Top 5 benefits of going Solo for your new business
A few years ago, starting your own business ditching a job or a set career was considered a foolish decision. Some even considered that as a last attempt to save one’s dying career.
Well, in 2021 this is not the case anymore.
With the rise of the digital era, Solopreneurship, freelancing, or self-employment are no longer perceived as non-promising career options.
On the contrary, while many entrepreneurs are finding it difficult to stay afloat in current market scenarios, Solopreneurs are sailing smoothly with growth and becoming experts in the industry.
As per a MBO’S 2020 state of Independence report, 41.8 million US professionals were recognized as Solopreneurs and freelancers in 2019 contributing $1.3 million annually to the US economy. So, if you are a Solopreneur or aspire to become one, get ready to witness growth as Solopreneurship is expected to be a huge industry in 2021 and beyond.
Evaluating the pros and cons
With endless resources available on the Internet, Starting as a Solopreneur has become quite easier. Though the benefits of Solopreneurship are immense, there are some challenges you may encounter while starting out on your own. let us take a quick look at them
- Finding the perfect business niche for yourself– While going solo, Solopreneurs often find it difficult to identify and target the right audience or to offer the exact services needed. Focussing on a particular domain is the key here.
- Multitasking – Solopreneurship is a one-man show which requires you to do multiple jobs at a time. Multitasking is hard and can bring exhaustion and frustration. Using tools and software can help to reduce and streamline your work.
- Time Management– As mentioned earlier, solopreneurs need to do multitasking which consumes a lot of their time. Time management is crucial for solopreneurs to work efficiently. Strike a balance between work life and personal life is important.
We will be discussing in detail the mistakes Solopreneurs should avoid in our next blog. Let us now jump in to see the benefits Solopreneurship offers.
Benefits of going Solo
1. Easy to Start
We know starting a business involves a lot of legal processes right from registering your business to obtaining necessary licenses. In the UK, choosing you legal status of your business determines whether you need to register with The Companies House, The UK’s registrar of companies or not. Setting your legal status as a Solopreneur, you will be exempted from registering with the Companies House and can maintain simple accounting and records.
Also, You do not need to have any physical store to sell your products or services which requires huge investment. You can easily build an online store using various platforms available on the internet at reasonable costs.
Hence, the start-up cost is pretty low and less complicated in the Solopreneur business.
2.Simple Accounting Process
When you are running your business operations yourself, maintaining accounts becomes a lot easier. You can manage your accounts in any manner and there will be no need to hire anyone for auditing purposes. Also, there are many free small business accounting tools that can help you manage your bookkeeping processes saving you time and effort. Quickbooks Online, Zoho Books, Freshbooks, Xero are such tools to name a few.
This is perhaps a lucrative part of going solo for your business. You can save some extra bucks by taking advantage of tax benefits offered at various levels. For example, you can claim for capital allowance if you want to purchase vehicles, Furniture, or IT equipment for your business.
In addition to that, there are some tax benefits available to solo businesses in the UK. There are two major schemes viz, Enterprise Investment Scheme under which a solopreneur can get tax relief on investment in business and The Seed Enterprise Investment Scheme which offers initial tax relief of 50% on investments up to 100,000 pounds during early stages of business.
4.Profit retention and no salary capping
Entrepreneurs make more money than solopreneurs but they share their profit amongst their workforce. A solopreneur, on the other hand, can retain the entire profit of the business. This makes Solopreneurship more profitable helping them to invest in other ventures and grow revenue.
5. Agility and freedom
This business model allows having the flexibility to shift back to your workforce in case your business fails. However, it is not possible to slip in and out of jobs if you have shareholders or partners to be answerable to. Besides, the best perk of going solo in business is the FREEDOM. You have the freedom to choose and work as and when you please. You are not accountable to anybody and you own your days.
Which benefit did you love the most? Share your thoughts with us.
Also, if you are looking to leverage Salesforce for your business, we, at Outsource Salesforce can help you get started with our Salesforce implementation services. Visit us and let our developers guide you through. See you there!