Solopreneur – Self-employed – Freelancer – Entrepreneur; all these titles seemingly have the same meaning, but the reality is that there are subtle differences between them.
This is especially true when comparing the one-man business to entrepreneurship. There’s this common misconception that all solopreneurs are entrepreneurs. This couldn’t be farther from the truth as these two categories of professionals have a very different mindsets on how they envision their business in the long run.
In this article, we’re going to set the record straight and list all the differences between solopreneurs VS entrepreneurs. This will not only help you tell them apart but may also inspire you to choose your own path based on these criteria.
The definition of Solopreneur
A solopreneur is a person that runs a business all by themselves. They are the manager, the accounting department, the customer support, and the marketing division, all at the same time. This is not something they do because they have no choice; solopreneurs like it that way!
They prefer to have full control over their business’s decisions and be involved in every aspect.
Of course, since no one can be an expert in everything and have the time to run by every little detail, they often outsource tasks to other solopreneurs and companies. The solopreneur’s vision is to work on their passion, keep evolving and, at some point, maybe hire an employee to delegate the less important tasks of the day too.
The definition of an Entrepreneur
Entrepreneurs are people that also like to be in charge of their business and assume all the associated risks in order to make it successful. However, their goal is to grow their business into a full-fledged corporation and, at some point, sell it to the highest bidder. They then move on to realizing their next venture and are constantly searching for new opportunities and ideas.
An entrepreneur is a person that does not spend time micromanaging or handling administrative tasks. Their goal is to build a strong team that will follow their vision and is responsible for the company’s business plan execution.
Entrepreneurs are the people in charge of bringing capital into their business as well as other resources such as hiring talent and acquiring financing.
What are the differences between becoming a Solopreneur and an Entrepreneur?
Deciding to start up a business entails envisioning what your future will look like in a few years. You also need to have the self-awareness to understand your limits, aspirations as a person, and strong points. This way you can use them to your advantage and get the most out of any possible venture.
Below, we will mention the key differences between the two classifications so that you can decide for yourself!
#1 – Solopreneurs are workers by nature
While entrepreneurs are hard-working individuals, solopreneurs find joy in being involved in every aspect of their company. They need each project to reflect their personal style and don’t mind working long hours to bring out the best results. They know their job in-depth and prefer working alone rather than training someone else to share the workload with. This is why one of their biggest challenges is time management.
Entrepreneurs don’t mind delegating tasks to other employees so they can focus on networking, bringing in new customers, and generally growing their business. Their primary role is that of the manager and leader, and they are comfortable in their skin doing so. They might not get as involved in actual projects, but they make sure the team is united and make important decisions whenever necessary.
#2 – Reason for starting a business
One of the most distinct differences is a purpose. Solopreneurs are highly motivated individuals following their passion, and they work hard to make a living out of it. Even though profit is desirable, it is not their only goal, and it is definitely not the main driver for starting a company on its own.
Entrepreneurs, most of the time, start a business because of practical reasons. They spot a gap in a certain market, get an idea of how they can create a solution, develop a product to cover it, and organize an action plan in order to maximize profits.
The point is, they’re not attached to it on a personal level as much as the solopreneur is!
Their long-term goal is to grow the company in the hope that a much larger corporation will eventually make a buyout offer worth millions of dollars. After taking their share, they can move on to the next venture they have in mind.
#3 – Scalability
Scaling a business quickly is an entrepreneur’s priority. That’s why they work on building a solid business plan. Their main job is to develop systems and strategies that will expand operations and will make their business successful and attractive to potential investors.
Solopreneurs don’t care that much about scalability; they’re too focused on their actual job and organizing everything by themselves. Ultimately, they have no desire whatsoever to grow their business beyond what they are able to handle.
#4 – Workplace
The statistics show that 80% of solopreneurs are happy to work from the comfort of their own homes. This is because they don’t have to necessarily have an office to welcome customers. The majority are freelancers that take on projects for clients that can be discussed in a few appointments at the client’s office.
Entrepreneurs need a professional space, out of the home, where they can manage their team and do all the networking to promote their business. They feel more at ease, having an office where they can make appointments with future clients and hold team meetings.
Solopreneurs vs. Entrepreneurs: It’s all about mentality!
In essence, all solopreneurs have an entrepreneurial spirit; they work tirelessly to succeed in what they love. Anyone that has a passion can make a living out of it!
The differences lie in what the ultimate purpose of establishing a business is; serve its purpose and follow your passion or grow it to the point where you can sell it, make a profit and move on to realizing your next innovative idea?
The choice is yours!