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I'm an graphic/web designer and illustrator who works freelance. I personally find freelancing much more profitable than actually starting a company, although I'm always advised the opposite. What is your view on Freelancing in comparison to launching a Startup? Is it still considered entrepreneurship? :) |
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I think any sort of activity where you're working for yourself is entrepreneurship. Freelancing and starting a company are slightly different things in my opinion, but then, what I think might be the total opposite of what someone else thinks. I guess my definition of freelancing versus startup is that freelancing is more about offering a service or services to other companies or individuals for money. A startup is more about offering a product or a range of products to other companies and customers. The confusing part is that the product you're offering can sometimes be the same service you offered as a freelancer! :) |
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Maya, I have faced same situation for quite some time and here is the difference scale. When you are a freelance you are a single man/woman company, you derive enough economy based on different factors like skill, experience etc. But above all your limited time (24 hours a day) is your upper bound to your economy. You build a company to remove that upper bound by recruiting and managing different people to take on lost contracts due to your scale problem. Then you are a service company. The situation is a bit better but not a whole a lot. Scale is still bound to the # of people in your company. To grow contracts you have to grow people and managing a large number of people is so hard. Of course the term startup applies to all sorts of starting companies, but I think you are talking about blockbuster's :), in that case you try to avoid labor intensive services that cause the above scale problem by creating a product that derives the economy other than # of people in your company. I would suggest that your read this book ASAP, http://www.amazon.com/Business-Software-Manager-Programmer-Entrepreneur/dp/074321580X/ref=sr_1_1?ie=UTF8&s=books&qid=1263914181&sr=1-1 Thanks for your answer & advise Nader! :D really appreciated. Gonna order this book on Amazon and try reading it (i have a phobia of businessy writings, I'm an artist :P but I am willing to make the effort!! Thanks again :) Your welcome, wishing you the best in your career, and I like your comics "as much as you want" :D Haha thank you! :D I'm glad you do.. Stay tuned for more..... |
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A designer friend of mine goes through this debate on a daily basis. My main argument to her for establishment of some form of legal entity that shifts the set-up from freelance to startup is to enable her to grow out of a 1-person show with the help of sub-contractors or junior designers as her workload increases. More importantly, I personally feel there is more protection for you should you set up a legal entity when dealing with clients. It might be nothing more than perception, but clients would be more reluctant to renege on an agreement when dealing with a company. Some clients are also averse to dealing with individuals so there's also the added benefit of greater opportunity (example: Government and semi-gov organizations that require bids and tenders) Lastly, there are so many opportunities presented to start-ups in the form of assistance programs, access to funds, training, business development opportunities, etc... that you wouldn't qualify for as an individual. |
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Maya, as per our conversation, there may be legal implications and responsabilities that ensue from the type of activity that you undertake as a freelancer, vs. as a corporation (SAL or SARL). For example, in your case, if you inadvertently offend someone with your comics or incur damages in any other way, and you are a freelancer, not an SARL, your own person (money, reputation, freedom) can be at risk. For more information, and because the laws vary greatly from country to country, consult your lawyer;-) wikipedia has some info to get you started: http://en.wikipedia.org/wiki/Soci%C3%A9t%C3%A9_%C3%A0_responsabilit%C3%A9_limit%C3%A9e#The_partners_of_a_limited_liability |

