6 Business Models You Should Avoid as a Solopreneur (And What to Do Instead)

As a solopreneur, it’s important to recognize your limitations, especially when working without a team or significant financial backing. While many successful entrepreneurs preach various paths to success, it’s crucial to understand that they often didn’t start where they are today. This post outlines six business models that are difficult, if not impossible, to pursue effectively as a solopreneur and offers two viable alternatives that can set you on the right path.

1. Building a Large-Scale Video Game

Creating a complex video game, especially something on the scale of World of Warcraft or The Witcher, is beyond the reach of a solopreneur. These projects require extensive resources, including large teams, significant financial investment, and years of development. Even successful indie games like Stardew Valley are outliers and were much smaller in scope compared to AAA titles. If you’re passionate about game development, start small with a simple game that focuses on a single mechanic.

2. Developing a Large-Scale App

Building a big app is another area where solopreneurs often stumble. Apps require ongoing development, bug fixes, and updates, which are challenging without a team. Additionally, the app market is highly saturated, making it hard to gain visibility and traction without significant marketing resources. Consider simpler alternatives or different mediums for solving the problem you’re interested in.

3. Creating a Social Media Platform

Competing with giants like Facebook, Twitter, or Instagram is nearly impossible for a solopreneur. These platforms have enormous user bases, vast resources, and years of development behind them. Even trying to develop a new messaging app would be a tough sell in a market dominated by established players like WhatsApp and Signal. It’s best to avoid this highly competitive space unless you have a truly groundbreaking idea and the resources to back it.

4. Competing with Google

Trying to build a search engine or any service that competes directly with Google is a losing battle for a solopreneur. Google and similar companies have decades of experience, vast financial resources, and technological expertise that make it impossible for a small player to compete. Focus on smaller, niche markets where you can offer something unique that the big players overlook.

5. Manufacturing Consumer Products

While consumer products like makeup or food items can be profitable, they also carry significant risks. High upfront costs, inventory management, and dependence on third-party suppliers make this a challenging business model for a solopreneur. If you don’t have control over production and distribution, you may find yourself overwhelmed and unable to compete.

6. Starting a Certified or Regulated Business

Legal businesses, construction firms, or any business requiring specific certifications are not ideal for those looking to start quickly. These fields require significant education, certification, and regulation, which can delay your ability to launch. Unless you already have the necessary credentials, consider other business models that don’t require lengthy preparation.

So, What Can You Do?

Given these challenges, you might wonder what options are left. Here are two business models that are much more accessible for solopreneurs:

1. Start a Service-Based Business

Many recommend starting with a service-based business where you sell your skills and time. Freelancing is a common path where you can leverage what you already know to start generating income quickly. Whether it’s writing, design, consulting, or any other skill you have, a service-based business allows you to start small and scale up as you gain clients.

2. Create a Micro-Product

This is my preferred approach. Micro-products are small, niche products that solve specific problems for a targeted audience. Unlike large-scale projects, micro-products can be developed and launched quickly with minimal resources. Over time, you can grow and expand these products into larger offerings, potentially competing in more significant markets.

Starting small doesn’t mean you can’t achieve big things. By focusing on manageable, scalable business models, you can build a solid foundation for long-term success. If you’re interested in learning more about why I prefer micro-products over service-based businesses, check out my video on the topic.

Stay focused, stay realistic, and remember: success doesn’t happen overnight—it’s built step by step.