From the course: Finance Foundations for Solopreneurs

Are you a solopreneur?

From the course: Finance Foundations for Solopreneurs

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Are you a solopreneur?

- A solopreneur is an entrepreneur that runs a business of one. That means you're the boss and employee, principal shareholder and custodian, head of marketing and director of finance, all rolled into one. Of course, this whole idea of a business of one has a lot of caveats. Most solopreneurs I know normally get assistance from their spouses, significant others, family, or friends. Ha, I mean my wife works full-time in the business with me and without her, it wouldn't be successful. So really, we can define the solopreneur as a single, very small business entity in which the owners are both management and staff and use outsourcing to fill extra needs. Typically, you work out of the home or a coworking space. There are four categories of what I define as solopreneurs: skill-based advisory work, skill-based advisory work, specialized services, specialized services, online retail shops, online retail shops, and on-demand services. and on-demand services. First, let's talk through skill-based advisory work. People in this category are advisors, coaches, and speakers. Often, the work is highly skilled and often they're consultants. You'd hire them when you need an expert. It's someone you bring in when you need high levels of credibility, special training, and don't have the time or budget to hire a full-time person. For example, there might be a business with just 25 employees, but no specific human resources department. 25 employees, but no specific human resources department. They could bring you in as an HR consultant to make sure their policies comply with the law and to educate their employees. Next, let's tackle specialized services. This is a big category. It's the people that are, like the skill-based advisory work, well-practiced in their field. Instead of advising you on the work, they're doing the work for you. They do things that you could do on your own, but it would take a long time to learn and you still might not do it as well. This includes bookkeeping, graphic design, website maintenance, and event planning. Now while I might be able to take photos at my daughter's wedding, they wouldn't be nearly as good as a professional. I want someone who has over 10,000 hours put into their craft to give me a polished final product. Moving on, some solopreneurs run online retail shops. In this category, people produce or find a product and then sell it through an online shop. It could be your own site or something like Etsy or Ebay. These are really neat businesses, but they usually end being more challenging than people think. Sure, you probably make a great product, but the real work is increasing your visibility. The market is very crowded, plus you're usually competing with retail giants like Amazon. But don't get discouraged. People seek out small online retail shops for items that are unique, customized, or have that handmade feel. You just have to make sure they can find you. Finally, we have on-demand services. This is an interesting category. Ha, I put anything in this group that fulfills a spontaneous need. That is, you need something done now, and you can hire someone to do it. It includes transportation like Uber or Lyft, delivery like Grubhub, and even medical advice. I mean, I know people who can talk to a pediatric nurse online when their kid is sick. It's all about the convienence. And for this reason, these businesses are often based in mobile applications. Here's your assignment: look at your life, or even your mobile device, and identify as many solopreneur businesses this week as possible. You can find them in people you do business with and buy from. Start a conversation and learn about their businesses. This is a great opportunity to network, share experiences and learn with those successful in your community.

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