Regardless of your role in the business world, the market is ever-evolving. Competitors come and go, while your customers’ demands transform with each year. If you’re a solopreneur, you may find it particularly challenging to adapt to these changes. But solopreneurs are an integral part of the entrepreneurial network. In the U.S. alone, solopreneurs compose 81% of all small businesses and contribute $1.3 trillion to the United States economy.
Solopreneurs are fully responsible for every aspect of their business, meaning they have no employees. Every customer or client a solopreneur has gained on their own. The solopreneur is also accountable for every win and loss their business may experience. Most solopreneurs own a company in an industry that is based on a specific skill or trade, such as a hairdresser or an electrician.
Regardless of their industry, solopreneurs can expand their company just as other business owners do. But for the company to grow successfully, most solopreneurs must have the support of experienced investors who can provide growth capital and help them to make informed decisions.
What Is a Solopreneur and How Do They Get Started?
Most people are familiar with the term entrepreneur, but the word “solopreneur” is a more recent concept. In the simplest terms, a solopreneur is a business owner that conducts business alone. However, solopreneurs are not to be confused with people who treat their business like a side gig. Solopreneurs run legitimate businesses in which one person handles most of the operations. In many cases, a solopreneur is an independent professional such as an e-commerce store owner or a trade worker.
Unlike some other entrepreneurs, solopreneurs tend to specialize in one niche or service. Solopreneurs have a much more “hands-on” approach to operating their business because they are both the founder and the primary worker, while entrepreneurs generally disperse the workload amongst multiple employees.
What Are the Best Funding Options for Solopreneurs?
Operating a business as a solopreneur comes with its own unique benefits, and many solopreneurs prefer the simplicity of being the primary person in charge of the business. However, lenders may view solopreneurs as a higher-risk investment than other types of businesses because a solopreneur appears to have simply created an additional income stream for their personal finances rather than someone who has taken the initiative to build cohesive teams to accomplish company goals.
More than any other factor, lenders are concerned with a business’ ability to repay its loan, and the perceived unpredictability of solopreneurship may raise a few red flags. Furthermore, a solopreneur’s lack of liability protection can make it challenging to gain a lender’s support.
If you’re a solopreneur, the following options may be viable depending on the growth stage that you’re currently in:
- Raise the capital. The first route that most companies take towards funding their venture is raising capital. Assess your current situation and decide how much money you will need to achieve your goals. While some solopreneurs gain funding through family, friends, or equity crowdfunding, others may choose to work with angel investors.
- Apply for a working capital loan. Solopreneurs that choose to apply for a working capital loan have several options to choose from. If your business isn’t generating revenue, taking out a business line of credit or a short-term loan may be beneficial.
- Get a business credit card. In the business world, things move quickly, and you may not be able to obtain the financing you need on a short turnaround. If this seems to be the case, consider opening a business credit card. Certain credit cards may approve you with zero percent APR for a limited time while you seek other funding options. Just be sure not to overextend your resources and risk falling into credit card debt.
Expanding Your Business as a Solopreneur
As a solopreneur, you may pride yourself on your ability to get things done alone, but sooner or later, it will be time to expand your business. Such expansion calls for robust budgets and a larger team. When this time comes, consider seeking the assistance of reputable investors. Not only will investors supply your business with a healthy cash flow, but they can guide you throughout the expansion process and help ensure success.
Investors have so much more to offer than financial resources. When it’s time to branch out and hire new team members, experienced investors have the social network that allows you to pull from the best and brightest in today’s labor market. This can be especially valuable for solopreneurs who are accustomed to working independently. It can be challenging to learn the many facets of team management while taking on a less active role in developing your business. Having a knowledgeable investment partner can provide you with valuable leadership insights.
Many investors began as entrepreneurs and business people themselves and are well-versed in the intricacies of creating and maintaining a successful venture. They can offer solopreneurs advice and guidance, increasing the odds that founders will reach their ultimate goals. If the company isn’t as lucrative as you hoped it would be, investors may be able to help you pivot your strategy and guide you down the right path.
Remember, investors want nothing more than for your company to succeed because their primary objective is always to earn as much profit as possible in return for their investment. A qualified investor can transform your small business as a solopreneur into a large, profitable company.
Fahad Alrajhi Group
Whether you are a seasoned solopreneur or just getting started, soon, it may be time for you to seek the assistance of qualified investors and take your business to new heights.
Is your business prepared to expand? If you’re seeking venture capital, consider contacting Fahad Alrajhi Group.
Fahad Alrajhi Group seeks to endorse a culture of entrepreneurship and invest in business ideas that radically impact society while diversifying regional economies. If you have an exciting business in alignment with our values, contact us today to find out how we can help make your vision a reality.