The first lesson that every entrepreneur learns is that starting a business is harder than it looks. Though a company is often born from one person’s vision, getting a new organization off the ground has always required the talents and commitment of a knowledgeable team.

The person with the idea for the company will need the help of a lawyer to get a business license and the necessary permits, and draw up contracts for the others that need to be hired. An accountant will be needed to manage revenue, follow up on invoices, make payments to suppliers, handle payroll, and file taxes.

But we’re still only getting started. IT, graphics design, and marketing experts will be necessary to make a website, post regularly on social media, and generally raise awareness about the business. Dedicated staff will then need to be on hand to make and sell the product while the owner isn’t physically present to do that work. A location for the business will naturally be needed, which also means hiring cleaning and maintenance staff.

All of this takes plenty of energy and money, even if you are lucky enough to hire and train a good team right out of the gate. The thought of so much initial work and investment — before even coming close to making a product or bringing in your first customer — is enough to discourage many would-be entrepreneurs from even getting started.

But what if there were an easier way?

A tool for every job

Today’s digital toolkit offers simpler solutions for all of the groundwork outlined above. AI software can now fill out forms, generate contracts, and handle accounting work. Dedicated programs like Midjourney can craft unique imagery for your brand, with ChatGPT or other text-based AI software writing your social media posts for you.

Off-the-shelf website code can give your business a presentable face to the world, while an added e-commerce applet handles online customer purchases. Third-party retailers, such as Amazon and others, can also help promote and sell your products. Of course, if you can advertise, present, and sell your wares online, you might not need a brick-and-mortar location at all.

None of these solutions is likely to be perfect, but perfection isn’t needed at the very first stage of starting a business. Their main utility is to dramatically reduce the cost and effort required to put a new company on the map.

Indeed, with all the auxiliary processes being handled or assisted by AI software, there are really only a couple of tasks remaining for new businesses to worry about. The first involves actually making the product, and the second involves packing it in boxes for shipment to paying customers. A third task, which may or may not be necessary depending on the nature of the company, is customer service. Overall, however, entrepreneurs taking this approach can expect fewer headaches and a greater focus on the core business.

It’s no wonder this new business template is beginning to take off.

A new path forward

Yes, starting a business without employing a team — dubbed ‘solopreneurship’ — is now officially a thing. The first hint of this trend came in 2022, buried midway through a report by the Bureau of Labor Statistics in America. The report noted a dramatic 8% increase in the number of self-employed people in the country, over the space of a single year.

The massive disruptions of the pandemic surely played a part in this increase, but the trend itself has extended through to today. And as is so often the case, what happens in America soon spreads to the rest of the world.

Incidentally, this trend toward self-employment could shed light on a phenomenon that businesses in many countries have been scratching their heads over. Since the pandemic, there has been a spike in the number of employees quitting their jobs, yet unemployment numbers have simultaneously remained relatively low, and it has been hard for many HR managers to find replacement workers for those who have left.

The solopreneurship trend solves a large part of this mystery, as new business owners are neither unemployed nor in a position to join other established companies.

Solopreneurship also solves many problems for those who embrace it. Beyond mere cost reduction, the practice also removes people from positions where they must either give orders to others or take orders from superiors. Autonomy replaces hierarchy, with the ability to borrow temporary manpower from digital freelancers should the need arise.

The ‘me’ generation

Above all, solopreneurship is a way for business-minded people to follow their personal passions without other distractions. And because those new business leaders are indeed passionate about their field, they are likely to be highly attuned to niche opportunities within it, as well as subtle shifts in market demand. In such cases, the small size of these new companies may become a distinct advantage, as they can pivot toward new opportunities more quickly than their larger competitors.

These same qualities may facilitate the marketing efforts of ‘solo’ companies as well. Passion produces authenticity, which is a big selling point for would-be customers looking for a brand they can believe in. Customers also form bonds with individuals more easily than with larger corporations, and it is these kinds of personal relationships that enhance loyalty over time.

Of course, many types of businesses still require skilled teams right at the outset, and all growing companies will need to expand their workforce at some point. But as the solopreneurship trend shows, the barrier to starting a new company is lower than ever — and it will be incredibly exciting to see what this new generation of visionary leaders can produce.