Do you want to start a business on your own? Be fully in charge, working independently and taking on clients or orders at your own pace? Sounds like you may want to pursue becoming a solopreneur.
What is a solopreneur?
The word solopreneur is a combination of two terms solo and entrepreneur. A solopreneur is essentially someone who launches and manages a business on their own, without partners or staff. Instead of retaining traditional employees or partners, they concentrate on tasks that can be completed by themselves or by contractors. Successful solopreneurs typically invest in markets where they have a strong background and a strong sense of enthusiasm.
What is an entrepreneur?
A businessperson who plans and runs a business while taking on the majority of the financial risk is called an entrepreneur. In order to achieve long-term business success, entrepreneurs seek to build a company that can implement their idea. They do this by assembling the best team, funding, and research. This implies that business owners don’t necessarily need to have expertise in the field in which they invest. They rely on their staff and partners to provide the essential knowledge to fill in the gaps.
Solopreneur vs entrepreneur — what’s the difference?
What distinguishes an entrepreneur from a solopreneur? They appear to be quite similar at first glance. Yet not all entrepreneurs are solopreneurs, and not all solopreneurs are entrepreneurs.
When you are aware of how they differ from one another, you can see this contrast more clearly. To assist you in determining which company model could be most suitable for you, let’s learn more about these two sorts of business owners.
1. Solopreneurs manage everything
A solopreneur, who is in charge of everything, is focused on independent work. When growing their business, they assume all the roles that apply to both the employer and the employee. This does not, however, imply that sole proprietors must be proficient in all areas.
When faced with a task they are unable to complete, they assign it to a person who possesses the necessary knowledge. They do not, however, hire staff. For instance, a solopreneur may look at automated programs that can perform the process if they don’t know how to run an email marketing funnel. They might even employ a company or independent contractor to handle it if a more customized touch is required.
On the other side, business owners are concentrated on integrating these procedures within their organizations. They want to expand the company to a larger staff, even if they do everything solopreneurs do in the early beginning stages. They eventually appoint team members to handle these duties in order to free up their time to concentrate on more strategically important aspects of the company.
Musicians and other artists often begin as solopreneurs. They eventually recruit full-time managers, security personnel, publicists, etc. as their careers advance. At this point, they start acting like business owners. Their function changes from being a solo act to that of a brand specialist, founder, owner, or boss, overseeing multiple departments and people.
2. Solopreneurs typically have less financial risk
Running a business inevitably involves taking risks. Those that are successful in business have done so by taking calculated risks that have paid off. Entrepreneurs’ business objectives do not let them to remain in their comfort zones.
They want their company to expand. to prosper and be sustainable. Entrepreneurs must continue investing in order to reach their objectives. They seek outside support, whether it be through enlisting partners, reinvested net gains, or even borrowing money.
In contrast, a solopreneur’s plan for financial success entails less risk. They are less likely to scale their business than their competitors. Working within a financial risk that supports their business gives them no trouble at all.
Maintaining this level will enable them to manage the company on their own. Only the precise investment amount and anticipated profits are known to them.
3. Solopreneurs have a specialty
As noted, entrepreneurs try to put a team together. Their time is freed up to concentrate on expanding the firm rather than managing it. No matter how closely or distantly related to their area of expertise, they are very interested in investigating other areas. If a chance presents itself, they grow their company and appoint a specialist in that area.
Contrarily, solopreneurs frequently focus on a specific niche and make a commitment to serving a manageable customer. They decide to specialize in a single field since they lack the time or workforce to learn about other expertise.
A solopreneur, for instance, who offers to teach a foreign language, can only do it in the language they are proficient in. They can accommodate a sizable number of pupils in private or group lessons, but they cannot instruct in other languages. On the other hand, a businessperson could successfully teach numerous languages (some of which they don’t know a word of) by assembling a team of experts.
4. Difference in growth goals
Similar processes are taken by entrepreneurs and solopreneurs while launching their small firms. Their motivations for developing a business idea and their development aspirations, however, frequently vary.
Solopreneurs frequently launch a firm to pursue a passion while providing a stable income. can even start a side business to earn more money, ideally passive revenue. Their goal in growing is to acquire even more expertise.
Acquisitions, mergers, franchising, and licensing don’t excite them. How much they can manage on their own restricts how much they can grow.
On the other hand, an entrepreneur’s objective is to create a business that is as lucrative as feasible. They concentrate on developing or altering their expansion strategy as soon as they start to experience success. They take advantage of any chance to scale, even if it means growing their staff or creating new offices. Some do so with the intention of catching the attention of big businesses that might buy or partner with their enterprises.
5. Entrepreneurs have to focus on customer acquisition
Any business’s lifeblood is its customers. Both business owners and one-person operations need to attract and keep their clientele. Yet, eventually, their approaches to customers’ objectives diverge.
Like any other businessperson, solopreneurs want to generate a lot of money, but they usually go about it differently. To encourage referrals and return business, they focus primarily on serving the demands of their current clients. Solopreneurs aim to improve their work/product and raise their rates in accordance with their level of experience.
For instance, a fitness instructor looking to increase their income might use a larger training space and accept more clients. But after years of business, they may opt to focus on high-end clients and most likely make more money with less effort.
Entrepreneurs frequently concentrate on expanding their business as much as possible. They are constantly working to attract new clients, boost profitability, and keep their existing clientele. They must have a long-term consumer acquisition plan because of this. one that can consistently bring in new customers while maintaining its current clientele.
6. Solopreneurs easily partner with other solopreneurs
As we’ve already discussed, solopreneurs are frequently committed to offering a single kind of good or service at a high caliber. It follows that their applicability is constrained. It doesn’t mean they can’t put clients in touch with someone who can provide what they need.
Yeah, entrepreneurs who work alone typically don’t have a company partner. Instead, they frequently offer to recommend other solopreneurs for a service. It’s kind of like an unofficial alliance with other solopreneurs. encouraging the development of a neighborhood based on mutual respect and complementary services.
Entrepreneurs may be happy to make casual introductions, but doing so frequently necessitates formal contracts. They have a much higher chance of running into like-minded businesspeople and making deals for sponsorships, advertising, etc.
Again, the difference in growth goals is what influences this opposing approach to partnerships. To better maintain their brand presence and establish partnerships that benefit both parties, entrepreneurs must be more strategically minded. Solopreneurs tend to be more adaptable and are more concerned with belonging to a network of other business owners. one who happens to transfer customers back and forth.
Solopreneurs still need a business plan
Are you still considering starting a business on your own? To do it, you’ll need a business plan. Having a strategy can ensure that you are ready for everything involved in managing a solopreneur business, even though you may not be aiming for fast expansion.
Contact MCDA CCG, Inc today and we can help you get started on your business!