The biggest mistake that solopreneurs make is that they don’t begin with the end in mind. Not to overstate the Stephen Covey-ian philosophy; however, it’s the obvious misstep that most micro-entrepreneurs make. How sole proprietors need to plan is by backing into the beginning of their business from that best case scenario. From choosing the best legal entity to choosing the best advisors and business mentors, the starting part is from where you’re going.
- Choose the Right Entity for Your Business
Many solopreneurs go into business structured under the legal entity they’ve heard the most about and that costs the least to start. Often times based on the businesses growth and long term objectives, the business has to change legal structures if they grow beyond what they planned and this can be complicated and expensive. Solopreneur businesses that know at some point they’ll be looking to raise capital and should especially give this consideration.
- Choose Advisors with Care
Everyone wants to be in business with those they know like and trust, but in the case of choosing your advisors, knowing them and liking them are far outweighed by trusting them. The best team members are always individuals that understand the company’s goals and culture, but that shouldn’t get in the way of truth and the openness to say and do what’s necessary if other team members or the solopreneur him or herself are off track. Leveraging the wisdom of great advisors is key. Leave the buddy business for happy hour.
- When in Doubt, Choose Conservation
The difference a day makes, can save a business. Often times solopreneurs watch the “seeming” success of competition and want to do everything possible to grow fast. In the interest of learning about how to work in their business, what works best for their company, strengths and weaknesses in team members, and taking in the insights of clients and customers are the equivalent of a clown balancing balls at the circus for solopreneurs. The bottom-line is that for the balls to stay up in the air, it takes practice and the harsh reality is mistakes are a part of the process. Although the life’s blood of a business is making stuff happen, conservation can add lifelines to a business overtime.
Building a business as a solopreneur haphazardly (even if that’s how you came into the business) is not how the pulse of your business should beat. We all know there’s no “I” in team or solopreneur. Pay for great advice and tithe to meaningful relationships. Your business will too reap what it sows, but if you’re not sure, less is still more.
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