5 Differences Between a Solopreneur vs an Entrepreneur (and the Impact It Makes on Your Time and Money!)
By: Kathleen Ries-Jubenville | Read time: 5 minutes
One option is not better than the other. This is a personal choice based on your lifestyle goals and your vision for the future of your business. To help you decide which kind of leader you want to be for your small business, here are five differences between being a solopreneur and an entrepreneur and how your choice will impact your time and money.
1. Working Alone vs Working in a Team
A solopreneur is someone who is self-employed and works for themselves. They are the only owner of their business and make all the decisions. They also do all the work themselves, both serving their clients and running their business.
An entrepreneur, on the other hand, is someone who starts a new business venture with the intent to grow it into something larger. Or, they may be scaling their existing small business to another level of success. Entrepreneurs are involved in many areas of the business but are primarily focused on developing systems and building a team.
2. Control Over the Client Fulfillment Process
A solopreneur can control the quality and timing of client services because they are doing the work themselves. They don't have to rely on anyone else to do the same level of work as them. There is no team to spend time training or managing. They also don't have to worry about losing any clients as a result of poor performance issues.
An entrepreneur manages the process of providing client services. They create the standardized systems, train the team, delegate the tasks, and review the results. If there is a problem with a team member or an unhappy client, the entrepreneur resolves the issue. Communication is a huge part of their responsibilities.
3. Ability to Take Time Off Work
Being a solopreneur can be difficult because you are responsible for all the work. If you get sick, you can't work. If you want to take a vacation, clients may not get the service they need. You also might have to answer emails and solve problems from your hotel room. And, if you are billing by the hour, you are losing a lot of money. You might not be able to afford leaving work behind. This can become exhausting.
Entrepreneurs enjoy more flexibility in their schedules because they are not the ones doing the actual client work. If they get sick or take a vacation, the work will still get done. Money will still come in. Clients will still receive their services. However, they take on more financial responsibility and stress with people to manage and lead.
4. Opportunity to Make More Money
A solopreneur's income is limited by the time and energy they have available. Juggling many tasks means that marketing and sales often take a backseat. It can be hard to meet the needs of their current clients and also find new ones. Sometimes, the effort is more than the reward and a solopreneur needs to supplement with a part-time job or close the business and go back to work for someone else. But many solopreneurs are happy with the level of income they make because having a flexible schedule is a higher priority for them.
When you are an entrepreneur, you have the opportunity to make more money. When you are in charge of a team, you can put in place systems that make your team more productive and efficient. This leads to more sales and more money in the bank. You also can delegate tasks to other people on your team. This lets you focus on the parts of your business that bring in the most profit. Your business also benefits from the various ideas your team brings to the table. Your success is no longer constrained by the limits of your time, energy, and creativity.
5. Desire to Leave a Legacy or Sell the Business
As a solopreneur, you are the heart and soul of your business. You pour your blood, sweat, and tears into it, and it's a true reflection of who you are. When you retire or quit, your business closes.
But it doesn't have to be this way. Entrepreneurship is about more than just making money. It's about making a difference and leaving a legacy. If you want your business to live on after you're gone, you can think about succession planning. This means preparing your business for someone else to take over when you retire or quit. You can also consider selling your business to another entrepreneur.
Whether you are a solopreneur or an entrepreneur, there are many rewards to owning and running your own small business. You get to decide what is important to you and your lifestyle. Do you want to do the client work yourself and forgo the stress of managing a team? Or would you prefer to delegate the work to your team? How much freedom and flexibility do you want? How much money do you want to make? Do you want to leave your business to your kids or sell it someday?
Make a list of your priorities and decide which direction you want to take your small business.
If you are a solopreneur who wants to grow and scale your business, it may be time to hire a business coach to develop the skills required to become an entrepreneur!
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