my last day working for an employer was december 22nd, and i haven’t looked back. i’ve written about my journey to solopreneurship in detail, including how i bought myself out of my full-time job. i’m so grateful for the opportunity to live life on my own terms and do what i love.
but it ain’t all been easy.
the last six months have brought challenges along with successes. i see both as blessings because even the difficult times were learning experiences that helped pave the way to earning almost $150,000 in the first half of the year. my goal is to earn $250,000 this year, and today’s post is a reminder to just keep pushing.
Six Lessons from Six Months of Solopreneurship
what’s a solopreneur? simply put, it’s a “solo” entrepreneur or an individual who runs a one-person business. they don’t have employees and often run service or product-based businesses that only require the internet and a few contractors. the million dollar one-person business by elaine pofeldt is a tremendous resource on solopreneurship. her book as well as the four hour work week by tim ferris were two guides as i embarked on my journey.
Lesson One – Multiple Streams of Income are Clutch
when working as a solopreneur having multiple streams of income is vital. it ensures that you’re not dependent on one client, contract or service to keep your business afloat. in fact, earning passive income in the form of e-books and pre-recorded courses is even better.
for example, at the beginning of the year, multiple brands were hitting my inbox monthly wanting to collaborate. by spring those offers had slowed down, and i haven’t worked with a brand in months. while the solicitations are still there, the numbers just ain’t right. i’m a professional content creator with ten years in the game, and i’m not allowing brands to pay me in pickle juice.
if i would’ve quit my job expecting brand partnerships to keep my business afloat, then politics & fashion would’ve quickly gone back to a side hustle. thankfully, my equity consulting, workshops and products are all profitable components of my business. i encourage you to get creative and assess how you may be able to transform some of your leading talents into multiple income streams.
Lesson Two – Require Half Upfront
the biggest struggle that i’ve had as a solopreneur is being invoice rich and cash poor. unfortunately, it’s virtually impossible for all clients to pay simultaneously using the same invoicing and payment systems. as a result, i’ve often had a greater amount in pending invoices than money in the bank.
in order to avoid the invoice struggle, i’ve switched all my monthly coaching clients to flat rate retainers and all my contracts now require half payment upfront. it’s made running my business dramatically easier especially since i have ongoing expenses like health insurance, retirement savings and online services like my social media scheduler.
Lesson Three – Not all Business Checking Accounts Are the Same
i’ve banked with the same institution for over twenty years. obviously, they were the first on the list when opening my business account. big mistake because their fees have been a killer.
i should’ve done research to determine which business checking accounts met my needs. for example, as a digital content creator, some might argue, my clothing, accessories and travel expenses are all tax deductible. therefore, using my business debit card tied to quickbooks is ideal for these purchases. however, my bank charges an activity fee after a small number of transactions per month.
also, i’ve waited for months for my personal and business checking accounts to become merged in the online banking system. without this access and ability to automatically transfer funds, i’ve taken countless trips to the bank and suffered overdraft fees. it’s been a damn mess, and i’m actively searching for a new bank.
Lesson Four – Read the Fine Print
the biggest lesson that i’ve learned is to read the fine print. as an attorney this should be obvious, but i honestly feel overwhelmed by large processes like my recent work with an online product developer.
after going viral, i created my white toenail season products. since i didn’t want the responsibility of packaging and shipping, i worked with a third party connected to shopify to produce and fulfill my orders. it sounded easy as pie until they started fulfilling the orders automatically.
i’d given them permission to charge my bank the production fee without my consent. this means hundreds of orders were processed without the actual money to fulfill them in the account connected to the platform. remember i mentioned that my bank was trash? in order to cash in on this mistake, they allowed each and every transaction to clear and afterwards charged me dozens of $40 overdraft fees.
i felt like a failure. i’d had this super successful product launch, but a significantly reduced profit because i didn’t read the fine print.
thank God for a partner who propped me up and reminded me that i’m still learning. i gave myself a day to wallow in self-pity and then got back to business. while the mistake was a huge blow to my self-esteem, it wasn’t detrimental to my business. i’ve given myself the grace to make mistakes.
Lesson Five – Keep Business and Personal Saving Separate
i’ve been transparent about having $20,000 saved before quitting my job. of course, this amount was outside of retirement savings which i made a vow not to touch. i’m grateful that we had this money tucked away for emergencies; however, what i didn’t anticipate was the need for separate business savings.
having three to six months of business expenses saved would have come in clutch while i was working out my payment terms. i could’ve pulled from this pot to pay my part-time project manager or insurance premiums on the months where my invoices were being paid on inconsistent schedules.
moving forward, i’m keeping at least $5,000 in a savings account dedicated to my business at all times.
Lesson Six – The Success is in the Grace
i once heard stacey flowers, a financial literacy coach, say “unless you’ve been taught how to be good with money, then you’re a student.” i’ve come to embrace this perspective as a business owner as well. i’m a student of solopreneurship learning something new each day.
embracing this mindset has prompted me to continue studying how to run a profitable business and not beat myself up over mistakes. if i quit every time something didn’t go as planned, then i wouldn’t have made it to that front row seat at miami swimweek.
the success is in the grace
good and bad aren’t concrete concepts. our perspectives shape every experience that we’ve ever had. even if the only reason that i learned these six lessons was to share them, then i’m beyond grateful. while the challenges stung a bit to overcome, i’ve learned to embrace them in order to grow. thank you for the support throughout my journey.
What I’m Wearing
please note that i’m not an accountant nor financial expert, and everything i’m sharing in this post is my personal opinion.