Building a business from the ground up comes with its own set of concepts and strategies to familiarize yourself with. However, do you know what kind of business owner you would like to be and how that affects your business’ needs? Would you like a team to back you up as an entrepreneur vs. building your business on your own as a solopreneur? Should your priority be a small team vs. a big team for a startup?
Before you decide on what business owner you’d like to be, it’s best to figure out the differences between being a solopreneur and being an entrepreneur. Here are some points to remember:
Solopreneurs Take On Both Founder And Employee Roles
Unlike entrepreneurs who likely have an entire team (or teams) under them to help them with other tasks, solopreneurs are largely on their own. They establish their business on their own while also being in charge of producing or delivering their own goods and services.
They can also hire independent contractors or freelancers to help them out, but this is not a typical solopreneur expense.
Entrepreneurs Can Have A Limitless Growth Cap. The Same Is Not True For Solopreneurs
Because solopreneurs mostly manage their business on their own, they likely have a limited growth cap for how much they can earn on a regular basis. Just like regular employees, they also crave work-life balance, and can only accommodate as much as their working capacity allows.
Depending on how much capital they put in, entrepreneurs have a more limitless growth cap compared to solopreneurs. They can easily delegate other tasks to competent teams who can get much more done in a faster amount of time.
Entrepreneurs Have More Networking Power
Whether they happen online or offline, events and conferences are powerful avenues for business owners to make their services known to get new clients or find new collaborators. Because an entrepreneur has employees under them, they can easily step out to represent their brand at these events and liaise with important individuals who can help them further their business’ growth.
Solopreneurs are usually present at trade shows and fairs, but their networking opportunities are quite limited by the fact that they need to constantly work on producing their products.
Solopreneurs Are Less Prone To Financial Risk
If a solopreneur’s business fails, they only have to cover for a limited amount of debt, which is always only their own. After that, they can either try to start a new business or get employed by another company.
However, if we look at a business that has 10 employees who are each paid $20,000 per year, this entrepreneur can instantly be looking at a $200,000 wage debt if their business fails. When aspiring to be an entrepreneur, you must first ask yourself if you can cover larger risks rather than smaller ones.
Entrepreneurs Can Expand Their business’ Horizons More Than Solopreneurs Can
A solopreneur with a limited amount of time on their hands usually wants to focus on a particular niche in the market they want to enter, and then exhaust all of their working energy into making sure their business succeeds in that niche.
A good example of an entrepreneur who can expand considerably however, is an entrepreneur who is putting up a digital advertising agency for the first time. They can offer campaign creation, social media management, digital ad creation, and more services to multiple clients, as long as their employees are able to accommodate the demand.
Should I Be A Solopreneur Or An Entrepreneur?
The answer lies in your own abilities. Consider being an entrepreneur if you have a lot of capital and can hire more manpower to help you out. On the other hand, the path of a solopreneur is more for you if you prefer working alone and have more limited capital for a small business.
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