Work at Home or Small Business?

One of the most important factors in determining the trajectory of your freelance writing career is how you see yourself and what you do. I’m not suggesting for a minute that positive thinking always leads to success – I’ll leave that whole concept to other folks to debate. What I am suggesting is that how you picture your work and your business will, in some part, determine what kinds of choices you make. How you talk about what you do reflects what you hope to get out of your work.

Here are two of the most common models I’ve seen freelance writers talk about over the years:

Work-at-home freelance writer

There is a whole segment of the population that labels themselves WAHMs – Work at Home Moms. This category, in my mind, actually includes more than just moms (there are dads, too) and more than just folks with kids. For whatever reason, though, there are a ton of moms who see themselves in this light. Freelance writers are only a small segment of the work-at-home population that includes everything from professional eBay-ers to in-home craft businesses.

These folks got into freelance writing for a number of different reasons. Some wanted to be able to stay home with their kids. Some live in an economically depressed area and sought out freelance writing after they couldn’t get a job locally. Work-at-home freelance writers often (but not always) consider their work a secondary source of income, one that supplements their spouse’s income.

Work-at-home freelance writers tend to see themselves as employees. They might work for a hundred different customers, but they will talk about those customers as “bosses.” If you ask a work-at-home freelance writer what his vision is for his business, he might tell you that he wants to “provide for his family,” or “make a little extra money on the side.”

Small business entrepreneur

There’s another type of freelance writer, however. This category includes folks that talk about themselves in business terms, such as “small business owner” or “entrepreneur.” They are often men (although many women I know also identify themselves this way, too). They talk about their work in terms of their business. They probably work from home, but don’t really talk about that aspect of things.

Freelance writers who see themselves this way often came into the field from another direction. They might be professionally-trained writers: English majors, or out-of-work journalists. They might be someone who started a small business doing something else and found out they could make more money copywriting than whatever it was they started doing.

This type of freelance writer tends to see herself as a businessperson or an entrepreneur. In fact, that’s how she talks about her work – in business terms, not in terms of a “job.” Customers are “clients,” not “bosses.” If you ask a small business writer what her vision is for her business, she might tell you “to grow my client base to the point where I have a steady flow of business” or even “to become the McDonalds of the freelance writing world.”

Which is better?

To be honest, I’m not sure either model is always better. For some folks in some situations, the work-at-home model is just fine. For others, an entrepreneurial approach is better. I tend to gravitate toward the second category myself, although I’ve been in the work-at-home camp too.

I do think that seeing your freelance writing business as a business has significant advantages, and is a key element of growth. However, entrepreneurs tend to lose sight of some of the reasons they started freelancing in the first place – to be able to spend time with their families.

I don’t have all the answers on this one. What do you all think?

Comments

  1. Jodee says:

    You bring up an interesting question. I describe myself as a business owner but it took awhile for me to start doing so. My suspicion is that I had an idea that my work didn’t qualify as a business until it generated a certain level of income. Funny thing is that as soon as I started earning $1, the Tax Man considered me a business owner and wanted his share.

  2. Kristine says:

    Hmm. I’d still stick being called a full-time freelance writer, although I hate it when some people say that freelancers are bums. :/ However, I call them ‘clients’, not ‘bosses.’ :)

    I guess it highly depends on the person.

  3. Kristen says:

    This is an interesting topic because the situation I am in often has determined how I identify myself. In mom/parenting “circles,” I say WAHM. However, when asked by a stranger or in a professional setting, I do identify myself as a business owner and/or consultant.

    I agree with Jodee that the Tax Man had no problem identifying me immediately. In fact, I just received a new tax (YIPPEE!) called a Commuter Tax. Although, I do not commute ANYWHERE but my own bedroom, I have an additional state tax now because I happen to own a business in the NYC area. (I’m on Long Island.) It would be nice if the state didn’t attack freelancers who are just trying to continue to make SOME kind of profit in a down economy.

    Ahem…

    Sorry.

    A bit of bitterness there…

  4. Kimberly says:

    Jodee, you made a good really point and I can certainly relate. Even though I started out thinking of myself as an entrepreneur (or “solopreneur” as I like to say), my confidence level was pretty low. I still struggle with confidence issues from time to time, and have to pep talk myself to push past it. And you’re oh sooo right about that Tax Man!;)

    Bob, the biggest difference I can think of off hand when it comes to both business models is the earning potential. I tend to believe that when you consider yourself a business right out the gate and actively pursue clients, you have the potential of gaining larger paying projects and making more than you might sticking to the WAHM model working for the middleman. I may be over-simplifying things – just my humble opinion.

  5. Brandi says:

    I would imagine many people (especially who frequent here) are fluid. I know that I consider myself a business owner now (though I will still use the WAHM label on occasion). My son was very ill for about 18 months, though, and my work was secondary to doctors’ appointments, treatments, and all the fun of that. I did work, but I didn’t make much. It was mainly for my sanity that I kept doing any writing. I felt we were lucky because I have the flexibility to work like that when most couples don’t (and someone would’ve lost a job).

    Kimberly, I don’t think that all (maybe even most) WAHMs stick to working for middle-buyers in the content market. I know a couple of WAHMs who make significant money on their own sites and other projects but still consider themselves primarily WAHMs.

  6. Rockwell says:

    If you are going to be a full-time freelance writer, it’s better to become a business. Get your LLC papers… There are plenty of tax benefits and it makes you appear more professional…

  7. Tania Mara says:

    Although I don’t always express myself in the terms you used as examples, I certainly fall into the second category. My professional background helps me treat my freelance writing activities as a business.

    I can’t say whether this model is better than the work-at-home approach or not. I’d like to think it’s better because this is what I’m doing; it would be disappointing to find out there’s a better way to handle my career and I’ve been wasting my time calling myself an entrepreneur. :P

  8. Neo says:

    I use to work in a small organization as a web designer few years back but started home based freelancing to earn more. So I will say if you don’t want to work under anybody else or earn more freelancing is fine provided you’re confident in your service.

    Thanks

  9. Denise Manzagol says:

    Greetings!

    I am interested in developing a portfolio of my work so that I can pursue some freelance writing opportunities.

    I am currently writing some articles for my daughter’s local drama group and for another daughter’s skating club. The articles are published in local papers and also on the respective websites. I would like to know, how do I sign my name to my work? Do I just sign my name as “Sally Smith”, or do I sign it as “Sally Smith, freelance writer” so that I make it known that I am a freelance writer?

    When I do submit articles to the local paper, I haven’t received credit for them. Instead, the paper minimally edits my work and then gives the credit to “staff reports”. What is the best way to handle the situation so that I receive the credit for the work?

    I welcome your suggestions.

    Thanks!
    Denise Manzagol

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