Is solopreneurship worth the risks?
If you're a solopreneur, do you think it's worth it? Or is it better to work with a co-founder? Would love to hear from the community on this.
I linked an article that I found helpful in case others are asking the same questions. It talks about the risks and how to balance them.
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For me, it is. I work better alone. No one taking my attention or diverting my focus. I quit my job so that I didn't have to report to anyone else, so why would I willingly bring on someone else who might be disappointed with me taking time off? It can get lonely, but that's what friends and SOs are for.
I can say two things on Solopreneurship,
Be a Solopreneur (I have been) when you can't find people who share your value system & who complement your skills. When being a solopreneur, the single most barrier for me to a breakthrough was keeping my energy up and having accountability.
If your product/business idea has the potential to shift market economics/big enough pain for large market space, there is only so far you can go alone (emotional and mental stress). Spend some time finding the right people to take on this journey.
Yeah, this seems like solid advice!
Yes.
Knowing what I know now about regular jobs, markets, companies, and people in general, first thing after college still in my 20ties having a regular job I would start hacking on the side. Solo-way since it is easier but with the option to hook up with like-minded individuals or even to form a small team, a studio.
The first benefit would be to start learning by doing (the best way) as early as possible, so your runway is long.
The second benefit would be to cultivate this frugal, humble, free, resilient mindset that is needed.
None of these are risks of solopreneurship. These are risks of “quitting your job without an income”ship.
I tend to agree. I wouldn't quit my job unless a) I hated it, and b) there was sufficient evidence my solo project(s) could meet my economic needs, including savings/investment.
Until then, I'm happy with my day job which I enjoy and get to squirrel away extra money and have fun with side projects. There are usually a few days a month where I work too much and sleep too little, but I've learned to not let it happen more than that.
Having a partner would be great for many reasons, but the downsides would far outweigh the benefits for me. I like my projects being mine.
I've spoken to dozens of 'solopreneurs' and the risks are worth it 9 times out of 10. The financial risk is often overstated since you can start an online business with little to no overhead cost. Often times solopreneurs will still work their full time job which can support them and give them the safety net they need.
A lot of the risks in the article (legal, social stigma, cash flow, competition) are often not relevant since people in these fields are often working by themselves and the problems they are solving are niche.
I write a free newsletter which outlines weekly, the step by step process you can take to earn your first dollar as part of a side business if you're interested in taking the leap. https://newsletter.cofire.xyz/
The article is a nice overview. But it misses some useful options for solo founders. the key risk is financial. The article goes well into that and uses healthcare as a big scare. But cashflow for a solo maker, solo founder, solo-preneur.. doesn't have to be singular.
What I mean is not just diversifying revenue across business models and products. What I mean is getting partners that are profit-minded but not co founders.
There are tons of options for affiliate and referral programs. You can entice your own customers, and/or marketers in your industry to do marketing for you and profit well from it.
There is also profit-sharing options. You can entice partners who are on the level of a cofounder but if you don't have equity to give, or share, then you might think it's useless. Consider working on a profit-share agreement. It can be small, focused, and specific.
Seeking out bundling of products for short promotions, helps find potential partners. I did this a couple of times and enjoyed it every time. The timeline was clear: 1 week. The distribution path was clear: email to existing customers and twitter.
for example 3 of us who had newsletter courses bundled together all our courses into one $99 offer. Make over $1k each for about a week's work. All of us got 1/3 of the sale. Each of us got all the customers. And the customers got a huge discount.
Even if we are the only person working on our business, we are not alone.
I think working with joint ventures helps everyone.
Thank you Andrew! A lot of that was new to me, and you make really good points. Super helpful.
This isn't binary and highly depends on your overall goals. If you want VC funding, would be hard to do that without a co-founder. Other businesses, like content-driven revenue products that don't rely on VCs, seem to do pretty well with just one founder at the helm.
Personally, I think it's good to either have a co-founder or an advisor you regularly talk/consult with. We all have our biases and shortcomings, and it's good to have someone check those. Obviously, the solution isn't just to find "any" co-founder or a co-founder for the sake of having one, but I think it's usually a good idea/investment to find someone who would be a good fit even if it's daunting/hard.
Well said!
Helpful, but:
Easier said than done! Where are these supposed mentors hiding?
Personally, I've always had co-founders in the past, but for a small project, I might consider going it alone.
If you want to know more about solopreneurship follow Justin Welsh on LinkedIn https://www.linkedin.com/in/justinwelsh