How entrepreneurs can benefit from the freelance economy

Over the past couple of decades, there’s been a huge and fundamental shift in the relationship between people and their work; workers and their employers. Freelance workers now make up more than a third of the U.S. workforce, and experts believe that number will keep growing.

At Azlo, we believe that freelancing can be good business, both for freelancers and the businesses (large and small) that employ them. Here’s why.

Hiring freelancers can help your business

If you’re a small business owner or aspiring entrepreneur, you might be overwhelmed by the long list of skills required to run a successful business: project management, marketing, accounting, customer service, communications …

Doing it all yourself is one option, but there’s a point where that plan will slow your business’s potential growth. Hiring employees is another option, but your business might not be ready for the long-term cost and responsibility of bringing on an employee.

The right freelancers, however, can offer the perfect solution for your business as it grows.

1. They have the right skills for the job. Hiring a freelancer allows you to bring in exactly the skills you need. Instead of trying to find and train an employee or teaching yourself, you can find an expert. The result? Higher-quality, more efficient results.
2. Freelancers are cost-effective. Good talent never comes cheap, but the right freelancer can offer amazing value for your money — especially for a small and growing business. When you hire an employee, there are many costs on top of their wages: taxes, benefits, office space, recruiting, training, and additional insurance. When you hire a freelancer, you will be paying a predictable hourly or per-project fee.
3. You’ll be able to do more work, faster. As your business grows, you might find that the demand for your work is greater than the supply. Hiring freelancers can give you the flexibility to scale rapidly, allowing you to seize the opportunities you encounter.

On the other hand, maybe freelancing is your business

Freelance work can be great for businesses, but it also offers a unique opportunity for people who want more control over their work and their future.

Freelancers are often happier in their careers than traditional workers. In a recent poll, around 70% of self-employed people said they were happy in their work — compared to just 48% of workers employed by someone else. Freelancers also report finding more purpose and pride in their work than traditional employees.

In addition to these intangible benefits, freelance work has some very material advantages.

1. You can work anytime, anywhere. Most freelancers can choose when and where they work. Freelancers can use this flexibility to pursue other goals, like traveling, volunteering, and spending more time with their family.
2. You choose your work. Freelancers have the freedom to pursue the projects that interest them. Rather than slogging through work they are ill-suited for, freelancers can seek out projects that suit their skills and interests.
3. Freelancing can offer economic advantages. Although freelancers do face the challenge of budgeting with unpredictable incomes, there are economic advantages. According to recent surveys, the average freelancer makes more than the average employee. The number of freelancers who make $100,000 or more annually is also rising.
4. Freelancers are more prepared for the future of work. Freelancers create their own job security by learning to market themselves, working for many clients (instead of a single employer) and investing in continuing education.

Beyond freelancer and client

As the freelance economy grows, some entrepreneurs are finding opportunities in the middle, using their skills and innovative technology to connect the right freelancer with the right project.

• Freelance marketplaces and job boards like Outsourcely, Moonlighting, Workhoppers, and Upwork connect independent contractors directly with clients.
• Successful freelancers often create agencies, employing other contractors to take on larger projects.

Entrepreneur and the evolving economy

One of the keys to success, as an entrepreneur, is being able to see opportunities in the world around you. As that world changes, there are new problems to solve and new needs to fill.

As an entrepreneur or small business owner, the question isn’t “Will the freelance economy impact my work?” That question has already been answered — it will. Instead, the question is “How will I make the most of the opportunities it brings?”

Azlo offers small business banking that helps entrepreneurs (including freelancers), start and grow their businesses. If you’d like to share how your business has been impacted by the freelance economy, we’d love to hear more. You can reach us at info@azlo.com.