Freelancer v. Solopreneur v. Consultant v. Business Owner: What’s the Difference?

Is it just me or does every person who professes themselves a thought leader who also happens to be a service provider have an opinion on what constitutes a business owner VERSUS a freelancer VERSUS a consultant VERSUS a solopreneur?

It's a very strange debate in the world of self-employed knowledge workers where folks take turns arguing what traits make someone a “real business owner” versus someone who is seemingly cosplaying entrepreneurship. I'm not going to go into all the nuances of the discussion, but I do want to talk about one particular issue because I'm curious if it resonates with you.

That issue has to do with mindset.

The Mindset Argument

If I had a nickel for every time someone brought up mindset in the “freelancer versus” debate, I feel like I’d have at least $100. Maybe $1,000.

Because when it comes to deciding what makes someone a “hired gun” or a person trading their time for money, a lot of folks say it has to do with mindset. They’ll say that someone who is a freelancer simply sells their time for money, whereas someone who is a consultant, business owner, or solopreneur has expanded beyond that phase. The critical difference, people say, is that freelancers don’t have a long term plan for growing and scaling their business, whereas the others, especially the solopreneurs and business owners, do.

And, that lack of long term planning is what makes someone a freelancer. The undertone, of course, is that freelancers and/or folks without a long term business plan, aren’t serious about their businesses. Hence, the mindset distinction.

To be honest, I've worked with enough freelancers to know that's a bunch of bullshit. There are a ton of folks operating extremely legit businesses with no plans to scale or grow and who don’t even have a vision for their business beyond this year, other than to continue.

But then I had a virtual coffee with a fractional consultant that made me sit with this so-called debate a little longer.

Apparently, Freelancers Don't Take Their Business Seriously

I recently had a virtual coffee chat with a fractional consultant. My goal was to do a quick vibe check to see if she was someone I wanted to pull into work I do in the tech world. While we were chatting, she asked what I do and I told her that I help freelancers and consultants navigate the future of work economy scam by teaching them how to think like lawyers. I went on to explain some of the trends I've been observing since 2020 and what they mean based on past history cycles.

Her response was not what I expected. In fact, she was the first person who wasn't nodding along to every word I said and asking me where to start. Instead she matter of factly stated "Ya, I think the problem is too many people freelance and they're not focused on building a real business that grows and scales."

I won't lie, her words were kind of like a record scratch. My brain immediately started calculating what that meant for me and my little business if it was true. Instead of outright panicking, I asked her to explain what she meant. She said she thinks a lot of folks don't take the legal side of their business seriously because they don't treat their business like a business.

Then she went right back to that same old mindset distinction: without a plan to grow and scale, people are only thinking about their next project and how much it pays, not the long game of what it takes to build a lasting business.

My knee-jerk reaction was to tell her she was wrong to make myself feel better. Instead, I gave her a very neutral "interesting" and told myself to keep thinking on the issue.

A Week Later, I Still Think It Might Be A Distinction Without A Difference

It's been a week and I can't say that I understand this debate anymore than I did when I first saw it a few years ago. But here's what I do know:

We need to expand the definition of freelancer.

Just because someone calls themselves a freelancer doesn't mean they aren't actively working to grow their business or scale it in some way. And just because someone isn't interested in growing beyond a solo operation doesn't make them any less of a legitimate business owner.

Otherwise, the attempt to draw distinctive lines between these four categories continues to feel like juice that isn't worth the squeeze.* That's just my opinion, but maybe I'm wrong or missing something, which is why I'd love to get your input!

I want to know what you call yourself — freelancer, business owner, consultant, or solopreneur — and whether that label actually shapes how you think about your business.

Fill out the survey here. It takes under 5 minutes.

And as a thank you for completing the survey, you'll be eligible to sign up for a FREE workshop on June 3rd where I'm covering why every service provider (see what I did there?) needs to be HOT FOR CONTRACTS. I'll be sharing the concerning trends I'm seeing in the freelancing and fractional consulting economies, how they tie into contracts, and my top 10 contract red flags to look out for. Every attendee will get a copy of the contract red flag checklist and there will be plenty of time for questions.

Fill out the survey, come to the workshop, and let's get into it.

Once the results are in, I'll do a follow up to this article to share what you all have to say!

*For the anti-capitalists in the room, I’ll save my thoughts on how I think capitalism has played into this debate for the follow up.