What Is A Solopreneur? Here’s What You Need to Know

In recent years, more people are transitioning from typical 9 to 5 employment to pursuing business ventures to become their own boss.

If you love working independently and in your own time and if you have a business idea that you want to pursue, then becoming a solopreneur might be the next logical step for you. 

But what is solopreneur-ship? And how does it differ from traditional entrepreneurship and freelancing? Today, we’re talking about the crucial things you need to know about being a solopreneur. Let’s get started!

What is a Solopreneur 

A solopreneur is a business owner who manages and runs a business venture independently and without external help. Unlike in a traditional business venture, a solopreneur has no employees and business partners. 

As a solopreneur, you are essentially a one-man team responsible for handling all key business functions including:

• developing your product or service
• taking your product or service to market
• Advertising, marketing, and building your clientele
• Managing the supply chain from sourcing to deliver
• Handing the finances of the business

Typically, solopreneurs have a specific skill set or core competency that they can transform into a business that can grow and scale and not just a service they provide to others. Hence, the focus is on systems, streamlining business activities, and leveraging automation so you can earn even if you’re 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

As the sole owner of your business, you can make business decisions quickly and more efficiently. You don’t need to discuss for hours on end with partners. The final decision over business matters is up to you. This makes your one-person company agile and ready to adapt when opportunities or challenges arise. 

You’re In Complete Control of Business Strategy

Having a sound business strategy is important if you want your company to thrive and scale. As a solopreneur, you are completely in control of the purpose, core values, and definition of your business.

You decide what road you need to take to achieve your goals, what your milestones are, how you’re going to carry out day-to-day operations, and more. You don’t have to wait for the approval of anyone so if something’s not working, you can pivot with ease.

You Don’t Have to Sacrifice Your Vision

If you’re a creative, you most likely have a vision about your product or service—from the way it looks, to how it’s going to be made, to how you’re going to deliver it to your clients.

In a traditional corporation, your final product can sometimes end up becoming far off from your original vision. This is because compromises often have to be made with other people in a company.

As a solopreneur, you can avoid sacrificing your vision because the final decision is always yours to make. You also have complete control over the quality of your product or service. You get to decide if something is good enough or if it needs a little more work.

You Have the Freedom to Work as Much or as Little as You Want

One of the biggest reasons why people leave their 9-5 and start a business is they want to have more freedom with how they use their time.

When you become a solopreneur, you are in control of how much or how little you work every day. If you want to hyper-focus on your tasks, you can do that.

But you also have the option to set up systems that automate your business processes, so you don’t have to be tied to your work desk all day.

This gives you more control over your schedule, so you’ll have more time for your family, friends, and other activities that matter to you.

The Profit is All Yours

As a solopreneur who does all the work, you receive all the profits of your business. You don’t have to worry about employee salaries. So, you can decide if you want to invest your profits back into your business or pay yourself more.

Flexible Hiring

While solopreneurs don’t have regular employees, this doesn’t mean you can’t hire other people. Remember that your goal is to have a scalable business that can run smoothly even when you’re not actively doing work.

So you can hire contractors or outsource services from freelancers to accomplish tasks that you may not be adept at. This is all flexible however so you can hire only when you need to.

How Solopreneurship Differs from Entrepreneurship

For the most part, solopreneurship starts the same way as entrepreneurship—with an individual with a product or service who starts and runs his own business.

There are, however, key differences in these roles. Let’s explore them below:

Solopreneurs are a One-Man Company

Entrepreneurs can start out as sole proprietors of their business, but they are often joined by full-time and/or part-time staff to carry out day-to-day operations. They can also incorporate their company together with one or more co-founders.

In solopreneurship, the role of founder and employee is carried out by the individual. Sure, you can hire freelancers for certain tasks or outsource services from agencies but this isn’t necessary.

Entrepreneurs are Managers, Solopreneurs are Not 

The goal of traditional entrepreneurship is to build a team that can carry out tasks like product sourcing, delivery, customer service, accounting, and more. Once a complete roster is built, an entrepreneur takes on the role of manager and simply oversees the work of the employees.

On the other hand, solopreneurs perform all business tasks by themselves. Some choose to hire freelancers for things that they do not have time or skills for, but they’re not permanently employed by the company.

Solopreneurs Focus on a Core Competency

Most solopreneurs offer a product or service they are good at and focus on it. While scalability is part of the plan, expanding into other services isn’t. As a solopreneur, you most likely have a set of packaged services that you know you can deliver on your own.

On the other hand, expansion is a part of traditional entrepreneurship. Because they tend to hire people with skills that are complementary to their core offering, they can offer a broader range of products or services.

Solopreneurs Don’t Intend to Sell their Company

The goal of solopreneurs is to build a profitable business that they can continue to run, work in, and live off themselves.

On the other hand, some entrepreneurs aim to grow and scale their business enough that big corporations will become interested to purchase their brand in the future. Others may also opt to build a business empire—broadening their influence in the market and expanding the scope of their business.

How Solopreneurship Differs from Freelancing

Another concept that may seem to overlap with solopreneurship is freelancing. While solopreneurs and freelancers are both self-employed individuals and do the work themselves, they have some key differences as well.

For starters, freelancers often sell their talents on the open market. For example, a graphic artist markets his design skills to clients he finds on freelancing marketplaces and similar platforms. On the other hand, solopreneurs tend to focus on products or service packages that they can sell online.

Freelancers consider themselves professionals so one of their primary goals is to hone their skills so they can earn more. By focusing on personal growth, they can land big-ticket projects that are more complex and allow them to earn big. Meanwhile, solopreneurs view themselves as a one-man company. Their focus is to build a profitable business that they can sustain over a long period.

Freelancers also tend to on projects as clients come in. So, if they have no clients, their revenue stream stops. Solopreneurs can still earn even if they’re not doing anything. If people are buying their products or services, they can still have passive income.

Furthermore, while solopreneurs don’t have regular employees, they can, from time to time, outsource repeatable tasks to freelancers or hire even hire independent contractors when needed.

Become a Solopreneur Today

Becoming a solopreneur is an attractive option for people who want to leave the hustle and bustle of the corporate world and pursue their passion.

If you have a unique idea or a creative vision that you can turn into a profitable business but don’t want to take the traditional entrepreneurial route, then solopreneurship might just be for you.

Interested in learning more about working for yourself? Check out some more resources for freelances from our blog.