6 Habits of Business-Minded Solopreneurs
Think beyond the services you provide.
When you’re first starting out as a solopreneur, you have two goals: find work and get paid!
And it can often feel like feast or famine. The work isn’t steady, which makes it hard to manage your cash flow and pay your bills.
But eventually, you’ll get to a point where you’re earning more than you need. And you start to think about the next phase of your solopreneur journey: growth.
The most successful solopreneurs think of themselves as small business owners. They’re not merely providing services to clients: they’re also sales, marketing, accounting, and executive strategy.
Of course, it’s easier to work on the “business side” of your business when your work is more steady. But when you reach that point, or if you’re getting close, here are some tips to help your small-but-mighty business thrive.
1. Always be networking
I’m a freelance content marketer and journalist. Many freelancers I know are also writers. And typically, I run across one of two personalities. They either embrace the marketing side and are comfortable with self-promotion. Or the idea of writing a post on LinkedIn makes them want to curl up into a ball and hide.
A few solopreneurs I know rely solely on referrals. And if that’s you, amazing! But most solopreneurs are continuously on the lookout for new clients or new work, even when they have a full roster. You never know what might hit (like an economic recession that slashes marketing budgets in my case).
Therefore, you should put effort into building your network. These are people who will make introductions, mention you in conversations, or think of you when they need your services.
My main platform is LinkedIn, but you could also rely on communities (like Slack channels) or other sites. Form genuine connections with your ideal clients by engaging in conversation.
Bonus Tip: Track your networking efforts in a personal CRM.
2. Refine your offer
The services I offer today aren’t the same as the services I offer when I first started freelancing. Back then, I’d take any work — including work that was far outside of my wheelhouse.
Now, I’m more clear about what I do (and what I don’t do). I can charge a premium for specialized services.
When you’re running a small business, you're always thinking about what works and what doesn’t work. Honing in on your ideal customers. Answering the question, “Why should they pick me instead of another person offering similar services?”
And as you update your offer and messaging, make sure your brand assets, such as your website and social profiles, match.
3. Make investments in yourself
If you were an employee, you’d have a lot of opportunities to upskill. Companies often pay for continuing education or provide a learning stipend. If nothing else, you can learn from the people around you.
When you’re making decisions about how to spend your hard-earned solopreneur dollars, spending money to take a course or buy a book might feel like a luxury.
But think of it as an investment in yourself and your business. You’re staying current in your field or picking up new skills that make you more valuable to your clients (i.e. can charge more). I also know a lot of solopreneurs who pay for professional coaching. Coaching can help you think strategically or gain confidence to negotiate better with clients.
Businesses invest in themselves all the time: you should do the same. I set aside a few hundred dollars per month for professional development. If I see a course I want to take, I have the money set aside. I also use these funds to attend one industry conference per year.
4. Look for ways to improve efficiency
I know many solopreneurs who are reluctant to spend money on tools. They think it’s a waste if they can do the same tasks for free.
I think cost is the wrong way to look at tools. What you may spend on a tool, you earn in time saved. You can use that extra time on additional client work, networking, or simply taking a break!
I’m eager to pay for tools that make my life easier. And many tools — like project management, calendar management, automation — aren’t that expensive.
Then you have to take the time to learn to use the tool. Most have free trial periods, but sometimes that’s not enough time to evaluate, especially if you’re busy. If it’s a tool I’m really interested in, I’ll pay for a one-month subscription to give it a fair shot.
Anna Burgess Yang
5. Review your business financials
The early days of solopreneurship are often cash-focused. You’re thinking about when clients will pay your invoices so you can pay your bills.
As you grow as a business, cash flow won’t be as much of an issue. You’ll have enough cushion at any given time.
Now’s the time to start examining other financial aspects of your business. Do you have an actual budget (like how much you want to spend on continuing education or tools)? Do you have a “rainy day” fund? Do you set aside money so you can take vacation time?
I also review my business profit and loss statement every month. This report is generated by my accounting system and is exactly as it sounds: my business income and my business expenses, every month. I can compare it to the prior month or even compare it to the same month in the prior year.
6. Plan for the next phase
As your business grows, you may reach a point where you feel like you’re at capacity. And that’s a wonderful place to be in, but then you should start to think: what comes next?
You can certainly charge clients more, but most solopreneurs will hit a ceiling for what clients are willing to pay for services (same is true for any business). You can start offering different services. You could subcontract some of your work so you can take on more clients. Or you can even supplement your income with digital products, online courses, or other materials you create.
Wherever you’re at, you should be thinking strategically about your goals and how to get there. Stretch yourself and try something new — otherwise, you might get bored.
You already bet on yourself once, when you made the leap to solopreneur. You can certainly do it again.
Check out my free eBook: 17 Smart Tools Solopreneurs Need to Start, Grow, and Scale.