The term “solopreneur”, while not new, has gained popularity lately as a way to describe the growing number of “solo entrepreneurs” out there today. And even though there is a lot of overlap between an entrepreneur and a solopreneur, there are subtle distinctions to be made between the two.
In this article, you will learn about the differences between a solopreneur and an entrepreneur. You will also learn how to become a successful solopreneur and thrive.
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Solopreneurs vs Entrepreneurs
Solopreneurs place a high value on control. By definition, a solopreneur is a one person operation.
By contrast, an entrepreneur is building a team of people who specialize in specific areas of the business. Think sales, accounting, customer service etc.
A solopreneur, on the other hand, is responsible for every aspect of the business. Now, that doesn’t mean that they don’t have help, but more on that later.
Because solopreneurs by nature work alone, most tend to be introverts. If you need a group dynamic in order to get your creative juices flowing or to stay productive, solopreneurship might not be for you.
And because solopreneurs don’t have employees that work specified hours, they can generally set their own schedule. This can be a double edged sword. It gives the solopreneur the flexibility to take time off as needed, but without self motivation, the business won’t survive.
Both solopreneurs and entrepreneurs build real businesses. Sometimes people think of the solopreneur as someone with a lucrative hobby or someone who has “created a job for themselves”. And while this may be true for some, the vast majority of solopreneurs are building real businesses that provide a continuous flow of recurring income that builds wealth.
Both strive to build businesses that can be sustained on their own and require minimal oversight to maintain. Both solopreneurs and entrepreneurs are building businesses that can be sustainable with minimal oversight. The entrepreneur does this by putting a management team in place so that the company runs efficiently in their absence. The solopreneur uses systems of automation to achieve the same result.
All successful businesses must start with a founder who has a clear vision of what they want to accomplish. So both solopreneurs and entrepreneurs set long term goals and short term goals that are clearly defined and measurable in order to track their success.
Both are also self-determined. Self determination is the concept that your reward (or income) is directly proportional to the effort you put in. In other words, as an employee, if you make a sale that generates $1,000,000 for the company, you only get a small percentage of that as a commission. But as a solopreneur you get the entire amount.
The Benefits of Solopreneurship
There are a myriad reasons that people become solopreneurs. The desire to become your own boss, dissatisfaction with current employment, flexible work schedule, more family/vacation time and of course a much higher income potential. But there are some other, not so obvious benefits to becoming a solopreneur that include:
Expand Your Skill Sets
Because you are responsible for all aspects of your business, it forces you to tackle all the problems that will inevitably arise in every area.
Not so good at maintaining a website? Don’t worry, it will eventually go down forcing you to figure out how to fix it.
Not good at sales or public speaking? You will be as soon as your income depends on it.
But don’t worry, after a while, all solopreneurs get used to these things and pretty soon you’ll be taking them as they come.
Can Work on the Most Important Parts of Your Business
As an employee, you are forced to endure a lot of things that are completely (un) or even counterproductive to the mission of the company. Think about how many useless meetings you’ve had to sit through, or how many reports you had to make or paperwork you had to fill out that was completely unproductive. That is a ton of non productive activities that you are required to perform.
As a solopreneur, you are freed from all that frivolous CYA paperwork and you can concentrate on the most productive parts of your business.
Can “Turn on a Dime”
In today’s fast paced world, being able to adapt to changing market conditions is the key to building a successful business. As a solopreneur, you have the ultimate flexibility in this area. With no investors, shareholders, board members or even employees, you can adjust your strategies and implement them very quickly.
Control the Brand
As a solopreneur, you are the brand. You are the one responsible for your public identity. This also means that it’s up to you to promote your brand identity to the public.
Make What You’re Worth
Few people in corporate America think that they are actually getting paid what they are worth, while this may or may not be true.
As a solopreneur, your compensation is directly related to your efforts. There are truly no limits on the income of a solopreneur.
More Job Satisfaction Than the Average Worker
In a recent survey, just barely over half of the U.S. population (51%) reported that they were satisfied with their jobs. Conversely, over 80% of solopreneurs reported job satisfaction with 76% planning on remaining in their careers in the future.
A Sense of Accomplishment You Can’t Get Anywhere Else
Have you ever taken on a big project that made you feel overwhelmed at times? That made you think that you bit off a little more than you could chew?
Maybe it was that hike in the Grand Canyon that turned out to be more than you bargained for. Or maybe it was deciding that you were going to paint your house instead of paying someone else to do it? Whatever it was, think about the pride of accomplishment you felt when you pushed through and finished the project. That feeling is what motivates the solopreneur to succeed.
Able to Work from Anywhere
Because of the internet, you no longer have to rent, stock and maintain a physical storefront. Literally everything you need to do in order to sell a product or service can be done over the internet. And if you are selling information or software products, those can be delivered immediately via download.
Types of Businesses That Are Best for the Solopreneur
Obviously not all types of businesses are suited for a solopreneur. If you want to actually manufacture a product, you still need to have a physical building with machines and employees in order to produce that product. But there are a lot of internet based businesses that are perfect for the solopreneur.
A virtual assistant is someone who helps others with (mostly) mundane tasks like sorting and answering email, scheduling appointments and social media management. These are all activities that take a significant amount of time and people will gladly pay others to do.
This is one of the most popular ways people become solopreneurs. Start by picking a subject (or niche) that you already have an interest in and start creating content around that subject. Then, become involved in groups that share a similar interest and contribute.
This combination of creating quality content and networking with others will grow the audience for your blog. Once you develop an audience, you can monetize it by selling ads and or using affiliate marketing.
If writing is your thing, becoming an Ebook author may be right up your alley. We all know how hard it is for a first time writer to get published. Lucky for you the internet has made it possible for almost anyone to get published.
By writing books in electronic form, you’ll have no publishing costs. And since you are selling the book yourself, you get to keep 100% of the profits. And yes, you can even sell your book on Amazon (although they will take a percentage of the sales price).
If the visual arts are more your thing, becoming a freelance graphic designer may be for you. Graphic designers help companies design logos and other visual content to help promote a company’s identity and brand.
Are you a people person? Then becoming a life coach is something to consider. You will work with individuals helping them with things like budgeting and finance, organization and even family and personal relationships. This can all be done using email, Skype or even over the phone.
We’ve only gone over a very few of the businesses that are suited for the solopreneur. There are a lot more you could choose from. Things like podcaster, event planner, tutor, handyman, travel consultant and many more. Your possibilities are almost limitless.
How to Succeed as a Solopreneur
Becoming a solopreneur can be exciting, rewarding and lucrative. But it’s also a lot of work. Sometimes, people become overwhelmed at the thought of doing everything themselves. So here are some tips you can use to lessen the burden and become a successful solopreneur.
1. Have a Solid Plan
Just like any business, it’s important that you set goals both long and short term so that you can measure your progress. To that end, you should develop a mission statement and a vision statement that you can refer to down the road.
Your plan should include four components
- How will you grow your business?
- How are you planning for that growth?
- How do you plan to create passive income?
- Will you be expanding by adding additional products or services?
If you can map out where you want to be, you’ll have a much easier time getting there.
2. You Don’t Have to Go It Alone
One of the most intimidating things about becoming a solopreneur is the amount of work involved. After all, if you’re in charge of sales, marketing, customer service, accounting, advertizing, branding, social media and more, it quickly becomes overwhelming.
But here’s the good news, you don’t have to go it alone. There are a ton of other solopreneurs out there willing to take on the tasks that you can’t or just don’t want to do. These people specialize in services like website development, email marketing, copywriting, accounting, graphic design, social media management, and a lot more. By using these other solopreneurs, it will free you up concentrate on the most productive areas of your business.
Remember in the beginning when I said that, just because a solopreneur doesn’t have employees, it doesn’t mean that they don’t have help? This is what I mean. You can get all the benefits of an employee without all of the headaches by using freelancers and only paying for the work you need.
3. Don’t Be Afraid to “Pivot”
All too often we get a vision in our head of how things need to go or what they should be like. But the world doesn’t really work that way. Circumstances change, markets change and customer’s taste’s change.
Be willing to adjust your priorities, goals and even your vision of the company to correspond with these changes. After all, this is one area where you, as a solopreneur have a huge advantage over your larger competitors.
4. Don’t Be in Competition With Anyone but Yourself
Trying to compare yourself to others is always a losing game.
First of all, you will always be behind someone, and ahead of others. We tend to always focus on who’s in front of us, and not who’s behind us. This is a mistake on two counts. By only focusing on who is ahead of us, we may miss that person behind us that came up with a new strategy and is about to leave everyone in the dust.
Secondly and more importantly, it’s too easy to get discouraged and give up if you are constantly seeing your progress as not measuring up to others. Plus, remember that you are only comparing yourself to what others want you to see. We all put our best foot forward in public situations but, no one really knows what it’s really like for other people.
In short, the best way to progress is to celebrate all your successes, both large and small and stay motivated.
This is the best friend of the solopreneur. You should always try to automate as much of the work as possible.
Use email autoresponders to market to customers. Use Sales funnels to acquire customers and sell products. Use social media scheduling software to make regular posts.
There is a lot of automation software available today, take advantage of it!
There are an estimated 18 million full time solopreneurs in the U.S. with and additional 12 million part time or so called “side gig” solopreneurs. And the numbers keep rising every year.
The appeal is easy to understand — more control over your business, a flexible schedule, higher income potential, more time with friends and family, and virtually unlimited vacation time. The solopreneur also has the luxury of outsourcing duties that an employee would normally handle, thus eliminating the need for employee training, paid sick leave, benefits and payroll as well as employee turnover.
In short, the solopreneur gets to be the boss without all the headaches of employees. The world of the solopreneur keeps growing with no end in sight. In short, there’s never been a better time to go “Solo”.
More About Solopreneurship
- 12 Incredible Business Tools No Solopreneur Should Miss
- 20 All-Time Best Entrepreneur Books to Make Your Business Successful
- Feel like Giving Up? 16 Way to Help Entrepreneurs Stay Motivated
- 5 Business Management Tips Every Entrepreneur Should Know
Featured photo credit: Austin Distel via unsplash.com
|||^||Fortune: U.S. Job Satisfaction Hits Its Highest Level Since 2005|
|||^||Business News Daily: ‘Solopreneurs’ Redefining Work|
|||^||Money Inc: The Rise of the Solopreneur|