Solopreneur vs. Freelancer: What's the Difference?

You've started working for yourself, and you're excited to start earning income on your own instead of working for a company.

But are you a solopreneur or a freelancer?

In 2021, I quit corporate life. I decided to bet on myself and start my own business as a fintech writer and journalist. I used to refer to myself as a freelance writer. But now, I prefer the word "solopreneur."

A lot of people use the words solopreneur vs. freelancer interchangeably. But they have some subtle differences — mostly in what's happening behind the scenes (versus how you interact with clients). How you refer to yourself depends on the type of business you want to build.

What is a solopreneur?

A solopreneur is a solo entrepreneur who builds and runs a business independently, without hiring employees. Unlike traditional business owners who scale through headcount, solopreneurs scale through systems, automation, and 1-to-many products and services.

That doesn't mean solopreneurs do everything alone. Many hire contractors or a virtual assistant to help with specific tasks. For example, I've hired a graphic designer for branding (project-based) and a bookkeeper for finances (ongoing).

The key distinction between a solopreneur vs. an entrepreneur or another self-employed person is that solopreneurs retain full ownership and control of their business. Entrepreneurs take on the responsibilities (and overhead) of managing a team.

Solopreneurs also tend to focus on building multiple revenue streams rather than simply trading time for money. They might combine client work with digital products, courses, affiliate income, or other offerings that generate revenue. They recognize that if they have to be directly involved with every dollar they earn, it would be impossible to grow/scale while remaining solo.

What's the difference between a solopreneur and a freelancer?

The terms "solopreneur" and "freelancer" are often used interchangeably. However, they represent different approaches to independent work. Generally, a solopreneur is a business owner, while a freelancer works for businesses as an independent contractor.

Freelancers exchange their time for money through client services. They work as contractors within other companies' projects, completing assignments based on their expertise,. Common freelance roles include writing, design, development, consulting, or another skill. When the project ends, so does the income from that client (unless there's ongoing work).

Solopreneurs might provide the same services as a freelancer, but might depend on other revenue streams. This might be in addition to client services, or might be entirely independent of client services. Think of someone who sells online courses or digital products, and that's their entire business model. That person is a solopreneur, but not a freelancer.

The business focus is different. Freelancers typically invest in improving their skills to command higher rates and attract better clients. Solopreneurs focus on business growth and systems. They think about how to scale their impact without working more hours.

From freelancer to solopreneur: 4 business mindset shifts

If you're a freelancer and think, "I want to be a solopreneur," it isn't just about adding new revenue streams. It's a fundamental shift in how you think about your work and your business.

Here are some key things you need to consider.

1. Revenue structure

Solopreneurs usually build toward recurring revenue, such as subscriptions, memberships, retainers, or products with ongoing sales. That doesn't happen overnight. It takes a long time (and usually a large audience) to generate enough recurring revenue to support your lifestyle.

2. Building a brand

Solopreneurs build a brand around their business. You need a recognizable online presence in order to generate revenue. While a brand can help freelancers, they can also rely on referrals or marketplaces (like Upwork or Fiverr).

Personal brand is a lot of work, and usually requires a lot of time planning and publishing content. You may also need to invest in design services so your brand is recognizable.

3. Strategic decision-making

Solopreneurs make strategic decisions to shape the direction of their businesses. They decide which products to create, which audiences to pursue, and how to position themselves.

If you're not careful, you can fall prey to "shiny object syndrome" as a solopreneur, and chase things that don't actually earn revenue (or don't earn enough to offset the time you've put in). Spending a ton of time on Instagram to build a following doesn't matter if those followers don't actually buy anything from you.

4. Time and bandwidth

Both freelancers and solopreneurs have a lot of flexibility, but it looks different in practice. Freelancers have to manage client expectations and deadlines. Their bandwidth is determined by how much client work they can take on.

Solopreneurs often have self-imposed deadlines, such as creating content for YouTube or publishing a podcast. They can free up their time by hiring subcontractors, such as a video editor. If solopreneurs take on new projects, such as publishing content in a new channel, they have to think about the tradeoff of their time and bandwidth to do other things to grow their business.

Are you a freelancer or a solopreneur?

Not sure which category fits you best? Ask yourself these questions:

• Do you earn income when you're not actively working?
• Do you spend more time improving your skills or building business systems?
• Are you focused on attracting better clients or creating products and offerings?
• Do you adapt to client requirements or set the direction for your business?
• Is your brand built around your personal skills or around a business that exists beyond you?
• Do you think of yourself as a professional for hire or as a business owner?

If your answers lean toward the first option in each question, you're operating more as a freelancer. If they lean toward the second, you're thinking like a solopreneur. Most people fall somewhere in between (and that's perfectly fine!).

How you refer to yourself and your business

My clients refer to me as a freelance writer because that's the service I offer them. But I refer to myself as a solopreneur, because that's what I'm building. Both are true statements, but solopreneur more accurately reflects my business goals.

What matters is understanding which approach aligns with how you want to work and what you're ultimately trying to build. You might start as a freelancer and evolve into a solopreneur over time. Or you might realize that freelancing gives you exactly what you want: great clients, interesting work, and flexibility.

The labels matter less than your intention behind them. Know what you're building, and the right way to describe yourself will follow.

Want to build a life-first business?
These reflections will help you determine your priorities.

Download

FAQs