How to Run a Successful One-Person Business

Starting a business is complicated, but starting and running a one-person business can be especially daunting. While it means you won’t have a team to support your goals or the luxury of delegating, becoming a motivated entrepreneur is a chance to combine passion and effort to create something great and realize your dreams.

However, building a profitable one-person business can be a challenge. You’ll face countless business and personal obstacles alone while forging ahead with your company’s development and growth.

We’ll explore expert advice for starting and running a one-person business and share business ideas and success stories for inspiration.

How to start a one-person business

We gathered tips and advice from successful self-owned business entrepreneurs to help you start your one-person venture. While every entrepreneur and business is different, many pointers will likely apply.

1. Start your self-owned business on the side.

Many successful entrepreneurs recommend starting a one-person business as a side venture, at least initially. The benefits of growing your business on the side include the following:

• You’ll keep a primary income source as long as possible. Starting your business as a side hustle lets you keep a steady income source and save money while gaining customers and traction. By the time you quit your day job for your startup, you’ll have enough money saved to minimize startup costs and make it through the challenging early days.
• You’ll set up your business for success. Starting on the side also sets you up for success when you leave your current situation. If you develop a client base over a year or two while also working a full-time job, you’ll bring in money on the side and be ready to grow an already established brand once you take the venture full-time. Getting a head start can lessen the challenges of starting a business and reduce stress levels.
• You may realize the venture isn’t for you. Starting your business as a side hustle may also help bring you clarity about the venture. Maybe you’ll encounter unexpected challenges you’re not interested in overcoming. After a few months of pursuing the business idea, you may decide it’s not the right career change for you, and you can move on to something else.

2. Find the right business structure for your one-person business.

Considering the best legal entity type for your business is crucial.

Sole proprietorships vs. incorporating

The obvious choice for a one-person business is a sole proprietorship, the simplest business structure available. However, there are upsides and downsides to this business structure:

• Sole proprietorships offer flexibility. Sole proprietorships give you enormous flexibility, allowing you to be an independent contractor or operate a small business in a more traditional sense. For example, if you want to become a freelancer who writes marketing copy for businesses, a sole proprietorship is the logical choice.
• Sole proprietorships can introduce risks. Sole proprietors are responsible for all the company’s profits and debts. This can become an issue as your business expands. If you’re involved in a business lawsuit, your assets are on the line. You can be held responsible instead of the business entity. Potential lawsuits become more relevant the more customers you serve.

Some experts recommend forming a corporation, such as an LLC, to protect your interests. “I would advise forming an LLC or incorporating the business,” said Deborah Sweeney, former CEO of MyCorporation.

Liability protection is the most obvious benefit. “Many entrepreneurs often elect to form a sole proprietorship for their small business. This entity is perfectly fine, but it does not provide the owner with liability protection like a limited liability company (LLC) would,” Sweeney noted. “If an entrepreneur decides to start a one-person business as a sole proprietor, they must know they will be held responsible for everything – foreseen and unforeseen alike – that could impact the business.”

Consider your business type when deciding on a legal structure.

Different business ideas lend themselves to different business structures. If you think your business might face lawsuits, incorporating the business may be best.

For example, if you form a one-person company that helps other businesses collect debts, you might be more likely to face legal ramifications than an e-commerce business selling art.

Your business structure can evolve.

One-person businesses may eventually add team members and change from a sole proprietorship to a general partnership, limited partnership or LLC. Starting as a sole proprietorship doesn’t mean you’re locked into that structure for the rest of your entrepreneurial journey. If you run a successful one-person business, that doesn’t mean you can’t eventually become a multi-person organization.

3. Prioritize your tasks to succeed as a one-person business.

Time management is critical when running a one-person business. Without delegating to employees, one-person businesses must stay on task so they don’t get overwhelmed. Here’s some time-management advice for one-person businesses.

• Prioritize your workday. If you’re only spending two to four hours daily on your business, don’t waste too much time checking emails or performing tedious tasks. You want to make substantial progress on major projects. “My main piece of advice is that you have to prioritize your day and your schedule,” said Mark Aselstine, founder of Uncorked Ventures. “You’re going to get pulled in literally every direction, and emails, phone calls and text messages all seem incredibly important, and everyone wants an immediate response. But, ask yourself, do they actually require one?” Aselstine advises time-blocking to focus on your business’s long-term health.
• Set goals and hold yourself accountable. To stay on track, set business goals months in advance. If you’re starting from scratch, set target dates for creating an online presence, such as building a website and establishing social media accounts. By setting goals and holding yourself accountable, you give yourself something to work toward. “I work in 90-day cycles,” said Isabelle Paquin, a Pinterest marketing strategist. “Each quarter, I establish goals and two or three projects I’ll be focusing on. Then it’s a matter of having the discipline to put blindfolds on and focus on implementation excellence.”
• Don’t go it entirely alone. Running a one-person business doesn’t mean help is off the table. Hiring freelancers helps your operation grow, makes achieving your long-term goals more realistic, and allows you to focus on other aspects of your business. “My advice to someone starting out is to know what you don’t know and surround yourself with great people [like] other small businesses and independent contractors who can provide the services that you can’t,” said Diane Jones, president of DJ Public Relations. “For example, I am a public relations professional that offers a variety of services, including website development, graphic design and video production. However, I personally don’t do all those things. I work with an amazing website developer and graphic designer and a video production company who creates the final product while I manage the process. It’s a win-win for both of us, and the client ends up with the product they want.”

 

Source: Business.com