Which Type of Business Owner Are You?

Agree or Disagree... not every business owner is an entrepreneur.

Everyone that owns a business tends to call themselves an entrepreneur, but I disagree.

There are three distinct types of individuals who earn independently: Freelancers, Business Owners/CEOs, and Entrepreneurs.

Each type of ownership comes with it's own unique benefits and challenges.

Every person's journey is different and you have to decide for yourself what type of owner you want to be in your business — or across your businesses if you go the entreprenurial route.

So... which one are you now and which one do you aspire to be?

The Freelancer

As a freelancer, you embody the essence of self-governance, transitioning from the conventional employee role to bloom as a fully autonomous professional.

You revel in the freedom to design your own work environment and have the privilege to selectively choose clients that align with your professional vision.

The Advantages of Being a Freelancer

Going freelance has its perks.

The flexibility you relish is simply outstanding.

You're the one calling the shots, you decide your work schedule, a luxury that allows you to maintain a work-life balance according to your terms.

What's more, you're in the driving seat of your income and solely responsible for keeping your business momentum alive.

The haunting insecurities of sudden layoffs or the constant dread of job uncertainty that comes with traditional employment are no longer your concerns.

The Challenges of Being a Freelancer

But then, every rose has its thorn. With such autonomy, come challenges too.

• As a freelancer, managing your time effectively is at the helm of the challenge ship. It demands skills in striking the right balance between your professional obligations and personal life.

• Another layer of complexity involves catering to the requirements of multiple clients simultaneously. It's akin to a skilled juggling act, keeping up with different expectations - each client expects exemplary service and timely delivery.

• Inevitably, time becomes a vital boundary. Being self-employed means you primarily rely on your own bandwidth. Taking on an exceptional number of clients might inadvertently affect the quality of your work, and any inability to work directly hits your income - a stark contrast from a traditional 9-to-5 job.

• As a freelancer, multitasking is part and parcel of the job, having to create, manage, and market your offerings single-handedly. You're in a one-person-team role: from handling client interactions, delivering projects, billing, to dealing with tax obligations, you're the one in control of the full spectrum.

• These challenges can become amplified during periods of personal commitments. Unexpected events, medical issues, or family emergencies can disrupt your work rhythm, with no safety net of ‘sick' or 'casual' leaves like in regular employment.

But before you start worrying, let me assure you — it's not as daunting as it sounds.

With effective time management, planning, and the right tools, you can navigate these challenges and come out on top.

The Freelancer's Road to Success

There's no denying that it's a journey of self-discovery, challenges, and rewards. But remember, as a freelancer, your income flow will depend on your working hours.

Let's be real, life is unpredictable and you might need some time off.

Don't stress, there's a way around it.

Here's a pro tip: Try diversifying your revenue sources.

How? Personal investments could be your golden ticket! Invest in areas like the stock market, real estate, or even digital currencies.

What's more, you can also consider building a product stack that includes digital goods or services. For instance, courses, e-books, or templates related to your field could be a great place to start.

Once created, these products can be sold repeatedly with minimal effort.

However, here's something you should know - there's no such thing as truly passive income. You still have to devote time, energy, and funds to keep the sales flowing, especially for marketing and ads.

While it might sound daunting, with careful planning, you can enjoy a steady income even during unplanned breaks!

The CEO

Being a CEO, you've transitioned from a role where you're doing everything yourself, to one where you're managing a team and delegating tasks. You're no longer the one-man band; you've got a whole orchestra with you now!

Stepping up to be a CEO requires a shift in mindset.

You transition from being the 'doer' to being the 'leader'. You're not just working 'in' your business anymore; you're working 'on' it too.

It's about strategizing, planning, and acting upon a vision that not only helps you grow your business but also provides value to your customers.

Being a CEO is a journey that some embark upon by transitioning from a freelance role while others might find their unique strengths lie in building teams and so they begin their venture at this level in their business.

The Advantages of Being a CEO

As a CEO, you get to grow your business on a scale you might have never imagined back in your freelance days, all because now, you have a team supporting you.

You get to make the most of delegated time, focusing on activities that make you tick and offloading some of the less exciting tasks onto your team.

Crucially, this ownership type significantly increases your ability to build an asset which is attractive to potential buyers because you can hire a new CEO and step aside without shocking the business's success rate. The new owners are buying the business, not its owner.

Moreover, even if you’re not planning to sell any time soon, you can look forward to early retirement and more freedom by hiring a CEO, moving up to a more advisory, guiding role, and mentoring your successor.

The Challenges of Being a CEO

However, stepping into the shoes of a CEO means you have to shift your perspective from being someone who does work for clients to someone who solves their problems.

Think of it as moving from expert web developer to becoming a specialist in generating online leads.

It calls for honing new skills to adeptly manage a team, handle more clients, more work, and more data than you’re used to.

Crucial to sustaining the same level of delivery is systemizing what you do so as to bring in people who can deliver quality at par with your standards.

Frequently the CEO takes on the roles of chief marketer and salesperson — a careful dance that can result in becoming an impediment to client expansion if not managed well, or drying up the client pool in case of illness.

The CEO's Road to Success

Just like your freelancer buddy, it's crucial to up your game in the personal investment arena. See it as your safety blanket.

But as a CEO, you're in a slightly different boat.

Your business, if you've steered it right, has the sturdy resilience to weather your temporary absence. It makes room for you, the captain, to take a breather, to step back, and enjoy some well-earned downtime.

Not half bad, right?

But, don't forget, being a CEO isn't just about chunky paychecks and business cards that scream success.

You've got to embrace the fact that when the storm hits, you're the one at the helm, with every wave of responsibility crashing on you. You've got to be ready to put in the hours to become a maestro in leadership.

Why?

Because when you think 'business growth' or 'scaling up', you should be thinking 'effective delegation'. It's your job to be the guiding light steering the ship, not just another hustling crew member.

It's only when you master this balancing act that your venture can truly flourish, become a tantalizing prospect for buyers, and you can finally kick back and watch your hard work pay off.

The Entrepreneur

As an entrepreneur, you're the visionary of your business dreamscape, strategizing, innovating, and meticulously aligning resources to stir up the best outcomes.

Your entrepreneurial journey, unlike the freelancer or CEO, comes with an added layer of complexity.

You're dabbling in multiple projects, all in various business and growth stages.

Let your multi-passionate soul rejoice, as your business ventures stretch beyond a single industry, marking your grand entrance into the world of diversified revenue streams.

The Advantages of Being an Entrepreneur

As an entrepreneur, you have unlimited potential for income and growth.

The beauty of multiple ventures is that they act as a safety net. Even if one enterprise encounters a rough patch, the other streams can buffer you.

This allows you to take risks, experiment and innovate, and ultimately push your enterprises to new heights.

Moreover, as you delve deeper into the entrepreneurial journey, you become adept at recognizing opportunities, developing business models and forging partnerships that can dramatically accelerate growth across all your ventures.

You're not just playing the game; you're changing it!

The Challenges of Being an Entrepreneur

Well, every coin has two sides. With the excitement of entrepreneurship comes the pressure of managing multiple ventures.

You might have to switch hats at the speed of light, moving from one role to another, from one industry to another, all in a day's work.

You'll be juggling a plethora of tasks and responsibilities, often requiring you to make quick, high-stakes decisions.

Moreover, the initial capital for starting multiple ventures is considerably higher. You need a robust financial strategy to ensure adequate funding for all your businesses.

It's also about managing diverse teams, each with its unique culture and dynamics.

It's akin to conducting an orchestra where violins, cellos, and flutes must harmonize to create beautiful music.

The Entrepreneur's Road to Success

Understanding and mastering delegation is a crucial element for entrepreneurial success. Surround yourself with a dependable team, delegate responsibilities and create the space they need to excel.

Don't overlook the importance of personal investments as a safeguard for your businesses. Diversify your investment portfolio with real estate, stocks, and bonds to protect against unexpected downturns.

As an entrepreneur, continual learning and growth are part and parcel of your journey. Stay open, curious, and connected to industry trends, and develop a supportive network of fellow entrepreneurs.

While the entrepreneurial journey is challenging, it also offers the exhilarating opportunity to dream big, create, and build multiple successful businesses across sectors.

Embrace this for it is the true essence of entrepreneurship.

You're here because you're resilient, ready to dream big, and turn those dreams into reality.

The path might be rocky, but the thrill of building your entrepreneurial kingdom is unmatched — it's extraordinary, fulfilling, and uniquely yours.

Your Journey

Now, you might find yourself resonating with one or moving between these lanes. And that's perfectly okay! Remember, the journey is yours to choose, the destination yours to decide.

Everyone defines success differently. For some, it's about major decisions like healthcare or vacation, for others, it's about everyday choices like cooking at home versus dining out. But one thing we can all agree on is that no matter your lane, success is about freedom of choice.

However, your path to that success might look different depending on which role you resonate with the most:

• Freelancers should master personal investments, savings, and budgeting to plan for unexpected and planned time off.

• Business Owners / CEOs should focus on effective people management and maximising profits to build out their team and strike a balance between time freedom and financial security.

• Entrepreneurs should be strategic about their business investments. It helps to stick to a theme — a type of business, an industry, or a specific goal. This theme allows you to share knowledge across businesses, helping them all to grow faster and easier, with a greater chance of success.

In the end, knowing your role and planning accordingly is key to maximising your success.

So, which role fits you best, and why?