What Is A Solopreneur? Here’s What You Need to Know
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In recent years, a growing number of people have left the traditional employment model of nine to five in favor of starting their own businesses in order to become their own boss.
If you enjoy working on your own and on your own time, and if you have an idea for a business that you would like to pursue, then becoming a solopreneur might be the next step that makes the most sense for you to take.
But what exactly does it mean to be a solopreneur? And how is it different from the more traditional forms of entrepreneurship and from working independently? Today, we will discuss the most important information that you must have in order to succeed as a sole proprietor. Let’s get started!
What is a Solopreneur
A person who owns a business but manages and operates it by themselves and with no assistance from outside sources is known as a “solopreneur.” A sole proprietorship, also known as a “solopreneurship,” is characterized by the absence of both employees and business partners.
You, as a solopreneur, are basically a one-man team responsible for handling all key business functions, such as the following:
- creating your product or offering your service
- bringing your product or service to the consumers’ attention.
- Increasing your customer base through advertising, marketing, and networking
- Management of the supply chain, beginning with sourcing and ending with delivery
- Taking care of the company’s financial matters
Usually, solopreneurs have a specific skill set or core competency that they can transform into a business that can grow and scale, as opposed to just a service that they provide to others. This allows them to turn their business into something larger than just a service they provide. Because of this, the focus is on systems, streamlining business activities, and leveraging automation so that you can earn money even when you are not actively working.
The Benefits of Being a Solopreneur
Becoming a solopreneur is a rewarding path to take particularly because:
It Allows You to Make Business Decisions Quicker
Since you are the sole proprietor of your company, you are able to make decisions regarding the company more quickly and effectively. You and your partners are not required to talk about it for hours on end. You are the one who should make the ultimate decision regarding matters pertaining to business. Because of this, your one-person business is nimble and ready to adjust to new opportunities or challenges whenever they appear.
You’re In Complete Control of Business Strategy
If you want your company to be successful and grow over time, developing a solid business strategy is essential. When you run a business by yourself as a solopreneur, you are entirely responsible for determining its definition, as well as its mission and core values.
You are the one who decides which path you need to take to accomplish your objectives, what your milestones will be, how you will carry out your day-to-day operations, and other related matters. Because you are not required to wait for the approval of anyone, you are able to easily make adjustments if something is not working.
You Don’t Have to Sacrifice Your Vision
If you are creative, you most likely have a vision for your product or service, including how it will look, how it will be made, and how it will be delivered to the customers. This could include anything from the way it looks to the way it will be made.
When working for a conventional company, you run the risk of seeing your finished product diverge significantly from the vision you had for it in the beginning. This is due to the fact that it is frequently necessary to reach agreements with other individuals working for the company.
Because it is always up to you to make the final decision as a solopreneur, you will never have to worry about compromising your vision. In addition to this, the quality of the product or service that you offer is entirely under your control. You are the one who gets to decide whether something is already satisfactory or whether it still requires some additional effort.
You Have the Freedom to Work as Much or as Little as You Want
People often quit their jobs that run from nine in the morning to five in the afternoon in order to launch their own businesses because they want more control over how they spend their time.
When you go into business for yourself as a solopreneur, you are the one in charge of determining how many hours you put in each day. If you want to hyper-focus on your tasks, you can do that.
You do, however, have the option of setting up systems that automate your business processes, which will free you from the obligation of remaining chained to your work desk throughout the entire working day.
This grants you a greater degree of control over your schedule, allowing you to devote more time to the people and pursuits that are important to you, such as your family and friends.
The Profit is All Yours
Because you are the only employee of your company and you do all of the work, you are entitled to keep all of the profits. There is no need for concern regarding the compensation of staff members. Therefore, it is up to you to decide whether you want to reinvest your profits in your company or increase the amount of money you pay yourself.
Flexible Hiring
Even though solopreneurs don’t typically have staff members working for them on a regular basis, this doesn’t mean they can’t bring on additional help. Keep in mind that the end goal is to have a business that is scalable and can continue to function normally even when you are not actively working on it.
In order to complete tasks that you may not be particularly skilled at, you may want to consider hiring independent contractors or procuring the services of freelancers. This is all flexible however so you can hire only when you need to.
How Solopreneurship Differs from Entrepreneurship
Solopreneurship, for the most part, begins in the same manner as traditional entrepreneurship does: with an individual who possesses a product or service and who launches and manages his or her own business.
However, there are significant distinctions between these two roles. Let’s explore them below:
Solopreneurs are a One-Man Company
Entrepreneurs have the option of beginning their ventures as sole proprietors of their companies, but to successfully run day-to-day operations, they typically bring on full-time and/or part-time employees. They also have the option of incorporating their business in conjunction with one or more co-founders.
Solopreneurship refers to a business model in which a single person acts as both the company’s founder and sole employee. Although it is possible to hire freelancers or outsource certain tasks to agencies, doing so is not required. Instead, you can handle everything on your own.
Entrepreneurs are Managers, Solopreneurs are Not
Building a team capable of carrying out responsibilities such as product sourcing, delivery, customer service, accounting, and other duties is the objective of the traditional form of entrepreneurship. When all positions have been filled, the entrepreneur assumes the role of manager and is responsible for monitoring the employees’ performance in their jobs.
Solo entrepreneurs, on the other hand, are solely responsible for all aspects of their businesses. Freelancers are people who work for themselves and are not employed by a specific company full-time. Some businesses decide to use freelancers for tasks for which they do not have the necessary time or expertise.
Solopreneurs Focus on a Core Competency
The majority of people who start businesses on their own do so by selling a product or providing a service that they excel in. Scalability is part of the plan, but the plan does not include expanding into other service areas. You, as a solopreneur, probably already have a collection of pre-packaged services that you are confident you can provide all by yourself.
On the other hand, traditional forms of entrepreneurship often involve growing an existing business. They are able to provide a wider variety of goods and services as a result of their tendency to hire individuals whose skill sets are complementary to the core offering that they provide.
Solopreneurs Don’t Intend to Sell their Company
Building a successful company that a sole proprietor can continue to run, contribute to, and support themselves through is the ultimate objective of solopreneurs.
On the other hand, the objective of some aspiring business owners is to develop and expand their company to the point where major corporations will be interested in acquiring their brand at some point in the future. Others may choose to establish a business empire instead, which involves broadening their sphere of influence in the industry and increasing the breadth of their operations.
How Solopreneurship Differs from Freelancing
Freelancing is yet another business model that may appear to be synonymous with sole proprietorship. Although both solopreneurs and freelancers are self-employed individuals who perform the work themselves, there are significant distinctions between the two types of workers.
To begin, freelancers frequently offer their services to third parties via open markets. For instance, a graphic artist can market his design skills to clients that he finds on freelancing marketplaces and other platforms that are similar to these. Solo entrepreneurs, on the other hand, typically concentrate their efforts on developing products or service bundles that they can market and sell online.
Because freelancers view themselves as professionals, one of their primary goals is to improve their skills in order to increase the amount of money they bring in. They are able to land high-paying projects that are more difficult and allow for substantial earnings if they concentrate on their own personal development. Meanwhile, solopreneurs think of their businesses as being run by just one person. Their primary objective is to establish a lucrative enterprise that they are able to run successfully for an extended period of time.
Freelancers frequently take on additional projects as new clients come on board. Therefore, the flow of their revenue comes to an end if they do not have any customers. Even when they’re not actively working, solopreneurs have the potential to bring in revenue. They can still have passive income as long as people continue to buy their products or pay for their services.