You’ve made the decision to leave the 9-5 behind. You crave freedom and independence, but you’re unsure whether to start a company or go the freelance route. It is true that both options offer freedom and the chance to shape your own future, but they also come with different sets of challenges, rewards, and responsibilities.
You need to carefully assess your skills, set your goals, and evaluate your preferences. Here are pointers you should look out for:
You Should Consider Freelancing if:
- You have a marketable Skill: Whether it’s software development, marketing, or graphic design, your ability to offer value to clients is key. You must have a specific skill set that others are willing to pay for. This is the first evaluation you need to make.
- You Enjoy Working Independently: If you’re self-motivated and enjoy working independently without a team, you should consider freelancing. You’ll be responsible for managing your workload, meeting deadlines, and communicating directly with clients. Freelancing is a perfect choice for people who thrive on independence.
- You Want Flexibility and Freedom: If the idea of setting your own hours, working from anywhere, and choosing your clients excites you, freelancing could be a great fit for you. As a freelancer, you’ll have control over your schedule and won’t have to worry about working with a team.
- You Prefer Minimal Expenses: Taking care of a team costs money. In fact, you must have significant savings, as it will take some time for your company to start making a profit. Freelancing, on the other hand, has a significantly lower barrier to entry, as there’s no need to secure funding, hire staff, or rent office space. You can start small with minimal expenses and grow your business at your own pace.
- You Prefer a Work-Life Balance: In the early stages of starting a business, achieving work-life balance will be tough. You’ll need to put in long hours, sacrifice personal time, and deal with unexpected challenges. If maintaining a balanced lifestyle is important to you, you should freelance.
Freelancing is a great option if you want to work independently without the complexities of running a full-fledged business. As a freelancer, you’re your own boss—you decide when and how you work, and which projects you take on. See Freelancing Opportunities.
You Should Consider Starting a Business if:
- You Have a Global Mindset: If you’ve always dreamed of building something that can grow into a large business, starting a company is the move for you. Whether it’s a product-based business, a tech startup, or a service company, entrepreneurship gives you the chance to create and scale something that can make a significant impact.
- You Enjoy Building a Team: If you thrive on leadership, mentoring, and building a workplace culture, creating and managing a team will be one of the most exciting aspects of your entrepreneurial journey. You’ll need to hire team members who align with your vision and drive your company forward.
- You Prioritise Long-Term Growth: Starting a company gives you the opportunity to build long-term wealth. As your business grows, you can scale operations, boost revenue, and eventually sell the company or pass it down. If you’re aiming for long-term financial growth, entrepreneurship offers substantial potential for both equity and success.
- You’re Not Afraid to Take Risks: Starting a company is both a financial and emotional risk—there’s no guarantee it will be profitable. If you’re comfortable taking those risks—whether it’s investing your own money, seeking funding, or facing the ups and downs of business ownership—starting a company could be a rewarding path for you.
Price is what you pay. Value is what you get. — Warren Buffet, Berkshire Hathaway Chairman
Conclusion
Whether you choose to freelance or start a company depends entirely on your goals, personality, and circumstances. Freelancing gives you flexibility, lower risk, and the opportunity to work independently. On the other hand, starting a company allows you to create something larger, build a team, and potentially scale to greater heights.
Take a moment to reflect on your strengths, your career goals, and what truly drives you. If you’re passionate about honing your skills and prefer working solo, freelancing could be the perfect fit. But if you’re ready to take on the challenge of building something from the ground up and embrace the highs and lows of entrepreneurship, starting a company might be the path for you.
No matter which route you take, both can lead to success and personal growth. The choice is yours—determine which one aligns with your vision for the future.
