A solopreneur is similar to an entrepreneur in that they run their own business, but the main difference is a solopreneur runs the entire business on their own. They do all the work and therefore, they keep all of the profits. Entrepreneurs typically make more money than solopreneurs because they outsource some of the work. But with more money comes more work. Entrepreneurs must manage employees, deal with hiring and firing, handle office politics and more. Solopreneurs only need to deal with one person – themselves.
See How I left my stable job to become a solopreneur >>
While being a solopreneur might sound like a dream come true, there are questions you’ll want to ask yourself before diving in.
So you want to be a solopreneur…
Are you self-motivated?
No one will be telling you what to do and you will not be reporting to anyone, either. Being a solopreneur is all on you. If you aren’t highly self-motivated and driven, you’ll either need to train yourself to be or think about other career paths.
Do you have six months living expenses saved up?
It can take months to see a profit when you first start working for yourself. And once you do start generating an income, it can be inconsistent. Before venturing into self-employment, make sure you have at least six months of living expenses saved up.
Do you have a business plan?
Even if you’re planning on starting small, you should have a general idea of where you see your business in one, five and ten years. Do you hope to turn your venture into a full-time job or are you looking to keep it as something fun to do on the side? This can all be included in your business plan.
Do you have a support team in place?
This can be a spouse, friend, an online community or a combination of the three. A support system will help keep you motived, encourage you and connect you with people in similar situations as your own.
Where will you be working?
Do you need to rent an office space or can you work from home? An office space requires a monthly out-of-pocket expense from you, so if you can start out running your business from home, do it.
How much money do you need to get your business up and running?
An entrepreneur may have a business partner whereas a solopreneur does not. That means you need to front all business expenses from the get-go. Can you afford this? If not, work to save up more money before quitting your day job.
How much money do you need to make to continue living your same lifestyle?
The scariest thing about being a solopreneur is not knowing how much money you’re going to make each month. So ask yourself – what’s the minimum you need to keep up with your current lifestyle? Then, formulate a plan to make that happen.
How long are you giving yourself?
To some, failure may not be an option and you’re going to make your business work no matter what. Others may give themselves a time frame before calling it quits, and that’s OK too. Set specific goals and reevaluate your situation if those goals are not met.
Will you set working hours?
When you work for yourself, it can be very easy to overwork yourself, especially in the beginning. Decide in advance what hours you will work and what the exceptions to your hours will be. By working too much in the beginning, you are more likely to get burnt out.
Are you OK with working alone?
Finally, you need to really ask yourself if you’re OK with working alone, day after day, month after month, year after year. An advantage of working in an office is you get to interact with other people each and every day. Some people, like it or not, need this socialization time and wouldn’t be productive in an at-home environment.
Once you’ve answered these questions, you can start formulating a specific plan to leave your job and become a solopreneur. Millions of people are doing it every day – so can you!
Donny Gamble Jr. is founder of Personalincome.org, a published author, and investor. He graduated from The Ohio State University and has a passion for teaching others about alternative investment and retirement strategies. He is a contributor for Huffington Post & AllBusiness.com, along with other personal finance websites.
