When it's Time for a Freelancer to Become a Business Owner
Many people successfully work as freelance professionals, offering their services and expertise on a short-term basis to various clients. These professionals often choose to freelance because they can make more money than employees do working the same amount of time. So why would they want to own a business?
With consistent work, freelancers can earn a good income.
However, they encounter two major limitations:
You need to spend unpaid time on marketing your services, securing work, and handling administrative tasks such as billing.
Your income will always be limited by the number of hours you can work.
If you're seeking ways to make your work more profitable, you may be thinking about starting your own company. By becoming a business owner, you can leverage your connections and others' expertise to get even more work done.
Do you really want to own a business?
Business ownership isn't for everyone-so before choosing that path, you need to know what you really want. If you just want to make more money, you may face a rough road. Keep in mind that you'd be spending your time a lot differently when managing others vs. only yourself.
Freelancers can spend most of their time focusing on directly providing their services and expertise to clients, which they hopefully enjoy. Business owners end up spending a lot less time on their craft and a lot more time managing their company and employees. Although the benefits may grow, so do the responsibilities.
Becoming a business owner
So how do you know if you're ready to be a business owner?
You can't do all the work you want to do by yourself.
You want to work with and manage a team.
You want a challenge other than directly providing your services.
You're willing to engage experts who know what you don't about running a business.
Running your own business won't be easy, but it can offer many rewards that freelancing doesn't. If you're ready, you can pave the path to be smoother by working with professionals who can help you build a sustainable, scalable infrastructure. Starting with a solid legal, accounting, HR, or other operational foundation will be key to your business's success.
Just want to form a company to work under as an individual to gain potential tax advantages? If maximizing tax benefit is your primary incentive, consider working with a tax accountant who understands your industry.
Syzygy offers independents freelancers who (may or may not) want to become small business owners a range of services, from entity startup to operational optimization to accounting services. Interested? Reach out today.