　　What's the difference between a freelancer and a business owner? After all, freelancers do everything business owners do -- find customers, cultivate relationships, provide services, keep financial records, and generally work their tails off.
　　There's only one real distinction between the two: Business owners can clearly show value when it's time to merge with another company, lure in a talented partner, or sell their business outright for profit when they're ready to cash out. Freelancers, on the other hand, just close the doors and send out a farewell e-postcard. In other words, a business owner is building equity every day, while freelancers simply fill orders until they stop taking them.
　　Most creative professionals fall into the freelancer category, even when they're successful and have a covey of loyal customers.
　　But it doesn't have to be that way. With a little strategy, foresight, and time, you can create a business that has value in and of itself--even without you attached. Here are the points to concentrate on:
　　1. Structure. Creating structure is anathema for many creative artists, but it's a great tool to help you visualize your business and think strategically.
　　What does structure look like? Think of it as an operating manual for your business, with chapter headings such as "Finding Clients," "Negotiating with Vendors," "Daily Tasks," "Weekly Tasks," "Bookkeeping Procedures," and "Partner Referrals," for example. Once this operational information is on paper and not just in your head, it becomes an asset for your business. Imagine that you're building a franchise that you'll have to replicate over and over. What information would be necessary to include for the next franchise owner?
　　2. Technology. You've probably acquired quite a bit of technology and technology knowledge over the years. Both of these are transferable assets, particularly the knowledge, since most creative professionals bring their own technology to business these days. But you may have specialized equipment, such as wide-format printers or Web servers that have value. If you occupy a transferable physical space, technology includes all networking gear, furniture, and equipment that keep a shop running. And don't forget a great Web address--that's an asset as well. Keep detailed lists of your assets and write down the tech knowledge that adds value to all that you own. Keep all your equipment up to date and well maintained.
　　3. Systems. For most freelancers, systems refers to the processes and procedures that you employ every day as a business owner to find clients, work with vendors, manage employees, produce creatively, and keep your books and records. These are the machines of the Information Age. Keep them well-oiled and greased and create an owner's manual.
　　4. Products/Services. Why do clients turn to you for creative services rather than to your competitors? Because of your specialized skills, natural creativity, and glowing personality. The skills, at least, are a transferable asset, because you can teach them to a new partner or new owner. The more specialized or knowledgeable you are, the more valuable the asset in the eyes of a potential partner or buyer. Work hard to keep your skill set as up-to-date and as distinctive as possible. Become the guru in whatever field you choose.
　　6. Clients. Here, of course, is the big Kahuna in the world of creative professionals. Your client list is the greatest asset you own and the primary reason someone might want to purchase your company or partner with you. Do you have a fair number of clients or are you reliant on only one or two big ones? Buyers like to see good-quality clients but will be concerned if you're overly dependent on just a few. Do you have a high proportion of repeat business or are you always looking for new business to replace what you've lost? How much of your work is based on renewable contracts? Repeats and renewals are of course more valuable.
　　7. Marketplace reputation. If you're smart, you've focused your marketing efforts in a particular marketplace, be it local or regional, a select industry, or a specialization. You're on their radar even if they've yet to contract with you. Is the marketplace for your products and/or services growing or contracting? What are you doing to keep up to date and to address the changing needs of the market? Addressing these questions will help you attract clients and potential buyers/partners.
　　8. Suppliers. You've probably created relationships and negotiated good rates with quality suppliers. These relationships are bankable assets and can be brought to the table come bargaining time.
　　9 Intellectual Property. Do you have any products or services of your own design? If so, are the intellectual property rights (trademarks, copyright, patents, etc.) properly protected? And if not, what makes them special and transferable? Don't shortchange the designs, processes, and shortcuts you've created.
　　10. Financials. Good financials are an absolute requirement to sell your company. A strong balance sheet and consistent record of good net profit will reassure a buyer that your business is well-managed and consistently generates cash. Most small and medium businesses are structured with tax efficiency in mind. There may be a need for some re-structuring in the years prior to selling, so get good tax advice early.
　　11. Employees. Last, but not least, are the good people who work alongside you every day. It's a cliché but it remains true: Your company is only as good as the people you hire. Do all you can to hire and retain great people and provide ongoing training.
　　Bottom Line
　　Whether you're hoping to sell your business tomorrow or plan on keeping it for years, it pays to understand your assets. They compose the equity that makes you the owner of a business instead of a contract worker.