“Every time you state what you want or believe, you are the first to hear it. It is a message to both you and others on what YOU think is possible”, is a famous quote by the media mogul, Oprah Winfrey. Entrepreneurs are born from such thoughts, where the possibilities are visible to them, and they work relentlessly to make it happen. We know the stories of Jeff Bezos, Bill Gates, or Byju Raveendran on how they turned their dreams into an enterprising reality. They are the ideators, innovators, and driving force to bring their vision to life. Trending these days are the terms, solopreneurs, and homepreneurs, who in essence are entrepreneurs with a distinct working style or environment.
Solopreneurs, thus prefer to work alone, while entrepreneurs employ people to get their work done. Solopreneurs can vary from writers or designers to social media influencers. They create a brand around themselves. On the other hand, homepreneurs are entrepreneurs who work from the comforts of their home, making use of the resources around them to carve a niche around their product. Homepreneurs may market their secret spice powders, or take their hobby of gardening or art into a thriving business.
Challenges faced by Solopreneurs or Homepreneurs
The challenges faced by either of them are more or less the same. So, we will look into it as a common head.
1. Failing to adhere to the budget
The first step to have a financial discipline is to make a budget for the business. This should include the contingency, investment, and growth plans. Usually, making a budget is like making new year resolutions. This can prove a make-or-break decision for the business.
2. Failing to track the expenses
The solopreneurs or homepreneurs have a clear head regarding the ideas they pursue. The failure mode is usually in the simple step of bookkeeping. They tend to overlook the expenses as they are not used to doing it or might forget to note it while doing the core job.
3. Difficulty to make the right decision at the right time
Whether it is a growth or an investment opportunity, they will be able to correctly give a weightage to its positive points versus the negative points, but they might fail to make a financially right decision. Thus, the growth opportunity might turn into a financial burden or overload to them.
4. Failing to manage the invoices
Every business knows the importance of account receivables and account payables. The tracking of these becomes difficult for a solopreneur or a homepreneur while doing their core activities. The profitability of the business will be affected by this negligence.
5. Inconsistency in the remuneration
Every business has its ups and downs. The same business cycle happens to solopreneurs and homepreneurs. The return on every investment needs to be reviewed to level this inconsistency.
6. Less knowledge about the taxation rules
With the onset of the pandemic, there was an increasing trend of home chefs and home bakers, who have amazing talents and have a promising future. The difficulties they face were the registration rules or taxation rules. Ignorance about these has shut down the shop for many.
How Financial Outsourcing can help
The virtual assistance to the financial challenges they face is like rain at the end of a scorching day. Many are not aware of the help or guidance they get from a financial service provider at a fair rate.
They will be able to provide a practical budget to help in sustaining and growing the business. They will also review the budget periodically and will assist in the adherence of the same.
The financial service providers will make use of technology to assist them in the bookkeeping process. They will provide reminders regarding the accounts payable and receivable through daily or weekly MIS.
Expert opinion on growth and investment opportunities
The financial service providers are well aware of the importance of the right decision implemented at the right time. They will provide expert advice on the cost, expense, or return on investment, which will help the solopreneurs or homepreneurs get a consistent remuneration or explore growth opportunities.
The computation of taxes is best done by the experts. They will be aware of the changes in rules and regulations. They will remind regarding the last date of payment and thus help in avoiding the late payment fine.
Diligen has always been a pioneer in matters of finance. They have a plethora of satisfied customers behind them to prove their dedication in this area. The well-constituted team has always gone a step ahead in helping and guiding their customers to success. Solopreneurs, homepreneurs, and entrepreneurs have wide business opportunities in today’s virtual world. The outsourced financial services will prove to be a great support to these opportunities.