At its core, the term entrepreneur describes an individual with a passion for growing successful businesses from the ground up. However, in today's diversified market, it's generated a variety of subtypes, including solopreneurs.
The most apparent difference between solopreneurs and entrepreneurs is that the latter aims to start a company and (mostly) sell it to the highest bidder.
Entrepreneurs are always thinking of growth and what their next venture will be, and tend to hire staff to delegate day-to-day tasks.
On the other hand, solopreneurs are nurturing a passion project that they've chosen to exercise total control over. They have the potential to be successful in doing what they love.
However, before we delve into the differences with solopreneurs and entrepreneurs, let's consider a common thing that they both need...
Whether you choose the path of solopreneurship or entrepreneurship, you're going to need a strong base that propels you and your idea forward. In today's digital world, that would be your website. A good website is essential to establish your business and your expertise.
Various things make for a good website, such as a beautiful logo, a clean design, useful content, and more. However, the one factor that is often forgotten is your domain name, which forms the foundation of your website.
One of the key differences between good and great leaders is attention to detail, and your website's domain name is a crucial detail that you must not miss. With the availability of over 1200 new domain extensions, today, you can get a domain name that is relevant to your work.
If you're doing something in the tech space, then you could go with .TECH.
If you're setting up a small online store, then you could go with.STORE.
If you want something more versatile yet unique, then you could go with.ONLINE or.SITE.
If you want to highlight your creative space, then you could go with.SPACE.
A right domain name can add immense value to your business or project.
There are many daily tasks that a solopreneur would relish, but an entrepreneur would normally delegate. Other than that, there are five main areas where the two business professional subtypes diverge.
A crucial variance between the approaches of the two subtypes is scalability.
Take the example of a painter who markets and sells their pictures themselves and runs their business as a single entity. That person is a solopreneur because they may not have the desire to scale up the enterprise.
It would be absurd for an artist to employ a group of people to take over the painting duties while focusing on starting another company.
On the other hand, someone who opens a restaurant may probably consider expanding – more sites, more customers, and more sales. Having more sites also means a food business receives more affordable rates from suppliers as a result of economies of scale.
For an entrepreneur, the entire reason for starting an enterprise is either to grow it into something big or sell it.
Consider Tom Bilyeu, who co-founded Quest Nutrition and sold it for a reported $1 billion. Like most entrepreneurs, he saw a gap in the protein bar market, which he took advantage of.
Protein bars were all high in sugar, yet purporting to be healthy foods. Tom and his team set out about creating a new process to make low sugar protein bars possible. Once they reached their goals, they sold it and reinvested in a string of new ventures.
On the other hand, you have a YouTuber like PewDiePie, who earned a reported $13 million in 2019 on a channel that sees him play video games online and express his controversial views.
His business model is highly lucrative, but it's not something he would want to sell on to someone else because he's just doing what he loves.
Influencers market themselves and sponsored products relating to their specific niche using social media and other communication channels. Like most solopreneurs, they live and breathe the slot that they work in, and all of their output relates to that niche.
For example, Ree Drummond is a food blogger and influencer who became famous for sharing recipes of meals she cooks for her family on her ranch. She embodies her brand, and her fans are so loyal, in part, because she lives and breathes her niche.
At the other end of the scale, an entrepreneur with a digital marketing agency might start out specializing in social media marketing and branch out to include services such as brand consulting and content creation as they grow.
4. Human Resources
Growth within the company is another feature that sets apart an entrepreneur's business from that of a solopreneur.
The latter has no intention of hiring a big team and delegating work to other people. Their prerogative is to maintain tight control over every aspect of their venture, from the creative process to sales and payroll.
In some cases, such as E.L. James, you might get popular enough to hire an assistant — but you'll never be able to replace yourself.
For an entrepreneur such as Jeff Bezos, delegation is everything. He aims to design and implement strategies and then shows everyone else how to do them, so he no longer has to.
he'sHe's such a successful entrepreneur that instead of getting involved with day-to-day management, he only makes decisions regarding innovation and long-term projects, unless an emergency arises.
For the most part, solopreneurs are more than happy to work from home or a set up in a café or restaurant. This means they have fewer overheads, but it also means there's nowhere to meet clients or employees.
Of course, an entrepreneur is more likely to require an office, because impressing clients and taking care of employees is much higher than their list of priorities.
Whether you're an entrepreneur with a variety of business interests or a solopreneur who lives and breathes your company values every day — branding is essential.
Your brand helps consumers understand what your company offers, and the more well-defined it is, the better.
Knowing whether you're an entrepreneur or a solopreneur can help you develop strategies and communicate your brand's identity to clients, prospects, and affiliates.
This, in turn, will help you grow your venture from scratch to a thriving business catering to the needs of the masses.