Where your experience becomes your business.

Knowledge Capital = Tremendous Opportunity for Solopreneurs

In my last post, The Definition of a Solopreneur, we explored the evolution of the word entrepreneur and what it means in today’s world to take that leap. Now, I would like to expand on this concept of solopreneurship and discuss a few key points.

Knowledge Capital = Tremendous Opportunity for SolopreneursAs I mentioned before, the first Baby-Boomer turned 65 in January of 2011, and is quickly heading into retirement with a great deal of knowledge capital in his or her back pocket. In addition to this, businesses today are shifting from a “hire and train” mentality to a “I want to get it done now” mindset. They are looking to bring in people who can provide an instant impact versus hiring and training someone. Businesses are open to acquiring this know-how and gain experience; however, they are not open to putting it on the payroll, and these days they don’t have to. 

It used to be that investing in knowledge capital would have paid dividends down the road. Today, the reality is that businesses that have been forced to put several major strategic projects on the shelf are no longer willing to hire and train. They want to bring in strong talent that can get the job done right away. They don’t want to do it with fixed costs; they want to do it variable dollars. That means that if I'm using expense dollars instead of fixed costs, once the project is done, the expenses associated with that project can go away. For employers, it's the best of both worlds, and for solopreneurs, it is a tremendous opportunity to take what you know and make it happen.

Think about it. If a business owner uses expense dollars versus fixed dollars to get a project done, then he or she has the result and the expense goes away. This is the anti Johnstown Flood Tax, if you will. The Johnstown Flood Tax was an emergency tax created to aid the recovery of Johnstown, PA in 1936 and the reality is we are still paying that tax to this day. Fixed expenses stick around way too long and much longer than they should, but with variable expenses, business owners can get the job done and move on to the next project. 

This is why I think experienced people with extensive knowledge capital should consider solopreneurship. Here are five key points to take from here:

1.    The market is demanding knowledge capital. Businesses do not want to pay for it with salary expenses; they just want to get the job done.

2.    It's an extremely viable career path. Finding a $150,000 per year job is difficult in today’s market, but finding five jobs that pay $30,000, is not that hard.

3.    Your experience and knowledge will help fuel the economic recovery and get that knowledge capital back into the marketplace.

4.    Solopreneurs drive a great service. They provide a tremendous amount of value as they work with several different organizations.

5.    Finally, being a solopreneur can be a lot of fun. Trust me on this.

This topic has really created a lot of buzz. We get a lot of questions and feedback each time we talk about the concept of solopreneurship. It is absolutely key for you to challenge yourself on the "preneur" side of the word. Is it risky or is it a viable career path?

Interested in learning more from Buddy? You should sign up for the free Ex3 Matters weekly newsletter, which will keep you informed about the latest trends in solopreneurship and consulting. You can also download a copy of Buddy's free eBook, "Experience Matters" to learn more about solopreneurship in the modern world.