Freelancer vs. Entrepreneur: How Jim Huffman, CEO and Founder of GrowthHit, Went...

Whether you're a freelancer or an entrepreneur, there are certain terms and conditions to either route. And although everyone's journey is truly one-of-a-kind, here's a brief preview of what you should anticipate as you progress down one path or the other:

Key Milestones for a Freelancer

1. You'll land your first client (silent applause).

This is often the most significant milestone you'll experience as a freelancer.

When this finally happens, it'll offer a much-needed boost of confidence and establish your credibility in the market. It can also lead to more opportunities and referrals (which equals more money, cha-ching).

2. You'll get a steady stream of clients.

As a freelancer, your success often depends on your ability to consistently attract and retain clients.

This may involve building a strong online presence (if you haven't already, getting started on LinkedIn is a mandatory platform to start doing this on), networking effectively, and providing a comprehensive look into your services/what it's like to work with you 1:1.

3. You may (or may not) choose a niche.

As you gain experience, you may decide to specialize in a particular niche or area of expertise. Whatever your knack is, when you choose to do it exclusively, this decision will help you stand out from the competition and attract clients who are specifically seeking your skills.

4. You might start looking for some backup.

As your business grows, you may need to hire additional team members or collaborate with other freelancers to handle increased workload or offer a wider range of services. This could be a strategic move that serves you well; you might be able to scale your business and take on larger projects.

Next, let's talk about what pivotal moments look like in the life of an entrepreneur:

Key Milestones for an Entrepreneur

1. You'll launch your first venture; you'll feel totally awesome.

This is often the most rewarding milestone for an entrepreneur, primarily because it represents the realization of your vision and the first step towards building a successful business.

2. Your business will pick up some momentum.

As your business grows, you may face new challenges and opportunities. This could involve expanding into new markets, hiring additional team members, or securing specific funding.

3. You'll overcome some major obstacles.

I'd be lying if I said entrepreneurship is without challenges. Along the way, you may encounter setbacks, financial difficulties, or competition. But how you react - your ability to overcome these obstacles and learn from them - is what matters most when it comes to long-term success.

4. You may decide it's time to say goodbye.

At some point, you may decide to be less involved in your business or transition into a new venture. This can be a bittersweet moment, but it also represents the culmination of your hard work and dedication put in over the years.

Now that we've covered most of the grounds for both freelancing and entrepreneurship, let's next review a few benefits and drawbacks of both:

Freelancing Pros and Cons

Pro #1: You choose how the money goes into your business.

As a freelancer, you have complete control over your income. You can choose how much you earn by taking on as many or as few projects as you want.

This flexibility is incredibly empowering and it allows you to set your own salary/rates, prioritize projects that align with your financial goals, and enjoy greater autonomy over the work you create.

Pro #2: You get to level-up your skill set.

You've probably discovered this perk already, but freelancing offers a unique opportunity for rapid skill development. Because you're constantly exposed to new challenges and projects, you're also constantly learning new techniques, improving your existing skills, and staying up-to-date with industry trends.

This continuous learning is incredibly rewarding and can also make you more marketable to potential clients.

Pro #3: You can do things when you want, how you want.

One of the biggest perks of freelancing is the flexibility it offers. You can set your own schedule, work from anywhere, and choose projects that genuinely interest you. This freedom can allow you to achieve a better work-life balance and pursue other passions or hobbies.

Con #1: You might have some trouble collecting your coins.

As a freelancer, you may experience the dreaded: Clients delaying payments. This can cause some financial difficulties, especially if contracts state that payments are Net 30, sometimes even Net 60.

That said, you must have a clear payment policy in place and (regardless of how mean you might sound over email) follow up promptly if you don't receive payment on time.

Con #2: Freelancing is a dog-eat-dog world, which is something you'll have to get used to.

Competition looks like a lot of things when you're a freelancer, so I won't drag this one out for too long.

However, I will say this: The freelancing market is a highly competitive space, especially in popular fields like content strategy, copywriting, or graphic design.

This can make it difficult to stand out and find clients. To combat these expected hurdles, I propose building an exquisite portfolio that illustrates what kind of work you do and the results it's produced, get some client testimonials to feature on your website or LinkedIn, and create packages that are tailored to specific opportunities (i.e., if you're a copywriter, I suggest making a package of social media copy, a package for website and SEO copy, etc.)

Con #3: You're going to have to deal with shifting expectations.

As a freelancer, you'll often find that the expectations of your clients will shift. A lot. Probably more than you'd think.

They may change their minds about the scope of a project, request additional features, or have new ideas that didn't occur to them initially. This can be challenging and time-consuming, requiring you to constantly return to the drawing board and make edits and adjustments as needed.

Entrepreneurship Pros and Cons

Pro #1: You can build the work world you want to see.

Just like Jim, as an entrepreneur, you have the unique opportunity to create a company culture that aligns with your values and goals.

This can lead to a more fulfilling and enjoyable work environment for both you and your team.

Pro #2: You can lean on a team that you trust.

Building a strong team of talented individuals can provide you with the support, expertise, and motivation you need to succeed.

Plus (and more on this later), just as Jim has shared, a team that is aligned with your goals and values can help you achieve your business objectives more efficiently and effectively.

Pro #3: You can make the investments you've always wanted.

Being an entrepreneur allows you to invest in opportunities, partnerships, and people that could put you and your company on the map.

By building a reputation for early adoption or risk-taking through the choices you make, both financially and strategically, you can position your company for success.

Con #1: Higher barriers to entry.

Starting a business often requires significant financial resources, which proposes several barriers to entry for many entrepreneurs.

Additionally, depending on the industry, there may be numerous regulations and permits that you need to obtain before you can start your business. This can be frustrating and costly, making it more difficult for your company to reach a respective market.

Con #2: You'll have to hire and, subsequently, fire.

Hiring and managing employees can be time-consuming and challenging, especially on your own. You'll need to develop effective hiring practices, provide training, and manage employee performance.

…Or you can take Jim's advice from above and find an excellent employee to do all of this for you. Either works.

Con #3: You might burn out faster than you'd think.

As an entrepreneur, you're going to get used to wearing multiple hats, juggling countless tasks, and working long hours to get your business to where it needs to be. And, you may not notice it weighing on you at first, but you'll feel it at some point.

This relentless pace could potentially lead to burnout, especially if you're not taking care of your physical and mental health.

What is GrowthHit?

GrowthHit is a growth team specializing in running growth experiments for businesses. GrowthHit sits at the intersection of web design and optimization, growth marketing, and creative services.

Although the GrowthHit team is small (currently, there are fewer than 50 employees, which is pretty damn impressive), its achievements certainly aren't.

Thus far, the GrowthHit team has generated over $247 million in revenue, and that's just from running tests for enterprises nationwide. Some of those companies include Panera, Sephora, WeWork Labs, Tech Stars, and General Assembly.

Those names are only a few out of the 114 businesses that GrowthHit has been able to assist through its radical methods for, as Huffman puts it, "leading with strategy, not execution."

GrowthHit's Playbook

When it comes to "leading with strategy," Jim has many guiding principles, most of which are anchored in how, as an entrepreneur, he chooses to approach both organizational leadership and client acquisition.

Here are a few of them that I gathered from his conversation, that I figured would be the most useful and actionable for aspiring entrepreneurs and freelancer folks:

1. Hire senior people, not junior people.

"Junior people can work but they require hand holding," Huffman told Trends.co. And while Huffman's words may seem harsh, they're not as cold as they seem once you get to the bottom of his logic.

You see, if you break his philosophy down a bit more, you'll find that Huffman's concern is not with, literally, junior employees - they're not bad at their jobs or anything - it's with the level of work they're likely to produce at the stage of development that they're probably at.

"The right senior hire will do your job five times better and grow revenue [at the same time]," he elaborated.

According to Huffman, senior-level employees will remove problems from your plate because, considering where they're at in their professional careers, they are skilled at doing so.

2. Leverage tech to be a one-person sales org.

Jim revealed one of his close-kept secrets for doing work well: "Build a one-person sales team off of a tech stack," Jim mentioned to Trends.co.

If anything, I think this piece of advice may be one of the most important, especially for my freelancers out there. Don't do more work than you have to, especially if most of your energy should be spent searching for the leads that matter.

Now, in Jim's case, he uses Zapier, Superhuman, Qwilr, and Mailshake to help him work smarter, not harder. Every tech stack looks different based on the needs of the person behind them. However, starting with a CRM may be a good place to start - I suggest HubSpot's.

3. Culture is everything.

If you want the key to controlling work culture, Jim says you should start with the small things, not the big ones. "Get tactical about the habits that make up your culture, then applaud them," he recommended.

Here's Jim's specific guide to making GrowthHit one of the best places possible for his employees to work and, of course, produce quality results:

• No repeat work. (Jim says: "If we can automate tasks, let's do it.")
• No jerks.
• Default to kindness.
• Show, don't tell.

Plus, he added this gem: "The best thing that you can do for A-players is hire other A-players that are aligned in their values and reason." Jim's perspective demonstrates that building a well-oiled company starts with attention to detail and a commitment to creating a supportive, inspiring ethos that employees can not only follow but witness tangible impact from.

4. Embrace results (not hours) and give generously.

This tenet is directly connected to the previous one. According to Jim, "If you want A-players, give them a lifestyle you would want."

Truthfully, you can do this however you'd like. Maybe this looks like paying for top employees' dinners, or even tacking on an extra remote day to their hybrid work schedule.

However, for Huffman, this looks like "giving spot bonuses to employees that over-deliver and push the business forward."

Huffman's bible for delivering on things like company culture, scaling, and ROI is truly full of awesome takeaways.

Choose Your Fate

Whether you decide to embark on a path similar to Jim's or not, both entrepreneurship and a career as a freelancer requires one thing: Commitment to your dream.

This means being dedicated, persistent, and willing to put in the hard work necessary to achieve your goals. Remember: Success won't happen overnight, so be patient with whatever your business throws your way, and enjoy as much of the process as possible.

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