Are you a freelancer or a solo business owner?

I remember asking myself that exact question a few years ago. At the time, I thought freelancing and running a business were pretty much the same thing. I was taking on clients, doing the work, and getting paid—so wasn’t I running a business?

But here’s what I learned: freelancing and solo business ownership are not the same. The way you think, the way you operate, and the results you can achieve are completely different. And understanding those differences reflect how you operate on a daily, monthly and yearly basis.

Today, I want to help you figure out where you stand on your business and how to get where you want to go.

Why This Matters

This isn’t just about semantics. Knowing whether you’re a freelancer or a business owner shapes everything—how you price your work, how you position yourself, and what kind of future you’re building.

If you love the freedom and simplicity of freelancing, great! But if you’re looking for more scalability, higher income, or a business that runs on proven systems, it might be time to revise your approach.

But here’s the catch: many people blur the lines between freelancing and business ownership. They get stuck in the tactical aspects of the daily work, or overcomplicate things and lose sight of the bigger picture..

That’s why clarity is so important. Let’s figure this out.

The #1 Reason People Struggle

The biggest obstacle? Most people don’t really know what they want.

I’ve seen it so many times. Someone will come to me and say, “I want to grow my business,” but when I ask, “What does growth actually mean to you?” there’s a pause. They haven’t thought it through.

Do you want to work fewer hours and have more time for your family? Do you want to double your income? Do you dream of creating something bigger than yourself—maybe a small agency or a scalable product?

Here’s a real example: I worked with a freelance social media manager who said, “I just want more clients.” But after we dug deeper, it turned out that what she really wanted was higher-quality clients who valued her work—people who wouldn’t nickel-and-dime her on every project. She didn’t want more work; she wanted better work. Once we got clear on that, she was able to create a game plan for achieving her goal.

Without clarity, it’s like trying to hit a target you can’t see. You feel stuck, not because you’re not working hard, but because you’re not sure where you’re going.

And that’s just the start.

Other Reasons People Struggle

1. Fear of Overcommitting:
   I’ve had people tell me, I’m not ready to run a business—it sounds so intense! I can understand that because running a business can seem overwhelming if you think it has to mean hiring a team, building complex systems, or taking on huge risks.

2. Limited Knowledge About Business Basics:
   This one’s big. Many freelancers think business ownership requires an MBA or deep expertise in things like taxes, marketing, or operations. That fear keeps them from even trying.

3. Comfort in the Status Quo:
   Freelancing feels safe because it’s familiar. You have clients, you get paid, and you know the process. Why rock the boat? But just because something isn’t broken doesn’t mean it can’t get better.

4. Not Knowing the Benefits of Moving Up a Level:
   This one hits close to home. I spent years as a freelance writer, catering to magazine deadlines and editorial schedules because I didn’t realize what I was missing. The potential for scalability, higher income, and more freedom isn’t obvious when you’re used to structured project-based work. You think the way to get more money is to do more of the same thing for more clients.

Here’s How to Decide (and Succeed):

Step 1: Define Your Goals

When I first started asking myself whether I was a freelancer or a business owner, the real question was: What do I want my life to look like?

Do you want maximum flexibility, where you can pick and choose your projects? Or are you looking to build something that scales beyond your time? There’s no right or wrong answer—but you need to be clear about what you want.

I worked with a copywriter who thought she wanted to build an agency. But after we dug deeper, she realized what she actually wanted was to position herself as a premium brand and work fewer hours for higher-paying clients. Once she made that shift, her income grew, and she got her weekends back.

Step 2: Understand the Core Differences

Freelancers and business owners operate very differently.

As a freelancer, you’re selling your time and skills. Your income is directly tied to how much you work. It’s a great setup if you value flexibility and don’t want the added complexity of running a business.

As a solo business owner, you’re building systems and processes that allow you to generate income even when you’re not directly involved in every piece of work. It’s not necessarily about hiring a team—it’s about creating something sustainable.

I know a graphic designer who made this transition brilliantly. She started by freelancing, taking on small design projects. Over time, she created a package of pre-designed templates she could sell to multiple clients and on sites like Gumroad and Creative Market. This allowed her to make passive income while still doing custom work for clients.

Step 3: Start Small, Then Scale

You don’t have to overhaul everything overnight. Start by thinking like a business owner in small ways:

• Package your services to create consistent value.

• Build a simple, professional brand—this could be a clean website or a consistent social media presence.

• Outsource one small task (like admin work) to free up your time for higher-value activities.

I had a virtual assistant who always seemed to be maxed out. She sold blocks of time and was managing 10 clients, doing everything herself, and she was always stressed out. She knew something had to change, so she hired another VA to take on repetitive tasks, which freed her up to focus on strategy and client relationships. Within a year, she doubled her client roster and grew her income significantly—all without sacrificing her sanity.

The Bottom Line

Freelancer or business owner? better—it’s about what works for you.

If you love the freedom and simplicity of freelancing, own it. But if you’re ready to grow, earn more, or create something sustainable, shifting from freelancer to solo business owner might be your next step.

Here’s what I want you to remember: clarity is power. And small steps lead to big results.

Where do you stand right now? And where do you want to go? Let me know—I’d love to hear.