Soloprenuship can be easy if you have the right mindset. But it’s easier said than done. That’s why here are a few tips you’ll need along the way.
Despite global businesses paying top dollar to deserving individuals, 76% of independent workers prefer to stay that way, thanks to their fulfilling careers. It’s understandable since, in addition to the freedom, solopreneurs earned around $68,300 per year, with 20% of them making comfortable six figures.
However, it’s not always smooth sailing, and these professionals have their own set of challenges. For instance, feeling lonely is one of the primary issues many such professionals battle with.
As a result, we have prepared this article to picture your arsenal as a successful solopreneur. I will cover those shortly after brushing up on the basics.
What is Solopreneurship?
Solopreneurship is a one-person-doing-everything business. Starting from the idea generation, product manufacturing or service design, marketing, managing sales, processing refunds, revenue analysis, taking feedback, etc., all comes down to the founder.
Solopreneurs sometimes also hire independent contractors to do support functions because most such professionals start their businesses as a side hustle. In addition, it’s not feasible to do all the tasks oneself because of limited skill sets and time restrictions.
So why does someone bear the burden of running a business alone? What’s the catch?
Solopreneurship Benefits
This is a short list of the things solopreneurs value over a high-paying corporate job.
Autonomy
It provides 100% independence for the founder to take the business their desired way. This is ideal for someone who has a passion and a roadmap to convert that to a profitable product or service.
That said, since there is no team to share ideas and work with, this autonomy can pave an easy way to unprofitability, leading to shutdown or insolvency.
Consequently, it’s equally important to be responsible for enjoying that freedom without getting the business in trouble.
What can help are consultants, mentors, and peers while making critical decisions. In addition, hiring freelancers will help share the burden when the founders take care of the other and more important tasks.
Work-life balance
This is not entirely true since I have seen some interviews where solopreneurs reveal working over 50 hours a week. In some cases, it was up to 70 hours per week.
Still, solopreneurship gives time when one needs it. You can drop your kids off at school, go for an afternoon dinner, and still work in the evenings, late at night, or on weekends.
This flexibility brings in a work-life balance, which is unseen in a typical job setting.
Security
We all have seen big tech firing thousands of employees when their CEOs enjoyed salary jumps. This sheds light on a perennial fact: a job will be a job. And that loyalty to a company may not always be reciprocated.
Solopreneurship, on the other hand, offers more transparency and stability. Things can go wrong, but at least there is time for revival before a complete shutdown.
Improved finances
For proper skill monetization, solopreneurs have the potential to outearn their counterparts serving in regular jobs. This is because solopreneurs take all the profits, while it’s only a small portion in the case of employees.
Don’t take this as solopreneurs always end up being rich as they also bear the responsibility of running the entire business, securing clients, enduring market fluctuations, and taking all the risks.
But if successful, solopreneurs do end up richer than what they would have been in a standard job.
Satisfaction
With all the above-mentioned factors comes the biggest benefit–satisfaction. You remain in control, can attend to your loved ones when needed, and enjoy financial rewards, all the while running a “company” no one can fire you from.
Furthermore, in many countries, solopreneurs pay less in taxes than employees with the same income.
So, these were a few things that matter for many solo business people. If you belong to the same clan, the following section presents a blueprint for a successful outing.
Top Solopreneur Strategies
A job will always be easier than being a solopreneur. At the same time, the rewards are also in line with the input.
For this reason, if you’ve decided to take the road less traveled, note down how to ace the journey.
Time Management
Allocating time to vital activities, besides taking some time off, is key for resounding solopreneurship success. For this, one needs to prioritize tasks and set attainable goals.
You can use productivity apps to help keep track of your time and avoid going astray. Besides, one should review the goals periodically and adjust the business activities accordingly.
Stay Organized
Everyone has their own style of working. Regardless, keeping a clear track of things is a sure-fire productivity booster. Maintain records of important documents, client information, deadlines, and a well-organized workspace.
Find Your Perfect Space to Work From
I’m more productive from home than I was ever in an office.
Similarly, find which suits you best: a home office, co-working space, or a coffee shop. While home gives you the comfort of working in any preferred attire within a personal space, others offer networking opportunities valuable in certain domains and to some individuals.
Stick to Your Plan
Planning is the first step most solopreneurs take because of its sheer importance. But what’s more valuable is following it.
Since solopreneurship is a one-person show, it’s not uncommon to deviate from that idealized path. To avoid this, one can have an accountability partner, which helps you stay committed to your primary business objectives. This person can be your friend or a family member.
Also, revise your plans when needed.
I can’t emphasize enough how significant personal branding is for solopreneurs. When there is no one to market your product and services, it’s your name that carries things forward.
Therefore, build a strong social media presence, share valuable content, engage with your audience, and showcase your expertise. This will help you attract clients and build a loyal audience.
Running a business single-handled is often a tiring job because, quite often, solopreneurs start their venture as a side hustle. This means, you got to do everything in your spare time, after the routine 9-5, or on the weekends.
In this case, automating a few things can certainly help streamline your workflow.
Such apps can include project management software, communication & social media tools, automation apps, and any other technology that can enhance your efficiency.
Build and Optimize Your Website
Contrary to a lively social media handle, building a website is entirely optional but is highly recommended.
Without it, one is confined to selling on third-party platforms such as Amazon. While this isn’t bad for beginners, you should get a separate identity after enduring the initial turbulence.
Work-Life Balance
With solopreneurship, it’s easy to get into working every minute without any time off. This will lead to burnout and can also translate into a serious health issue.
To avoid all this trouble, one must maintain a healthy work-life balance by setting boundaries for work hours, taking breaks, and allocating time for personal activities.
Never Give Up
It’s cliché, but you’ll need the never give up advice since the competition is fierce. This is evident by the high closure rate of small businesses, which is 18% within the first year and 50% during the first five years.
On the other hand, TheOodie founder closed his first two dropshipping businesses to find exemplary success in the third one. That’s why it’s also vital to move on when it’s needed.
Grow Your Email List
Over half the world’s population are active email users. And companies earned $36 for every single dollar spent on email marketing in June 2020. That’s 3600% ROI.
In addition to the numbers, this gives you an alternate way of connecting to the customers, upselling, and giving critical updates about your product.
Plus, you can always start a product-related newsletter and analyze the clicks to know about your loyal customers. This can also include a company roadmap and information about the exciting new products you’re likely to bring.
Consequently, it’s worth collecting your customer’s emails as it not only can be a rewarding income stream, but also help make a consistent brand image.
Set a Realistic Budget for your Venture
According to research by CB Insights, money is the number one reason why start-ups fail. That’s why proper budgeting can help your venture avoid that fateful outcome.
One should allocate financial resources wisely, monitor expenses, and plan to keep short-term needs and long-term investments in mind.
Build a Strong Professional Network
A strong network can provide support, collaboration opportunities, valuable insights, and investments (should you decide to come out of bootstrapping).
Ergo, you must not business-isolate yourself. Attend events, join online communities, and establish online and in-person connections.
Collaborate with Other Solopreneurs
Riding this wave solo comes with many challenges, which are sometimes best fought in company.
Partnering with other solopreneurs can allow resource sharing, better customer reach, benefits from additional skills, greater accountability, and chances of a higher success rate.
Continuous Learning and Skill Development
While not all, the majority of domains are dynamic, and someone peeking their head out to check on the competition has more chances of success.
Therefore, staying updated with the competition and the overall industry is a no-brainer.
Likewise, upskilling is necessary since you’re all but alone to do everything, including the things you might not be good at initially.
Struggles in Solopreneurship Journey
At this stage, you know what one must do for a thriving solopreneurship. Now, let’s take a look at the pitfalls you’re up against.
Lack of Infrastructure
Unless you’re already a self-made millionaire or have inherited substantial fortunes, a lack of infrastructure can haunt your initial business growth.
It can be in the form of an absence of a professional working space, automation tools, and overall resource shortage to support various business tasks.
Financial Management
Since cash inflow can be limited at the start, it becomes difficult to prioritize the spending. In addition, all of the financial management, including budgeting, accounting, and financial planning, comes to the founder’s plate, which can become a little bit complicated.
If not handled properly, it can result in difficulties in covering business operations and affect business sustainability in the long run.
Feeling of Loneliness
According to Leapmesh data, 13.13% of solopreneurs reported feeling isolated at work. This is understandable, as there is no one to share ideas, discuss strategies, reflect on failures, and celebrate successes with. To some personalities, it can negatively affect their productivity by adversely impacting their mental health.
To combat this issue, one can participate in networking events, look for business partners, or seek mentorship.
Risk Management
Many factors, such as economic downturns, market changes, personal problems, etc., can be dangerous for a business, especially one run by a single person.
Therefore, a solopreneur should develop a roadmap for identifying, assessing, and mitigating risks.
And besides keeping a sizeable safe deposit, one must diversify their income streams, prepare contingency plans, and stay abreast of market trends.
FAQs
It really depends on the actual business idea. Still, some common elements in a generalized solopreneurship strategy involve finding a profitable niche, robust time management, excellent resource optimization, building a personal brand, automation, networking, and more.
Among all, the major challenges many solopreneurs face are isolation, burnout, limited resources, financial management, and enterprise competition.
Normally, solopreneurs value autonomy and freedom more than their bank balance. The main motive is always making their passion the profession. Therefore, they keep it small even after substantial growth. The other ones, who aim for growth and profits, progress to entrepreneurship.
Be a Solopreneur!
The satisfaction and financial independence these people enjoy are simply not there in corporate jobs. This is evident in the growing numbers of solopreneurs, constituting a significant portion of the global economy.
So, take the leap if you’re comfortable wearing many hats and juggling multiple business activities. On the path to successful solopreneurship, remember to network with like-minded professionals.
And if the responsibilities become overwhelming, consider inviting business partners or hiring employees to share the burden.