Solopreneurship: Secret Sauce to Thriving on Your Own

In 2024 solopreneurship is more than a buzzword; it's a thriving global trend empowering individuals like you to run their own businesses single-handedly.

According to Intuit Quickbooks Small Business Index annual report 2023:

• Number of US businesses that have no employees has increased from 76% in 1997 to 84% in 2020.
• 68% of Canadian businesses had no employees in 2015, which increased to 69% in 2022.
• In the UK, 74% of businesses had no employees, up from 68% in 2000.

You can download and read the full report here.

Can you imagine the advantages of having no employees?

No employees mean no payroll, no HR, no time-sucking team meetings and of course, no sharing of profits.

Sounds like an entrepreneur paradise, right?

Yes it is, if you ask me or millions of solo entrepreneurs like me globally.

Note: I would have liked to give some concrete figures instead of saying millions, but couldn’t get hold of a reliable global figure.

Because not having to deal with meetings, HR or payroll means you can focus fully on building your brand, choosing clients and projects, setting and doing work at your own pace, and finding time to do things you love outside of your professional commitments.

But if I end with painting this rosy picture of running a solo business, I would be doing a disservice to you. Because not everything is hunky-dory here.

In this edition of Open Journal, we’ll unpack the essentials of solopreneurship, explore its perks and pitfalls, and then see if solo business is the right thing for you.

So let’s dive right in and uncover what it takes to thrive as a solopreneur. Starting with the basics.

What is Solopreneurship?

Solopreneurship refers to the practice of running a business by oneself without the support of a co-founder or employees.

Unlike traditional entrepreneurship, where a team collaborates to achieve business goals, you single-handedly manage every aspect of your business, including planning, execution, marketing, finance and customer service. However, you can, and should, take help for specialised roles such s filing taxes.

Solopreneurship encompasses a wide range of business types. Freelancers and consultants are common examples that come to mind immediately, providing services such as writing, graphic design, marketing, and IT support. But coaches and trainers offering personalized guidance, online store owners who manage e-commerce platforms, handle product listings, customer inquiries and shipping logistics are solopreneurs too.

When you understand the diverse scope of solopreneurship, you will be better equipped to decide whether you want it for yourself or not.

Why Solopreneurship is on the Rise?

When I started freelancing 12 years ago, it was supposed to be a stop gap arrangement. Freelancing till my second daughter was old enough for me to start working full time.

Because I never wanted to scale the freelancing business to an agency, or even use sub-contractors for some of the work. And I was not sure how long I could survive working solo.

But 12 years later I do not want anything else for me.

And I am not alone. Research from Harvard Business Review highlights that 60% of solopreneurs report higher job satisfaction compared to traditional employees, owing to increased autonomy and control.

Here are a few reasons why solopreneurship is on the rise.

Technological Advancements

Technology, especially affordable SaaS tools, has paved the way for going solo successfully.

• Remote Work Tools: The proliferation of remote work tools like Zoom, Slack, Trello, Google Docs, Sheets and Slides has made it easier for knowledge-intensive or creative businesses to run solo. These tools enable efficient communication, project management and collaboration without physical interaction, which is very critical for solo businesses.
• Automation: Theoretically, remote work tools should cover automation, but it really doesn’t. Automation is about setting up workflows that run on their own repeatedly. Of course, remote work tools are crucial here this, but the rise of Internet and online platforms has played a critical role too.
• E-commerce Platforms: Platforms such as Shopify, Etsy and Amazon have lowered the barriers to entry for selling products online. These platforms provide solopreneurs with the infrastructure to reach a global audience, manage transactions and handle logistics.

Economic Factors

• Globalization: The global marketplace has expanded, allowing solopreneurs to access clients and customers beyond their local markets. This globalization has increased opportunities for niche businesses and specialized services that do not need co-founders or employees to thrive.
• Gig Economy: The rise of the gig economy, characterized by short-term contracts and freelance work, has normalized the idea of working independently. Platforms like Upwork, Fiverr and TaskRabbit facilitate connections between solopreneurs and potential clients without the hassles of running expensive and time-consuming marketing campaigns.

Cultural Shifts

Especially post-COVID, people have started prioritizing personal life over all else, and solo business fits perfectly with this dream.

According to a 2023 study by MBO Partners, there are over 41 million independent workers in the U.S. alone, with similar trends seen globally. This number is projected to grow as more people seek flexible work arrangements.

• Desire for Work-Life Balance: Many individuals are seeking greater work-life balance, which solopreneurship can offer. By controlling their schedules, solopreneurs can prioritize personal commitments and tailor their work to fit their lifestyles.
• Valuing Independence Over Job Security: There is a growing trend of valuing independence and flexibility over traditional job security. Younger generations are increasingly willing to take risks to gain the autonomy that solopreneurship provides.

Pros of Running a Solo Business

Running a solo business offers numerous advantages, making it an attractive option for those seeking independence and control over their professional lives:

• Ability to Set Own Schedule: One of the most appealing aspects of solopreneurship is the ability to create a flexible work schedule. As a solopreneur you can choose when and where you work, allowing you to balance professional and personal commitments more effectively. In 2021 I went on a 21-day road trip with my family. I had to plan in advance, but there was no pressure for taking such a long vacation or judgements for trading revenue for creating memories.
• Freedom to Choose Projects and Clients: Solopreneurs have the liberty to select projects that align with their interests and expertise. You can also decide which clients to work with, fostering a more enjoyable and fulfilling work experience. And above all, you have the freedom to pivot or start a new business altogether whenever you want.
• Reduced Operating Costs: Without the need to maintain a physical office or hire employees, solopreneurs significantly cut down on operational expenses. This lean business model allows for more efficient use of resources and leads to higher profit margins.
• Full Authority Over Business Decisions: When you work solo, you have complete control over your business decisions, from setting goals and choosing strategies to selecting projects. This autonomy also allows you to quickly adapt to market changes and implement innovative ideas without needing approval from others. The advent of AI is a case in point. Solopreneurs were some of the first people to embrace the full power of AI. Because they need all the tech that they can lay their hands on!
• Potential for Scaling with Minimal Initial Investment: While solo businesses always start small, they often have the potential to scale. With the right strategies and tools, solopreneurs can grow their businesses, expanding their offerings and increasing their customer base without requiring significant upfront investment.

Cons of Running a Solo Business

While solopreneurship has many benefits, it's important to acknowledge these challenges to make informed decisions and develop strategies to mitigate potential downsides:

• Increased Workload and Stress: As a solopreneur you are solely responsible for every facet of your business, from marketing and sales to income prediction, project management and customer service. This can lead to an overwhelming workload and increased stress levels as you juggle multiple roles simultaneously.
• Fluctuating Income Streams: Unlike traditional employment with a steady paycheck, solopreneurs often face irregular income, often called feast-famine cycle. Earnings can vary significantly from month to month, depending on the number of clients and projects. This financial uncertainty can be challenging to manage and plan for. Though, with experience and fiscal discipline this can be managed.
• Challenges in Scaling: Scaling solo businesses can be challenging if you are not intentional about it. Handling an increasing workload alone can limit the business's capacity to expand and take on more clients or projects. Due to lack of boss or colleagues, it is very easy to get stuck in your comfort zone.
• Lack of a Team or Colleagues for Support: Working solo means missing out on the camaraderie and support that comes with having colleagues. This isolation can lead to feelings of loneliness and make it harder to find motivation and inspiration. I personally have found this to be the biggest drawback, because Zoom meetings can never make up for workplace camaraderie. Additionally, being solo, you might miss out on collaborative opportunities to spur innovation and growth.

So, is Solopreneurship Your Cup of Tea?

While solopreneurship provides numerous benefits, such as flexibility, lower business overheads and direct control over decisions, it also presents challenges such as increased workload, stress, income instability, limited growth potential and isolation.

So what is it for you?

Solo business, small business or being an employee?