Basically, a business is a system that generates income regardless of the fact that you work or not. On the other hand, a freelancer or entrepreneur only gets money when he works. But setting up a business is much more difficult or a longstanding affair. A business needs capital to start while many freelance jobs only require your abilities and skills. The main difference is the fact that while both models make money, while businesses are able to run it themselves, freelance work only pays when you work.
Many freelancers finally go into business. Once they understand the ins and outs of the industry and have sufficient sources of funds, they venture into business. One can hire employees and offer more services. Employees will help in sharing your burden and even allow you to take on more business. Your business will run even when you are not on time. And your income will not depend only on the number of hours you come in and out
Often, the main obstacle in the transition from freelance work to business is the lack of business skills. Business requires knowledge of many other things except your job. When setting up a business you may have to face legal hurdles. You might also need to understand taxation and management issues. Mastering these problems may require extensive study and research. An easier way is to get a mentor who can guide you. Ideally, find someone who is in the same industry as you and has handled all these problems yourself. Learning from the experiences and mistakes of others is a good way to manage your business without much difficulty. Mentors can be your relatives, friends or business leaders. Read their biographies and books. Research how they become very successful. Integrate their business principles and ethics. If you have relatives or acquaintances who are in the same industry then you can also try an internship there. This will help you learn the tricks of the trade in fast time. You will learn from an accomplished businessman by only observing them, their habits and work ethics. You will find out more about Business Management when you are truly in the presence of a successful entrepreneur.
Often, an industry is dominated by established companies with years of experience, resources, reputation and goodwill. Competing with them can be a futile exercise if you don’t have a very different business plan or resource. Placing your business in such a business is a surefire way to destroy financial and business failure. When faced with such a scenario, the best choice is to think of a franchise business. Many companies have franchise business models that are very successful and established. McDonalds is one such company. Although, you may have to invest large amounts at first, there is a much greater chance of success because of the models and knowledge available. Another benefit is that you will immediately get recognition and goodwill from the franchise company. The parent company will provide a marketing plan that will ensure your success.
