I didn’t understand the difference until I lived it.
Here’s how I’d explain it to a teenager who’s thinking about getting into business:
Billy and Sarah both get $1,000 for Christmas.
Billy uses $750 to buy a new camera. He spends the other $250 on a videography course. A few weeks later, someone hires him to shoot a wedding. Then a real estate gig. Then a music video.
Billy’s good at what he does. People like working with him. So, he keeps doing it.
Billy is a freelancer.
Now Sarah, she does something different.
She holds onto her $1,000 until she has a spark. A vision. She wants to build a fitness brand.
She spends $500 to bring on a consultant—someone who’s already built a successful fitness business. Then she uses the other $500 to test her idea. She runs ads to see who’s interested, gathers feedback, and takes one step at a time.
She opens up a line of credit at the bank. She hires trainers, rents a gym, and then steps back and lets them do what they have specific knowledge in. She’s still involved—but now she spends most of her time on creating a positive environment for her staff and clients to thrive.
Sarah is an entrepreneur.
Billy works in the business. Sarah works on the business.
Freelancers make money when they work. Entrepreneurs make money when they sleep.
One path builds a life around your skill. The other builds something that lives beyond your skill.
Neither path is wrong.
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