While everyone knows what an entrepreneur is, only a few people realize the advantages of being a solopreneur.

Solopreneur comes from a combination of the words “solo” and “entrepreneur”. Solopreneurs are entrepreneurs with benefits. They have full control of their businesses, capitalize on their passions, enjoy flexibility, and avoid some of the risks associated with entrepreneurship.

TL; DR

Solopreneurs are self-oriented entrepreneurs of the 21st century.

By becoming a solopreneur, you are getting flexibility, control, and the majority of revenue while dealing with less financial risk.

While doing the majority of important work alone, solopreneurs take advantage of partnerships and contractors.

Best for: Motivated risk-takers, who don’t want to share responsibilities, opportunities, and profits.

Solopreneurs are driven, highly motivated, and talented creative thinkers, who take full responsibility for their businesses. Unlike entrepreneurs, they are the “go it alone” type. The entire mission of solopreneurs relies on one person’s vision. Theirs.

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What is a Solopreneur?

“If you want something done right, do it yourself,”
Anonymous

Solopreneurs take full advantage of this proverb. They work alone. While many entrepreneurs start on their own as well, eventually, they hire employees and start delegating. Solopreneurs choose not to share their work and responsibilities.

Solopreneurs have better control of their business, enjoy freedom, and take advantage of flexibility. Many would-be entrepreneurs choose this path since it comes with fewer risks.
However, being a solopreneur also means knowing how to survive in a challenging environment while dodging competition’s bullets and staying on track.

For these leaders, business growth is a priority. They are building systems, searching for new revenue streams, collaborating with outsourced providers, and automating tasks.

Solopreneurs tend to stick to one project over a long period. Unlike entrepreneurs, they don’t look for a buyout opportunity or an exit strategy to move on to the next profitable venture.
In short, solopreneurs:

Have full control of their business
Don’t hire employees
Take fewer risks
Keep the majority of their revenue
Pursue one business focus (generally)
Delegate without hiring

4 Types of Solopreneurs

While an entrepreneur is mainly focusing on growing and developing a business, a solopreneur is working on building and maintaining it. Several types of solopreneurs exist.

1. Freelancer (Service Providers)

A freelancer trades time for money. These solopreneurs provide a service to companies or individuals. While they do the majority of their work alone, freelancers can collaborate with other freelancers to get projects done faster. To grow a business, freelancers focus on attracting new clients and honing their skills.

2. Individual Contractors (Service Providers)

Similar to freelancers, individual contractors offer a service in exchange for money. With time, by honing their skills, individual contractors may expand their network of clients and work with other contractors to complete large projects.

3. Makers (Product Providers)

These solopreneurs make products and sell them on their websites or in brick-and-mortar stores. They invest in promoting their brand, expanding the audience, and improving the product.
Generally, makers work without assistance, aiming to create a better quality product to sell it for a higher price.

4. Consultants (Product Providers)

These solopreneurs capitalize on intellectual property. They share ideas that help others gain value. These counselors could be writing books, organizing webinars, making speeches, creating courses, etc.
They can be bloggers, social media influencers, life coaches, podcasters, and more.

Benefits of Becoming a Solopreneur

Being a solopreneur comes with many challenges. However, the majority of them is offset by numerous benefits.

The key advantage of being a solopreneur is the ability to work alone. Let’s take a look at the others.

1. You Keep the Majority of Your Profits

Solopreneurs don’t face substantial costs of running a team-based business:

Office rent
Salaries + benefits
Payroll taxes

With side expenses being minimal, solopreneurs keep the majority of profits.

2. You Don’t Need a Large Startup Capital

To become a solopreneur, you don’t need substantial startup capital. According to the latest statistics, 44% of home businesses start with capital below $5,000. If you have $10,000, you can be on your way to growing a highly profitable solo business.

3. You Make Key Decisions

Since you are the only person in charge of your business, you get to make all key decisions. While it’s a serious responsibility, you don’t need to stress over other opinions and yield to them.

If you want to change your business strategy, slow down or take a break, you don’t need to coordinate it with partners or employees.

4. You Can Stop Any Time

You don’t have to stay a solopreneur if it seems tough. You can scrap the business tomorrow or change direction without too many losses. You aren’t responsible for paying employees or fulfilling obligations to your partners.

At any time, you can go back to work “for another guy” or shift gears and explore the benefits of entrepreneurship.

5. You Can Outsource

You don’t need to do everything on your own. Solopreneurs can find “no strings attached” opportunities for collaboration. They can form temporary partnerships without bearing the responsibilities of salaries, benefits, and payroll taxes.

6. You Are in Control

The majority of entrepreneurs has a special mindset. They must be in control of what’s going on with their business. These people take on the majority of the work even while outsourcing some of it.
While solopreneurs are hardly control freaks, they take full advantage of the control factor to improve their business without looking back at other people’s opinions. They are fully responsible for their success.

7. You Are Happy

When people become solopreneurs, they often experience satisfaction without stresses associated with entrepreneurship. According to HubSpot, 82% of independent workers report that they feel happier working on their own than they did working for “another guy”.

Enjoying Your Life as a Solopreneur

Becoming a solopreneur can change your life for the better. You can take full advantage of flexibility and control while capitalizing on your passion and honing important skills.

If you are a solopreneur, you are in the right place. The Efficient Solopreneur is here to help you work smarter and eclipse your goals! Join YOUR tribe and subscribe to our mailing list. We will help you stay abreast of the information to help you gain and maintain a competitive advantage!

Sources:
https://www.fundera.com/resources/home-based-business-statistics
https://www.entrepreneur.com/slideshow/299290#3
https://www.entrepreneur.com/article/245766
https://quickbooks.intuit.com/au/resources/advice-for-entrepreneurs/what-is-a-solopreneur/
https://www.podia.com/articles/solopreneur-vs-entrepreneur
https://blog.hubspot.com/sales/solopreneur