9 Traits of Successful Solopreneurs
(4 minute read)
The cold hard truth is that many small businesses fail because of the owner. The business product may be sound, and well suited for market exploitation, nevertheless the business itself fails due to poor management or execution. We have all witnessed this concept play out in the world of sports, when a gifted athlete fails to succeed and is forced to retire prematurely, due to a fatal flaw or blind spot. It is painful to watch promising individuals squander their opportunities, but it happens every day, especially in the arena of small business.
Small business is an extremely competitive environment which can be terribly unforgiving. While the potential for success can serve to initially launch a business off the ground, inevitably the only real measure of success is the achievement of results. This then begs the question, how does a solopreneur significantly increase his or her likelihood of success. Small businesses are created and managed by humans. Typically, those humans tend to be energetic and enthused, at least in the beginning. The solopreneur is the captain of the ship and, by necessity, must wear many hats, especially in the early start up phase. This is very important to recognize because it is precisely during the start-up phase that small businesses tend to be fragile and vulnerable to the reality that small flaws, if not identified and quickly remedied, can sink the ship. The market is not likely to wait for solopreneurs to correct their mistakes. Consequently, the humans who create and manage small businesses would be wise to identify, and emulate, the traits that successful solopreneurs tend to possess. The list below, while not comprehensive, serves as a sound template to dramatically enhance your likelihood of success.
1) Communication
Solopreneurs wear many hats and have limited time and resources. Therefore, when the moment arrives to communicate with customers, vendors, affiliates, etc., their messages need to be transmitted effectively. Effective communication means accurate but succinct, with sufficient attention to detail to avoid confusion, while maintaining proper tact and tone to suit the context. Bottom line, the communication must succeed in bringing to pass the intended action. When the time comes to build trust, raise start-up funds, negotiate a contract, or to repair a broken relationship, the solopreneur may only be afforded one opportunity to accomplish it.
2) Perseverance
Solopreneurs must possess the mental strength and tenacity to endure the setbacks and challenges that are inevitable. Very few, if any, small businesses effortlessly blossom from start up to market domination in a short period of time. The journey tends to take longer than anticipated and is paved with problems that require solving. Successful solopreneurs are primarily concerned, initially, with planting firm roots and enduring the storms on the horizon. They understand that the sun will come out eventually and that growth will follow, but it takes time and dogged perseverance.
3) Niche Cultivation
Solopreneurs recognize small market niches and embrace filling those niches. They avoid spreading themselves too thin and resist the urge to offer many different products and services to a large segment of the market. The successful establishment of a brand, and a market presence, is the objective, even if the market is small. Start out doing one small thing, and make it your mission to do that one small thing better than those in your space.
4) Client Expansion
Solopreneurs avoid making their businesses entirely dependent upon a singular client. While this may not always be possible, such as for a small business that expressly services a specific government contract, it is extremely dangerous to be entirely reliant upon the whims of a few individuals or decision makers. This recommendation may, at first blush, appear to be obvious. However, the reality is that the temptation to cultivate a golden goose can be very alluring if the opportunity actually presents itself. The allure of a golden goose is guaranteed short term success, which is very hard to pass up. If your small business does have a golden goose, your first order of business should be to service that goose, but the second order of business needs to be cultivating a flock of geese, before the golden goose flies south.
5) Sound Money Management
Solopreneurs appreciate that sound money management is fundamental to success, especially during the early stages. Cashflow is the lifeblood of small business. However, the fact that money is coming through the door is not enough to guarantee success, or even survival. Bills must be paid, supplies and materials must be purchased, taxes must be covered, loans repaid, advertising must occur, profit must be earned etc., and these demands never cease. As long as your small business is operational, the finances must be soundly managed. The problem is that sound financial management can be very challenging for those who have not been properly trained or educated, which is most solopreneurs. The small business dream is to pursue your professional passion, not to master the principles of accounting or financial spreadsheets. With this in mind, many solopreneurs seek assistance from small business cash flow software or apps. This can be well worth the investment for those with limited time and who find themselves wearing too many hats. The first step is to recognize that you need some help. Even the introduction of a relatively simple means of cash flow management can relieve the solopreneur of a massive burden and pay immediate dividends.
6) Founder Dependence
Solopreneurs recognize that in order to create a self-sustaining enterprise which will generate income in their absence, allow them to take time off for family or to pursue other interests, the business cannot forever remain dependent upon the founder. This may be impossible in those instances where the founder provides specialized services that constitute the product itself, such as a motivational speaker. However, in most cases, the essential work can eventually be delegated to responsible employees or agents. Although it may be difficult for a type-A solopreneur to delegate the essential duties of his or her enterprise to others, it can be a very lucrative investment, which prevents burnout and fosters expansion and growth.
7) Capacity To Adapt
Solopreneurs recognize that success can be short lived due to rapid changes in the market. For example, if your business has been relatively successful, your competition is likely to copy your model, in an attempt to do it even better. Or, the competition may offer their product at a deeply discounted price in order to cut into your market share. Consequently, the capacity to adapt your business plan to accommodate evolutions in the market can be fundamental to success. Moreover, despite your best laid business plans and aspirations, if a pivot is required to achieve success, or to maintain it, then you have to be willing to let go of your expectations, and embrace the new reality.
8) Discipline
Being a solopreneur requires intensity, frequency and duration. This means you have to be willing to wake up early, work very hard until the job is done, come home late, and then do it all again tomorrow, and the next day, and the next day....if that's what it takes. Taking on the role of a successful solopreneur is not for the faint of heart. Simply put, it requires grit and discipline to stay on course, especially during challenging times.
9) Competitive Awareness
Your success as a solopreneur is a function of your competitive edge. Unfortunately, it is not enough to just mind your own business, despite what your mom told you. You have to observe the competition, in order to learn from their successes and failures. Your competition may have learned some very valuable lessons, the hard way. Don’t make the same mistakes. Successful solopreneurs watch, listen and learn from the other brands within their space.
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