Do you ever think about how being a solo-preneur can be dangerous? Maybe you should. I know that it is hard to consider when you don’t have a business in a dangerous industry like manufacturing or construction. If your small business mostly involves working in your office alone, it doesn’t seem dangerous at all. But, there are pitfalls in all types of businesses. Why else would our states demand workman’s compensation donations to cover injuries received on the job?
I’ve been doing some cleaning in my office recently. No, not just dusting, vacuuming and emptying trash. That stuff I do on a pretty regular basis. My design library has been greatly reduced and I am cleaning out files that go back through my interior design career. Why I didn’t do it sooner, I’m not sure.
I have one ‘Miscellaneous’ file. Actually, it’s three overloaded file folders. It’s full of of cards, notes and all kinds of miscellaneous stuff from clients, colleagues and friends. Some of it is just articles I thought were important at the time. It’s amazing how much in that file was about small business, sole practitioners, and how being a solo-preneur can be dangerous.
I hung onto more than a few items about making it on your own as a small business owner. Some of it is serious, like notes from a seminar or magazine articles. There are more than a few cartoons on the topic that tickled my funny bone. But the message surrounding the idea of being a solo-preneur is still strong. There are a few tax advantages and more than a few pitfalls small business owners should be aware of.
Doing Everything Alone and Being a Solo-preneur Can be Dangerous
Something I learned in my ASID leadership days: the vast majority of the Society’s members were solo-preneurs or had just one or two employees. Bigger firms with staff to help carry the load were in the minority.
Like most small business start ups, an entrepreneur takes on a litany of tasks to get their business up and running. As a solo-preneur, you wear more than one or two hats to get the job done. Solo-preneurs, have no more time in a day or days in a week than any other small business owner. They put in far more hours than a typical paid employee to see that their customers are well served. Leaving a 40-hour a week job with dreams of working less and making more money is just that: a dream. Entrepreneurs work many more hours doing every task imaginable just to keep their business running.
The thought of adding staff to help is one of those delicious dreams that run through our minds from time to time. Those dreams are usually followed by the reminder that we will be come responsible for that person. We will need to bring in more customers or at least larger projects to pay their salary and benefits until they are up and running. Ideally, they will help increase revenues, but that is not always the case. Administrative staff often falls into the ‘liability’ side of the financial ledger while additional designers or sales staff can help bring in additional revenue.
For those reasons, small business owners keep trying to do it all alone far too long. They become totally wrapped up in day to day operations of their business, leaving little time to really think about how they can grow, expand and become profitable. This is what is known as ‘working IN your business‘ instead of finding time to ‘work ON your business.‘
I know you have had these same thoughts, more than once or twice. As you read the following letter Ken Deck shared, I hope you enjoy the humor, but also see the serious side of the message. It is time to stop trying to do everything on your own and get help building the foundation for your business vision of success. Without a stable foundation created through planning, processes and systems, the odds that your solo-preneurship will fail.
From the lighter side, I want to share something I received long ago from a design colleague, Ken Deck. Ken and I were both chapter and national leaders in ASID (American Society of Interior Designers) together. Sadly, he recently passed away and took his great sense of humor with him.
Dangers of Trying To Run Your Small Business Alone
Dear Sir:
I am writing in response to your request for more information concerning block #11 on the insurance form which asks for “cause of injuries” – wherein I put “trying to do the job alone”. You said you needed more information. I trust the following will be sufficient:
I am a bricklayer by trade and on the date of injuries I was working alone, laying brick around the top of a four story building. At the end of the project, I realized that I had about 500 pounds of bricks left over. Rather than carry the bricks down by hand, I decided to put them into a barrel and lower them by a pulley which was fastened to the top the building.
I secured the end of the rope at ground level and went up to the top of the building, loaded the bricks into the barrel and swung the barrel out with the bricks in it. I then went down and untied the rope, holding it securely to insure the slow descent of the barrel. As you will note on block # 6 of the insurance form, I weigh 175 pounds.
Due to my shock at being jerked off the ground so swiftly, I lost my presence of mind and forget to let go of the rope. Between the second and third floors I met the barrel coming down. This accounts for the bruises and lacerations on my upper body.
Regaining my presence of mind, I held tightly to the rope, traveling rapidly up the side of the building, not stopping until my right hand was jammed in the pulley. This accounts for my broken thumb. Despite the pain, I retained my presence of mind and held tightly to the rope.
At approximately the same time, however, the barrel of bricks hit the ground and the bottom fell out of the barrel. Devoid of the weight of bricks, the barrel now weighed about 50 pounds. I again refer you to block # 6 and my weight.
As you might guess, I began a rapid descent. In the vicinity of the second floor, I met the barrel coming up. This explains the injuries to my legs and lower body. Slowed only slightly, I continued my descent, landing on the pile of bricks. Fortunately my back was only sprained, and the internal injuries were minimal.
I am sorry to report that at this point I finally lost my presence of mind and let go of the damn rope. As you can imagine, the empty barrel crushed down on me.
I trust this answers your concerns. Please know that I am totally finished trying to do projects alone.
Best regards,
Conclusion
I hope you now better understand the dangers of being a solo-preneur for your small business. Take time out to do some planning. Work ON your business. Figure out how you can get some help to make your business more stable. Wearing all of the hats and trying to go everything on your own will only result in something failing. Determine the best way for you to let go of some tasks that you honestly don’t like to do anyway. Find someone to do them for you; if not a full time employee, then outsource it. Set policies and procedures to begin a solid business structure to take you forward. Don’t let being a solo-preneur become a danger to your future success.
