If you work for yourself, you are a Solopreneur.
If you run a team as part of a company, you are an Entrepreneur.
After working in the corporate world for years, you are now ready to come out on your own and start your own business.
You have the desire to retire as a business owner.
You want to ensure that your business continues to thrive under the next generation. You want to leave that legacy with them.
What are your starting out options as Solopreneur or Entrepreneur?
There are 2 types of business owners.
A Solopreneur works independently, often employs freelancers or outsources pieces of work to other parties.
Some of us begin as Solopreneurs to get familiar in running our own business. We consider SCALING UP at a later time.
People in the service industry, such as training, consulting and social media marketing, are usually Solopreneurs.
Entrepreneurs look for co-business partners, investors and a team right from the start, when thinking about SCALING UP.
Entrepreneurs are involved in a wider range of industries than Solopreneurs, for example, manufacturing, distribution and retailing.
Having the bandwidth to get involved in multiple businesses is just one advantage of SCALING UP. Entrepreneurs also realise that having a diverse team of experts creates synergy and fosters collaboration, both of which are critical for SCALING UP a company.
Consider the advantages and disadvantages of being a Solopreneur and Entrepreneur before you decide to start a business.
Advantages of being a Solopreneur.
You can run your business in whatever way you like as you are in complete control. You control all aspects of your business, from scheduling to managing expenses.
Financial considerations are less. It is not a big problem if you have lower fixed cost without a team, as you have cash flow.
Being a Solopreneur has its disadvantages.
Having limited resources when demand for your business is high causes problems.
Working on your own makes scheduling new work difficult when your volume is high. Securing freelancers or contractors to help you get through busy periods may be a good idea.
It is tough to grow fast on your own. Tapping into new business opportunities or exploring new areas outside of your core expertise may be difficult when they are right in front of you.
There are benefits of being an Entrepreneur.
A company must be able to grow fast. You can secure new business opportunities horizontally and vertically by SCALING UP quickly with a team. You can delegate tasks to your team so that you can focus on business development and your core expertise.
You can develop your leadership capabilities by motivating and engaging your team.
Being an Entrepreneur has its drawbacks.
There are fixed costs to manage a team and maintain an office. By retaining profits from high volume periods, you can buffer for future periods with low volume.
A busy lifestyle is stressful. Your first couple of years in business will require long hours as you strive for breakeven, followed by SCALING UP to secure new business growth. Managing a team also requires your time to focus on their career development, besides working on business strategies.
Having read this article, you are still not sure how to start off?
Have a chat with us at empower@lgd.com.sg
