What is a Solopreneur?
The top definition of solopreneur, according to Urban Dictionary, defines one as an entrepreneur who works alone, “solo,” running their business single-handedly. The description continues: The typical solopreneur is easily tempted to become a workaholic, not feeling their work is ever done! They do the administrative tasks, marketing, customer service and service delivery typically by themselves.
Why be a Solopreneur?
As more companies realize they can save money by hiring contract workers instead of employees, solopreneurism is trending and will continue to. By 2020, contracted workers are expected to make up 40% of the workforce, according to a 2010 Intuit study: that’s more than 60 million people. That means that although many of us choose to go out on our own, many others may be involuntarily forced to do so. Regardless of how you end up here, you may be great at what you do, but you may or may not have any idea how to run every aspect of your business.
There is a daunting amount of red tape in becoming a Registered Investment Advisor in the state of Colorado — as all financial planners giving the most basic investment advice — i.e. “you should contribute to a retirement account” — are required to be. So daunting in fact, that I nearly gave up before I started. Fortunately, most business start-ups aren’t so complicated, but there are still many aspects to consider. What I’ve learned over the years is to outsource the things I’m not great at, and hate doing — by contracting with skilled solopreneurs, of course!
Solopreneurs and Personal Finance
One thing I don’t outsource and nerdily love is keeping on top of my business cash flow. This is not shocking to those of you who know my passion for all things cash flow and budgeting. (The reason I am so passionate about this topic is that there is great power in consciously creating a spending plan for yourself!)
This summer as I was helping my attorney and solopreneur boyfriend with creating an accounting system it dawned on me… here is an intelligent man who has absolutely no interest and admittedly no aptitude for this kind of thing, and I realized my skills were needed in the world: financial planning for the solopreneur was born.
The wheels were turning, and just as I do with personal finance, I began to see how likewise in business, great financial planning starts right now, with your current cash flow. Having created a system for myself and happily being on top of it for years for my three businesses, I realized I could help others and be their “easy button” with their bookkeeping as a means to start making smart and strategic decisions with their income.
This means the solopreneur who works with me solves several problems at once — take this undesirable task off their plate, have a solid system for paying themselves, be completely prepared at tax time, and do some powerful planning for the future. To get set up, we get together usually one time and determine your goals, input your financials into software, and get current. If you need retirement savings, I can even make it super easy by helping you with opening and managing your retirement account.
How It Works
I offer just the initial set up, or the initial set up + monthly upkeep if you don’t want to touch this at all. With the latter, I’ll help you stay on top of your quarterly taxes and send you a monthly income statement so you can see how you’re doing month-to-month. At the end of the year, I’ll give you a one-page income statement to hand to your CPA. If you don’t have a CPA or need a really good one who is very reasonably priced — you’re in luck in that department, too. I’ve found it’s extremely hard if not impossible to find this combo in Denver, but my stellar CPA will take on new clients if they are working with me in my Solopreneur program.
If you’re interested in chatting about my new Solopreneur Consulting Service, please schedule a free, no-obligation meeting with me by phone. Please also complete this short questionnaire so I can learn a little bit more about your business before we talk.
I hope to catch up with you or a struggling entrepreneur that you know. The sooner you begin, the sooner you can shed the anxiety and stress around your business finances and get back to focusing on what you do best.