What’s the difference between an Entrepreneur and a Freelancer/Solopreneur?
Many business owners label themselves “entrepreneurs”.
Watch this video to understand if you’re acting like one. Transcript of the video below.
Are you a Freelancer or an Entrepreneur?
That’s the first question I ask many of the founders I meet for the first time.
I do this because I need to be clear that they understand the difference.
An entrepreneur is a machine builder. She creates a vision, validates a product or service, employs people to fulfill that service, and expands it.
The primary goal of the entrepreneur is to scale herself from the business, so it is not dependent on her time. To create a machine that grows and sustains itself. The majority of independent business owners are not machine builders; they themselves are the machine!
They are the sole cog relentlessly spinning, trying to do paid work. If they do not do the work, they do not get paid.
Yes, they may operate out of a company structure, have a logo and have some staff — but fundamentally, they are still the machine.
Entrepreneurs on the other hand build an entity bigger than themselves.
They design the machine so it’s not dependent on their time. Instead of working in the business, they work on it. They make money while they sleep. They build a business they can one day sell.
Henry Ford didn’t make cars. He built a machine that manufactures and sells cars. Jeff Bezos does not sell books, he’s building a machine empire that sells everything.
These are examples of entrepreneurs. They don’t get stuck in sales, marketing, product — whatever part of the business they love. They build organisations that function without them. Your goal as an entrepreneur is to do the same.
So, ask yourself what type of business owner you are?
Are you an entrepreneur or a freelancer?