“All Solopreneurs are entrepreneurs, but not all entrepreneurs are Solo-preneurs.” Getting to know the difference will help you to know the difference between the two terms.
What is a solopreneur?
They are professionals who run their businesses independently without any employee or co-founder support. A few job examples include virtual assistant, freelance writer, social media manager, tax preparer/accountant, graphic designer, etc. They carry out all the responsibilities & duties of their business by themselves.
6 key differences between Solopreneur vs. Entrepreneur
1. Single business focus:
Solo-preneurs are not known to pursue serial entrepreneurship. Rather, they offer products or services belonging to a particular niche. They focus more on developing a steady customer base & to make profits.
However, they are not much interested in expanding their business. This way, one person can manage the business effortlessly & continue running it solo. Some instances are offering small businesses social media services. Such professionals focus more on delivering packaged services, something they are experts in & can fulfill. But entrepreneurs, employing 10-person team & running a marketing agency may offer content creation, brand consulting & social media management services. Having a large team, they can offer a wide range of options as well as include more services with team growth.
2. Employees & founders:
Solopreneurs manage every aspect associated with their business. They do not rely upon others to delegate tasks to get work done. They can be termed to be the creator & founder of their business. They also take the responsibility to produce & deliver services/products & ensure the survival of their business. To perform some tasks, such professionals may hire a freelancer or contractor. But this is undertaken occasionally.
3. Financial management:
The owner has to bear more financial responsibilities as his/her company grows. Entrepreneurs having staff are responsible to ensure the profitable running of their business. Also, they should make sufficient profits to pay for their staff. Moreover, they are responsible to take care of taxes, benefits, payroll, etc. which again depends on their specific business structure. Solopreneurs are required to operate their business as a sole proprietorship or single-member LLC. Hence, they have more decision-making authority and can take fast decisions.
4. Not developing business to scale:
The business development goal of most entrepreneurs is to scale & develop their company. The objective here is to make profits with time. But not all entrepreneurs follow this. Those managing companies tend to follow it than those running a solo business. Independent workers prefer to run their businesses, live off & work in by themselves, and earn profits. They are not interested much in creating an empire or to sell off the business to another entity.
5. Workplace requirements:
Solo-preneurs can do business using very less workspace. The reason is that they offer specialized services to their clients, which can be carried out remotely. They often may require installing a computer with a good net connection. This again depends on their work scope. According to reports, over sixty percent of small businesses running solo are considered to be home-based. But entrepreneurs may require complex workplace structure. This again depends upon their business type. Those who manufacture physical products will require more space to create as well as to store the finished goods safely. Also, employees are to be provided with appropriate work accommodations & essential resources.
Getting to know the differences between Solopreneur vs. Entrepreneur can help you make the right decision. You can become an entrepreneur, hire staff, get ample workspace & resources and enhance your company further. Otherwise, you can become a solo-preneur and undertake all tasks by yourself without any external assistance. You can also carry out this business from the comfort of your home. In this type of business, you can enjoy having a better & healthy direct relationship with your clients.