You may be thinking about becoming a solopreneur? What is a solopreneur? Well, it’s quite simple. If you set up and operate your own business without any employees, you are a solopreneur.
There are many reasons for choosing this particular route when you begin a startup. First, it does keep things simple. Being a solopreneur means you will not need to worry about maintaining an employee payroll. When payroll is not a concern, it relieves some of the stress associated with having too many moving parts. If you can do this successfully, you can keep the costs of your services at a more competitive rate. Beginning to sound quite enticing, isn’t it? There is more.
You can escape some of the employee-related problems plaguing virtually every industry today. As a solopreneur, you do not have to worry about providing incentives to get them to work for you. In addition, you will have to concern yourself with office politics. You certainly will not have to worry about the everyday HR issues, which can be a nightmare. In fact, you may not even have an office and will possibly be running your business from home. But for all the perks and advantages, there are a few pitfalls that are worth exploring.
More Money, More Problems?
One of the biggest advantages of being a solopreneur is that all incoming revenue goes directly into your pocket. But as you may have guessed, this can actually be problematic. You will not have anyone to handle taxation issues in your business. You will need to know how much to pay in taxes each year. As a note of caution, it is extremely important that you get this calculation right.
The good news is that you will find there are various tools online that can help you in. this area. Although the process is no longer as complicated as it used to be, it is still possible to make mistakes. If and when you do, you will need to find professional help with tax investigation troubles. Bear in mind, you can be exposed to a tax investigation even when your numbers are right.
Is this the only issue that comes with dealing with finances all by yourself? Not at all. You must also consider protecting your finances as well. You are solely responsible for ensuring that you have the level of security essential to protect business funds. It’s worth speaking to some experts about this potential area of concern. This is a safeguard to ensure that you consider and plan for everything from interest rates to long-term financial planning.
Only One Person To Blame
The good news is you no longer have to worry about disappointing shareholders, colleagues, partners or anyone else. Conversely, the bad news is if your company does fail, there is no one else to blame other than yourself. You will have to take sole responsibility for the success and failure of your business. Even if you choose to use to outsource, you are the sole decision-maker selecting which companies to use.
The problem here is that this facet makes running a business very stressful. So, if you began a company to escape the traditional business stresses, this may not be the right choice. You will soon learn that this can be just a discouraging. However, do not worry because there is another way to make this work for you.
Outsourcing Can Save You
By outsourcing, you can relieve yourself of some of the pressure. In addition, this route may make things more affordable as you expand your company. The overall goal is always going to be to expand your business over time. This will include an increase in your financial overhead.
Outsourcing allows you to do this without the stress associated with maintaining personnel. The catch here, however, is that you need to use services that you can trust to help you continue to provide high-quality services. There are many companies offering outsourcing services to small business owners and solopreneurs. As a result, it can be easy to form a bad association with a lackluster company. To prevent this, you must research each candidate thoroughly before committing to any outsourcing contracts.
You also need to think about whether it will actually save you money. While attempting to be cost-effective, hiring the company that best suits your business needs is of paramount importance. However, you must also take into consideration what your business is able to afford.
Forget The Pond, You’re In An Ocean!
Finally, you need to think about how you are going to appear on the market as a solo business owner. Ultimately, with this type of business model, it is easy to be overlooked in favor of a larger corporation. You want to be seen as a true professional, even if you are the underdog.
The best way to keep the spotlight as a solopreneur is to invest in the right services and to focus on appearances. Appearances matter a lot in business. If you take the time to set up your business the right way (particularly online) and build your brand, you will see greater success. Even a great, highly stylised website can be the difference between one hundred and one thousand new clients.
We hope this helps you as you take your first steps to becoming a solopreneur.