The term “solopreneur” is a somewhat new term that has grown in relevance recently. It is easily interchanged with the word “entrepreneur,” but there are distinct differences. A solopreneur is someone who operates a business on their own, while an entrepreneur is more of a creator or visionary who comes up with an idea but outsources almost every other thing.
An entrepreneur will usually work toward solving a problem, and that translates into taking sizeable risks to introducing a new product. As a solopreneur, it is essential to focus on your craft and do what you are passionate about without thinking about innovating.
Let’s look at the seven main differences between entrepreneurs and solopreneurs.
7 Important Differences Between Solopreneurs and Entrepreneurs
The differences between solopreneurs and entrepreneurs can be subtle, especially since some entrepreneurs work alone until they build their enterprises big enough to make a team. Nonetheless, those who opt for solopreneurship instead of entrepreneurship without plans to change have clear differences.
1) Entrepreneurs Require Investors & Solopreneurs Do Not
When you envision an entrepreneur, you probably think of their continual need for funding and/or business expansion. But there is also a solopreneur concept that is similar in certain ways but is different concerning financing. A solopreneur usually operates their own business without the need for investors.
Conversely, the formula for entrepreneurial success normally involves seeking investors and/or expansion to take their business to the next level. They are typically part of a team as they work towards building a successful company.
One key difference here is that a solopreneur works with the resources they have, and an entrepreneur usually needs seed funding to move forward.
Are you a Soloprenur with a Business Located in Spokane WA?
Burbity Workspaces can help with your business productivity!
2) Entrepreneurs Have a Vision and Plan & Solopreneurs Figure Things Out Along the Way
A solopreneur does not typically have a defined business idea or strategy. As a result, they might take steps toward starting their business, and they could experience modest success. However, they’ll have to develop a business plan to do this full-time.
Entrepreneurs plan to scale things quickly and reach a maximum number of customers, so they have a solid business plan from the beginning. Also, they have to show their plan, along with their strategy, to their investors.
But solopreneurs have to be tenacious, creative, and flexible to succeed because they may not have a future plan at the start.
3) Entrepreneurs Typically Hire & Manage a Team
The vast majority of entrepreneurs begin operating their businesses solo and later hire others to execute their day-to-day tasks. As opposed to a solopreneur who runs the operations of the business and fulfills tasks required to deliver their products and services, entrepreneurs typically will outsource the fulfillment of products and services to their employees so they can focus on managing the company itself.
After the entrepreneur has assembled a team, they will usually step into a managerial role to oversee the work of their employees.
4) Solopreneurs Usually Work on a Business While Also Working as an Employee Elsewhere
Solopreneurs typically have full-time jobs and still operate their own companies. Entrepreneurs put all of their working hours into their businesses.
The primary difference between them is that solopreneurs normally have a part-time business and work on it in their free time, while entrepreneurs work on their businesses full-time.
5) Entrepreneurs Are Managers
Embedded in an entrepreneur’s job are managerial responsibilities. They delegate work to freelancers and virtual assistants, while also leading teams of people toward a defined goal.
However, solopreneurs are not motivated to hire employees to manage. Even if they eventually need to outsource work or bring in a team member, a solopreneur will likely find themselves pitching in and doing much of the work themselves as they grow their business.
6) Solopreneurs Are Workers
It is in a solopreneur’s nature to work hard. They prefer to do nitty-gritty jobs themselves instead of hiring people for these tasks. Solopreneurs have a DIY mentality that gives rise to a new generation of business leaders who are content to run a one-person shop.
Entrepreneurs, however, favor delegating, even if they have to postpone that process until they have sufficient money to bring additional workers on board. They understand that the sooner they can delegate tasks such as web development, billing, and database management, the faster they will be able to focus on building and growing their company.
7) Differences in Financial Management
The larger a business becomes, the more financial responsibility the owner has. The entrepreneur with employees is responsible for managing a business that is profitable enough to operate and pay their team. They must also make sure factors like benefits, payroll, and taxes are accounted for in their business structure.
Solopreneurs typically manage their companies as a single-member LLC or sole proprietorship, which are simpler to manage and grant full decision-making authority to the owner.
A solopreneur is a one-person show. They are the founder, the creator, and the person responsible for delivering products and services.
Rather than being focused on building an empire, they are concentrating on building a business that can operate on their terms. Solopreneurs prefer to have a single focus or two related focus points. Their objective is to amass a loyal customer base that is manageable for one person with some outside help occasionally.
An entrepreneur desires to create an empire. They intend to scale, and their focus is to hire a team of people to bring their idea to the next level.
Entrepreneurs are founders with an idea that evolves with the assistance of an expert team – however, typically the founder is credited with all the success. That is because the founder is the one that has the genius and know-how to successfully bring the product or service to market.
Rent Our Spokane Private Offices at Burbity Workspaces
With Burbity Workspaces, you can enjoy the privacy of your own furnished office that includes a lockable office door, 24/7 access, and mail service.
We offer private offices, desks, and team suites so your business can thrive and reach its full potential. Take advantage of our convenient services and resources with our Spokane workspaces which also offer a community to support and help you succeed.