13 Challenges of Running a One-Person Business

Wondering whether starting a one-person business is for you, and whether it’s worth it at all? Here are the challenges and what you might go through:

What’s a One-Person Business Exactly?

That’s the simplest form of business organization there is. Its official name is sole proprietorship and we’re talking about a business run by you and for your own benefit. And while it’s still possible to employ people, now we want to focus on the kind of one-man business that really has one person in the company – you.

There is no legal difference between you and the business entity. While that can be liberating in some ways and mean you do everything your way, it also brings a very specific set of challenges that are not always easy to overcome. That’s what today’s article is all about. I know this can be one of the reasons why many of you don’t actually go ahead and start the business.

Maybe you first start the blog, maybe you start earning a bit, but then it’s time to register it, to pay taxes, to get an accountant. To do those scary things, that although you just need to set them up once and forget them, it can be scary. Maybe that’s one of the reasons why you haven’t started your business yet.

I hope to help you overcome that barrier, because it really isn’t a big one. It’s more of a mental one.

Also, if you’re not sure if you’re actually meant to be in business, if you’re ready to be self-employed, I want to share some of the hard parts about it today. I always want to keep it real with you, so you can decide if you can handle it.

I’ve been running a one-person business online for around eight years now in two different countries, and making a living solely off of it. So I have a thing or two to say about it. But ultimately, only you know if that’s for you or not.

To outsource, or not to outsource?

If you want to scale and outsource, definitely go for it. That’s how the next level is reached.

Most of my business mentors would even advise you to delegate as soon as possible by getting a VA, for example, or just freelancers that can get some of the tasks done. Usually, that’s the things that aren’t your zone of genius.

But there are also business owners who remain a team of one until they hit six figures. That’s totally possible.

In my case, I work with an accountant, but that’s usually something every business owner has. In fact, it’s the one thing we desperately need if we don’t know anything about bookkeeping.

Delegating this aspect of your business can save you a lot of costly mistakes down the road as well as a lot of stress.

So this guide is for you if you’re thinking of starting a one-person business and want to prepare for the challenges, mentally at least. It’s also for anyone wondering if they can do this by themselves. And for those who’ve been in business for some time and need some motivation to keep going.

One of my mottos in life is that happiness is having problems you chose. I also believe Mark Manson talks about this in his books.

By choosing to be in business, it’s best to take full responsibility for anything that comes with it. The good, the bad and the ugly. At the end of the day, I’m always going to choose the problems of a business over those of a day job.

So it’s up to you. But it’s not worth getting in business and then complaining about its challenges to everyone for the rest of your life. That’s not the right mindset and that’s not who you want to be.

Now, let’s get into the problems I’m talking about. Maybe for you problem is a negative word. But for me, it’s a rather neutral one and I worked on this mindset shift a long time ago.

If just the thought of getting into a new venture that might bring problems overwhelms you, you aren’t off to a good start. It’s best to change that limiting belief first so you can go in business for yourself with an open mind and a positive vision.

So here are the challenges I’ve been dealing with over the years. If they sound familiar to you, you are not alone and each of them can be overcome.

The Challenges of Running a One-Person Business

1. Lack of motivation.

It’s inevitable.

Sometimes we’re really motivated, other times we feel down. Life happens, a negative thought enters our mind. Someone tells us something and triggers us and we can be down for days.

Then we’re wondering if this whole business thing is really worth it. If we’re not crazy to even assume we would ever be financially independent thanks to it.

This can consume you for days, for weeks and in some cases, even for months.

You have to find ways to navigate that. To handle the negative emotions that come with being a business owner.

They won’t stop coming. You’ll just get better at managing them.

Over time, if you find the practices that work best for you, you’ll be able to regulate your nervous system quickly. To not get triggered or to at least not give the trigger the power to ruin your whole day.

You’ll also let yourself relax for some time when you’re in a negative spiral. You’ll know that you’re staying in business no matter what. And when you feel like it the next day or in two days, you’ll get back to work.

That’s the beauty of it. You have all the freedom to work whenever you want.

You will experience lack of motivation. Prepare for that. And please don’t leave your business behind for a few months.

I’ve definitely done it for a few weeks in the first years. I don’t remember if I ever did it for a few months. Maybe it’s possible. Maybe I still logged into my blog and did some maintenance and was reading some stuff because I always wanted to know more about personal growth and business.

But that’s the thing.

There are different ways to work on your business.

You can learn about it. You can build new skills and then that can motivate you to get back to the actual work and day-to-day business activities. So my other tip for the moments when you lack motivation is to find motivation boosters.

For me, it’s to listen to podcast episodes by people I admire on business topics. Just the fact that you see them keep going is enough to get you out of your bed and in front of your laptop. Sometimes that’s all you need to find the willpower to show up.

You might not get much done that day but showing up still counts. You show dedication, you build discipline and you’re more likely to also show up tomorrow.

Some create accountability by joining coaching programs or hiring a coach to work one-on-one, or joining a membership site. That’s one of the many reasons I created our membership and community for bloggers.

It’s called Fearless Bloggers and there I create new content for you on any blogging topic that concerns you. I share SEO updates related to Google and what is new in the industry. I share my detailed income reports month after month so you can see exactly what’s happening in my business. And many of the members say that motivates them, that helps them keep going.

So in their case, they focus on me. They see my motivation month after month and they tap into it and use it to get motivated themselves. That’s how it works.

Because after so many years, I know how to find the motivation more often. I recognize it immediately when it’s going down and sometimes I allow myself to take time off. Also mentally, also emotionally, but then I can’t wait to get back to business.

I love it so much and there are so many different activities. Sometimes it can be more creative, other times more administrative. Other times, I can focus on the big picture, read a business book, set new goals, bring more structure to my business.

Also, watch trainings and take courses. That itself gets me back to the actual work and it all feels like a game.

When it’s really hard to keep going…

But I’m very familiar with the moments where your motivation is down, especially when you don’t have the results you want and when it’s been one, two or three years without having even any results.

That’s when it’s really hard to continue. But even then, I would always advise you to continue. Because it might be one little thing that you have to change about the way you do things or your business structure or your content or your product suite or how you sell, how you market, your pricing even, something.

One little thing can change everything and you can earn your first income, it can become a regular monthly revenue and then you’re really in the game. That’s what will motivate you from then on. To keep this revenue, to grow it slowly, to maintain the business.

2. It might take a long time.

The next challenge of a one-person business that you might face is the time it takes to grow.

The concept of time doesn’t really exist in the spiritual realm. In our subconscious mind, past, present and future are the same there. But we needed to invent time to sort of make sense of everything.

However, if you really want this, if you really devote yourself to building a business, does it really matter how long it’s going to take? This is a very good test to see if you actually want to be in business.

It also reminds me of conditional versus unconditional love. If you say to the universe you only want the business if it earns your revenue in two years or in six months, are you really serious about this? Are you devoted?

Is that how you would love a partner or a child? No, you give yourself fully to that. You take 100% responsibility and you suck it up during the low moments because ultimately the thing is giving you more satisfaction, passion, meaning, impact, everything, you name it.

For me, time doesn’t matter. But I’ve struggled a lot with this. I’m still nowhere near the income goals I’ve set a long time ago.

I don’t know if I will ever be. But I keep taking action. The goal remains, the vision is there, but I’m not complaining about it.

I enjoy the benefits the business gives me now. I love this stage. But I would also like to grow and I’m working on that.

So please, if you find a way, take the time concept out of this. That doesn’t mean that you can just slow down and only take action on your business once a week or once every two weeks. No.

Still work on it daily if you can, whenever you can. But just don’t create pressure by saying that you’ll give up on this if you haven’t earned your first dollars in six months.

For some, this can be inspiring. I know they will actually get it done because they set it as a goal. And yet, even if it doesn’t happen, I want you to stay in business if you really want it.

3. Finding work-life balance.

Another challenge of a one-person business is finding work-life balance.

I don’t know if I have officially found it, but I love how things are right now actually.

There have been so many different stages, though. Sometimes it was more about work. Sometimes it was more about life. Sometimes the search for work-life balance was what was creating so much pressure for me.

Other times I was just in a very negative period due to experiencing other things in life and just the business wasn’t going well, even if the income was coming. I just couldn’t create my best content. I couldn’t do my best work. I wasn’t motivated.

It happens. But now, after so many stages, after so many ups and downs, I know for sure that after every low moment a high one is coming. That belief itself can keep you going during the slow moments, the low-income months.

It’s just like with the economy, right? It’s very bad. But if there is one thing we’ve learned from history, it’s that things will be good again. So hopefully that thought can help you.

Defining work-life balance

Work-life balance means different things for different people. So please define it for yourself.

Of course as your life changes, as you become a better version of yourself, as you have a family or as your business grows, you’ll need to adjust that.

Also, when other people in your life need you, you’ll be there for them. When it’s time to travel, you’ll travel. When you have a new relationship, you’ll be devoting more time to that and you’ll also be thinking mostly about that probably.

Sometimes for me, it’s also just a moment for personal growth. I know I need to work exactly on that topic. I’m so excited about it. I find the right book. I read it. I apply it. And there is so much growth happening so quickly that I just know this is the best way I can use these few weeks of my life, for example.

I still do some work, of course, but it’s just a few hours, not even every day. But I know for sure that ultimately that personal growth that happens in that period is going to lead to business growth.

Because after that I have more clarity. I love myself more. I can manage my triggers better. I can manage my emotions. I’m just more empowered. I believe in my vision even more. I feel stronger and then I can focus on business with that new energy.

How everything started

But also I talk a lot about mindset and personal growth on the podcast, in my programs. It’s just a big part of my work. It’s how everything started. Let’s Reach Success, the blog, was first only about personal growth and success. Whatever I learn, I would then teach to whoever wants that knowledge and inspiration. So I found a way to combine all my passions with my work and that led to my version of work-life balance.

Other people are always confused by it, though. They really don’t get it. They can’t do things the way I do them. They always say they would go crazy or they’ll be lazy. They wouldn’t actually be productive. But yes, that’s why they don’t do what I do.

That’s why I’m the right person to do it and I find the way that works best for me.

Creative freeedom

Also, one of the biggest motivations I ever had to start the business was this type of freedom, the creative freedom. To do the work I want to do when I want to do it.

Sometimes that can be late nights. Sometimes I can actually wake up early and have a full day of work and get a lot done. Other times I can be inspired to write something deep, outline a new offer, or make a change in my business while I’m in the plane traveling somewhere.

But it all starts with defining work-life balance and I believe it’s not about what time you start your day or when you eat or all the other technicalities.

It’s about how you want to feel.

I used to be the person who was getting up early only because that’s what society expects. Even if I was living alone, I was feeling guilty for sleeping in.

But guess what? That actually was ruining my performance with work and I just wasn’t feeling good the whole day and I wasn’t staying true to myself. I was living by other people’s standards.

Now I wake up at different times. There is no structure and yet it’s better than ever because I know I produce results and how many hours I work isn’t directly related to how much I earn or what gets done. No, I can do a lot in a very short time when it’s with laser focus and the right creative energy. But that doesn’t happen when I’ve pushed myself to wake up at a time I don’t want to or to sit down to work when I want to do something else instead and do the work later.

So freedom is very important for me. Once I embrace it, once I actually admit to myself what I want and go do it, that’s what leads to work-life balance.

4. The fluctuating income.

The next challenge of a one-person business is the fluctuating income. That doesn’t sound pleasant.

I believe that’s one of the main reasons many people don’t get into business. They can’t deal with the thought of it, let alone actually experiencing this. But here’s what I have to say about it.

First, if you’re really determined to do this, you can actually live with less money than you think.

Second, there are ways to have security while growing your business. Maybe that’s a day job, to still keep it until you replace your income with the revenue from the business.

Maybe it’s to have a part-time job. Maybe it’s investments. Maybe it’s a side hustle, whatever works for you.

Maybe it’s moving back with your parents, no matter how old you are. I’ve heard it all. I’ve heard all the versions of this.

Even when you’re doing well, you have to deal with the fact that the income can be lower again. You have to be mentally prepared for that. That’s why I believe in diversifying your income so you don’t rely just on one income stream.

But before you make that happen, it can be scary. Especially if you’ve always had a day job and are used to that security, I would say, although for me that’s not security. I just see things differently.

I see the whole system – the economy, the way things are structured – as a house of cards. And the fact that it hasn’t fully been destroyed till now doesn’t mean it’s not going to happen.

Preparing for – and thriving in – uncertainty

Every company can go bankrupt. Every stock can go down. I can just see the uncertainty in even the most certain things.

I heard a quote a long time ago that uncertainty is the only certainty there is. I believe one of the best skills, the most useful ones, we can develop in this life is to be flexible. To adjust to things and to prepare for uncertainty.

If you learn how to thrive in uncertainty, nothing can bring you down. That usually involves mostly managing your emotions, expectations, and just mental toughness.

So, about fluctuating income. I know many business owners who are now earning millions, but who were at some point earning five figures a month or six figures a year and again, experienced some problems. Something happened in the industry or in the economy or in their personal life. They lost an income stream or just something changed and for some time they were thinking they would lose it all. This is another big test for a business owner to see if you’re made for this or not.

I’ve experienced it, it happened two times in eight years. It didn’t technically happen. It was just on the verge of happening.

The defining moments of your business

I believe in those moments you really make the big decision whether you really stay in this no matter what and will make it work, or you’ll give up, if not now, one day.

These are the moments when I fall in love with my business even more. When I look back now, these were the most important moments for my personal and business growth.

They showed me the feeling of lack, the opposite of which is the feeling of abundance. But also I believe both are always available to us.

I chose to be in a state of lack and you can go down a rabbit hole of negative thoughts. It’s very, very hard to work on your business when you’re dealing with financial issues or when you’re just worried about paying your bills.

You’re very likely to stop enjoying your life, to not want to deal with certain relationships because it’s just emotionally draining. You’re also quite likely to not do your best work in business because it’s just very hard to create good content, to keep teaching and inspiring people, and creating the big impact when you have those fears and doubts eating you from the inside.

So what you do then defines the rest of your life and I’m so proud of myself for how I handled it.

The first one was many, many, many years ago when the income went down because I was distracted, because of travel, because of leaving things behind for a long time. But, ultimately, this is the reason why I forever replaced freelancing with full-time blogging. This was one of my biggest goals in business and to this day, it’s one of the most rewarding milestones.

I never wanted to do client work again. I wanted to create content only for my own platforms and that’s what I’ve been doing for many years now.

But if it wasn’t for this hard period to push me and for me to see that I actually have the strength and courage and that I really want this, I would just continue doing things the way I was doing them. Half of my income coming from freelancing and half from the blog.

It’s also a matter of perspective.

Another thing about fluctuating income:

If you’ve only had stable jobs and if you come from a family and just social circle where everyone is doing well, no one has a business and everyone has been doing things the right way according to society, then no one even talks about the things entrepreneurs talk about.

So this will be a whole new world to you. Chances are, then everyone in your life will tell you that what you’re doing doesn’t make sense. Even if you start making some money, if you go in business full-time successfully and feel on top of the world, and then when things go down for some reason, (which doesn’t mean the end of your business, it just means a slow period), those same people from your life will be so worried about you.

They’re going to project their insecurities onto you. They’ll trigger you and you might then listen to them and say this business isn’t working. So you’re going to give up on it because it’s just not stable.

But no! What if a month later everything turns around and you enter your most financially free stage ever and it continues forever? Why would you miss out on that?

Don’t let people talk you out of your goals and out of your vision. Logic is not always your best friend. 

As an entrepreneur, you’re doing hard things.

You’re creating something that hasn’t been created before, at least not in the exact way you’re going to do it. You combine seemingly unrelated things to create something beautiful online or offline.

You’re an innovator, you’re a leader, you’re disrupting an industry and there is no logic in that. If business owners were using mostly logic, some of the best products and brands and ideas wouldn’t exist today.

For part 2 of this list of challenges of a one-person business, go here.

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