Have you ever dreamed of owning your own business and reaping all the profits without the risk and hassle of full-time employees? Welcome to the world of the Solopreneur and Solopreneurship.
What is a Solopreneur?
The term solopreneur combines “solo” (meaning alone) with “entrepreneur.” A Solopreneur is someone who has founded or runs a business that is specifically designed to operate without any permanent employees. Solopreneurs typically outsource work to contractors or freelancers to enable scalable growth.
The term solopreneur is shorthand for a sole proprietorship or one-person business. A large number of people are choosing the role of solopreneur in today’s world.
Skills of Solopreneurs
Successful solopreneurs learn quickly across business domains, hire skilled freelancers to fill gaps, and maintain high productivity. They craft clear business plans, diversify income streams, and build cash reserves to weather financial uncertainty.
Budgeting and valuing time are essential, as is finding mentorship for guidance and support. Marketing and sales savvy help them promote their services effectively, and many wisely keep their day jobs until their solo ventures are sustainable.
People become solopreneurs for many reasons, including a lack of job security and a growing shortage of well-paying part-time jobs.
Others prefer flexible hours, the lack of a boss, and the ability to choose assignments. Many solo gigs are more interesting and challenging than typical part-time work.
Freelance writing, for instance, is more fulfilling than running a cash register or waiting tables. The potential to leverage your education, develop and exercise new skills, and create work that impresses potential employers can add to the appeal of solopreneurship.
Despite the advantages, many people do not understand how to become solopreneurs. Here are some tips on launching your solopreneur career.
1. Solopreneurs Learn Skills Fast
Most would-be solopreneurs fail because they know little about business and entrepreneurship. A good writer who does not know how to market her work or a consultant who does not understand the legal implications could also fail.
The first step in going solo is to study the market thoroughly. Read up on marketing, taxes, laws, licensing, the market, regulations, and anything else that could affect or help you grow your business.
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If you have no experience in those areas, consider reading or listening to books or taking courses in subjects such as accounting, marketing, bookkeeping, taxes, and management. Remember, as a solopreneur, you must be your accountant, bookkeeper, marketer, information technology (IT) person, human resources department, advertising agency, and possibly tax expert.
The more tasks you can perform yourself, the more money you can make as a solopreneur. Every dollar you pay to an outside professional is a dollar that comes out of your pocket. When you identify every skill or expertise you could need, you can start learning them.
2. Solopreneurs Hire Great Freelancers
One reason solopreneurs fail is that they try to do everything themselves.
Most solopreneurs face many tasks they cannot do for themselves. Yet, many do not seek help until they get into trouble.
Some tasks you should consider outsourcing include marketing, search engine optimization (SEO), accounting, bookkeeping, tax preparation, and copyediting. A good way to identify such tasks is to list the work you will need and your skills.
One way to improve your work is to outsource everything but your area of expertise. For instance, a web designer could hire somebody to handle accounting or marketing. Clients generally pay more for an experienced specialist than a generalist.
Hiring professionals who can enhance your work can help you make more money. For instance, a writer could improve the quality of her work by hiring a proofreader or copy editor.
Be careful when hiring outside help, as the cost of professional services can quickly escalate. Yet knowing what tasks you can handle could increase your income.
3. Solopreneurs are Highly Productive
If you are to establish or run a solo business, you will need to maximize your time. You will be performing many different roles, including CEO, business development, customer research, product development, finance, and even general dogsbody.
You must plan, prioritize, and execute activities that drive you toward your goals.
Read our article 33 Myth-busting Productivity Tips/Hacks That REALLY Work and Top 20 Best Time Management Tips To Transform Your Day.
4. Create a Business Plan
The fastest way to fail in any business, including solopreneurship, is to lack a business plan. Unfortunately, most solopreneurs fail to create a business plan before they begin.
Creating a business plan is easy. All you need to do is write your goals down and what you will need to achieve them.
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Planning is vital because it forces you to think through your goals and the process for achieving them. You will need to consider your skills and the resources and equipment you will require.
The business plan does not need to be elaborate, but it needs to list all your goals and needs. A business plan can be as simple as a list of objectives or as complex as a detailed plan.
If you need help writing a business plan, many business plan templates and guides to business plan writing are available online.
A typical business plan outlines your goals and the steps to achieve them. A writer, for instance, could create an outline of steps for finding freelance work.
Those steps could include:
- Deciding where to search for work. Which freelance websites to search for jobs?
- How to search for work.
- A plan for searching for work.
- What equipment will you need for writing: a laptop, a desktop, an internet connection, software, etc.?
- What professional help could you need? Copy editing, proofreading, etc.
- Extra money and resources.
5. Solopreneurs Build Multiple Revenue Streams
Only a few solopreneurs will earn enough to cover all expenses from the outset. Most freelancers will need savings to draw upon or another source of income.
Even with significant savings, it is smart to have a part-time job or side hustle to supplement your income. You will need additional income due to slow periods and unexpected expenses.
There are many side hustles to consider, including Uber, Lyft, Airbnb, Instacart, Grubhub, online sales through eBay, Amazon, and Etsy, podcasting, other gig-economy jobs, freelance work through platforms such as Upwork, rental properties, and community jobs. The income from a few hours of Uber driving or a part-time retail job could help pay a few bills or add some cash to your savings.
Many beginner solopreneurs take part-time jobs because they provide additional social contact. Loneliness can be one of the greatest frustrations of freelance or gig work.
Escaping the boss and office politics can come at a price. You get away from the nagging, but also miss socializing around the water cooler.
It may help to consider a side hustle or part-time job, as you may need more money than you realize. Most people underestimate their spending capacity and overestimate their saving capacity.
6. Build a Cash Reserve
A reality of solopreneurship that most people do not grasp until it is too late is being strapped for cash. If you rely on freelance or gig work, you will face slow periods.
There will be times when work is scarce and periods when clients do not pay you. Keep in mind that clients pay you when they want, not when you need the money. Consequently, you can go weeks or longer without getting paid.
Self-employment is not a job where you get a steady paycheck every week, two weeks, or each month. To survive, you will need additional cash in a savings account, a CD, or a Money Market Account.
If you are planning to become a solopreneur, start saving immediately. Put as much money as possible in your savings or investment accounts while working. When you earn, put 10% to 20% of your income in savings.
A good rule of thumb is to determine how much savings you need, then save twice as much. You will need all the money you can save, because you will underestimate your spending and expenses and overestimate your savings and budgeting capacity.
A great way to save is to use tools such as apps that allow you to deposit money directly into a savings account, investment account, or CD as you make purchases. Another savings method is to make as much money as possible while you are working.
7. Learn How to Budget
One skill most people think they have but do not know how to use is budgeting. If you plan to be a solopreneur, you must learn how to create and live on a budget.
The best way to start budgeting is to create a simple budget. Record all your expenses and add them up. The final number you arrive at is the amount of money you spend. Then add 10% to that number, as there will be emergency expenditures.
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Once you have the list, look for any expenditures you can eliminate. Cut expenditures include gym memberships, magazine and newspaper subscriptions, streaming video services, eating out, and any service or product you do not use regularly.
Try to live frugally and simplify your life. For example, you could cook your own meals or exercise at home instead of going to the gym. You could also try shopping for clothes and other products at thrift stores instead of department stores or Amazon.
Before going solo, consider eliminating major expenses such as housing or your car. If you could live without a car, consider selling your ride and relying on rentals, public transit, or Uber. Dumping your car can cut your budget by several hundred dollars a month by eliminating insurance, maintenance, and gas costs.
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Moving to a more affordable area or getting a roommate could reduce housing costs. Strangely, using a grocery delivery service such as Instacart could reduce your food bills because you can order only the items you need. Shopping in stores takes more time and costs more because it increases the likelihood of impulse purchases.
8. Learn the Value of Time
Many solopreneurs lose money because they do not understand the value of their time.
A software designer who charges $100 an hour for services will lose money if she spends five hours a week doing housework. The designer could lose $500 because of the housework.
The designer could hire a house cleaner for $20 an hour. By paying $100 a week for housecleaning, the designer could earn an extra $400.
Other ways to save time include ordering items through Amazon Prime and buying your groceries online. Eliminating your grocery shopping trips could free four or five hours a week for extra paid work.
You need to free up time to work when paid work is available. Most freelancers find periods when there is more work than time, and working extra hours while you can helps you save cash for the future.
Making time management part of your business plan is a great way to free up time. Creating a simple schedule and sticking to it can help you get more work done.
You could schedule most of your work time at the time of day when you are least tired and less likely to be distracted. If you are a morning person, for example, you could schedule most of your work in the morning. If you have kids, you could schedule your work when they are in school.
Make sure you take time off and schedule a time for rest. Have a quiet time each day and schedule time for exercise, reading, study, family, and fun. If you do not learn to take breaks, you will burn yourself out and produce poor work.
Every solopreneur needs to recognize that time is their most valuable resource. Treating time as a precious resource will help you make more money and possibly earn a living as a freelancer.
9. Find a Solopreneur Mentor
Many solopreneurs fail because they know little and learn as they go along. In the worst-case scenario, a sole proprietor will try to teach himself or make it up as he goes along.
You can avoid this dilemma by finding a mentor. A mentor is an experienced solopreneur who can show you the ropes and guide you through the process.
Having a good mentor can make the difference between failure and success. The mentor can advise you on what not to do and which mistakes to avoid. Additionally, the mentor can help you network, build business contacts, and even guide you in your career.
You can find a mentor by contacting freelancers and sole proprietors in your community. Organizations such as the Freelance Union could help you locate potential mentors. Social media, such as Facebook Groups, could help you find other solopreneurs in your area.
One way to find support is to organize a meet-up of solopreneurs in your area. You could gather for coffee or lunch once a week or talk. Sometimes, having somebody to discuss problems with can spell the difference between failure and success.
Once you succeed, consider mentoring others. Helping others can make you a better solopreneur by helping you learn more and feel good about yourself. Most importantly, you will not be alone on your journey. Instead, you will have others to help you and guide you.
10. Learn Sales & Marketing
The most important business skill most people lack is the ability to market themselves and their services. Many solopreneurs fail because they do not market their goods or services.
The most basic form of marketing is putting your skills and services in front of others. To that end, solopreneurs need to seek free ways to market their creations.
Writers have many excellent opportunities to market their skills for free through platforms such as Medium. Those platforms can help you earn extra income by using their paywalls. Another effective way to market your services is to create a blog and post daily.
Volunteer work is another way for solopreneurs to market themselves. A website designer could create a blog or website for a charity or community organization to showcase her services, for instance.
Reading marketing books and studying marketing websites are effective ways to learn the basics of marketing. Jay Conrad Levinson’s Guerrilla Marketing remains the best introductory marketing guide for solopreneurs and small businesses.
The biggest advantage of Guerrilla Marketing is that Levinson wrote it for people with limited budgets. Thus, Guerrilla Marketing is an ideal resource for solopreneurs. Several sequels now emphasize guerrilla marketing techniques, including social media.
Learning the basics of marketing and understanding marketing strategy is vital to your success as a solopreneur. If there is one business skill you will need to learn, it is marketing. No matter your business or profession, you will need to market.
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11. Don’t Quit Your Day Job. Yet!
The hardest piece of advice for solopreneurs to consider is to stay in their day job. Although the reason you want to go solo is to get away from the job, there are many good reasons to keep your day job.
The most obvious reason to keep your day job is a steady paycheck. For most people, living without a regular income is far harder than they think. Freelancing and working simultaneously can help you save enough money to support yourself.
A job can also provide benefits such as health insurance. If you live in the United States, you will probably need to pay for your health insurance as a solopreneur, which can be expensive.
Additionally, you will incur expenses such as housing, groceries, and utilities. You can use your paycheck to cover those expenses until you can support yourself financially. One plan you can follow is not to quit your day job until you earn enough from solo work to support yourself.
 
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Another option is to ask your boss whether you can work part-time or freelance, or consult with your former employer. Ask if you could work fewer hours or one less day a week. Ideally, you could gradually reduce your time with the employer as your workload increases.
Strangely, your employer could be your best client. Remember, your boss knows your work and trusts you. Ask what freelance opportunities are available through your job.
Another option is to keep your current job while working from home. Working from home for your current salary and benefits could be better than being a solopreneurship, as it could give you more time and opportunities for freelance work.
One way to try solo work is to ask your boss if you could work from home a few days a week or a month. That way, you could get into the habit of working independently.
The potential benefits of solopreneurship are great, but so are the risks. Understanding those risks and benefits is the first step in breaking free from the corporate grind and establishing independence.
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Thanks for this great overview for getting started as a soloprenuer