For the OP.
How to Run a One-Person Business Starting and running a business alone isn’t for everyone. If you’re up to the challenge, here are a few tips to make it work.
So you’re sick of your corporate gig and dream of making a living as a solopreneur? Actually, you’re not alone (pun intended). There are now more than 20 million single-person businesses in the
United States, accounting for more than three-fourths of all U.S. businesses, according to recent U.S. Census data.
The prospect of running your own business has some obvious appeal. Being your own boss lets you set your own schedule – at least theoretically. This has some clear advantages for the family man or woman.
But be warned: working for yourself isn’t for everyone. “Just because you’re a great technician at what you do doesn’t mean you’ll automatically be a great entrepreneur, too,” says
Marla Tabaka, a business coach who writes The Successful Soloist
blog for
Inc.com. “They’re two totally different hats to wear.”
Running the show solo requires ample amounts of determination, discipline, and fearlessness. “I’ve had many days where I just want to bury my head in the sand and ask, What did I get myself into?” says
Chris Jordan, owner of
Atlanta Insurance Live, an insurance firm based at his home in Atlanta.
But if you think you’ve got what it takes, follow our tips for building the foundation of a successful venture.
Running a One-Person Business: Getting Off the Ground
Getting a solo business off the ground takes more than a great idea. Like any start-up, it takes a specific, concrete business plan that includes your goals for becoming a solo practitioner. (Do you want to sell your business eventually, or do you just want a change of lifestyle?)
Putting together a plan will force you to think through that bright idea as an actual business. You might find your can’t-miss opportunity was nothing but a pipe dream.
“The biggest mistake I see these days is thinking that a business idea will automatically turn into a viable business model,” says
Terri Lonier, president and founder of
Working Solo, a
New Paltz,
New York-based business strategy consultancy, and author of
Working Solo: The Real Guide to Freedom and Financial Success with Your Own Business.
Then again, what if the idea really is viable?
“A lot of people start with a kitchen table idea,” Tabaka says. “It’s a great idea you come up with your cousin at dinner. But then the business booms, and your growth gets out of control. You need a plan.”
Another important consideration is your personal financial resources. Make sure you have a considerable amount of capital set aside, especially because in a sole proprietorship you assume personal liability for all activities of that business. If you borrow money and can’t repay it, your personal assets are at stake.
It’s also smart to play to your strengths. “The best thing you can do is to make sure that you’re getting into something that suits you and what you want to do,” Lonier says. “It should be something that uses your unique capabilities and experience to allow you to position yourself uniquely in the marketplace.”
Indeed, drawing upon your previous professional experiences can really get the ball rolling for your new solo venture. “It took me seven years working at a big company to build a clientele,” says
Michael Nunziato, a now independent hair stylist in St. Charles,
Illinois.
So remember: just because you spent a lot of time in coffee shops while peddling insurance doesn’t mean you’re ready to open that espresso bar.
At the beginning, it’s really up to you to determine how the business functions, so be prepared for a migraine or two. “There’s a lot of scrambling,” Lonier says. “It’s like a lot of ducks paddling underneath the water line.”
Dig Deeper: How to write a great business plan
Running a One-Person Business: Stay Focused on What’s Important
Time is a soloist’s most valuable asset, Lonier says. A hawk-like focus on your most important functions as a business owner is essential. Don’t get bogged down on administrative work when you should be focused on marketing your business and driving sales.
As a one-person show, that might prove to be especially difficult. More than one-third of sole proprietors said that their biggest challenge is finding the time and resources to generate new business, according to a recent survey conducted by
Visa USA and SCORE, a nonprofit group that counsels entrepreneurs.
And if you aren’t bringing in business to your company, who is?
“The hardest thing for me was leaving the security blanket behind,” Nunziato says. “Having a big name behind you really helps bring people in the door.”
If you’re trying to build a marketing strategy from the ground up, you need to be clear on who your customers are, because you don’t have any time to waste on marketing to those who aren’t. “That’s really the biggest challenge, determining who exactly your customers are,” Lonier says. “Many times [business owners] think they understand who they are, but you need to be willing to interview and test potential customers, particularly in the early days of a company, in order to be able to build those relationships.”
One way to make marketing easier is through joint-venture marketing, Tabaka says. When she owned a coffeehouse in
Naperville, Illinois, she realized that her company and a major drugstore in the same shopping center could work together and support each other’s marketing goals.
Another important and relatively easy way to get your name out into the market is building your web presence through social media like
Twitter and
Facebook. Be sure you familiarize yourself with and utilize Search Engine Optimization (SEO) to make it easier for people to find your website.
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