Friday, April 26, 2013

Entrepreneur or Freelancer - April 26th

There is a difference between an entrepreneur and a freelancer.

Freelancers basically just own their own job. This could be someone like a consultant who charges $300 per session. Even if they try to multiply themselves through having other consultants work under them, they are basically still just freelancers because the business requires them to be involved on a daily basis.

An entrepreneur on the other hand is someone who can build the business then leave for three weeks without having to worry about what's happening while he's gone. The business will still create income for him even if he's away on some deserted island. The systems that he is created will continue to work through employees or other computer systems or technology in such a way that he does not have to worry about the day to day activity.

Starbucks, one of my favorite places to go by the way, has built a system that can be reproduced without the employer having to worry about the daily activity. They created such a culture that the owner can know that the system is going to run even though he is not present in the day-to-day activity of each individual store.

Lesson learned: It is far better to be an entrepreneur than a freelancer.

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