Starting today, you’re a company
Quick editorial note: I’m now using the Substack platform to send my weekly newsletter, Flow State. If this is your first time hearing from me on Substack, rest assured, I won’t be emailing you the same newsletter twice. And of course, if you don’t want to hear from me, feel free to unsubscribe.
The term solopreneur has been in my feed a lot this year. For part two of my five-part series on my best advice for starting up now, I’d like to spend today’s newsletter talking about why I’m so excited about the viability of going solo.
Back when I first started, I was inspired by an article in Fast Company magazine called “The Brand Called You” by Tom Peters. The article foreshadowed the rise of social media and influencers by encouraging a new way of thinking about your career:
Start right now: as of this moment, you’re going to think of yourself differently! You’re not an “employee” of General Motors, you’re not a “staffer” at General Mills, you’re not a “worker” at General Electric or a “human resource” at General Dynamics (ooops, it’s gone!). Forget the Generals! You don’t “belong to” any company for life, and your chief affiliation isn’t to any particular “function.” You’re not defined by your job title and you’re not confined by your job description.
Starting today, you are a brand.
It’s amazing to think how accurately this predicted the entrepreneurial revolution that followed. And 25 years later, not only are you a brand called you, you can be a company called you.
Starting today, you’re a company.
Living the entrepreneurial dream holds a lot of appeal. Do what you love. Work without a boss, you are the boss. Set your own schedule, and work when and where you want. Entrepreneurship = freedom.
But – there’s a catch, of course. Depending on what type of business you build, the entrepreneurial journey may not equate to the freedom you seek. Try to build a high-growth startup and raise funding … you’ve got investors who expect a return. Hire a bunch of folks … you’ve got to meet payroll.
I’ve lamented the focus that the VC and entrepreneurial media puts on high-growth startups getting all the glory. They can generate a lot of wealth and change the world, sure, but that path isn’t for everyone, nor is it the only valid path. While investors turn up their noses at lifestyle businesses, if you’re optimizing for yourself, why not build a business that supports the lifestyle you want to lead?
Enter the solopreneurship revolution. It’s no wonder in this post-COVID, work-from-anywhere, AI-powered world, that entrepreneurs are rethinking how they want to start up and choosing to go solo.
Here’s a continuum of business structures:
Freelancer > Solopreneur > Small Business (lifestyle business) > Startup (bootstrapped) > High Growth Startup (funded)
Size, risk, stress, and potential return all increase as you move up the continuum. But consider this: would you rather work towards building a $100mm high-growth startup with 400 employees? With multiple co-founders, you might own 10% at exit and a $ 400,000-a-year salary. Or, would you rather work towards building a $3mm company powered by technology and contractors with no employees that you own 100% of and make $1mm a year in take-home pay? More people in my network seem to be choosing the latter.
So, is solopreneurship right for you? Here’s a quick checklist of things to think about:
Do I have enough experience to sell something people value?
Am I selling my time or a product?
If I’m selling my time, am I charging enough to make a living and do the work, and lead the lifestyle I want?
If I’m selling a product, is it clearly defined and have I tested that people will pay for it?
Can I get leverage? Even if I don’t hire employees, can I automate processes, and leverage contractors for non-core activities (bookkeeping, social media, etc.)
Can I make money while I sleep? A good test of whether you have a product or a service.
Do I value the social aspects of the workplace, or will I enjoy working solo?
A key distinction to understand as a solopreneur is the difference between working on the business and working in the business. Think of working on the business as improving processes that stay in place. Your effort improves the business long-term.
Working in the business is doing the day-to-day work of the business. Your effort drives revenue but needs to be sustained. I think an ideal candidate for solopreneurship is someone who is able to focus their effort working on the business rather than in the business.
I’d love to hear from you if you’re a solopreneur. Are the lifestyle and the business serving you?
Stay tuned for part three of this series next week: Finding your niche! If you enjoyed reading, you can “like” this newsletter by clicking the ❤️ below, which helps my visibility on Substack.
- Chris (more about me here)
PS: I heard from a few of you last week in response to my offer of mindfulness and meditation resources that I love, so I’ll share them here. I started meditating with 10% Happier, love the books: The Four Agreements, Be Water, My Friend, How to Change Your Mind.
PPS: Speaking of starting up, Anne and I are expanding the music festival called Cosmico Fest from our backyard to two weekends and two cities this year. I would genuinely love to hang with you in Healdsburg or Todos Santos in May, so consider this your invite, let me know if you can join us.
Great stuff buddy... keep building it. Love to see it!