dual Identity

Are you a freelancer, a business owner, or perhaps both? This question can often lead to deeper discussions about the nature of work today.

As I delve into the importance of business education for freelancers, I hope to share insights that resonate with your experiences. Currently, I'm participating in a financial mindset training program, which has sparked some enlightening conversations on enhancing income potential. Kate Northrup, the program's facilitator (consider checking out her books, Do Less and Money: A Love Story), highlighted four primary avenues for earning income:

1. Employment

   This traditional route involves working for someone else, trading hours for a paycheck. While it simplifies tax obligations and other complexities, it often limits your control over your schedule and tasks.

2. Self-Employment

   Here, you own your job as a freelancer or contractor, offering services on your terms. This path grants more autonomy but also comes with significant tax responsibilities, often ranging from 22% to 25%. If your income halts when you stop working, you likely fall into this category.

3. Business Ownership

   In this model, you manage a system and often have employees. Your goal is to make yourself replaceable; the business continues to function without you. While this approach reduces your personal tax burden, it requires more strategic management and a focus on profitability to ensure timely payments to your team.

4. Investing

   This is the ultimate goal, where your money generates more money for you. This concept is rooted in the teachings of Robert Kiyosaki from Rich Dad, Poor Dad.

In light of these distinctions, many perceive freelancers as lacking the need for business education. Is this perspective accurate? I disagree, and here’s why: historically, freelancing has been viewed as a temporary solution rather than a legitimate career path. Individuals, like stay-at-home parents or those recently laid off, often turned to freelancing as a means to make ends meet.

I faced similar doubts when I began freelancing. I questioned my credibility and whether I could sustain this lifestyle long-term. It's no surprise that the narrative surrounding freelancing often paints it as a mere side job.

Despite this, the landscape is changing. More individuals are choosing gig-based work for the freedom it offers, and this trend reflects broader economic shifts, such as rising living costs and stagnant wages. In fact, 73.3 million Americans reported freelancing in 2023, with over 3 million expected to join annually.

So, what do we truly need? Business education.

Without it, freelancing can feel like a temporary measure. However, incorporating financial literacy, client relationship management, and strategic business planning can transform your freelancing experience into a sustainable career.

Since launching my freelancing journey in 2018, I've generated over $500,000, all while managing family commitments, relocating, and overcoming personal challenges. This path isn't a trivial side gig; it’s a thoughtful career choice that allows me to lead a fulfilling life.

As traditional employment models evolve, I want to affirm that choosing to work for yourself is a valid and intelligent decision. Don’t let anyone convince you otherwise.

I invite you to rethink conventional categories. Embrace what aligns with your vision and discard what doesn’t. Build a business that serves you, recognizing that your contributions are as valuable as those of any Silicon Valley entrepreneur. The world needs your unique voice and services.

Xo,

Jenni

Curious about my journey? I'm a writer and business coach based in Central Oregon, balancing work with family life. My recent focus has been on innovative business development, emphasizing how to create businesses that prioritize human needs. Explore my coaching offerings, connect with me on Twitter & Instagram, or download my free business planning workbook for creatives!

In this video titled "Are You a Freelancer or a Business Owner??," we explore the nuances that differentiate freelancers from traditional business owners and discuss the importance of mindset in this journey.

Chapter 2: The Freelancer's Need for Business Knowledge

In "Freelancer Vs Business Owner," we dive deeper into the essential business skills freelancers need to thrive and how to shift perceptions about freelancing in the professional landscape.