Solopreneurship is becoming increasingly popular with workers of all ages. In fact, research shows that 25% of American workers take part in the gig economy, and 10% consider it their primary source of income. What’s more, working as a solopreneur can offer new opportunities that may not otherwise be available in a corporate setting.
Despite the benefits, being self-employed also presents some challenges. Two of the biggest challenges are consistent revenue and comprehensive benefits. If you’re interested in becoming an independent worker, knowing the right steps can help eliminate guesswork and set you up for success. Below, we break down some of the key things to consider before launching your own business.
Create a Business Plan and Set Actionable Goals
One of the best things a solopreneur can do is create a business plan. This is a great way to ensure that you have a clear picture of what your business should look like and that you’re working towards achievable goals.
If you don’t currently have a business plan, using a business planning guide can help you get started. In addition to learning how to develop your unique selling proposition, you’ll also learn how to establish your mission and set actionable goals. Combined, these three elements can help you take your business to the next level.
Focus on Consistent Sources of Revenue
Once you have your business plan in place, it’s time to think about revenue. Depending on your business model, and your growth goals, the amount can vary greatly but it should at least cover your business expenses and provide you with the income you need to sustain your lifestyle.
Whenever possible, we also recommend diversifying your sources of income. For example, if you have two clients who provide the bulk of your revenue, it’s important to have other potential clients lined up in case anything happens. If one of your existing clients falls through or decides to move in a different direction, this will help you replace your revenue quickly without having to pivot your business.
Look for Benefits Designed With You in Mind
Last but not least, it’s time to think about benefits. While benefits for solopreneurs may not be as straightforward as employer-sponsored benefits, there are several promising options. These include affordable, individually-purchased benefits designed specifically for independent workers.
Depending on your needs, you may opt for several of these benefits or choose the ones that are most relevant to you. When it comes to health care coverage, professional associations and the Affordable Care Act (ACA) can be a good starting point. Both will offer several options based on your budget and your circumstances.
For vision care, VSP® Individual Vision Plans are a great option. Affordable and customized for you by VSP, these plans cost as low as $13 a month and provide savings of more than $200 a year. They also cover comprehensive eye exams, as well as prescription lenses. Best of all, VSP has the largest independent doctor network in the nation, so chances are the doctor you know and trust is covered. That means you can get the care you need when you need it.
Being a solopreneur can be a great way to increase flexibility and gain more control of your career. And while being self-employed does have its fair share of challenges, it can also come with significant rewards. The key to making it work for you is to be proactive and plan ahead. With a thoughtful business strategy in place and personalized benefits, you can take the guesswork out of the process and make your business dreams come true.
* VSP cannot and does not provide professional, financial, medical or legal advice. For more information, consult with professional association guidelines, state labor resources, financial advisors, and/or an attorney for advice.