The 6 Most Daunting Things About Being a Solopreneur — and How to Handle Them
By Laura Gayle, BusinessWomanGuide.org
Being your own boss offers many wonderful benefits: the feeling of taking charge, making your own decisions, and, ideally, financial freedom. As for day-to-day aspects, being self-employed means you can set your hours by your personal clock, work in your pajamas, and choose your own projects.
While it’s an exciting endeavor, a lot of people are hesitant to take the plunge because of the many unknowns involved, especially when statistics tell us most startups fail within the first few years. But don't let fear hold you back! For every potential problem, there are solutions. Here are six of the most daunting things about being a solopreneur and how to handle them.
1. Deciding on a business
Some people feel an innate drive to run a business but have no idea what they want it to be. The very idea of making a full-on commitment to running a business is scary. The secret to managing this daunting first step toward solopreneurship is to break the prospect down into chunks.
If you can work through these issues and find that its prospects still look promising, you're ready to move onto tackling the rest of the daunting things you'll be facing.
2. Navigating unreliable income
It's scary not knowing where your next paycheck will come from. If you're used to a regular salary, this will be a huge change. Saving up a few months of living expenses before making the plunge is a good idea. That way you’ll have some cash to live on while you pursue your business dreams.
Security, perks, and benefits are probably also concerns. One plus about being a solopreneur is that you don't have to worry about sick leave or vacation time because you set it yourself—and with today's cloud and Wi-Fi options, you can work from anywhere.
Other benefits, such as health insurance, are a worrisome concern for most solo business owners and freelancers. Fortunately, there are several options to address benefits and requirements like calculating taxes, providing insurance, saving for retirement, etc. Another advantage is that as a self-employed business owner, you can deduct your health insurance premiums on your taxes.
3. Funding your business
One of the most formidable deterrents to starting a business is securing the funding. Most people don't have unlimited amounts of personal cash nor do they own a goose that lays golden eggs. If you do, terrific — one more item to check off your list! But if you don't have the capacity to self-fund, it doesn’t need to be a barrier to pursuing your entrepreneurial dreams. Here are several funding options:
4. Finding space to work
Physical space is often a big challenge for solopreneurs. Whether one lives and works alone in a small apartment, with family in a home, or with roommates, most people encounter space challenges at some point. Fortunately, there are some feasible solutions.
The type of space to choose will depend upon several factors, such as your work habits, particular spatial needs, and type of business.
5. Finding allies and resources
Perhaps one of the most daunting aspects of being a solopreneur, regardless of your industry, is going at it alone. You're responsible for everything relating to the business, and there’s no boss to turn to for help. You can solve this dilemma by joining your local chamber of commerce, attending industry or small business networking events, or by finding a mentor or business coach — or doing all three. Your path will seem less scary if you find people you can bounce ideas off of, ask questions, and solicit advice.
6. Minimizing isolation
Jumping into a solo business can feel isolating. There are no more proverbial water coolers, shared lunch hours with colleagues, or morning commutes on public transportation. You can overcome this isolation by fostering relationships (you'll want to do this anyway for marketing purposes). Attend local meetups for other solopreneurs or make the decision to join a co-working space. Even maintaining a strong presence on social media can help keep you connected.
Solopreneurs often find themselves feeling overwhelmed, especially in the beginning. According to the latest available figures given by the U.S. Census Bureau, there were more than 35,500 "nonemployer firms" that brought in between $1 million and $2.49 million revenue in 2015. The gig economy is in full swing. This, coupled with numerous technology innovations that help people work independently, has made entrepreneurship a viable option for many people.
Working 9 to 5 for someone else isn't for everyone. If you have a dream and the drive, don't let the daunting aspects of self-employment scare you. Being a solopreneur comes with advantages and disadvantages, certainly. But if you can find solutions to overcome the latter, you'll better position your business for viability. With hard work, patience, and commitment, you can experience the pride associated with self-made success.
While it’s an exciting endeavor, a lot of people are hesitant to take the plunge because of the many unknowns involved, especially when statistics tell us most startups fail within the first few years. But don't let fear hold you back! For every potential problem, there are solutions. Here are six of the most daunting things about being a solopreneur and how to handle them.
1. Deciding on a business
Some people feel an innate drive to run a business but have no idea what they want it to be. The very idea of making a full-on commitment to running a business is scary. The secret to managing this daunting first step toward solopreneurship is to break the prospect down into chunks.
- List your hobbies, talents, and favorite pastimes, then narrow down the list to something you see yourself committing to full-time.
- Research to see if your idea is viable and there is a market demand for it.
- Analyze the idea to see what you can create to offer the market. (And once you’ve got prototypes, make sure to secure the rights to any inventions or designs you create.)
If you can work through these issues and find that its prospects still look promising, you're ready to move onto tackling the rest of the daunting things you'll be facing.
2. Navigating unreliable income
It's scary not knowing where your next paycheck will come from. If you're used to a regular salary, this will be a huge change. Saving up a few months of living expenses before making the plunge is a good idea. That way you’ll have some cash to live on while you pursue your business dreams.
Security, perks, and benefits are probably also concerns. One plus about being a solopreneur is that you don't have to worry about sick leave or vacation time because you set it yourself—and with today's cloud and Wi-Fi options, you can work from anywhere.
Other benefits, such as health insurance, are a worrisome concern for most solo business owners and freelancers. Fortunately, there are several options to address benefits and requirements like calculating taxes, providing insurance, saving for retirement, etc. Another advantage is that as a self-employed business owner, you can deduct your health insurance premiums on your taxes.
3. Funding your business
One of the most formidable deterrents to starting a business is securing the funding. Most people don't have unlimited amounts of personal cash nor do they own a goose that lays golden eggs. If you do, terrific — one more item to check off your list! But if you don't have the capacity to self-fund, it doesn’t need to be a barrier to pursuing your entrepreneurial dreams. Here are several funding options:
- Crowdfunding — Take a look at Kickstarter or GoFundMe to let your community help back your project.
- Angel investors — This is potentially a very lucrative option, but it necessitates serious research in advance. Angel investing can offer great opportunities, but some might want a say in your company’s management practices in return for their investment. Consider this route carefully before embarking on it.
- Venture capital funding — This is another avenue that requires research. Investors typically require a bit of equity in your company in exchange for funding, and some also stipulate managerial say. An added benefit of finding investors is that you could also gain a mentor and broaden your network in the process.
- Loans — Taking out a small business loan can help you get started. Be sure to check interest rates, payment timelines and terms, and the fine print covering potential default and other legal ramifications.
- Competitions — Contests and competitions can present a great way to garner attention and marketing opportunities for your idea. And if you win, you might even gain cash awards to help you with funding.
4. Finding space to work
Physical space is often a big challenge for solopreneurs. Whether one lives and works alone in a small apartment, with family in a home, or with roommates, most people encounter space challenges at some point. Fortunately, there are some feasible solutions.
- Lease/ co-lease — You could rent a separate working space on your own or share a space with another professional.
- Co-work — Joining a co-working space can put you in contact with other entrepreneurs and freelancers, offering a community to help broaden your network and stave off isolation. These can also provide a professional space to conduct in-person meetings.
- Storage — Selling a product? Rent a small storage unit to store your inventory and reduce damage or loss.
- Build — If you can afford to build a small structure on your property, you’ll be able to design a space that fits your workplace needs exactly. Be sure to check zoning laws, permits, and any other pertinent criteria before undertaking any building project.
The type of space to choose will depend upon several factors, such as your work habits, particular spatial needs, and type of business.
5. Finding allies and resources
Perhaps one of the most daunting aspects of being a solopreneur, regardless of your industry, is going at it alone. You're responsible for everything relating to the business, and there’s no boss to turn to for help. You can solve this dilemma by joining your local chamber of commerce, attending industry or small business networking events, or by finding a mentor or business coach — or doing all three. Your path will seem less scary if you find people you can bounce ideas off of, ask questions, and solicit advice.
6. Minimizing isolation
Jumping into a solo business can feel isolating. There are no more proverbial water coolers, shared lunch hours with colleagues, or morning commutes on public transportation. You can overcome this isolation by fostering relationships (you'll want to do this anyway for marketing purposes). Attend local meetups for other solopreneurs or make the decision to join a co-working space. Even maintaining a strong presence on social media can help keep you connected.
Solopreneurs often find themselves feeling overwhelmed, especially in the beginning. According to the latest available figures given by the U.S. Census Bureau, there were more than 35,500 "nonemployer firms" that brought in between $1 million and $2.49 million revenue in 2015. The gig economy is in full swing. This, coupled with numerous technology innovations that help people work independently, has made entrepreneurship a viable option for many people.
Working 9 to 5 for someone else isn't for everyone. If you have a dream and the drive, don't let the daunting aspects of self-employment scare you. Being a solopreneur comes with advantages and disadvantages, certainly. But if you can find solutions to overcome the latter, you'll better position your business for viability. With hard work, patience, and commitment, you can experience the pride associated with self-made success.
