Most people are familiar with the roles and responsibilities of entrepreneurs, but a new career field has emerged in recent years, and this new lifestyle/“work style” has garnered more interest from people on different career paths. “Solopreneurs” have risen because of the appeal of more business control, flexibility, and financial earnings; the term comes from putting “solo” and “entrepreneur” together.
As a family financial planner, more of my clients self-identify as solopreneurs, so I thought it would be helpful to discuss common qualities of solopreneurs and what you should know about the work style. Learn how solopreneurs must plan for health insurance and retirement differently than others.
What Is a Solopreneur?
As the name suggests, a solopreneur is an individual who independently creates and manages a business. To emphasize, a solopreneur organizes and oversees the risks of a business without a partner or employees. Because the term is so new, there’s sometimes confusion about what it means and who would be considered a “solopreneur.” In some cases, freelancers fall under the umbrella of solopreneurs along with business owners who hire temporary, contractual employees.
What Separates Solopreneurs from Entrepreneurs?
The biggest distinguishing difference between a solopreneur and an entrepreneur involves their responsibilities. Solopreneurs run everything from finances to marketing. Entrepreneurs may have a team of employees supporting their operations and business goals, while solopreneurs oversee those roles at once. Solopreneurs must control their retirement planning, health insurance, and other financial opportunities that would be run in an entirely separate department at a larger business.
Solopreneurs are closer to entrepreneurs than the other way around. Since solopreneurs are responsible for every role, they usually run a very small and manageable business. Entrepreneurs are typically more interested in expanding their business than being restricted by work capacity limits.
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Solopreneur or Family Leader?
Generally speaking, solopreneurs have one focus they master and manage for their entire business; under this primary role, there are many subset skills to learn, not dissimilar from parenthood. The growth and prosperity of a solopreneur’s business depends on the fine balance of keeping all operations functioning smoothly and in unison, just like the family unit!
There’s quite a bit of juggling regarding being a successful solopreneur, and I often attribute their day-to-day much to being a parent. While I have my career, I also have my familial duties, which can sometimes feel like spinning 15 plates at once or another whole career entirely; for parents, the lists of to-dos never end, and the same can be said for a solopreneur. A great Mother’s Day commercial a few years back drove this point home for me. Mothers are never really given a break at any point in the week, and solopreneurs have a maternal responsibility towards their children ( their business).
Solopreneur Challenges
Like with any business, being a solopreneur comes with advantages and disadvantages. Managing an entire business comes with lifestyle benefits others may not have, but it also comes with challenges.
The primary challenges for a solopreneur mostly involve stress and difficulties of taking time off, sourcing healthcare coverage, and having sound retirement strategies; these perks typically come with working within a larger business. However, a huge advantage to being a solopreneur is its low financial risk and ability to pivot goals and focus instantaneously; who needs corporate approval when you’re the corporation? Without employee payroll, solopreneurs typically have lower expenses, allowing them to keep most of their earnings and reallocate resources as they please.
How I Help
Solopreneurs are entirely on their own regarding health insurance, retirement planning, and financial management. Suppose you’re a solopreneur (or just now discovering you are); I can help alleviate some of the financial worries and stressors you struggle to oversee. Running a successful business is hard enough without spending endless hours sorting out financial strategies for your family.
As a parent and solopreneur, you’re working hard to raise your family. But the truth is that there are some things only parents can do for their children–and other tasks where hiring an outside professional might make more sense. I am here as your personal CFO/HR department!
It is important to delegate tasks when you are feeling burnt out.
Let me help with financial matters, so we both have time to focus on what is really important: being great at our jobs while taking care of ourselves too (and each other).
