Do You Really Need to Be an Owner?

Many of my microbusiness clients are successful freelancers or independent contractors. Every now and then, one of them will be asked by a business they contract with to become an owner in the business. Sometimes it may be a good idea, but in many cases it’s not.

As a freelancer or independent contractor, you control your expenses and your work experience. As an owner of a bigger business, you will take on liability for the business expenses, including rent, payroll and employee issues. And for what – the status of being an owner? Is that enough? Probably not unless you see a likely tangible return on your investment such as if the company is positioned to be purchased by a bigger company and your ownership stake will yield a big return. This isn’t too likely.

Otherwise, why take on the headaches and liabilities of ownership in someone else’s business? You have a good gig going. You are your brand. Your overhead is low. Your profit margin is good. And you control your schedule – which means you control your life. That’s the goal of most business owners and most miss it.