What does it take to be a solopreneur?
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Not everybody has a burning ambition to manage a large team of people. And that's OK.
Some people prefer to work alone; they're independent, may be somewhat introverted, and enjoy being able to make their own decisions without having to worry about anyone else's input. For some people, these factors play a part in the decision to start their own business in the first place.
If you're one of these people, welcome to the world of the solopreneur.
What is a solopreneur?
A solopreneur is someone who starts their own business without a business partner or any employees. They typically create and deliver their products or services themselves, rather than outsourcing or hiring a large team.
Squishing together "solo" and "entrepreneur" to create "solopreneur" might sound like 21st-century jargon. But it's really just another term for freelancers, consultants, and independent creators.
If you're right at the start of your business journey, you might benefit from our Sole Trader survival crate.
It's packed with helpful resources, including a checklist for going self-employed and advice on how to register as a sole trader with HMRC.
If you know someone who's just gone freelance, drop the survival crate in their inbox to help them get off to the best start!
What are some of the benefits of being a solopreneur?
As well as not having to worry about your employees, there are other benefits of being a solopreneur.
You are your own boss and aren't responsible for anyone else. This means you have the freedom to work when you want, where you want and for as long as you want. There are no set hours, no commute and no boss breathing down your neck (although you will still probably have clients or customers to respond to).
You have the flexibility to choose what kind of work you do and how much time each project takes up. Maybe one day you'll be working on a creative project that takes all day; next week, it could be making sales calls or attending meetings with clients. Or, if you're running a product-based business, you have the flexibility to introduce new products or target new markets as and when you like.
The costs of running a business as a solopreneur are generally lower than if you have a partner or staff. There are no salaries to worry about (except your own!). Solopreneurship also allows for higher profit margins - if you do the work yourself, you get to keep the rewards!
There are no office politics and no need to negotiate with co-founders, directors, or investors. When it's just you and your business, your decisions are the only ones that matter.
What are some of the downsides of being a solopreneur?
There are obviously some downsides to running a business solo, and knowing what they are means you can start your journey prepared.
One of the biggest challenges for people who work for themselves is that they have to wear lots of different hats at once. Sometimes, those hats don't fit well together! For example, you'll be responsible for finances, marketing, sales and customer service - on top of whatever your business does!
As a result, time management is critical when running a solo business. You don't have anyone to delegate to, so you'll need to be on top of deadlines and delivery schedules, even when things are busy.
It can be lonely when running a business as a solopreneur, especially in challenging times. Unlike people who start up with a co-founder or business partner, you don't automatically have someone to celebrate and commiserate with. Finding other business owners or a like-minded community to be part of can be beneficial before you set out on your own.
There's an increased risk of making a 'bad' decision - when you have a team to discuss problems or opportunities with, it's often easier to spot the wrong course of action. Without anyone questioning your decisions, you'll need to do your due diligence.
What skills do I need to be a solopreneur?
There are both "hard" and "soft skills" that will benefit you as a solopreneur, on top of the skills you need to actually do the thing you want to do (bake cakes, interior decorating, fashion buying, etc.)
The hard skills include:
Financial skills: accounting, budgeting and forecasting are essential to staying profitable.
Legal and compliance: you'll need to be on top of any insurance or licences you need and how to comply with local legislation.
Sales and marketing: these skills are essential for driving sales through social media and email lists.
Customer service: you want to keep your customers returning repeatedly, so you'll need to know how to keep them happy and resolve any complaints.
You'll also want to consider some of the soft skills you'll need to develop as a solopreneur. Things like being able to motivate yourself even when you're working alone, learning new skills quickly, and multi-tasking will make it much easier to manage the various demands on your time (and brainpower!)
All of these skills can be learned as you go. Especially when you take advantage of flexible online learning opportunities.
You can also discover a range of online courses through our sister brand Smarta.
Our top tools for getting started as a solopreneurs
If you're thinking about taking the leap and launching your business as a solopreneur, you'll need a few tools to get going.
Our team have supported tens of thousands of startups over the years and have come up with a handy list of recommended tools. All these tools are recommended by our team and/or the startups we've supported. You can find other suggestions for time-saving apps in this guide to stress-busting tips for sole traders.
Make sure you're ready to take payments with a business bank account. We recommend Tide because it can be set up online, is usually approved within minutes and works whether you're a sole trader or a limited company.
Take payments online and in-person with services like Square. These are quick to get started and offer an affordable way to process card payments.
Keep on top of your finances with bookkeeping from Crunch. Crunch has a free plan which gives you access to their bookkeeping software, or there are very affordable monthly plans where you can speak to a real accountant.
Setting up a CRM like Hubspot can be valuable if you are making lots of sales and want to keep track of your customers. Hubspot's starter plan is free for people starting out.
If you're planning on using social media for your marketing tools, you might need a social media scheduler. Facebook and Instagram now offer an internal tool for scheduling, or you could look at something like Hootsuite or Buffer if you're using other social media channels.
A website is an essential business tool today, so even if you start with something simple, you'll need to consider building a company website.
If you have what it takes to be a solopreneur...
The beauty of starting a business solo is that you don't have to wait for anyone else - you can just make the decision and go. If you've got an idea for a business and want to talk to someone about funding your idea, you can explore a low-interest Start Up Loan.
"We’re delighted to be the 2000th loan recipients!"