Is Freelancing a Business?

Those who don’t understand the nuances of freelancing think that it’s nothing more than a hobby. Even freelancers themselves are seemingly unaware that they are running a business. You see, most people have a preconceived notion of what constitutes a ‘business’ and freelancing simply doesn’t fall into that category. Here are some major differences. As you will see, a freelancing business is far removed from the norm in so many ways.

Home Business

The most obvious difference is location. A traditional business is comprised of a building with a logo or brand emblazoned on the front. In contrast, a freelance business takes place from home for the most part with a minority of freelancers renting out office space. All a freelancer truly needs is a computer, a quick internet connection and a dedication to hard work.

Traditional businesses rely on customers in a certain radius. If you are selling a product or service, you will not get consumers from hundreds of miles away because they can find what they need much closer to home. In contrast, a freelance business can get paid by clients from thousands of miles away. The increase in electronic transfers is down to the convenience and speed at which they are performed.

Open all Hours

Go to any local shop and you will see the hours of business posted on their front door or window. You will see that most abide by traditional 9am-5pm type hours. This is not the case with freelance companies, some of which are open 24 hours a day. This can happen when a company has employees in different time zones. If you have employees in America, Europe and Australia for example, you will be constantly open. The freedom of freelancers means that they are never truly closed for business.


A huge advantage of a freelance company over its traditional counterpart is the miniscule start-up costs. As you will be working from home, there is little else you will need barring a computer and internet connection. You can access the intenet and find jobs or outsource. You may choose to invest in software or literature but that’s entirely up to you. Compare this to a regular company that has to rent out a building, pay insurance on the premises, purchase stock, pay employee wages etc.

A freelance company is still a business despite the fact it defies convention. What it does have in common with a traditional business is the fact that you need to work extremely hard to make it a success and you still need to be customer-oriented.

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