Freelancer, Consultant, or Entrepreneur: What's the Difference?
Remember the poor little bird in P. D. Eastman’s much beloved children’s book Are You My Mother? The one who hatches from his egg while his mother is out scratching around for food and can’t figure out who he is? By the middle of the story, this confused hatchling is in the midst of a full-blown identity crisis, wandering around asking everyone, “Are you my mother?”
That’s how it is in the business world. We bandy around the words freelancer, consultant, and entrepreneur as if they are interchangeable, although they are not. Sometimes our clients are confused. Often we are, too. When we aren’t clear about how we offer our products and services, it makes it difficult for potential clients to know whether or not to hire us. That’s why it’s important for us to get clear about who we are and offer our products and services accordingly.
What’s the difference?
According to the Merriam-Webster Dictionary: a freelancer is “a person who acts independently without being affiliated with or organized by an organization; who pursues a profession without a long-term commitment to any one employer.” A consultant, on the other hand, is “one who gives professional advice or services as an expert.” In a completely different category is the entrepreneur who “organizes, manages, and assumes the risk of a business or enterprise.”
Freelance vs. Consultant
Technically, there isn’t much of a difference between being a consultant and being a freelancer. Both are independent contractors working for multiple clients. They are their own bosses. The main difference between the two is that one gives professional or expert advice and the other offers a deliverable.
Freelancers
Freelancers offer a deliverable--something concrete and tangible. Deliverables can include writing an article for a newspaper or magazine, designing a web site for a client, or painting a commissioned artwork for a building opening. Freelancers get in, do the job, and get out. Often enjoying a variety of assignments while working from home, they earn their living by contracting for work on a project-by-project basis. At the end of the year, they have plenty of 1099s to show for it.
Fields where freelancing is especially common include journalism, writing, copywriting, computer programming, software development, graphic design, film production, landscaping, architecture, translation, fine art, music, and acting.
Consultants
Consultants give professional or expert advice, generally to management. They may come in and evaluate how a company can streamline their production efforts or render a professional opinion on an accounting audit. They give their advice and opinion so that others can make informed decisions, select the best course of action, or accurately forecast an outcome.
Consultants, like freelancers, enjoy a wide variety of projects and earn their living by contracting for projects on a project-by-project basis. Unlike freelancers, most of their work is done outside of the home. At the end of the year, in addition to 1099s, they may
also have some W2s to show for their work.
Fields where consultants are especially common include financial planning, strategic planning, marketing, research, training, business planning, business review, computing, integration of new technology, medicine, psychology, and law.
Brought to you by . . . The original Accidental Pren-her™
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