You get a business license and start your own business. And somehow you’re expected to eventually hire some employees, start a business, then add another branch to it, and keep growing until you die. But there is an alternative to this scenario that more and more entrepreneurs are choosing every year – staying in business on their own.
The days when independent freelancers seemed a bit suspicious are thankfully long gone. Being a freelancer or sole trader is a fulfilling career choice that suits introverted natures, multi-potentials and highly sensitive people (HSP) in particular.
In Company Of One: Why Staying Small Is the Next Big Thing for Business, Paul Jarvis defines a company of one simply as “a business that first challenges growth, and then resists it if there is a better and smarter way forward.”
Just because you’re not growing doesn’t automatically mean you’re not successful either. Despite societal prejudices and commonly held truths. It’s perfectly okay to set your own standards and follow them.
Why to start a company of one?
According to Paul Jarvis, there are four main benefits. Autonomy and control, speed, simplicity and resilience.
Autonomy and control
Freedom, independence and the feeling of being in control of your life and work is probably the most common reason most people go freelance. But it is closely linked to competence. In order to be autonomous in business, you need to be good at what you do. And even otherwise at least have a basic understanding of what you do.
“Being a one-person company requires more than just using your core skills. It also requires prowess in sales, marketing, project management and client retention. While most regular employees may be hyper-focused on one skill, sole proprietors need to be generalists who are good at several things – often all at once.” Paul Jarvis
Speed
If you decide to make your services more expensive or cheaper now, how long will it take you to adjust all the price lists? While a sole trader or freelancer can do it in a matter of hours, in a large corporation such an operation can take up to a year and a half.
And the same is true in other areas. You invent a new service? You can have it up on the web and selling it this afternoon. Do you see the market changing and customers demanding something different? It’s not a problem to offer it to them. Come across a last minute bargain? I bet most sole traders will arrange it and leave.
Corporations are often cumbersome. And speed is a pretty significant competitive advantage for small business owners.
Simplicity
Growth usually brings complexity. The more people working in a company, the more processes, systems and solutions you need. Too many products, services, tools or variants kills productivity and makes you less competitive. If you’re in sole business, I recommend asking yourself the question several times a day with everything you do: “Can’t we simplify it?”
Resilience
The last point may surprise you a little. It is psychological resilience, which psychologist and storyteller Ivana Štefková defines as “the art of bending but not breaking“.
Resilient people:
- Accept reality. They take things as they come, don’t complain and don’t need the world to conform to their ideas.
- Have a clear mission. They are motivated more by meaningfulness than money (although this is not at all mutually exclusive with a willingness to make money). They consider the long-term and the greater good in their decisions.
- Adapt to circumstances. Which especially means the ability to respond to change and creatively solve problems in new and unique ways.
This kind of resilience is not so much a character trait as a skill. Thus, it can be developed and built over time.
5 steps to success
Whether you’re running your own business or just starting out, it’s worth going over a few points that are sure to make you feel happier as a freelancer or sole trader:
1. Get clear on what works for you
“If you’re a company of one, you need to fit your business around your life, not the other way around. That means you first have to figure out what you want in your life,” writes Paul Jarvis.
The quote hints at the biggest advantage and the biggest pitfall of working alone at the same time. You can set up your business the way it suits you. But that also means taking the time and attention to explore what actually brings you that satisfaction.
Ask yourself:
- What activities fulfill you the most?
- How many hours a day do you want to work?
- What are you good at? What is your zone of genius?
- How much do you want to earn?
- Do you think better in the morning or in the evening?
- What kind of customers are you comfortable working with?
Then look at how to translate your answers specifically into your business. Alternatively, I’d be happy to guide you through such a setup in a consultation.
2. Do not let yourself to be discouraged
Entrepreneurship is generally a long haul. Especially solopreneurship. When you take the plunge, expect that not everything will work out and every day won’t look like a walk in the park. Everybody experiences it, even if you can´t tell it from their presentation on the social media. Only few are willing to share failed collaborations, unsuccessful products or minuscule financial results.
The other thing is that even if you enjoy and find the work as a whole fun and fulfilling, you may not enjoy and find it fulfilling 100% of the time and in every aspect. As an entrepreneur, you automatically become a master of the nine crafts. Even if you’re killing yourself with administration, you’re tired of cleaning the shop, or you dread sales. Of course, some things can be outsourced. But more often than not, the better solution is to just grit your teeth and get on with it.
Thirdly, just because you’re on your own in your business doesn’t mean that no one is interfering. Friends, family, customers, competitors, random people on your networks. They all have an opinion about your business that they sometimes need to tell you. What I find helpful in those cases is this idea:
“Only listen to advice from people who have what you want.” Kate Northrup
3. Narrow it down and make it more expensive
Probably the most common direction for company growth is into breadth. This happens when you hire employees, increase your product range and build new branches. But you can also grow in height – when you’re constantly improving at your job and gradually becoming an industry leader. Or you can grow in depth by gaining new knowledge and gradually specializing in what you do best.
This goes (or should go) hand in hand with your pricing. The better and more specialized you are, the more expensive you can be. At a higher price point, you can pay more attention to your services and polish your products more. It also leaves you more time for self-education, which in turn makes you a little better and more specialized.
4. Build your brand
If you are alone in your company, your brand is primarily your name and your personality. Freelancers and freelancers most often get jobs through referrals. Or new clients approach them based on their web presence, social media or media presence. How to support this trend?
- Tell your story. How did you get into what you do? What do you enjoy about it? And why should anyone be interested in it?
- Take good photos of yourself. As individuals, you can’t hide behind a logo or “photo bank” visuals with hired actors. People buy primarily from people and your face is what they are interested in.
- Collect references. Don’t be afraid to proactively ask for them – perhaps after a successful sale, completion of a project or the conclusion of a long-term collaboration. If clients were happy with you, they’ll be happy to provide them.
5. Collaborate
Even if you don’t have and don’t want to have any employees, you can still assign some of your work to someone else. Delegate the administration to a virtual assistant. Outsource specialist activities such as bookkeeping, website development or setting up social media advertising.
Finally – just because you’re in business of one doesn’t mean you have to feel alone. Go to masterminds, networking events and business meetings. Discuss with other entrepreneurs. What someone else has solved in a completely different industry may very well apply to you. And vice versa.
