If you’re thinking of starting a business, or already are working for yourself in some capacity, then you’ll no doubt come to a point in your business life where you feel like it’s time to make the decision of whether you should continue as a self-employed freelance or open your own company.
Whilst there’s no right or wrong answer here, and you’ll find that the answer very much depends on the type of business you run, the longterm and shortterm goals you have, as well as the business model.
So, in this post, we’re going to share with you just some of the pros and cons for each below so that you can see which option is best for you.
More freedom and flexibility:
Although one of the main reasons to go into business for yourself is to have more freedom in your life and more control over your career and how much money you make, being a freelancer is a good bit easier than running a company because you decide when you work and what clients you take on when.
You only have yourself to rely on:
As a freelancer, you’re fully responsible for yourself – which can either be a good thing or bad thing depending on how you look at it. However, it’s typically a lot easier to be responsible for yourself than others when it comes to business.
Doing your taxes is a bit easier:
Taxes are really something that most business owners including freelancers hate dealing with, but they’re just part of the deal. The good news is, as a freelancer, they’re relatively simple to do, and you can do them yourself by using something like MTD Software.
You can mostly focus just on doing what you enjoy:
When you’re freelancing, it’s typically just the one service you’re offering – graphic design or writing, for example, so although you’re managing multiple projects, you’re mainly getting to perfect your craft all the time.
It can be unstable:
Unfortunately, a lot of clients tend not to take freelancers seriously sometimes, which can mean that work can be very up and down making it an unstable career choice.
Lots of people are depending on you:
When you run a company, if it’s going to have any chance of success, then you’re going to require a team, and this means you’re going to be employing other people who you’re responsible for, and this is something worth considering if you’re ready for since this also means that their job is dependent on you.
It can result in better clients:
A good thing about having an actual company for your business is that clients will often take you more seriously if they see you operating as a company and brand, which can mean you’ll land bigger projects that pay better than if you were freelancing.
You can sell it:
Probably one of the best things about owning a business is that you’re building a sellable asset. As a freelancer, you are the business, so that’s not something that can really be sold.