For anyone wanting to start their own business, the thought of doing it alone either encourages or scares them. A solopreneur is someone who goes it alone in their business, and the number of solopreneur startups in the US is on the rise. The kinds of companies these entrepreneurs develop are not just tech either, and they are not totally alone.
How many Solopreneur Startups are there?
There are millions of small businesses, and in the US alone, around 73% of the 30 million-plus are operated by sole proprietors. Downturns in the economy over the last decade and a half have been a significant reason why one-man-band companies have grown in number.
With 41.8 million people who identify as a one-person company, numbers continue to rise as people battle to find real jobs and thus have to get creative. Taking Solopreneurs broadly, the 41.8 million and growing number of them contribute over $1.3 trillion to the United States economy.
Not quite full time
Many solopreneurs are not working full-time; some create their own enterprises from a side hustle that slowly evolves into a full-time job. Making extra money and learning how to pay off 10k in debt, or any amount, is why some start their business; taking things slow, they eventually venture deeper.
Not quite full-time allows a solopreneur to approach the challenges carefully. Many are not seeking to grow teams or find fame and fortune but merely make a living. This cautiousness is perhaps a valid reason why many owner-operated businesses are indeed successful and, in some cases, go on to make millions with an IPO.
The Challenges of Being Your Own Boss
As may be expected, there are many challenges in being the boss that go beyond just business operations. In terms of operations, the Solopreneur is not entirely alone. Over the last few years, the gig economy has experienced significant growth, and outsourcing has made it easier for individuals to run a one-person business.
Outsourcing the task that a business owner cannot complete is a win-win situation, another reason why the number of solopreneurs is growing. Today's self-operated business has a broader choice of supporting services and tech than someone had perhaps 20 years ago.
In addition to leveraging the gig economy for operational tasks, solopreneurs can also streamline their financial management and payroll processes with modern tools.
Services like a comprehensive paycheck stub generator offer an efficient solution for managing financial documentation, allowing solopreneurs to focus more on growing their businesses while maintaining accurate and professional financial records.
Challenges Beyond Operational
Mental challenges surround the world of the Solopreneur. Loneliness, stress from being overworked, and the dread and fear of failure overtake everything. And yet, many profitable and successful solo operations overcome all of this.
Solopreneurs have created an ecosystem where one supports the other. The combination of a growing gig economy, increased services and support, and numerous apps (often created by solopreneurs) make running your own business straightforward.
Frustration Leads to Successful Business
One of the reasons a large number of solopreneurs begin their businesses is frustration. Either being unable to find a job or being stuck in a low-prospect career is where many people find themselves today. Back in 2009, Sara Blakely found herself in a similar situation, and this triggered an idea that, a decade or so later, has now made her a billionaire.
Spanx is a true solopreneur success story, manufacturing a broad range of women's apparel. Starting as a woman with an idea that would change the world of fashion, hard work as a solopreneur paid off.
Today, Spanx generates over $400 million each year, employs 750 people, and Sara Blakely encourages others to start their own businesses.
Turning a Day Job into a Day Job
While frustration from not finding a job or being low-paid is one reason for Solopreneurs to go it alone, others are different.
Some people in a full-time job feel restricted and can see a better way to do what their employer does. With the advent of a more robust and more accessible internet came opportunities, and innovative people grabbed this with both hands.
One such area where individuals have earned six-figure sums is online training. Although the figures have dropped from the 2016 high of $20.86 Billion, forecasters predict online learning will be worth $15.86 Billion in 2021.
Those who have the expertise to share are among the most successful small businesses in the United States, with many former employees earning more money from what was once a side hustle.
Are Solopreneurs the Way Forward?
2020 especially saw a dramatic change in work from home, but the current ecosystem of owner-operated businesses has been forming for over a decade. Some of the most well-known brands today, such as eBay, began as a solo endeavor and an idea giving modern entrepreneurs the confidence to start.
Breaking into your venture is easier, and the tools needed to start, run, and sustain a one-person business are affordable.
Lager companies are outsourcing to smaller businesses all the time, and solopreneurs with the right expertise and solutions are taking a piece of the pie. It is not that the landscape is evolving, but rather how business is being conducted that sustains the growth of the Solopreneur.
Owner-operated startups often have lower overheads, and thus the services they offer are less expensive. Small businesses are a valuable part of the economy, helping find the balance between affordability and quality. Then throw in some innovation, and the once almost overlooked small business working from home becomes the Most Valued Player.
Understanding Small Business and Startups
No crystal ball will tell you whether a startup will succeed or whether large companies will continue to need the services of the Solopreneur. There is, however, a wealth of information available about small businesses in the United States that can help individuals make informed decisions.
Fundz is such a source of highly qualified, up-to-date, and valuable data. This highly credible database of startups is a go-to solution for anyone who wants business information at their fingertips. If you are a solopreneur or planning to become one, Fundz could well be a tool that has uses beyond what is immediately apparent.
FAQs: Your Questions About Solopreneurship Answered
I'm thinking of starting my own business. Do I have to do everything myself?
Not at all. While a solopreneur runs their business alone, they don't have to handle every single task. The rise of the gig economy means you can hire a virtual assistant for tasks you can't do or don't have time for. This allows you to focus on your core business activities while still maintaining control.
Is it too risky to quit my job and start a business full-time?
You don't have to jump in all at once. Many successful solopreneurs start their business as a side hustle while still employed. This allows you to test your ideas, build a customer base, and generate income with less financial risk. You can transition to full-time once your venture is more established.
What can I do to overcome the loneliness and stress of working alone?
The solopreneur community is a strong and supportive one. You can connect with other solo business owners through online forums, social media groups, and networking events. Additionally, there are numerous apps and services, often created by fellow solopreneurs, designed to streamline your workload and reduce stress.
What resources are available to help me get started and run my business?
Today's solopreneurs have access to more tools and support than ever before. You can leverage technology for everything from project management to marketing. For financial record-keeping, tools like paycheck stub generators can help you maintain professional and accurate documentation.
For market research and business data, platforms like Fundz can provide valuable insights to inform your decisions.
