Episode 28

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Published on:

13th May 2025

How do you describe your business?

When it comes to describing your business, do you really think your legal structure or job title tells the whole story? In this episode of "From Creative Passion To Profit", I dig into what really matters when you’re talking about your business—and why the usual labels often do you a disservice.

If you’ve ever hesitated before introducing yourself as a freelancer, self-employed, a charity, or a voluntary organisation, you’re not alone.

I’ll challenge some of the common perceptions (and misperceptions) of what makes a 'real' business, and show you why that thinking is often outdated.

You’ll hear why the true definition of a business isn’t about your size, how many staff you employ, or how you’re registered.

Timestamped Summary:

When it comes to describing your business, do you really think your legal structure or job title tells the whole story? In this episode of Numbers Knowhow, I dig into what really matters when you’re talking about your business—and why the usual labels often do you a disservice. If you’ve ever hesitated before introducing yourself as a freelancer, self-employed, a charity, or a voluntary organization, you’re not alone. I’ll challenge some of the common perceptions (and misperceptions) of what makes a “real” business, and show you why that thinking is often outdated. You’ll hear why the true definition of a business isn’t about your size, how many staff you employ, or how you’re registered, but about the impact you make, the risks you take on, and the value you offer.

In this episode, I address a bit of snobbery and confusion that surrounds business identity, especially for those in the charity, creative, and freelance sectors. I share why leading with your organizational structure—saying “I’m a charity” or “I’m just a freelancer”—can actually hold you back. Instead, I urge you to put the focus on the work you do, the problems you solve, and the broader contribution you make to the economy and society. We talk about why charities are businesses too, how financial motivation can differ between sectors, and why it’s essential to reclaim and broaden the definition of business. Whether you’re running a grant-funded organization, providing services solo, or are part of a large commercial outfit, you’ll realize you’re more alike than you might think.

By the end of this episode, you’ll have a fresh way to talk about your organization that highlights your value and makes it easier for people to understand your impact. You’ll get better at framing what you do so others—clients, funders, partners—see you as a credible, impactful business, not just a label or legal structure. You’ll also walk away with a new appreciation of how business disciplines like planning, budgeting, and risk-taking aren’t reserved for the corporate world—they’re vital in every sector. If you’re ready to tell a more powerful story about your business, challenge old assumptions, and strengthen your case to stakeholders, this episode is for you.

Timestamped Summary:

  • [00:00:03] Challenging the ideas of business.
  • [00:01:12] Charities and voluntary organisations.
  • [00:02:11] The risks and contributions.
  • [00:03:13] Being registered for VAT or employing staff — means you’re a real business?
  • [00:04:05] Discipline is vital.
  • [00:05:39] Different objectives.
  • [00:06:23] The big takeaway.

If you want to start introducing yourself—and your business—in a way that builds credibility, attracts the right connections, and truly reflects your value, don’t miss this episode.

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Transcript
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On this week's From Passion to Profit, I'm going to be diving into a topic

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that's often overlooked, often neglected, but it has a

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massive impact and importance of how we describe

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ourselves in the world of business.

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You may ask yourself, well, what's in the name? Well, quite a lot.

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How we label ourselves, and most people traditionally label themselves

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as either freelancers, self employed individuals, charities,

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private businesses, voluntary organizations. That has a massive impact

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on how we perceive ourselves, how we frame, how we deal with

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others and more importantly, how the outside world perceives us,

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the value we bring and how they interact with us as well. So

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identity is really key. Let me start with

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addressing a common misconception and possibly rebut

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a bit of snobbery that goes on in the world of business. For some people,

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being a business is merely determined by how big

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you are, your structure, your size, how many members of staff that

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you have, whether you're domestic or national or whatever. And if you can

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fit certain criteria, then you have the right to call yourself a business.

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To my way of thinking, that's complete tosh.

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Well, factors of size, structure, how many employees you've got

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certainly play a role, they are not the defining

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characteristics of a business. Being a business is more than just

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structure and in fact, structure is not really the first

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consideration to call yourself a business. Being a business is about the

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impact you make, the services you provide, the risks you undertake,

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the interactions you have with suppliers and customers. The size is

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not important, it's what you're actually doing that determines whether you're a business

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or not. Let me give

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you, for instance, an organization that calls itself a charity

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first, but actually offers a whole wide range of services. And the

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charity sector in the uk, by the way, is a massive business sector

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in its own right. It offers services that enrich our lives

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from cultural entertainment, provision of health care,

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provision of education, provision of outreach services.

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Now, that is the nature of what charities do. So if we go for as

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big as the National Theatre to small, small scale theaters, the

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they're providing entertainment services, they do educational work. Are you saying

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they're not businesses just because they happen to be registered as charities?

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And charities are at fault this time for introducing themselves as charities

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first and not actually the work they do forms a frame of

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reference in somebody's minds as to it's the charity that they're fixated

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with, and less so for the work that's done. The focus should be on the

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work that you do, the impact that you make, the transformations that you

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provide, less so on the Charitable status.

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Similarly, there's a stigma attached sometimes to freelancers

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or self employed, as if they're perceived as less impactful, less important,

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simply because they don't fit a traditional business model. The idea of a

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traditional business model in itself should be relegated to history.

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Now, being a business is not reserved just for large corporate bodies

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with extensive staff and resources. It's not about saying, oh, I'm registered

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for sales taxes, for vat. I'm a business because I employ staff,

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I'm a business because I have a multitude of suppliers. I'm

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a business because of filling the gaps yourself.

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If you provide goods or services, you take some degree of

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risk and that risk could be not getting paid by somebody you've done work for.

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That risk could be costs going up and you have to absorb that. If

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you make some contribution to the economy, then you are a business,

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you're producing goods, you're providing services and that crosses

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the boundary. And it's not about whether you're private, it's not about

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this luxury of saying, look, look at me, I've got a massive pool of funds,

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that I've got investors around me. That is a type of business, but

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it's not the defining factor. So freelancers,

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self employed, charities, not for profits, Small,

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large companies, whatever shape and size and form you are, you

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are a business. Now, the exception would be if you

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are somebody who's an employee, so you provide your skills, your

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talent for an employer for which you get a regular salary and or any

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other benefits. Perfectly a noble tradition itself.

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Perfectly wonderful. Then you are an employee, you're not a business.

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Now you might be thinking, does it really matter, Mahmood? Well, for one, it does.

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It's about recognition. And many sectors, as I've said earlier, like the

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creative and artistic industries, play a significant, nay,

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a massive role in our society. They may not charge

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the end user for the entertainment, for the education,

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the information, the transformation they're providing. They may be grant

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funded, they may generate their income from donations, but they will still

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operate like a business. They will plan, they will budget,

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they control costs, they take on staff, they engage

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freelancers, they have internal structures, big or small,

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those are not what I would call charities. Firstly, they're businesses, they

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just happen to have a charitable outlook. What that means, predominantly

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folks, is that any surpluses that are generated, and it's tough in

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the charity sector, but any surpluses that are generated are for the benefit

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of the community, the benefit for the audiences, the benefit of the

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people they're helping. Now, these organizations enrich our culture, they

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inspire, they educate and they contribute economically and

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socially. However, their business operations are often overlooked

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because they're charities, those in private business. And I am in private private

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business, I have no shame on that. The nature of the risks will differ and

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how it's funded, but that's a conversation for another day. But business

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disciplines that are carrying out in the charity sector, private sector

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people could learn a lot from the key difference. By the way, folks, if you're

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thinking what is the essential difference is charities have different

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objectives, voluntary organizations have different objectives. Financial

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motivation is not the primary driver. It's good

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to be financially sustainable, it's good to think more numbers,

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it's good to have good financial practices, but the primary motivation is

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not to generate profits. And there's nothing wrong with that objective, by the way.

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So what's the essence? What's the takeaway? I think for me, there's

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a few takeaways. Number one, we need to rethink how we

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perceive businesses. We don't just have that term aligned and

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matched against certain types of entities. So if they've got

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shares, we call them a business. If they take dividends, we call them a

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business. If they're a certain size, we call it a business. That's hogwash.

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Business is not a term that goes to a particular structure or a

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particular industry. And people need to reclaim that and take it back. We

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need a much broader camp to say businesses fit in there. So

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whether you're a freelancer, a charity, or part of a voluntary organization, you

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are, in my humble opinion, based on nearly three decades of experience

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of working with international, domestic, voluntary and other types

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of organizations, you are a business and you need to think business

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first. Your size, complexity or funding source doesn't change that

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fact. By recognizing the diverse array of businesses we

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have in society, in our economy, we can better appreciate the

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contributions they make. What it also does, it introduces the idea

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of business discipline. If we think as a business and having those certain

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disciplines, both in terms of internal control, role compliance,

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planning, budgeting, and thinking about that element of risk taking that

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goes forward here, then you've got a solid business model. It's easy to

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engage with an audience. If you describe the impact that you make, as

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opposed to saying, firstly, we're a charity. Personally speaking,

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that line of thinking is an inhibitor as opposed to an

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enabler. So, folks, how do you describe yourselves? Do you talk

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about you're a freelancer first? Do you talk about the era charity? Is that

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the emphasis? Is that the key message you want people to take away for me,

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reframe that. Turn it upside down. How you're structured

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is not the first thing that you should be introducing into the

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conversation. Talk about the impact you make. Reclaim the ground

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as a business and let me know what your thoughts are. Does this resonate

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with you? Do you have an alternative take? I'd love to hear what that is.

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And folks, if you feel this can be enjoyed by others, then please, I'd love

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it if you could share that. I'd even love it if you can actually add

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some feedback. Do a review. It always helps to get a bigger reach out

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there. Until next week, folks. Happy businessing.

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About the Podcast

From Creative Passion To Profit
From Creative Passion To Profit: the podcast dedicated to empowering individual artists and creatives with the financial and business knowhow needed to thrive
In the creative world, passion and talent are essential. But understanding the business side is fundamental for sustained success. "From Creative Passion To Profit" bridges the gap between creativity and commerce, providing you with the tools to manage your finances, develop marketing strategies, and grow your entrepreneurial mindset.
By focusing on practical financial and business advice, specifically for individual artists and creatives, this podcast will provide valuable and focused support.
Each episode delves into topics such as crafting a winning business plan, demystifying taxes, pricing your work confidently, and overcoming the starving artist mentality. Our goal is to equip you with actionable insights to make informed decisions, ensuring your creative practice not only survives but flourishes.
Join us as we explore the intersection of art and business, helping you turn your passion into a profitable and fulfilling career. Subscribe today and take the first step towards mastering your creative enterprise with From Creative Passion To Profit!

About your host

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Mahmood Reza

Hi, my name is Mahmood, accountant, educator and author of the book, I Hate Numbers !!
I actually love numbers and what they can do for my business – and every business - but I come across so many people who have a real fear of numbers/maths/accounts (and accountants), and therefore, their business struggles to survive, never mind thrive. If only they knew how to get a fondness and some kind of control of those numbers!
Why am I so passionate about all of this stuff I’m putting out into the public domain? It’s my belief that once you understand what your numbers are, where they come from, and what they mean, you can use them to make better decisions and ultimately make (or keep) more money. What every business owner wants, right?
The one thing I’ll always guarantee you, is that whether you’re the CEO of a global corporation, or a market stall trader in your local town, your numbers matter – and you simply can’t get away from them. This book is your chance to get them all in one place, face your fears, and start making those numbers work for you.