The biggest challenges that face solo entrepreneurs

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Going into business all by yourself is both exciting and scary.

You get to set your own hours, answer to no one but yourself, and build something for yourself and your children.

But entrepreneurship isn’t all sunshine and rainbows. Building a business all by yourself or freelancing can be isolating, and physically and mentally exhausting. When you go into solo entrepreneurship, you are not only the captain of your ship…you are the entire crew as well! If you miss an important detail, there’s no one to blame but yourself. And oh, there’s no safety net!

Experienced entrepreneurs will tell you one thing: the risk is totally worth it. However, if you go into entrepreneurship unprepared, it can be a source of both financial and psychological distress. When you are aware of the potential pitfalls of solo entrepreneurship, you will be better-equipped to navigate your venture successfully.

Here are some of the top challenges that solo entrepreneurs face and how to overcome them:

Unstable Pay Check

One of the biggest challenges of leaving employment is not having a steady paycheck. Whether the company makes a profit or a loss, whether you have had a slow period or not, you are still assured that your salary will be paid. This makes planning your personal finances a lot easier.

However, your pay as an entrepreneur can be unsteady and unpredictable. The money you bring in will depend on the number of clients you have, the products you sell or the services you provide. For new businesses, customers and clients can be few and far between. The early days will probably be financially difficult as you build awareness and customer loyalty. And even after your business is fully established, you are likely to have an ebb and flow in profits.

If you are ill-prepared, the uncertainty in your pay check can wreak havoc in your personal finances. It is advisable for solo entrepreneurs to have a financial safety net before venturing into a business. Ideally, you should have several months’ worth of expenses saved up to ensure your personal life isn’t affected the start-up’s financial woes.

Scheduling and Self-Management Issues

Setting your own hours and not having someone to answer to are a large part of the appeal of entrepreneurship. You don’t have to ask your boss for permission to attend to family obligations or take a well-earned break.

However, being a solo entrepreneur also means that you won’t have anyone to cover for you. In case you have an important meeting with a client and a serious family emergency comes up, you will have to either disappoint your client or your family. When works starts to pile up, you will be the only person shouldering the burden. Unless you hire a subcontractor, you are likely to find yourself working long hours and over the weekend.

Don’t hesitate to hire other people to help you, especially in areas where you lack experience or skill. If you can’t afford to hire full-time staff, don’t worry. You can hire freelancers and subcontractors to make your work easier and allow you to focus on the areas you’re really good at.

No Supportive Network

When you work alone, especially if you can conduct your business online, you can easily spend entire days in pyjamas revolving from bed to couch. Unlike the robust social activity of an office full of colleagues, you will be spending lots of time in isolation.

As you work away on your laptop, you are likely to find yourself lacking the time and energy needed to form new social connections or nurture existing friendships. You will have no one to share the burdens and the joys of running a small business. It’s no surprise that research shows that entrepreneurship is a lonely and stressful journey for most people. In a Gallup Wellbeing Index, 45% of entrepreneurs reported being stressed, compared to 42% of “other workers”. In the long run, social isolation and loneliness can negatively affect your physical and mental health.

It’s important for solo entrepreneurs to make extra effort to create and maintain both professional and social networks. Reach out to your network and schedule face-to-face meetups or video hangouts. Social media isn’t just for marketing your products, you can also use it to make meaningful connections with other entrepreneurs who relate with and can help you overcome your challenges.

Joining a co-working space might also be a great solution for some entrepreneurs. It will help you avoid the distractions of working from home while giving you opportunity to network with other entrepreneurs and potential clients.

Neglected Selfcare

As an entrepreneur, your most important asset is yourself. It is easy to outsource certain tasks or projects but at the core, your business heavily relies on your skills and expertise to succeed.

Therefore, it is very important for solo entrepreneurs to prioritise their mental and physical health. Eat a healthy diet, drink enough water, get adequate sleep, and exercise regularly. It is also advisable to have a health cover to ensure that you don’t dip into your business assets in case of illness or injury. Shop around for a cost-effective plan that doesn’t include services you’re unlikely to need.

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