Are you a business owner, an entrepreneur, or an independent contractor? How to know and why it matters

If you’ve left the corporate world to start your own business, you might think of yourself as either an entrepreneur or a business owner–or even both. Many of us also consider ourselves “independent contractors.”

Now, you might believe that these terms are all pretty interchangeable, and a lot of us use them that way. But did you know that there are some significant differences between them all?

You might wonder why it matters, as long as your doors stay open and the income keeps flowing in. Of course, that IS the most important part of the game. But there are times where it matters a LOT to understand the nature of your business. Why?

Business is not a one-word-fits-all situation. Knowing whether you’re a business owner, an entrepreneur, or an independent contractor is a key piece of information.

Here’s why this matters so much…

Knowing who you are and what you do is the foundation of your business. Connecting to your foundation helps you stay grounded and focused on where you are with your business. This is an especially important thing to understand not only because it’s foundational, but it’s crucial to when you need to make a big move in your business.

If you’re in a space where you’re thinking about your next big move, whether it be expanding your current business or shifting in a new direction, knowing who you are and what you do NOW is key.

Now, let’s talk about the differences between business owners, entrepreneurs, and independent contractors.

Business Owners are leadership-oriented. They play a more managerial role. Business owners maintain relationships and profitability within a set business plan. Their job is to lead and keep the business going in practical ways. The business owner fits under the corporate umbrella.

Entrepreneurs are solution-oriented. Entrepreneurs are leaders, too. But they tend to be leaders in their industry more than in their businesses. 

They’re the ones with innovative ideas. They disrupt industries and change them. They create something out of nothing. They look for problems or needs within industries. Then they and come up with game-changing solutions. 

Entrepreneurs, like independent contractors, are considered self-employed. But they’re not the same as independent contractors, and here’s why: 

Independent Contractors have a single trade or skill. They use it to serve their clients in a specific (but limited) way. Unlike entrepreneurs, they are not focused on the big picture and solving more expansive problems. The focus their time and energy on one specific skill or trade, and stay within that scope.

Now, ask yourself, which one sounds the most like you right now? Then, consider how this sits with you. Are you satisfied with your current direction, or does a new direction sound more appealing now?

If you’re considering making a change in your business direction, here are a few things to reflect on…

Reflect on where you are now, and how you got there. The next step is to recognize where you are now, then figure out how you got there. That means take a look back at your personal journey and notice the stages you’ve gone through so far. 

Here’s what you’re likely to discover when you reflect on all this…

You’ll start to recognize that you’ve had a lot of experience, and more than likely in several of these spaces. I’m also guessing that you’ll see that you’ve pivoted from one area to another in the past. The best part about this is that if you did it once, you can certainly do it again!

Now, what shifts do you want to make in your business?

Now that you have a better idea of where you’ve been and where you are now, I suggest that you start letting go of what’s not working, so you can get some clarity about your next steps.

For example, you might be an entrepreneur who is missing the security of employment. Or an Independent Contractor who needs some entrepreneurial energy to offer their services in a new way. 

You might be a business owner whose way of doing business is gone, and you need a next move. Or even be an entrepreneur who has been all over the place for years, and needs grounding in the form of a business plan. 

Then again, you might be envisioning ways that all the types could work together for you. If that’s where you are, that’s amazing! 

Most of all, remember that there is no right or wrong way to be in business. Business owner, entrepreneur or contractor–it’s up to YOU.

An entrepreneur is not better than a business owner. An Independent Contractor is just as important as an employee. Chances are throughout your life you’ve played many of these roles, and have played them well.

The only thing now is to determine what role you’re playing now, and whether it still works for you. If it does, that’s amazing! Keep moving forward. But if you’re ready for a change, you’ve got the advantage of knowing where you’re starting. This makes it easier to decide where you want to go next.

Now tell me, which of these titles best describes what you’re doing now, and how do you feel about it? I’d love to know…

Leave me a comment below!

Until next time,

Love, light, and MONEY, Honey…

Kaylee