Have you heard about the word solopreneur? The term is a combination of two words: solo and entrepreneur. It takes a lot of courage and determination to be a solopreneur. Solopreneurs operate all alone. They are responsible for almost everything related to the business. From starting a business from scratch to marketing and promotion, they are in charge of each and every aspect.
Becoming a solopreneur is not an easy task. Hence, one needs to have grit and determination to pursue their dreams irrespective of the situation. In simple terms, solopreneurs run their businesses entirely independently.
Entrepreneurs are the fuel that drives economies forward. They create jobs. They anchor communities. They make an impact that goes far beyond their own business.
Harley Finkelstein, President, Shopify
Are you a solopreneur? Can you become one?
This article will give you a detailed overview of what it is like working as a solopreneur.
With a singular focus, solopreneurs’ business caters to a niche audience and they usually offer a single service or product. Solopreneurs can be independent worker, a freelancer or even business owner who has no full-time employees. However, they can keep people on a contract basis or as needed and pay them. Solopreneurs can be considered somewhere between gig workers and traditional business owners. Actually, they are both the founder and the worker.
Solopreneurs can come under different business entities but two common entities that they form are S corporations (or S Corps) and single-member limited liability companies (LLCs). Both entities have different tax implications as well as liability protection for owners.
Solopreneur vs. entrepreneur: What are the major differences?
There are three key differences between solopreneurs and entrepreneurs. We have listed them below:
- Hiring Employees: Entrepreneurs have a team of employees working for them, however, solopreneurs mostly operate solely. They usually take on work that can be performed independently. They even hire service providers on a contract basis. Interestingly, several entrepreneurs start their journey as solopreneurs and gradually build their way up.
- Less Risk: Solopreneurs usually don’t take as much financial risk as compared to entrepreneurs. The initial cost is also less as they don’t need to spend money on hiring human resources and a big-scale set-up. The cost also varies as per the industry. Professionals involved in writing, digital marketing and web development can begin simply with a computer. Meanwhile, those involved in dropshipping will have to buy products and also pay for delivery.
- Responsibility: Solopreneurs have to manage each and every aspect of a business hence they are responsible for their business entirely. They are basically one man army and have to take on more business tasks than entrepreneurs. From managing finance, administration, promotion and marketing to production, a wide range of tasks have to be performed. Later, they can hire employees as per contract and delegate tasks when their business grows. However, entrepreneurs, on the other hand, have a dedicated team of employees to manage each of the above-mentioned departments.
Advantages of becoming a solopreneur
Running a solo business comes with a lot of benefits. Many are choosing this path as they don’t want to work for someone else. Others want to have a small business of their own but there is no desire to establish an empire. The reasons are multiple. So what makes solopreneurship an appealing venture? Let’s find out:
- Flexibility: Solo business owners are their own boss. They don’t have to stick to the traditional schedule of 9-5. They can work whenever they want. Solopreneurship gives you flexibility and allows you to decide how you want to work.
- Work satisfaction: Many go solo as they are tired of working in a thankless job. The independence and autonomy nature of solopreneurship gives greater job satisfaction. They have the freedom to accept the work they enjoy and refuse those which they don’t.
- Complete Control And Authority: When you work as a solopreneur, you are the business as well as the brand. You do not have to consult a team before making a crucial decision. Any strategic or creative change you bring to your business will only affect you and no one else. This flexibility and authority enable them to introduce required changes quickly. According to research quoted by upwork.com, “the self-employed are more satisfied than employees because they have greater autonomy in decision-making and more freedom to be creative in their businesses.”
- Location Independence: When your business is dependent entirely on you, you have the freedom to take it anywhere you want. Solopreneurs, especially those who work online, opt to become digital nomads as their business or work isn’t confined to a particular location.
- Earning Potential: Most of the employees working full-time are usually dissatisfied with what they are paid. When you become a solopreneur, you are no longer trapped in the limited income shackles. You are the one to decide your worth. Though it may be challenging initially but once your work gets into that pace, the potential of earning can be very high. You can even set your desired rates and rope in new clients for extra income.
- Constant Learning: You get to learn new things at every step of your business. You will gradually become the master of all trades as you will require to solve many complex problems all by yourself. Hence, you will feel the constant need for upskilling and reskilling.
Cons of being a solopreneur
The journey of a solopreneur has both pros and cons. If you are considering to opt it as a career path, then it is important to keep in mind both sides of being a solopreneur.
- Possibility of Lower Earnings: No one can guarantee future success. A business idea always comes with a risk of failure and you need to be prepared for it. If things don’t go as planned, you have to think about what can be done to stay in the business and rebuild it.
- Stress: There can be longer work hours and hence more stress. At least, in the initial phase of your career. You have to be self-aware to decide the amount of workload you can take each day. This also needs practice. Some might face challenges in maintaining a work-life balance, thus blurring the boundaries and leading to high-stress levels.
- Tedious Schedule: Responsibility for all the tasks that come with solopreneurship can be time-consuming as well as boring. Bookkeeping and other administrative chores might be of little interest to you.
Tips to become a successful solopreneur
Solopreneurship not only needs grit and determination to become successful but you also need to understand your market to thrive. Below we have listed some steps which will form the base of your solopreneurship journey:
- Market Gap: You need to have the ability to effectively spot and identify market gaps and accordingly set your business goals. In order to succeed, you ought to be unique. People will consume your product only if they find it different from other similar stuff available in the market. Solopreneurs should focus on supplying people with what they want or need.
- Business Model: You have to decide on a business model after considering all the aspects related to the business. Determining an actionable way to provide your services or goods is advisable. Whether it will be via an e-commerce platform or a brick-and-mortar store, a complete and comprehensive business model is a must.
- Managing Finances: Staying on top of your finance game is of utmost importance. You are solely in charge of all the paperwork related to your business. They have to perform multiple jobs related to finances such as timely paying taxes and bills, and managing their cash flows to strike a balance between expenditure and revenue.
- Support System: Finding your own support system is equally important. From solopreneur-friendly community platforms and social media groups to simply a co-worker, you can find them anywhere.
- Efficiency: Use emerging technologies such as AI and automation to boost your efficiency. Besides being hard-working, you also need to be efficient and effective.
- Education: You need to constantly learn and stay up to date with industry trends. You can’t afford to lag behind if you want success. Continue to educate yourself from competitions and seminars even when you are no more a startup.
Solopreneur Business Ideas
There’s a lot of scope in solopreneurship. A variety of career choices offer you the freedom to take this path. We have listed some of the solopreneur ideas below to help you choose your interest. Of course, the list is far from complete. All you need is little brainstorming for an idea to pop up in your mind.
- Dropshipping
- Selling hand-made goods and crafts
- Copywriter
- Blogger
- Journalist
- Digital content creator
- Consultant
- Graphic designer
- Web designer
- Photographer
- Freelance writer
- Software developer
- Tutor
- Podcast producer
- Baker
Shopify and entrepreneurship
Remember all solopreneurs are entrepreneurs, but all entrepreneurs are not solopreneurs.
In May 2023, Shopify launched the beta version of the Shopify Entrepreneurship Index. It is the first such global entrepreneurship index, which aims to provide data and insights on global entrepreneurship. The top findings released by the company say the United States ranks at the top of the index, followed by Lithuania and Romania. Delaware is the number one US State as per the global entrepreneurship index.
Entrepreneurship is at its peak with platforms like Shopify helping merchants set up online stores and sell to anyone across the internet. However, it still remains to be unmeasurable in numbers. One must know the impact of entrepreneurship on global economies. This not only helps one know more about entrepreneurship but also know about the environments that provide entrepreneurs the best chances of success.
According to Shopify President Harley Finkelstein, the Shopify Entrepreneurship Index will help reduce barriers in the path of entrepreneurship. “Entrepreneurs are the fuel that drives economies forward. They create jobs. They anchor communities. They make an impact that goes far beyond their own business,” Finkelstein said. “Previously, there wasn’t enough public data showcasing the superpowers and impact of entrepreneurship—and that’s why we’re launching the Shopify Entrepreneurship Index. Our goal is to give decision makers the insights they need to reduce barriers and make entrepreneurship even more accessible to everyone,” he added.
ALSO READ: Shopify President Shares 6 Tips for Entrepreneurial Growth
Entrepreneurship, then and now
Earlier in March this year, In a conversation with Entrepreneur magazine’s Editor in Chief Jason Feifer, Finkelstein emphasized that the e-commerce revolution is massive. He dropped a few points that small companies can take care of to give big brands a run for their money.
“Applications for new businesses are up 20%, and Google search terms for 2022 included a rise in terms like ‘How can I find my passion?’ and ‘How can I change careers?’ You’re seeing this shift from how to get a job to how to create my own job,” said the Shopify President.
Explaining how the e-commerce scenario has changed over time, Finkelstein explained, “The ingredients for businesses today are just different. Historically, the most important ingredient for starting a business was capital — you needed money. And now, it’s more about creativity than it is about capital. It’s more about being resourceful than having resources.”
Small businesses have the power to be part of the community they are serving. They can closely connect to their customers which big brands fail to do. Talking about the same, Finkelstein said, “Authenticity is a timeless characteristic of successful brands. An advantage that small businesses have over large companies is they can be a lot more agile, more reactive and they can be more authentically connected to their customers.
