The Harvard Business Review’s ‘Thriving in the Gig economy’ mentioned that 150 million people from the US and Europe have left their relatively stable jobs (either forced out or left on their own) to work as independent contractors. These individual entrepreneurs, mostly working for themselves, are the solopreneurs. Whether the economic forces led these people to become solopreneurs or the demographics led the economy to morph into a gig economy is unclear. But what is clear though is that the gig economy and solopreneurs are real. So what are the advantages and disadvantages of being a solopreneur?
Having been a solopreneur and an entrepreneur, I would not trade my position with anything else. Of the two, I prefer being a solopreneur even though that may mean that I’d be managing a smaller operation than being an entrepreneur of a larger entity. I have been lucky enough to manage multiple ventures and time management has been an extremely crucial skill I had to develop and learn over the years. More on time management in other articles but let me go over some pros and cons of being a solopreneur as I see it.
Fundamental Differences Between Solopreneurs and Entrepreneurs
A solopreneur intends to run his or her business by himself and herself and will be solely responsible for its incredible success or a disastrous failure. Entrepreneurs, on the other hand, have employees and will rely on them to develop their business over time. A solopreneur may outsource work to external providers and engage freelancers to keep things moving. Solopreneurs typically seek the freedom and independence that comes with the business whereas entrepreneurs may be looking to build and sell their business after some time. Both build businesses, take risks, and create some ingenious things in the process. It is just the way they approach and conduct a business that is different.
Advantages Of Being A Solopreneur
There are 3 distinct advantages of being a solopreneur as opposed to an entrepreneur. Solopreneurs are able to maintain complete control of their venture. As a result, they are able to keep the majority of the money they make, own 100% of the decisions they make, and maintain the freedom to do as they please. In the process, solopreneurs may outsource tasks they either can’t do or won’t do. But overall, solopreneurs crave the freedom and the control they get in the process.
Disadvantages Of Being A Solopreneur
Of course, it’s not all roses for these people. One of the main complaints you hear from solopreneurs is that there isn’t much support when things are not going their way. It can be lonely and may they feel isolated. Time management is another major issue for solopreneurs. There are so many things to do such as web site building, promotion, product creation, financial management, etc. Even if they are outsourcing some of these tasks, managing the vendors can also take a significant amount of time.
Conclusion
The demographics and changing nature of our economy made the gig economy happen and either encouraged or forced people to become entrepreneurs. I enjoyed every bit of the process. All I can say is that passion and perseverance are the main keys to your success.
Whether you are a budding solopreneur or entrepreneur, you can get help with a business startup checklist, writing a business plan, or the tools I continue to use for my businesses on this website.