What Is a Solopreneur? Examples and Tips
Become a successful solopreneur with these tips and examples.
December 17, 2024
9 minute reading
The rise of independent work is changing how Americans earn a living. As of 2024, 72.7 million people are working independently, with full-time solopreneurs making up 16.7% of the workforce.
Starting a business alone can feel overwhelming, but you can build a thriving solo venture with the right approach.
This guide breaks down everything you need to know about becoming a successful solopreneur, from understanding what sets solopreneurs apart from entrepreneurs to discovering proven business strategies to help you thrive.
What is a solopreneur?
A solopreneur combines "solo" and "entrepreneur" to describe someone who builds and manages their business single-handedly, taking full ownership of successes and challenges. Some solopreneurs start running a side hustle and grow into a full-blown business over time.
Solopreneurship offers four key benefits:
Set your own schedule and work hours with complete flexibility.
Choose only the projects and clients you want to work with.
Build your business exactly the way you envision it.
Keep operations simple without managing employees.
Think of yourself as the CEO, marketing team, and operations manager all rolled into one. While you might collaborate with freelancers, virtual assistants, or contractors for specific tasks like designing your website or managing your books, you remain the driving force behind all business decisions and strategies.
Solopreneur vs. entrepreneur vs. freelancer
The term "solopreneur" stands distinct from other business models.
While entrepreneurs typically focus on scaling their businesses with teams and employees, and freelancers usually offer specific services to multiple clients, solopreneurs create self-sustaining businesses they can manage independently.
Now, we will cover some differences between the three business models in depth, including:
Business structure
Growth approach
Income generation
Day-to-day operations
Risk investment level
Business structure
Solopreneurs
Run their businesses independently without employees, taking full control of all operations. They focus on building manageable businesses that allow them to work autonomously. When forming the business, a solopreneur may choose to be a sole proprietor or an LLC to protect their personal assets. Some solopreneurs also operate under a DBA (Doing Business As) name for branding purposes.
Entrepreneurs
Build businesses designed to grow beyond themselves by hiring employees and creating larger organizations. They focus on scaling through team expansion and operational delegation, often with the potential to step away while the business continues running. Entrepreneurs typically structure their businesses as corporations (S-Corp or C-Corp) because it makes raising capital and attracting investors easier. Many entrepreneurs may start as LLCs and transition to corporations as their businesses grow and funding needs evolve.
Freelancers
Work independently as contractors, selling their specific skills and time to multiple clients. They typically operate as part of other companies' projects, such as a writer taking on SEO writing assignments from different marketing agencies. Freelancers often choose business structures based on tax advantages and liability protection, with sole proprietorships being common for simplicity and LLCs or S corporations preferred for tax and liability benefits.
Growth approach
Solopreneurs
Focus on growing their customer base and increasing profits through their efforts and systems, funding growth primarily from business revenue. Their capacity limits them, but maintain full control over their business direction.
Entrepreneurs
Scale their business through external funding, team expansion, and potentially preparing for acquisition or franchising. They can grow beyond personal limitations by hiring employees and often seek investors to fuel faster expansion.
Freelancers
Increase earnings by securing higher-paying clients, who often work through intermediaries like agencies to find opportunities. Their growth is typically self-funded and limited by their available working hours, focusing on maximizing their rates.
Income generation
Solopreneurs
Solopreneurs generate income through direct sales of their products or services. Their earnings can come from active income (services requiring their involvement) or passive income streams, such as online courses, eBooks, or automated digital products. While passive income offers scalability, it often requires significant upfront effort and investment.
Entrepreneurs
Entrepreneurs generate income by building and managing teams and delegating work. They often develop multiple revenue streams through strategies like franchising, expanding operations, or selling the business. With the right structure, the business can operate independently, allowing entrepreneurs to step back while maintaining profitability.
Freelancers
Freelancers primarily earn active income by trading their time and skills for money, working directly with clients or through intermediaries like agencies. Their income is typically tied to their hours or deliverables, similar to a traditional job but with the flexibility to set rates and choose clients. Some freelancers also diversify income by creating passive revenue streams.
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Day-to-day operations
Solopreneurs
Wear all hats in their business, balancing time between actual work and managing the business side, like digital marketing and finances. They must excel at delivering their product or service and running business operations.
Entrepreneurs
Focus primarily on business management and strategy, delegating the production work to their employees. They spend their time leading teams, making key decisions, and growing the business rather than doing the day-to-day work.
Freelancers
Spend most of their time delivering services to clients, with minimal time devoted to business management. They prioritize their craft and billable hours, handling just enough administrative work to keep projects flowing.
Risk and investment level
Solopreneurs
Face moderate financial risk with investments needed for business operations, marketing, and product management, though costs vary widely by industry. They can limit personal liability through LLC formation but must handle all financial responsibility themselves.
Entrepreneurs
Take on the highest level of risk and investment, requiring capital for employees, office space, equipment, and operations, often seeking external funding. They face increased liability from both customers and employees, though this can be mitigated through proper business structure.
Freelancers
Have the lowest risk and investment requirements, typically needing only basic business tools and home office setup. They face minimal financial exposure and can reduce legal risks by working through intermediaries like agencies, though their reputation is always on the line.
Examples
What do these three business approaches look like in action? Here are some examples to illustrate typical products and services you might sell using each business model:
Solopreneur: A solopreneur business owner might create a how-to video course to sell through a website. A solo blogger could implement automated social media and email marketing systems to drive traffic toward affiliate marketing funnels. Or an artist might sell t-shirt designs through an ecommerce site.
Entrepreneur: A software designer with a marketable app might become an entrepreneur by securing startup funding. Or someone might take out a loan to purchase a franchise and become a retail chain owner.
Freelancer: A graphic designer, copywriter, or website designer might find clients through a marketing agency or platform like Fiverr.
Using these business models, you can pursue hundreds of freelancer, entrepreneur, and solopreneur business ideas.
Solopreneurship: pros and cons
Being a solopreneur offers the ultimate freedom of running your own business, but it comes with the challenge of managing every aspect of the operation.
While you'll need diverse skills and strong self-discipline to succeed, you call all the shots, from choosing your work hours to deciding which projects to pursue. The reward? Building something that's completely yours, on your terms.
Here are some pros and cons of solopreneurship:
Pros
Enjoy the flexibility to work from home and create your own schedule.
Build a business around a product or service that excites you.
Start your business without needing a significant upfront investment.
Unlock the potential for substantial income with a well-planned business model.
Take full control of your business decisions and direction as your own boss.
Cons
Wait for your business to generate consistent and profitable income.
Secure your own financing to fund the business.
Manage your own health care and retirement planning.
Rely on self-motivation to maintain steady earnings.
Handle bookkeeping and tax responsibilities unless you outsource.
Oversee marketing, sales, and customer service independently.
Struggle to maintain a healthy work-life balance.
Types of solopreneur businesses (+ examples)
Now that we’ve covered what it’s like to be a solopreneur, let’s explore profitable business models you can launch with minimal overhead.
Digital product creators
Digital products offer solopreneurs a scalable business model with high profit margins due to low production costs and no shipping expenses. Your main costs will typically include product creation software, web hosting, web design, and marketing.
Popular digital products you can create and sell include:
Online courses that teach specific skills
Ebooks and digital guides
Video tutorials and educational content
Music and audio products
Mobile apps and software tools
Video games and interactive content
Digital art and design assets
Membership site content
Premium podcast episodes or series
The key advantage of digital products is that you create them once and can sell them repeatedly without additional production time. Focus on creating high-quality products that solve specific problems for your target audience and ensure you have reliable systems for product delivery and customer support.
Content and media
Content creators can build profitable solopreneur businesses by producing and monetizing various media formats. The advantage of this model is its flexibility. You can earn through direct sales, advertising revenue, and affiliate marketing.
Popular content-based businesses include:
Niche blogs and websites
Social content creation
Photography and digital art
Newsletter writing and curation
This business model maintains high profit margins since your main expenses are limited to web hosting, equipment (like cameras or microphones), and marketing.
Ecommerce
Running an online store allows solopreneurs to sell physical products without a brick-and-mortar location. While this model requires more upfront investment and logistics management than digital products, it offers strong growth potential.
Popular ecommerce categories include:
Fashion and accessories
Health and beauty items
Food and beverages
Home and garden products
Decor and artwork
Toys and games
Electronics
Automotive accessories
Pet supplies
Your main expenses include inventory, payment processing, shipping, website maintenance, and marketing. Success depends on choosing in-demand products, managing costs effectively, and developing efficient logistics systems.
Knowledge-based
Knowledge-based businesses allow solopreneurs to monetize their expertise through coaching, consulting, and training. This model offers high profit margins since you're selling your knowledge without physical product costs.
Popular knowledge-based niches include:
Business and entrepreneurship
Career coaching
Financial planning
Marketing strategy
Technology skills
Creative skills
Unlike product-based businesses, your investment focuses primarily on building and marketing your expertise. The key to success is choosing a niche where you have deep knowledge and then packaging that expertise to deliver clear value to your clients.
Creative service providers
The digital economy has created a strong demand for creative professionals who can help businesses stand out online. This solopreneur path lets you turn artistic skills into a profitable business venture.
In-demand creative services include:
Content writing and copywriting
Graphic design and branding
Photography and image editing
Music and audio production
Video creation and editing
Animation and motion graphics
Creative service businesses can be highly profitable since you sell expertise rather than products. As you build a portfolio and reputation, you can increase your rates. You can reduce startup costs and find your first clients using freelance platforms like Fiverr.
How to become a solopreneur
1. Write a business plan
Bureau of Labor Statistics data shows that 18% of U.S. businesses fail within a year, and 50% fail within five. But a well-crafted business plan can set you up for long-term success by outlining essential elements like clear business goals, financial strategies, and actionable marketing ideas.
A business plan should include:
An executive summary of your plan's highlights
A company description of what you do and what your competitive advantage is
A market analysis of your customers and competition
An overview of how you will organize and manage your operations
A description of your product and service line
A marketing and sales plan
A funding request, if you find you need startup funding
Financial projections forecast over three to five years, including income statements, balance sheets, and cash flow statements
If you need help writing a business plan, the SBA's website links to resources such as the SCORE mentorship network.
2. Create a unique selling proposition (USP)
Advertising Hall of Fame legend Rosser Reeves invented the concept of the unique selling proposition, a pillar of effective marketing. A USP briefly summarizes three things:
Your sales proposition: What your brand offers customers.
The selling benefit of your proposition: Why customers should want it.
The uniqueness of your selling proposition: Why customers should buy it from you instead of a competitor.
To be effective, a good USP should be short so you can use it across all your marketing channels. Aim for 90 words or less. A marketing consultant or copywriter can help you craft a compelling USP.
3. Invest in marketing
Growing your client base requires smart marketing investment. Digital marketing offers cost-effective ways to reach potential customers, letting you start small and scale up as your business grows.
Here are the most effective digital marketing strategies:
Search engine optimization (SEO): Optimize your website and content to rank higher in search results, helping potential clients find you organically.
Content marketing: Create valuable blog posts, guides, and resources that demonstrate your expertise and attract potential customers.
Email marketing: Build a subscriber list to nurture relationships with prospects and keep existing clients engaged with regular updates.
Social media marketing: Share engaging content and interact with your audience across platforms where your target customers spend time.
Influencer marketing: Partner with industry voices and content creators to expand your reach and build credibility with new audiences.
Video marketing: Create engaging video content to showcase your products or services and connect with viewers on a more personal level.
Pay-per-click (PPC) advertising: Run targeted ads on search engines and social media to reach potential customers actively looking for your solutions.
If these strategies seem overwhelming, consider finding marketing consulting services on Fiverr who specializes in these areas to help develop and execute your marketing plan.
4. Price your services profitably
Calculate your absolute minimum rate. Add up your monthly expenses and desired profit, and factor in about 30% for taxes and business costs. Divide this by your available working hours. This is your break-even point. Never go below it.
For online courses, coaching, or digital products, structure your offerings like this:
Entry-level: A lower-priced product (like an ebook or mini-course) at $27-97.
Mid-tier: Your main digital product or course at $197-997.
Premium: High-touch offerings (like group coaching or mastermind) at $1,997+.
Start with a free lead magnet (like a PDF guide or checklist) to build your audience. Then, guide them through increasingly valuable offerings. Each tier should solve a bigger problem or provide more personal access to you.
💡 Note: Your price reflects your positioning. If you're teaching others how to succeed in business or create wealth, your pricing needs to demonstrate that you can command premium rates yourself.
5. Outsource tasks
Effective outsourcing isn't about offloading everything. It's about freeing up your time for high-impact work only you can do. Focus on delegating tasks that drain your energy or slow your growth.
Track how you spend your time for a week. Identify which activities:
Directly generate revenue
Build valuable relationships
Create intellectual property
Scale your impact
These are your key activities. Everything else is potentially outsourceable.
Start small. Test a few Fiverr freelancers with minor projects. As you find reliable partners, expand to:
Administrative support
Content creation
Technical maintenance
Basic design work
Research and data entry
💡Tip: Use Fiverr's review system to find top-rated freelancers and save your favorites for ongoing work. Many successful solopreneurs maintain a trusted network of Fiverr freelancers they can call on as needed.
Sell your services on Fiverr
Fiverr brings together freelancers who sell services commonly needed by entrepreneurs and solopreneurs, and buyers who need them. Use the Fiverr platform to sell or buy services such as:
Marketing strategy consultation
Digital marketing
Music production and editing
Fiverr lets buyers search based on services required, experience, turnaround time, and budget. Use Fiverr's platform to connect with buyers who need your services or find the services your business needs to succeed.
Solopreneur FAQ
What is the difference between a solopreneur and an entrepreneur?
Solopreneurs run their own businesses without full-time or part-time team members, while entrepreneurs hire employees.
What is an example of a solopreneur?
An example of a solopreneur is a web designer who runs their own business, building sites for other businesses.
What is the difference between a freelancer and a solopreneur?
Freelancers contract with other companies to serve some business functions, while solopreneurs run their own companies and manage all functions.
Who is a famous solopreneur?
A famous solopreneur is Justin Welsh, an influencer who runs a $5 million one-person business training other solopreneurs.
