“Solopreneur” is a term that refers to small businesses with limited staff. Often, solopreneurs run companies of one. They choose to build a business without the traditional team structures and hierarchies. They don’t hire employees.
On the other hand, many solopreneurs have 7-figure incomes. They could afford to hire employees. They’re not small companies by many standards.
You don’t achieve a 7-figure income if you don’t get results. Solopreneurs get great results. And they don’t get them alone.
Examples of solopreneurs can be found everywhere, and include
- Online T-shirt businesses
- Fashion designers
- App developers
- WordPress theme developers
- And, of course, online course creators.
Solopreneurship is about teaming up with others. Solopreneurs use loosely-knit networks of partners and freelancers. Outsourcing and cooperations can provide the power of a team while adding a lot more flexibility.
Solopreneurs try to achieve personal freedom and independence. Some try to escape 9-5, others just want another leg to stand on and start a side business. Solopreneurs are not synonymous to freelancers, who sell their working hours, which severely restricts the independence that can be achieved. Instead, they try to come up with products and scalable businesses.
Solopreneurs do not run their business alone because they can’t find anybody who wants to partner with them. They make a conscious decision against traditional company structures, since staff and organization always limit freedom.
Solopreneurs understand that passive income doesn’t mean that you’re receiving income without working – they’re simply trying to decouple the income from the hours invested to achieve that income.
When you’re on your own, there’s a limit to what you can achieve by investing more time as you will quickly reach a ceiling. Solopreneurs, therefore, rely heavily on automation and leveraging business components and tools. In other words, they create products, and then often set up automated distribution chains. This allows them to invest their working hours into product creation. Information products, such as courses, are a typical example.
Solopreneurs also avoid external funding (again, to avoid depending and losing the freedom to make your own decisions). As a result, solopreneurs are often bootstrappers, growing their business organically by investing what they earn.
This has a big influence on the kind of solutions they’re looking for (especially when starting out). They are looking for low-risk, low-cost solutions (avoiding funding) with a lot of potential for automation so that they can focus on developing and improving products instead of administration.
They shy away from complicated set-up and customization – not because they dislike technology and don’t want to solve technological challenges. They avoid these approaches because challenging, customized solutions tend to break, requiring time to analyze and fix. This time is better invested in products.