Launching your own business is challenging in its own right. But starting as a solo entrepreneur with no support from a team can feel like an insurmountable mountain. Indeed, solo entrepreneurs – or even freelancers – design their professional careers outside of the office environment in the hope of gaining more freedom.
Unfortunately, it can have the opposite effect as their solitary position can make it extremely difficult for them to secure the capital they need. Ultimately, starting a business doesn’t happen for free. It’s a significant financial investment you need to be ready to support. So, where do solo entrepreneurs find the money?
They take another job
More often than not, a solo entrepreneur has to learn to put their pride aside and seek other forms of employment to support the start of their independent career. Indeed, launching a company comes at a high cost. Therefore it can be helpful to diversify your activities to boost your savings and create a supportive platform to build your company.
Providing delivery services, for instance, can be a profitable seasonal activity that requires only truck training. Passing your truck driving license rapidly can give you the opportunity to join companies during the seasonal Christmas rush, for example. You can accumulate jobs for a few weeks to build up your capital.
They learn to manage waste
Sometimes, it’s not so much about how much money you can make, but how much you can manage to save. Indeed, learning to manage your business cash flow is a crucial skill to develop. As a solo entrepreneur, you can’t afford to maintain time-demanding processes that end up becoming a waste of resources.
Instead, streamlining your work can help you to keep your expenses under control and free up valuable time in the process. As a result, you can keep business management easy and effective, ensuring you’ve got plenty of time to dedicate to income-generating tasks.
They find an investor
Why should you fund your startup when others can do it for you? Finding the right investor for your solo business is not an easy process, but it isn’t impossible. With plenty of angel networks around, you can find a network of contacts who are willing to listen to your ideas.
Crowdfunding sites are also an excellent option for business owners who want to appeal directly to their audience. Admittedly, you will be competing with many other aspiring entrepreneurs who want to introduce the next big thing, so you’ll have to be smart about presenting your idea and your company.
They take a personal loan
Last but not least, it’s fair to say that you can turn to your bank for support. Commercial loans, however, are not a popular option for solo entrepreneurs. Indeed, most banking institutions are careful about supporting commercial corporations.
Priority is given to businesses that have a long history of financial growth and success. As a new company with no team to support your growth, you are unlikely to be lucky with a commercial loan. However, you can choose a personal loan instead, if your credit history is suitable.
Securing the capital you need to build your business is a tricky journey. More often than not, solo entrepreneurs are forced to combine multiple strategies at the same time to form sufficient capital.