A solopreneur fearlessly carves their own path, leveraging their skills and expertise to create thriving businesses.
Solopreneurship is the best solution for anyone looking to start a business on their own.
This article lists benefits, ideas, and tips for becoming a solopreneur. We'll also help you understand how they differ from entrepreneurs.
What Is A Solopreneur?
Solopreneurs differ from other business owners because they work alone without employees or partners.
They can be freelancers or small/large business owners.
Being a solopreneur has many benefits, including:
- setting your own hours
- working from anywhere
- being your own boss
That said, it can also be challenging, as you are responsible for everything in the business.
If you are considering starting a business or already running one by yourself, you may be a solopreneur.
Types Of Solopreneurs
The Serial Solopreneur
They're always starting new businesses and ventures. They get bored quickly and need constant stimulation. While they may not always be successful, they always have new ideas and are always moving forward.
The Passionate Solopreneur
Their passion for their business drives this solopreneur. They are usually very successful, putting all their time and energy into their venture. However, they can sometimes be so passionate that they burn out quickly.
The Strategic Solopreneur
This owner is very strategic and calculated in their business moves. They take their time to plan and research before making any decisions.
This can sometimes make them seem like they're moving too slowly, but it usually pays off in the long run.
The Innovative Solopreneur
They are very creative and always look for ways to improve their business. However, they can sometimes be so innovative that they get ahead of themselves and bite off more than they can chew.
The Analytical Solopreneur
They are always looking at the numbers and trying to figure out the best way to do things.
This can sometimes make them seem like they are overthinking things, but it usually helps them make better decisions in the long run.
Pros And Cons Of Being A Solopreneur
- They have complete control over their businesses and can make decisions quickly and without consulting with anyone else. This allows them to be very agile and responsive to the needs of their customers.
- These business owners typically have a lower overhead than traditional businesses. This means they can keep more profits, leading to a higher standard of living.
- They can often work more flexible hours than employees of traditional businesses. This flexibility allows them to balance their work and personal lives better.
- They don't have to commute to an office, saving them time and money.
- Working alone can be lonely, and you may miss out on the camaraderie and collaboration of colleagues.
- It can be overwhelming to wear all the hats in your business, from marketing to sales to customer service to finance.
- You may find taking time off or vacation challenging since nobody else can pick up the slack when you're gone.
- They often report feeling burned out more quickly than those who work for others or organizations. This happens because they don't have anyone else to share the load with.
Tips To Help You Become A Successful Solopreneur
- Define your niche. Identify your area of expertise and focus on a specific niche you can serve well. This will help you stand out in a crowded market and attract clients or customers.
- Build your brand. Work on your brand positioning so it communicates your values, expertise, and personality. This includes your website, social media profiles, portfolio, and other marketing materials.
- Prioritize productivity. Develop a system that helps you stay organized, manage your time effectively, and focus on high-priority tasks. This can include using time-tracking apps, project management software, and scheduling tools.
- Embrace automation. Use technology and automation to streamline your business processes and save time for more critical tasks. This can include automating email marketing, social media posting, invoicing, and other day-to-day tasks.
- Invest in professional development. Continuously improve your skills and knowledge by reading books, taking courses, attending conferences, and networking with other solopreneurs and industry experts.
- Cultivate a growth mindset. Stay open to learning and growth, and don't fear taking calculated risks and trying new things. This will help you adapt to changing market conditions and stay ahead of the competition.
- Build a support system. Surround yourself with a supportive network of friends, family, mentors, and peers who can provide guidance, feedback, and encouragement. Being a solopreneur can be lonely sometimes, so you must have people you can turn to for support.
There are a few key tools that every solopreneur should have in their toolkit. Below are some of the most essential.
- Project management tool. This will help you keep track of all your tasks and deadlines and stay on top of everything.
- Task management tool. This will help you prioritize your tasks and complete the most important ones.
- Time tracking tool. This will help you understand where you spend your time and how to use it more effectively.
- Financial management tool. These tools will help you track your income and expenses and ensure your finances are in order.
Solopreneur Business Ideas
- Start a blog. If you have something to say and are passionate about, creating a blog can be an excellent solopreneur business idea. You all need a computer and an internet connection, and you can generate income!
- Start an online store. With platforms like Shopify and even social media channels, starting your online business is easier. Starting an online store can be an excellent solopreneurship business idea, whether you're selling physical goods or digital products.
- Offer consulting services. If you have expertise in a particular area, you can offer your services as a consultant. This can be anything from financial advice to digital marketing counseling.
- Freelance services. Being a freelance graphic designer, writer, virtual assistant, etc., can be lucrative. Start by assessing your skills and looking for services you can provide. Once you have a solid list of services, create a portfolio site or online shop to showcase your work.
- Event planner. Suppose you're organized and passionate about planning events. In that case, you can offer your services to businesses needing assistance planning and executing events, such as corporate functions, conferences, and product launches.
Deciding which business idea is right for you can be tricky. Here are a few things to consider:
Learn about other types of business structures
- What are your skills and strengths?
- What are you passionate about?
- What does the market demand?
- What can you realistically achieve?
Solopreneur vs. Entrepreneur: 9 Key Differences
Entrepreneurs Hire Employees, Solopreneurs Use Contractors
Solopreneurs don't go about their business entirely on their own. They do work with other people to build their businesses
. But how they go about doing it is what separates them from entrepreneurs.
When entrepreneurs need help, they hire full and part-time employees. These people become part of the business's staff, handling any duties the entrepreneur can't take on their own.
When solopreneurs need help, they opt instead to hire contractors or freelancers.
These contractors may have similar responsibilities to the entrepreneur's employees – handling IT, HR, billing, etc. – but won't be on staff and paid through payroll.
Entrepreneurs Hop Around, Solopreneurs Have A Single Business Focus
What makes an entrepreneur an entrepreneur is their desire to jump on opportunities when they arise.
Many entrepreneurs will start one business, sell it and pursue another option when one comes along.
Solopreneurs, meanwhile, tend to focus on their one business for their entire lifetime. They are less likely to start a business with the intent to eventually sell it for an enormous profit to a bigger company.
Instead, they look to grow a business over time, use it to fund their lifestyle, and pass it on or close up shop.
Entrepreneurs Are The Face Of The Company, Solopreneurs Are Worker Bees
Many entrepreneurs are great salespeople and great networkers. So, while they may have had an excellent idea for a business
venture and got it off the ground, their largest value often lies in their ability to make connections and deals.
As such, many entrepreneurs typically start a business
and then hire the right people to run the business while they're out closing deals. They are great sellers and marketers and serve as the face of the company.
Solopreneurs are often solid networkers and salespeople but prefer to do the business's work.
While they understand the importance of networking and marketing, they often feel more comfortable doing the job than spreading the word about the company.
Entrepreneurs Delegate, Solopreneurs Roll Their Sleeves Up
When a need arises, the first instinct of most entrepreneurs is to delegate tasks to the right people to get the job done. It's not as if entrepreneurs don't do any work themselves.
On the contrary, most entrepreneurs start their businesses by doing everything themselves. It's just that, over time, they transition into leading a team instead of handling everything independently.
When a need arises with successful solopreneurs, they tend to handle everything independently.
They know the market and how to take it, roll their sleeves up, and do the job.
Entrepreneurs Have An Office, Solopreneurs Usually Work At Home
Entrepreneurs work mainly in an office setting, surrounded by a team of employees. They have a private office in their space, a conference room that hosts current and potential clients, and brainstorming sessions among the team.
Solopreneurs, meanwhile, can also work from home.
While they have many clients, they don't often need to host these clients. And because they work alone, they don't need to spend money on office space.
Entrepreneurs Crave Growth, Solopreneurs Crave Stability
Entrepreneurs are always looking for the next biggest thing. They are always looking to build more and more value in their business.
To that end, they constantly strive to develop their startup into a more powerful business to create long-lasting and significant growth.
Solopreneurs are more focused on building something sustainable
. Since they only have themselves to rely on, it's more difficult for solopreneurs to scale up.
Entrepreneurs Share The Fruits Of Their Labor, Solopreneurs Keep All Of It
Because entrepreneurs will hire employees and perhaps even have business partners or investors
, there will often be a need to share company profits.
They may have other shareholders to share dividends with when the company does well. They may even have another co-owner to share profits with if they sell the business.
Because solopreneurs do it alone, they reap all the benefits of their hard work. All the profits the business generates are the solopreneurs to keep.
They have no one to share it with since they are the sole owner and operator.
Entrepreneurs Share Decision-Making Responsibilities, Solopreneurs Decide On Their Own
While entrepreneurs may ultimately have the final say, they often must share decision-making responsibilities with others in the company.
Again, entrepreneurs may have shareholders or co-owners to answer or advise when they need to decide.
Solopreneurs, on the other hand, make all decisions by themselves.
While they may rely on other people for advice, ultimately, every decision rests in their hands alone.
Remember, solopreneurs are entrepreneurs, but not all entrepreneurs are solopreneurs.
Entrepreneurs Make A Transition From A Startup, Solopreneurs Keep The Same Working Mindset
Entrepreneurs and solopreneurs think and act alike at the outset of most startups. Both must first shoulder all the work to build their business from the ground up.
What differentiates the two is what happens when the business has built enough capital and grows.
When this happens, entrepreneurs turn to the outside to bring someone on their team. When this happens for solopreneurs, they re-arrange their workflow, opting for contracted help when needed.
Finding Financing For Solopreneurs
If you're a solopreneur, you know how difficult it can be to find financing for your business.
Banks and other traditional lenders often hesitate to lend money to businesses without track records or collateral.
Camino Financial is different. We're here to help you grow your business into a successful company.
We offer business loans that can help you invest in your business venture. Whether you have a big or a small business, we can provide you with the financing you need.
Apply For A Business Loan!
What's the difference between solopreneurs and small business owners?
Solopreneurs are always independent small business owners but are not always a solopreneur (they can be entrepreneurs, intrapreneurs, startups, etc.).
Also, one of the main differences between a solopreneur and a small business owner is that a solopreneur typically works alone, while a small business owner typically has employees.
What is the difference between a solopreneur and a sole proprietor?
A solopreneur is an individual who operates a business alone, without any employees or partners. Solopreneurs typically have a broad focus and may offer their clients various services or products.
On the other hand, a sole proprietor is a legal structure for a business owned and operated by a single individual. This means the company and the owner are the same entity for tax and legal purposes.
Does a solopreneur have employees?
Because a solopreneur works on their own, they usually don't have any staff. They may hire freelancers or contractors to help them with specific tasks or projects, but those hires wouldn't be actual employees.
What do solopreneurs struggle with?
Solopreneurs face a range of challenges while running their businesses alone. They may struggle with time management, isolation, burnout, marketing, financial management, and scaling.
Balancing workload and managing time efficiently can be challenging, and working alone can lead to isolation.
Solopreneurs may find it challenging to promote their businesses and manage finances without help from professionals. They may also struggle to grow their businesses, delegate tasks, or hire employees to scale their operations.
What business structure is best for solopreneurs?
The best business structure for solopreneurs is a sole proprietorship. This is because it's the simplest business structure and doesn't require forming a separate legal entity.
A single individual owns a sole proprietorship, and there is no legal distinction between the owner and the business.
This means that the owner is personally liable for any liabilities incurred by the business and can make all decisions without consulting anyone else.
What business can I start alone?
You can start numerous businesses alone, depending on your skills, interests, and resources.
Some common examples include freelance writing, graphic design, web design and development, social media management, virtual assistance, personal training, e-commerce, and consulting in various fields such as marketing, finance, or management.
However, it is essential to research, choose a viable business idea, develop a solid business plan, and execute it well to achieve success.
Is a freelancer a solopreneur?
Yes, a freelancer can be a solopreneur. Both freelancers and solopreneurs are self-employed individuals who operate independently, so they are independent workers.
They are responsible for finding clients, managing projects, delivering services, and handling all aspects of their business operations.
What is the average income for a solopreneur?
It's difficult to determine an average income for solopreneurs as it can vary greatly depending on several factors such as industry, location, experience, skills, and the demand for their products or services.
According to a survey conducted by MBO Partners, in 2020, the median annual income for independent workers, which includes solopreneurs, was around $68,000 in the United States.
However, it's essential to note that individual circumstances can impact income levels significantly, and income can fluctuate depending on various factors.
What is an example of a solopreneur?
One example of a solopreneur is Sarah Cooper, she is a comedian, writer, and speaker who became a viral sensation during the COVID-19 pandemic for her lip-sync videos of Donald Trump.
She has since used her platform to launch her podcast, write several books, and speak at worldwide conferences and events. Despite her success, she remains a solopreneur, managing her own business and brand.