Nearly 30 million strong, a growing sector is emerging in the small business world. That sector is the solopreneur. So, what’s the difference between a solopreneur and a small business owner, what do we know about this section of the country’s workforce, and what can we learn from the way they work? Let’s dive in.

What Does “Solopreneur” Mean?

So what is a solopreneur exactly? Simply, a solopreneur is a business owner who works alone. They have no co-owners or workers. Can a solopreneur have employees? Sort of. They might outsource certain tasks to contractors if needed, but with no formal employees, they’re always in charge of overseeing all aspects of the business, often managing the bulk of them on their own.

How a solopreneur differs from a freelancer

Solopreneurship and freelancing aren’t mutually exclusive. Many freelancers are solopreneurs — think photographers and consultants — so there’s plenty of overlap.

But by definition, there’s one simple difference between the two. Solopreneurs primarily operate as an established business of one, while freelancers are hired by others, frequently jumping from gig to gig.

What Does a Solopreneur Do?

How a solopreneur operates and what their day-to-day operations look like will depend completely on what their business does. So, what types of businesses are being run by solopreneurs? Let’s take a look.

Common types of solopreneur businesses

Solopreneurs aren’t limited to just a handful of business types. In fact, they exist within a wide breadth of industries and fill a number of different niches. A comprehensive list of occupations isn’t possible because, frankly, the sky’s the limit. However, some common types of solopreneur businesses include:

Creatives like graphic designers, online content creators, and copywriters
Consultants, including business coaches and professional trainers
Executive coaches, such as workshop facilitators and professional speakers
Wellness coaches, such as personal trainers and nutrition specialists

But that’s just the tip of the iceberg. A business-of-one can (almost) be anything.

What Are the Key Characteristics of a Solopreneur?

Whether you’re a solopreneur, freelancer, or any other type of small business owner, keeping things running — and doing so successfully — takes more than just the skills of your trade. Here are just a few key characteristics of successful small and solo business owners:

Adaptability. One of the best skills you can have is the ability to handle a curveball. Life can throw a lot at you when you’re running a business. Being able to roll with the punches is invaluable.
Self-discipline. The upside of being your own boss is that you’re not working for someone else. The downside is that the work still needs to get done. Being a self-starter will be hugely beneficial.
Risk-taking. Nothing ventured, nothing gained. For all the careful planning involved in keeping things running, you also need to be willing to take a big leap sometimes.
Passion. A good idea is just that — an idea. You need a lot of drive and motivation to turn that idea into a functioning business.

Solopreneur vs. Entrepreneur: What’s the Difference?

Think back to geometry. Do you remember learning how a square is a rectangle, but a rectangle is not necessarily a square? The same can be said of solopreneurs and entrepreneurs. A solopreneur is just that — an entrepreneur who works solo. But an entrepreneur is a professional who might have a co-founder by their side, and a team to support their vision.

There are, however, a few other distinctions between the two that you might want to consider if you’re thinking about starting a business.

Business structure and team size

The first distinction may be how the business is structured. While certain business structures may be more common with solopreneurs than others, they typically can be applied to other types of small businesses as well.

In general, however, two of the most common types of business structures for solopreneurs are a sole proprietorship and a limited liability corporation (LLC). A sole proprietorship consists of a single person (or a married couple) being solely responsible for the company’s debts and profits. This is the most simple structure, but the downside can be that when the business takes an unexpected financial hit, that debt falls to the sole proprietor.

An LLC can be a sole proprietorship, corporation, or partnership. Business owners and shareholders can enjoy limited liability with this structure, which can help protect their personal assets.

While either of these structures could be possibilities for an entrepreneur, depending on the situation, having more people on-board can open up your options. For example, an entrepreneur may want to consider a partnership. This structure is ideal for businesses that will be owned and operated by multiple people. Both profits and losses are passed along to the partners, but the business’s income isn’t taxed.

Before starting your business, definitely speak with legal and tax professionals regarding the best structure for your business.

Growth goals and scalability

Another distinction between solopreneurs and a more general entrepreneur is how they approach the idea of business growth. In terms of growth goals, an entrepreneur can shoot for the moon. They might be starting small, but the vision they have for their business could be something much larger with a robust team of employees helping to bolster their success.

This growth may not be what a solopreneur is looking for. For someone who wants to continue as a business-of-one, growth may be better described as scaling. They may want to increase profits and grow their client list, without having to hire employees to keep up with the volume of work.

Pros and Cons of Being a Solopreneur

Being a solopreneur comes with a lot of freedom — but it’s not without its drawbacks. Let’s dive into the peaks and valleys of going solo.

Benefits of a solopreneurship

Here are some common advantages of being a solo business owner:

Autonomy. You’re your own boss and your only employee. This can be a major perk, as it means a more flexible schedule and more control over your work.
Pursuing a passion. When we surveyed over a thousand solopreneurs, 53% reported that passion was their main motivation for starting. And being passionate about your work can mean greater professional satisfaction.
More money (potentially). Without anyone else on the payroll, your net earnings come back to you alone.

Challenges solopreneurs face

Despite the perks, it’s important to remember that being a solopreneur has its disadvantages too. These can include:

Lack of structure and accountability. Being your own boss means being a self-starter. This can be a challenge when you don’t report to anyone and don’t have a strict schedule.
The pitfalls of monetizing what you love. Turning your passion into a career may sound like a dream — and it can be — but it also can take some of the joy out of what was once a beloved hobby.
The time commitment. Our solopreneur survey revealed that the top sacrifice these business owners have had to make is time with their family and friends. Building a business while doing everything necessary to keep it running can mean long work days and giving up a chunk of your leisure time.

Skills You Need to Be a Successful Solopreneur

With a little ambition, just about anyone can start a solo business if they really want to. But to be a successful solopreneur, some key skills are needed. Some examples include:

Core business acumen. This may seem obvious, but don’t underestimate the power of knowing how to run things. Having some basic business skills may make it easier for you to get your idea off the ground.
Marketing skills. Starting a solo business is one thing, but attracting clients is another. Utilizing strategies such as social media networking and soliciting reviews, and email campaigns may allow you to reach a wider audience.
Self-discipline. Understanding how you work and having strategies to keep yourself on track can be extremely helpful for a solopreneur.

How to Become a Solopreneur

If you’re interested in being a solopreneur but aren’t sure where to start, you’re not alone. The process for starting any kind of business is hardly one-size-fits-all. Your to-do list will vary depending on exactly what it is you want to do. So what better place to start than choosing what exactly you want to do?

Choosing the right business idea

To figure out what kind of business you should start, there are two important considerations:

What you’re good at
What you love doing

Solopreneurs need to understand both their strengths and their passions, and ideally, a successful business would blend the two.

In fact, these are crucial pillars, and without a little bit of both, you might have a hard time starting a business that’s sustainable for you. Just because you’re good at something doesn’t mean you like it. And just because you love something doesn’t mean it’s something you want to do full time.

Start by thinking about what you’re good at. These might be skills that have always come easily to you, or ones that people have always called you a “natural” at. Then consider how you like to spend your time.

Here’s an example. Imagine you’re great at baking and very creative, but your priority is spending time with your loved ones. One way to combine the two factors could be to become a custom baker. You can take orders for creative cakes and baked goods, but not have the same day-to-day time commitment of running a customer-facing bakery. This allows for more schedule flexibility, so you still have time for your family and friends, while also being a dynamic creative outlet.

So what’s on your list of skills? And what do you love doing? Finding a way to fuse the two could be the key to choosing the right solopreneur business for you.

Questions to ask before starting

Once you know what you want your business to be, the next step is to ask yourself:

What need will my business fill? If you want your solo business to succeed, there needs to be demand for what you’re offering. Try to connect with the demographic you want your business to reach, and look to others who are successful in your industry. What does this demographic need and want from a business like yours? How are other businesses meeting those expectations? And what can you offer to help your business stand out?
How do I want to structure my business? A sole proprietorship is common, but as we discussed earlier, it’s not the only structure for you to consider. Take the time to weigh your options to see if a sole proprietorship or LLC is right for what you do.
How will I find customers? It’s never too early to think about your marketing strategy. Digital marketing can be a good place to start for most businesses. So think about where your demographic spends their time online and how they research businesses. Then target those channels. For example: Are you trying to reach a younger crowd? If so, social media platforms like Instagram and TikTok could be your best bets.

One more thing to think about as you start building your solopreneur business is how you will protect it. Do solopreneurs need business insurance? This will depend on what their business does, where they’re located, and a number of other factors. But small business insurance is more than just ticking a box — it’s a critical safeguard for all the time and effort you’ve put into your livelihood.

Our quote comparison tool makes finding the right coverage for what you do quick and easy. Just tell us a little about your solo business and we’ll match you with policy options from trusted insurers. You can browse quotes and choose what works best for you — all in one place.

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Is Being a Solopreneur Right for You?

There’s only one person who can decide that: you. Think about your strengths and try to weigh them up against what a solopreneur needs to do in order to succeed. Skills can be learned, but your priorities are important. Make sure yours are the right match for solo business ownership.

If you’re still on the fence, check out The Power of One, our solopreneur survey report to learn more about how these ambitious individuals keep things running, the sacrifices they’ve had to make, and what makes it worth it for them. You also can learn more in our Resource Center:

What Is a Solopreneur?