Essentially, businesses are systems that generate income regardless of the fact that you are working or not. On the other hand, a freelancer or self employed gets money only when s/he works. But setting up a business is much difficult or a long drawn affair. A business needs capital to start whereas many freelancing jobs just need your abilities and skills. The key differentiator is the fact that while both models generate money, while Business is capable to run itself, a freelance job pays only when you are working.
Many freelancers eventually get in to business. Once they understand the intricacies of the industry and have sufficient sources of funds, they venture in to business. A person can hire employees and offer more services. The employees will help in sharing your burden and even allow you to take up more business. Your business will run even while you are not on the clock. And your income won’t depend solely on the number of hours you out in. Moreover, you won’t have to stress about managing your business operations and end up hiring managers for that, as apps like Deputy, online rosters, etc. have made things easier.
Often, the main stumbling block in the transition from a freelance job to business is the lack of business skills. Business needs knowledge of lot other things except your job. While setting up a business you may have to face legal hurdles. You may also have to understand taxation issues and also management problems. Getting a grip on these matters may need extensive study and research. An easier way is to get a mentor who can guide you. Ideally, find a person who is in the same industry as yours and has himself tackled all these issues. Learning from other people’s experience and mistakes is a good way to setting your business without much hassle. The mentor can be your relative, friend or business leaders. Read their biography and books. Research how they became so successful. Imbibe their business principles and ethics. If you have a relative or acquaintance that is in the same industry then you can also try to do internship there. This will help you in learning the tricks of the trade in a quick time. You will learn from an accomplished businessman by just observing them, their habits and work ethics. You will get to know more about Business Management when you are actually in the presence of successful businessmen.
Many times, an industry is dominated by established companies who have many years of experience, resources, reputation and goodwill. Competing with them can be a futile exercise if you don’t have any radically different business plan or lot of resources. Putting your efforts in such business ventures is one sure shot way of financial ruin and business failure. When faced with such scenarios, the best option is to think about franchise business. Many companies have very successful and established franchise business models. McDonalds is one such company. Though, you may have to invest huge sum initially, there much greater probability of success due to the model and know-how available. Other benefits are that you will immediately get recognition and goodwill of the franchise company. The parent company will provide the marketing plan which will ensure your success.