25 C
Singapore
Thursday, February 2, 2023
Ads

THE DIFFERENCE BETWEEN BEING SELF EMPLOYED & BEING A BUSINESS OWNER

I remember when I first started out as a freelancer, like many, I was a bit naive about the distinction between being self-employed and being a business owner.

Advertisements

I thought they were one and the same thing and that it didn’t really matter.

As I got further into the world of self-employment, however, I began to realize that there were some essential differences between the two.

Being self employed & being a business owner is essentially not the same

The most important difference between being self-employed and being a business owner is that when you are self-employed, you are essentially working for yourself and taking on all of the risks associated with that.

You have to wear all of the hats and handle all of the tasks associated with running a business, from marketing, to sales, to invoicing, to accounting. You are also responsible for any losses, as there is no one else to share in the burden.

Advertisements

In contrast, when you are a business owner, you are running a business with a team of employees. This means that you are able to delegate tasks to other people and share in the risk involved.

You are also able to take a more strategic approach to running the business, as you have the time and resources to do so. You are also able to benefit from the economies of scale that come with having a larger business.

The amount of money you make is also different

Another key difference between being self-employed and being a business owner is the amount of money you can make.

When you are self-employed, you are limited in the amount of money you can make by the number of hours you are able to put in. If you want to make more money, you have to work more hours.

This can be a difficult balance to maintain, especially if you have other commitments.

Advertisements

In contrast, when you are a business owner, you can benefit from the economies of scale that come with having a larger business. You are able to make more money in less time, as you are able to leverage the resources of your team to increase efficiency and productivity.

Additionally, you can benefit from the taxes and deductions associated with owning a business.

Control over the business

Finally, there is the issue of control. When you are self-employed, you have complete control over your business and you have to make all of the decisions.

This can be both a blessing and a curse, as it gives you complete freedom to make the decisions you want, but it also puts all of the responsibility on your shoulders.

In contrast, when you are a business owner, you have more control over the direction of the business, but you also have to rely on the input of your team.

This can be beneficial in terms of finding creative solutions to problems and increasing efficiency, but it can also be a challenge in terms of maintaining a cohesive team and making sure everyone is on the same page.

Conclusion

In conclusion, there are some key differences between being self-employed and being a business owner. When you are self-employed, you are essentially working for yourself and taking on all of the risks associated with that.

In contrast, when you are a business owner, you are running a business with a team of employees and you can benefit from the economies of scale that come with having a larger business.

Additionally, you can make more money in less time, as well as benefit from the taxes and deductions associated with owning a business.

Finally, there is the issue of control, which is much different when you are a business owner.

Advertisements
- Advertisement -
- Advertisement -
Latest News

18 Y.O S’POREAN DETAINED: INTENDED TO ATTACK ARMY CAMPS & STAB PEOPLE IN ALLEYS

Muhammad Irfan Danyal bin Mohamad Nor (Irfan), an 18-year-old post-secondary student, was detained in December 2022 under the Internal...
- Advertisement -