Starting a business may seem like an offer that’s far too tempting to resist. One of the key reasons is the autonomy it offers profession-wise. This means gaining total control over your schedule management, income flexibility, and being at any location you choose.
Businesses, however, will always pose certain risks, and maneuvering through them will depend on the level of expertise and appropriate skills needed in the chosen industry. It also has to be taken into account that there’s a high risk of failing in any business. In fact, investing in a business cannot guarantee that money will start rolling in after its set-up.
Solopreneurs have their fair share of business dilemmas, especially when managing through difficult times. Here are ten ways to invest and survive as a one-person show.
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1. Create a Plan
Before starting, one question that solopreneurs ask themselves is, “Is buying a business a high-risk investment?” and “Will I fare better if I invest in a business or a franchise?” Or, “Am I better off putting up my own business?” Once all these questions are addressed, only then can planning follow.
2. Increase Your Client Base
There are different ways to do this, one of which is taking on smaller clients in addition to the bigger ones. Solopreneurs often fail to see this at the beginning of the business, assuming a big client or one particular client is enough, in the meantime.
There is always the possibility, however, of losing those clients during the business deal. The market is ever-changing, and having only a small number of clients could lead to the solopreneurs’ business failing, along with these clients, if they lose their businesses.
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Another way is to explore other related industries and see if there are potential clients there who might be particularly interested. Learning to invest in other people’s business can also benefit your own in the grand scheme of things. The larger the network, the more stable it will be during an economic recession.
3. Diversify Tactics on Lead Generation
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It is typical of solopreneurs who invest in a small business venture to leave out some aspects of the business while starting up. This happens when they focus entirely on how to generate income.
Lead generation is just as important. This includes Google ads, PPC ads, and LinkedIn networking. There are also other ways to generate leads, including attending an industry conference, cold calling, or trying a new marketing platform. It is best to explore these options when the business is earning and thriving.
4. Save and Invest, Vice Versa
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One key strategy on how to be a solopreneur is managing your resources well and using your business earnings strategically. Aside from the usual expenses involved in running your business operations, there are also taxes to pay, among others.
Solopreneurs can better prepare for a major business fallout if they allot at least 3-months-worth of savings for it. These savings can go directly into emergency funds for easy liquidation later on.
Cash reserves will also serve as a financial cushion, in case an economic disaster strikes. Being a solopreneur is a tricky business, meaning if an economic crisis hits, you will deal with it alone. Thus, the more opportunities to save, the more excellent opportunities for a more manageable fallback.
5. Explore Other Ways to Earn Funds
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Crowdfunding is one way to do this. Other types of solopreneurs such as filmmakers, musicians, and other artists, raise funds from a large number of people through a particular project or venture. The Internet offers several options for this such as vlogging which is one of the latest trends in the e-commerce industry.
Finding a venture capitalist (VC) can also be a great alternative for fund-raising. VCs are investors who offer financial support to start-up companies with high-growth potential. One catch to winning VC funding is that the capitalist will own equity shares of the business.
6. Eliminate Unnecessary Costs
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While it is possible to obtain a business loan to jumpstart your business, you can avoid borrowing entirely by being specific with your business expenses. Eliminating unnecessary costs can contribute to bigger profit margins. Solopreneurs must also avoid personal costs getting in the way of profit earning.
7. Cut Losses Fast
It is crucial to set your predictions on every business deal to prevent any considerable loss. The business trajectory of a new venture is essential, especially when considering how to invest in other people’s businesses. There are cases wherein working with a client may not end up as expected. If there’s a higher chance of losing in the future by continuing a particular deal, choose to end it before the losses pile up.
8. Increase Prices Where Applicable
This is why being updated on the latest market trends is necessary. It requires close monitoring, studying, and comparing how market prices fare; so that your business products and services will remain at par with what the market offers.
9. Manage Cashflow Conveniently
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There are many tools available on how to invest in entrepreneurship as a solopreneur. One of these is taking advantage of software to make the managing of tasks more manageable. For instance, you can use QuickBooks for your accounting needs. Communications and systems available online can be used for cost-efficient strategies since they are mostly offered for free.
10. Get a Successful Solopreneur for a Mentor
Many types of information are readily accessible and laid out on the Internet. Some of the best learning, however, can be derived from the experiences of those who have been thriving in the industry for a long time. The concept of solopreneurs may have come up only recently, but it still adopts the traditional entrepreneurial spirit
Your own definition of “solopreneurship” may not come easy. Being equipped, however, with grit and tenacity to rise above the trials and take risks may be what you need for a flourishing business venture.