Should you start a one-person business? Why being a ‘solopreneur’ might be for you (or not)

So if you’re an entrepreneurship enthusiast, you might be aware of the rise of successful one-person businesses around.

We are now entering an era of an increasing number of million-dollar one-person businesses, most of which have achieved their scale due to advancements in digital technologies.

These businesses are essentially ‘non-employer businesses’ as the ownership and management of the business lie with the same person.

“Rather than adopt industrial-era business of scaling that depend on hiring an army of employees, these entrepreneurs choose to travel light.” Elaine Pofeldt.

In the US, for example, single-person businesses are growing faster than the rate of growth of the U.S. population as a whole.

It’s an extremely lean operating model, and to be honest, it sounds very attractive to do everything yourself and keep all the profits … minimal hassle.

Or does it?

Let’s just assume that you are not only insanely hardworking and able to do nothing else but work on and in your business, but that you are also incredibly mentally agile and can deal with all business complexities on your own if they arise, how do you decide whether or not to go down the path of being a ‘solopreneur’?

The case against it

1.      You might create a machine that can’t function without you.

One of the benefits of owning a business is that you call the shots, and some of those shots include the way you work.

If you want to take three days at a whim to de-stress, you can. On the other hand, if you’re employed and you’ve ‘used up’ your allocated holidays, you might not have the power to pull this decision of.

However, with a one-person business, you might fall into the trap of building something you can’t escape, essentially creating your own hamster wheel.

You can’t take a week off because that means you get no income that week etc.

Now of course, this can easily be worked out e.g. by hiring ad-hoc temporary workers from an agency to cover your delivery fulfillment, automating certain customer service tasks etc. But this should be carefully considered as it can cause a lot of personal stress if it’s not handled properly.

(Note that running a one-person business does not mean you have to do everything alone. You will almost certainly need access to highly-focused outsourcing and automation tools among other business resources out there).

2.      You don’t get multiple points of view.

It is constructive, however humbling, to get a point of view that differs from yours.

As a business owner, you are probably an idea machine. You’re entrepreneurial. You’re special. Kudos.

However, if you’re doing this solo, you – kind of – must be ready to make a lot of mistakes and costly bad choices.

This is because a lack of feedback might lead you down the path of experimenting with things you probably wouldn’t have done if you were surrounded by a workforce that could advise you otherwise.

It’s often hard to see the world from another person’s lens, so - except we’re told directly - we never know when we’re wrong at something that seems so right to us.

3.      It’s not great for your mental health (or ‘emotional temperature’)

Starting and running a successful business is fun … if your definition of fun is slightly skewed.

As an entrepreneur, you’re part of a slightly different breed.

You like challenges. You embrace them. And when the going gets tough, you power through.

But it can get too much too many times, and when those times arise, it’s invaluable to have a support system around you to help you power through.

Your working environment in the early stages of your business, especially when sat in a quiet room by yourself, starting into a laptop screen (as is not uncommon in a new digital venture for example) is not very conducive to the psyche.

4.      You will bear all the financial burden

I once had a venture idea with a friend.

We didn’t end up going ahead with it because I didn’t think I had the founder-market fit for the idea.

But that wasn’t before we had made some financial investments (a.k.a the rookie 101 mistake of getting excited about an idea, doing precisely zero research and then jumping on the ‘let’s buy the multi-year domain name and email’ package; basically setting up operations for a service that was not even defined yet).

Now, we were meant to be 50:50 partners, so the blow was lessened.

But the other times I’ve quick-tested ideas on my own that didn’t pan out? I’ve felt the full financial weight – 100% of the impact – because there had been no one to split the cost with me.

If you’re okay with that, then go ahead.

The case for it

If you’re reading this section, then what I’ve said above hasn’t phased you!

You’re the kind of person super comfortable with betting on yourself and going for it.

1.      First of all, when you embark on a one-person business venture, you will learn a lot!

Not that you wouldn’t do so if you had a business partner or employees, but running solo will accelerate your learning at a more rapid pace.

You can’t be good at just one thing and have people work on the rest. You’d have to be good enough at a lot of things e.g. marketing, partnerships, business development and sales, customer engagement etc.

If you’re ready for the steep learning curve, go for it. I mean, why not?

2.      You keep the earnings (after interest, taxes, depreciation and amortization etc...)

You’ve worked hard for it. On your own.

You can now retire – for a day – on a Caribbean Island and not have to worry about splitting the profits with co-founders or honoring a payroll and staff salaries.

Is it worth it? Depends. You decide.

3.      You can work at your own pace (and in sync with your own style)

Something people don't talk about a lot is regarding working with a co-founder who has a different working style from you.

It can cause a lot of pain. You might be the kind that works in batches e.g. 14 hours from Monday to Thursday, but zero output and completely switched off from Friday to Sunday; whereas your business partner works 8 hours a day Monday to Sunday, so consistently everyday.

Neither of you is right or wrong in having a rhythm, but out of sync and it can become problematic very quickly e.g. they always need you when you are out of reach or you always feel like they are invading your way of life.

Just think about it. In the past, when you’ve worked in groups, have you felt like you were difficult to work with? Be honest. There’s no shame in admitting it. It would cause less pain for you and those around you in the long run.

Embracing your lone wolf nature can be liberating. So long as you can survive out there.

4. You’ll have a strong incentive to build your personal brand

I’m a big supporter of individuals building out their personal brand in their field.

As a one-man band, you will be your brand, and your brand will be your business.

And that’s something you’ll never lose. Whether the business idea pans out or not, you’d have gained the visibility, networks and connections.

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Apart from the above things to consider when deciding whether to start a one-person business, I believe the core question would be: can you start working on your vision on your own?

If the answer is no, get a team!

If the answer is yes OR I think so, then start on your own, even if it’s just the building blocks. Because why not.

While there is a rise in ultra-lean firms, life is not fixed. Choices are dynamic. If something does not work out, you can just adapt and grow.

Best of luck!

Akachi O.

All thoughts are mine (obviously).

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