Commencing a business is intricate, and embarking on a solo venture can be especially intimidating. Without a team for support or the luxury of delegation, diving into entrepreneurship solo presents challenges. Nonetheless, it’s an opportunity to merge passion and effort to materialize dreams and create something remarkable.
However, establishing a profitable solo business can be demanding. You’ll confront numerous business and personal hurdles alone while pushing forward with your company’s progress and expansion.
Here, we’ll delve into expert guidance for initiating and managing a one-person business, alongside sharing business concepts and success anecdotes for motivation.
How to initiate a one-person business:
We’ve compiled tips and counsel from prosperous self-owned business proprietors to aid you in launching your solo venture. Though every entrepreneur and business is distinct, many pointers will likely be applicable.
1. Commence your self-owned business on the side:
Numerous successful entrepreneurs advocate initiating a one-person business as a side project, at least initially. The advantages of nurturing your business on the side include:
– Sustaining a primary income source for as long as possible.
– Establishing your business on the side allows you to maintain a stable income while accruing customers and traction. By the time you transition from your day job to your startup, you’ll have saved enough to mitigate startup expenses and weather the challenging initial phase.
– Preparing your business for success. Commencing on the side primes you for triumph upon leaving your current situation. If you cultivate a client base over a year or two while concurrently working full-time, you’ll generate additional income and be poised to expand an already established brand when you transition to full-time entrepreneurship. Starting early can mitigate the challenges of business inception and alleviate stress levels.
– Identifying whether the venture aligns with your aspirations. Initiating your business as a side pursuit can offer clarity about its viability. You may encounter unforeseen challenges that you’re uninterested in surmounting. After a few months of pursuing the business concept, you may conclude that it’s not the right career shift for you, allowing you to explore other options.
2. Identify the appropriate business structure:
Determining the optimal legal structure for your one-person business is pivotal.
Sole proprietorships versus incorporation:
The obvious choice for a solo business is a sole proprietorship, the simplest available business structure. However, there are advantages and disadvantages to this structure:
– Sole proprietorships offer flexibility. They afford significant flexibility, enabling you to operate as an independent contractor or run a small business in a conventional manner. For instance, if you aspire to freelance as a marketing copywriter for businesses, a sole proprietorship is the logical option.
– Sole proprietorships can pose risks. Sole proprietors bear responsibility for all company profits and debts. This may become problematic as your business expands. In the event of a business lawsuit, your assets are at stake, and you may be held personally liable rather than the business entity. Potential lawsuits become more pertinent as you serve more customers.
– Some experts recommend establishing a corporation, such as an LLC, to safeguard your interests. “I would advise forming an LLC or incorporating the business,” remarked Deborah Sweeney, former CEO of MyCorporation.
Liability protection is the most apparent benefit. “Many entrepreneurs often choose to establish a sole proprietorship for their small business. This entity is perfectly acceptable, but it does not furnish the owner with liability protection like a limited liability company (LLC) would,” Sweeney noted. “If an entrepreneur opts to start a one-person business as a sole proprietor, they must realize they will be accountable for everything – anticipated and unanticipated alike – that could impact the business.”
Tailor your business structure to your business type:
Different business concepts lend themselves to different business structures. If you anticipate potential lawsuits, incorporating the business might be prudent.
For instance, if you establish a one-person company specializing in assisting other businesses with debt collection, you might encounter more legal implications than an e-commerce business selling artwork.
Your business structure can evolve:
Solo businesses may eventually expand by adding team members and transitioning from a sole proprietorship to a general partnership, limited partnership, or LLC. Initiating as a sole proprietorship doesn’t entail being locked into that structure indefinitely. A successful solo business can evolve into a multi-person organization.
3. Prioritize your tasks to thrive as a solo business:
Effective time management is crucial when operating a solo business. Without the ability to delegate tasks to employees, solo businesses must remain focused to avoid becoming overwhelmed. Here’s some time-management advice for solo entrepreneurs:
– Prioritize your workday. If you’re dedicating only a few hours daily to your business, refrain from squandering excessive time on email correspondence or mundane tasks. Aim to make significant progress on major projects. “My primary advice is that you must prioritize your day and your schedule,” advised Mark Aselstine, founder of Uncorked Ventures. “You’re going to be pulled in every direction, and emails, phone calls, and text messages all seem incredibly urgent, with everyone expecting an immediate response. However, ask yourself, do they truly necessitate one?” Aselstine advocates time-blocking to concentrate on your business’s long-term well-being.
– Establish goals and uphold accountability. To stay on track, set business objectives several months in advance. If you’re starting from scratch, establish target dates for establishing an online presence, such as creating a website and establishing social media profiles. By delineating goals and holding yourself accountable, you provide yourself with something to strive for. “I operate in 90-day cycles,” disclosed Isabelle Paquin, a Pinterest marketing strategist. “Each quarter, I set goals and outline two or three projects I’ll be concentrating on. Then it’s a matter of maintaining the discipline to focus on executing flawlessly.”
– Don’t go it entirely alone. Running a solo business doesn’t preclude seeking assistance. Hiring freelancers aids in business expansion, renders long-term goals more attainable, and permits you to concentrate on other facets of your business. “My advice to someone starting out is to recognize what you don’t know and surround yourself with exceptional people [like] other small businesses and independent contractors who can provide services that you can’t,” suggested Diane Jones, president of DJ Public Relations. “For instance, I am a public relations professional offering a range of services, including website development, graphic design, and video production. However, I don’t personally undertake all those tasks. I collaborate with an outstanding website developer, graphic designer, and video production company who delivers the final product while I oversee the process. It’s mutually beneficial, and the client receives the desired product.”
4. Cultivate a supportive community for your solo business:
Managing a solo business can be mentally taxing. To counteract this, connect with like-minded individuals beyond the workplace.
“Honestly, the one thing I struggled with was being ‘alone,’ not having a team to converse with about daily matters,” shared Kathryn Selby, founder of Selby NYC. “If you thrive with a small team – like me – endeavor to find extracurricular activities where you can experience that community vibe, such as group fitness classes or dinner clubs – those were two activities that I found to be the most beneficial.”
Here are some methods to connect with business peers, seek advice, and combat loneliness:
– Network on LinkedIn. Engaging with people in your industry on LinkedIn is an avenue for connecting with potential future collaborators. There are numerous groups to join, where you can partake in discussions, offer insights that highlight your expertise, and share pertinent content.
– Reach
out to local peers. Establish contact with local business owners and entrepreneurs, even if they’re not operating solo. Conversing with seasoned business individuals in your locale establishes connections and furnishes you with a network of individuals you can consult for advice. You can also impart your guidance and perspective to them, fostering a mutually beneficial relationship.
– Attend SBA events. The Small Business Administration (SBA) hosts regional events throughout the year. Identify events in your area and attend those that pique your interest. You’ll encounter fellow entrepreneurs in your vicinity who are also building businesses and experiencing similar highs and lows. You’ll broaden your network and glean insights during these events – many of which are complimentary.
Irrespective of how you connect with others and cultivate a supportive community, it’s imperative to diversify your interactions and meet individuals who can aid you on your entrepreneurial voyage. Although it may seem counterintuitive, pursuing a solo business venture alone is inadvisable.
“I believe it’s beneficial to remember that you’re never alone,” remarked Bridget Burnham, founder of BurnBright Communications. “You are part of numerous communities that want to witness your success. Don’t hesitate to reach out and candidly discuss your triumphs and tribulations. It’s remarkable how resources and leads surface when you articulate your desires and necessities.”
5. Recognize the growth constraints of your solo business:
The world’s largest and most successful businesses boast teams comprising hundreds, if not thousands, of individuals. While it’s conceivable to establish a multimillion-dollar business solo, it’s improbable. If you aspire to construct a colossal enterprise, you’ll require assistance.
“It is feasible to sustain success as a solo business,” remarked Ali Boone, founder of Hipster Investments. “However, the limit lies in the capacity. You can only grow so large without a team. Thus, if you identify that limit – the pinnacle you can reach solo and sustain – you can certainly maintain that for as long as you desire.”
At some juncture, you may contemplate integrating team members into your enterprise. “[You’ll] have to weigh your definition of success,” advised Boone. “If you’re generating sufficient revenue to support your lifestyle, and your objectives don’t entail erecting any form of empire, you might be wholly content to remain solo. However, if your definition of success encompasses anything beyond that, you’ll need to start contemplating assembling a team.”
Quick pointers for establishing a solo business:
When establishing a solo business, consider the following:
– Draft a business plan. Translate your ideas onto paper and formulate your strategy. Identify your target demographic and how you’ll market to them. What value do you bring to the industry? Don’t embark on a new business venture blindly. Develop a strategic plan for optimal chances of success.
– Consult a business adviser. There are myriad methods to engage business advisers, including consulting with counselors at small business development centers in your vicinity. Interacting with an adviser can furnish you with guidance on launching your business. Advisers prove particularly beneficial if you lack a knowledgeable peer group to bounce ideas off.
– Exercise patience. A solo operation will likely progress at a slower pace than a business with a multi-person team. Persevere and keep moving forward. The most successful solo businesses necessitate time to mature.
Solo business concepts:
Merely desiring to operate a solo business doesn’t inherently imply that you know what type of business you wish to establish. Consider one of the following business ideas to embark on a solo venture with ease and, hopefully, success:
– Blogger or content writer. Businesses across various industries frequently require assistance with content creation. Whether you’re crafting blog posts, website copy, or articles for reputable publications, you can effortlessly transform writing into a solo business – provided your editing and proofreading skills are up to par.
– Real estate agent. Particularly in major cities, qualifying to facilitate transactions between landlords and tenants (or banks and homeowners) entails relatively few steps. Furthermore, there’s no shortage of clients, as individuals are perpetually seeking accommodation, and property owners and banks are continuously seeking prospective buyers. You can serve as the intermediary without a team by your side.
– Tutor. If you possess ample knowledge in a particular field, you can launch a solo business as a tutor in that specialty. Advertise your services on classified ad websites or social media groups. College students, parents, and others seeking to acquire knowledge might flock to you. Moreover, even relatively inexperienced tutors can command hourly rates that rival conventional full-time salaries.
– Driver. If you own a car and boast the scheduling flexibility to ferry people (or items) to various destinations at various times, consider becoming a driver. Whether your solo driving business caters to individuals in need of personal transportation or assistance with deliveries, all you require is a car – no co-workers – to fulfill the job requirements.
– Dog walker or dog sitter. While not necessarily the most lucrative of these concepts, operating a dog-walking or dog-sitting business offers convenience. Your clientele for dog walking can consist of neighbors, relatives, and friends. For dog sitting, you can command substantially higher rates and usually multitask while dog sitting – even initiating and managing another solo business concurrently.
Examples of successful solo businesses:
You may also draw inspiration from learning about prominent companies that initially commenced as solo ventures. These represent some of the foremost names:
– Urban Dictionary. The internet’s foremost destination for defining slang commenced as Aaron Peckham’s solo business in 1999 while he was in college.
– DuckDuckGo. The privacy-centric web browser DuckDuckGo is the brainchild of Gabriel Weinberg, who founded it solo in 2008.
– Under Armour. Kevin Plank devised his ideal athletic undershirt in 1996 and transformed his invention into a solo business. Within two years, he had expanded into a warehouse and headquarters.
– eBay. One of the internet’s premier platforms for buying and selling commenced as merely a solo business. Initially, eBay founder Pierre Omidyar was the sole employee of the company.
– Amazon. Undoubtedly the most renowned example of a solo business that burgeoned into a colossal mega-corporation. Jeff Bezos launched it solo in 1994, and in the ensuing years, he ascended to become the wealthiest individual globally.
