Solopreneurs: This is how companies can make best use of "lone wolves"

What is a solopreneur?

A solopreneur is someone who runs a business venture independently,  without the help of a partner, and is responsible for nearly all aspects of the business. Solopreneurs are characterized by the following criteria:

• Self-management: A solopreneur is in full control of everything and takes complete responsibility for the development of their business. They can delegate tasks that they are unable or unwilling to take on themselves to other independent professionals.
• Specialization: Solopreneurs usually specialize in a manageable niche. They often offer a select range of high-quality services.
• Innovative concept: A solopreneur turns an idea into a viable concept which in many cases can be scaleable.
• Independence: Solopreneurs are both the owners and the workforce of their business. They organise, manage and assume risks without the support of a partner.
• Flexibility: It’s possible to start up as a solopreneur in either your main business or your side business, which offers a high degree of flexibility.

On the whole, solopreneurs strive to make their business scaleable and efficient by their use of software and by engaging freelancers. Although the term is less common in the UK than "entrepreneur", solopreneurs play an important role in business, as they often implement innovative ideas and drive their business models independently.
 

Solopreneur, freelancer, entrepreneur – what are the differences?

Unlike a solopreneur, a freelancer works on a project basis and often for multiple clients at the same time. An entrepreneur, on the other hand, builds companies, usually larger ones, and employs staff. Here is an overview of the main differences between solopreneurs, freelancers and entrepreneurs.
 

Solopreneur

• Single-handed business management: a solopreneur is responsible for all aspects of their business, including marketing, sales, accounting and operations.
• Freedom: solopreneurs strive for independence and organise their company in an agile and flexible fashion
• Distinctive image and branding: solopreneurs place great importance on their own personalised brand.

Freelancer

• Project-based: freelancers work on a project-by-project basis and often have multiple clients at the same time.
• Services: they offer specific services, such as design, writing or programming.
• Flexibility: freelancers are often free to choose their projects and working hours.

Entrepreneur

• Company structure: entrepreneurs start and run larger companies, often with a team of               employees or contractors.
• Products and scaling: they develop their own products and strive for scaleability.
• Risk and growth: entrepreneurs are willing to take risks in order to grow their business.
   

How can companies benefit from solopreneurship?

Starting and running a business requires the right team. However, situations may arise which require skills outside those offered by existing employees. This is frequently, but not exclusively, applicable to startups or small businesses which are still in the process of being established. In these cases, it may make sense to fall back on the services of solopreneurs – especially when you need fast, uncomplicated and relatively cost-efficient help. This is because solopreneurs usually charge less than larger companies since they have low operating costs. This is an advantage to their clients.

What’s more, solopreneurs are often very flexible and more willing to work on a limited budget and within a tight schedule. They can be hired for project-based tasks without making long-term commitments. If their own expertise or time is not sufficient, they simply scale their services by using freelancers or virtual assistants to handle more tasks. Many solopreneurs also specialize in niche areas where companies struggle to find their own staff, especially in the start-up phase. This is often the case in marketing, design or IT development, for example.

All in all, solopreneurs offer companies the opportunity to access specialized skills, flexibility and cost-effectiveness without committing to long-term contracts.
 

Hiring solopreneurs: what you need to know

To get the most out of solopreneurs' services, companies should keep the following tips in mind.

• Determine your own expectations. When hiring a solopreneur, it's important that both parties are clear about the desired outcomes, deadlines, and how they will communicate.
• Give clear instructions. Companies need to make sure they are precise about their brief and can answer any queries the solopreneur may have.
• Be responsive. If a solopreneur needs help, you should be able to provide immediate support.
• Give feedback. It's important to give solopreneurs both positive and constructive feedback on their work. This will help them improve their performance.
   

What does the future of solopreneurship look like?

Solopreneurship is a growing trend. Those who offer services on this basis rely on a very individual, often unique business model, which is precisely tailored to their skills, networks and interests.

As the economy is expected to increasingly rely on professionals and independent consultants rather than larger companies, it makes sense to take advantage of the greater agility and favourable conditions offered by solopreneurs.