Being a solopreneur means that you are busy naturally. If you are also growing or trying to scale, it can be difficult. I love helping solopreneurs create growth opportunities. I especially enjoy showing solopreneurs the steps and strategies that help you work less and earn more. I’m sharing 5 of those steps today so you can turn your solopreneur business into a thriving online agency.
Trying to grow and scale your business can only take you so far as a solopreneur. These five steps help position you to do both and become a thriving online agency.
The 5 Steps
We are discussing five steps to help you go from solopreneur to a booming agency owner.
Five Steps:
- Check Your Processes & Systems
- Hire Subcontractors
- Add Services
- Stop Doing Client Work & Delegate
- Keep Scaling
One way to help you turn your solopreneur VA business into an online agency is to up your skills.
What this means is that you should continue training and taking courses to help you with your business. This is also a great way to add services to your business.
Check All Of Your Processes & Systems
One of the first and most important pieces of scaling your business involves processes and systems. These must be in place and must work properly before you begin to turn your business into an agency.
Processes & Systems
You have to have documented processes as well as systems that work not only for you but also for your team (as you bring them on). This is a must. Processes must be written and easy to understand. And they must be documented in a place where everyone can easily access them.
Marketing Systems
Are you continuing to attract clients through your marketing cycle? This wheel (as I call it) must continue to turn, even if you have a full book of clients.
Check & Review
- Your Social Scheduler – make sure nothing has changed within it and that it is still scheduling social media posts as you want it to.
- Content Writing – are you writing your own content or is someone else writing it for you? Be sure your brand’s voice still resonates with your ideal audience.
- Scheduling Content – is your content schedule or plan working properly to produce content on time (and even a week or two prior to needing it)?
- Scheduling Appearances – part of your marketing plan should be appearing on podcasts, videos, and webinars/conferences.
- Ad Schedule – Are you scheduling paid ads out properly to coincide with any special activities you have coming up?
These are only a few systems to check on and review.
“Sometimes the most powerful results come from the least exciting habit: doing the same steady thing, reliably, for a long time.
Consistency isn’t glamorous, but it’s what actually builds trust.
The foundation you build now is what you’ll launch from later.
The quiet, consistent work you’re doing right now is not invisible. It’s building something.” ~Natashia Tiel with Tiel Virtual Solutions
Other Systems
The remaining systems should also be checked. These can include:
- Accounting
- All-in-One Systems
- Analytics Systems (Google, Social Media, etc.)
- Client Portal
- Cloud Storage
- Email Marketing
- General Email& Document (settings)
- Project Management
- Website Management (including hosting)
Whatever systems you use, plan on checking them regularly. To go from a solopreneur business to a busy agency owner, you will need to have good systems in place.
As you review your systems, make changes if necessary as you begin growing and scaling your business.
You can later assign some of these tasks to your subcontractors. Have your subcontractor review systems they work in regularly. They know the system because they are in it regularly. Your subcontractor should know if something changes. It is also important to correct any documented processes involving the system if it changes.
Let’s discuss those subcontractors now.
Hire Subcontractors
Whether you are a solopreneur who is building rapidly or slowly, you can hire a subcontractor (also called subs) at any time to help you in your business. If you know you want to build an agency when you start your business, I suggest bringing on subcontractors as you begin getting clients.
“A subcontractor is an outside company or individual hired by a general contractor to perform part of the work or services under an existing contract with a client. Subcontractors are independent and not employees of the general contractor. A subcontractor may also subcontract part of their work to another subcontractor, creating a chain of contracts linked to the original agreement.” –Cornell Law School
As you start bringing on subcontractors, you should assign them client work. Eventually, you can have your subcontractor work on all of your clients’ tasks as well as some of your business’s needs.
Before You Bring On Your First Subcontractor
Before you ever bring on your first subcontractor, you must know your numbers.
You have to know your numbers, including how much your revenue is, minus your expenses, and what that equals. You also must know your ROI (return on investment), especially when doing ads.
If you have a clear picture of your numbers, it will help you know what you can pay a subcontractor.
Paying Your Subcontractors
Deciding what to pay a subcontractor causes many business owners distress.
Often my consulting clients are concerned about how they can pay a subcontractor. They know they can’t hire employees, but subcontractors can be a great alternative. You do not pay them benefits, nor do you pay employment taxes. They are considered 1099 employees* in the United States.
If you are a U.S. business, check the IRS site to determine if your business meets the requirements for hiring contractors (or subcontractors). When making these decisions, it is also wise to ask yourself if your business can continue to meet these requirements as your subcontractors work for you.
Some businesses will make a transition from subcontractor to hiring an employee eventually. Others make using subcontractors only their business model and will never hire employees for client work.
You are the person who determines what to pay each subcontractor. A few subcontractors may have their own pricing models. It is wise, however, to be the person who sets your subcontractor rate and has a contract for them.
Some subcontractors have regular client rates and special rates for subcontracting. And there are those who only subcontract.
You are the business owner and should set your rate.
*Visit irs.gov before bringing on a subcontractor to make sure it fits your business model. If you do not live in the U.S., please check with your country’s laws regarding subcontractors before bringing one into your business.
Calculating How To Pay A Subcontractor
In the beginning, you may want to pay them hourly; however, because every person works at a different rate, it is difficult to maintain an hourly rate for subcontractors.
Some solopreneurs pay theirs an hourly rate, while others pay a percentage of the client package rate.
Example of Why Hourly Does Not Work Best:
It may only take you an hour to schedule your client’s social media copy, graphics, and videos for a month. If, however, your subcontractor takes two hours or more to do the same task, you will quickly have a problem.
As you began offering this service, you probably figured out your package pricing based on the amount of time it took you to complete the task (with a little buffer time added in). You did this, more than likely, for each service you provide.
If your sub takes twice as long to complete a client task as you did, and you pay them hourly, how long do you think it will be before you start losing money as you provide this service to clients?
When I am consulting clients I recommend they pay their subcontractors a percentage of the client’s package pricing for the service they will provide.
Example:
For instance, if you charge $1,000 a month for your social media services, you may decide to offer 40% – 60% to your subcontractor.
In my eighteen years of experience in the industry, I’ve seen many solopreneurs offer anywhere from 30-70 percent. I think, however, that 40-60 percent is fair.
Can’t Afford To Subcontractors From Your Current Client Revenue?
If you are thinking, “I can’t afford to pay for help right now.” There is a great alternative. If you think it is too difficult to offer payment to a sub at this time, then a great time to begin is when you have a new client onboarding.
You have not allocated the new revenue. You will not have to take money from any current client revenue. It is new revenue that can easily be split up to the appropriate people and accounts.
As you continue to grow and keep bringing on new clients, you will be able to plan on getting rid of the client work you do. This means you can cut back on the client tasks you still work on. Take one at a time from your client ‘to-do’ list and give it to your subcontractor(s).
Of course, if you do not mind taking some of that revenue now to pay a subcontractor, then get started with one client. Slowly add more clients to your subcontractor.
Reality Check
Be mindful of your subcontractors’ bandwidth. Check in with them regularly and ask how much space they have available. This will determine if you should plan to bring on a new subcontractor also.
When your sub begins to fill up, then it’s time to bring on another sub. As you do this one by one, you will grow your business with each new client and subcontractor added.
Managing Your Team
Part of building a thriving agency is taking it one step at a time. Doing it step by step.
Managing your team of subs takes time, not to mention patience. There are many ways to manage your subcontractors. You can hover, be partially hands-off, or fully hands-off.
When I began subcontracting, I hovered. Meaning I handed off all the work to a sub, and they had no client contact. They sent back all work, I proofed it, and then I sent it on to the client if it was ready. I did this for a long time.
It finally became too much and was taking a toll on my health. I had gotten to a place where I had subs I trusted. So, I began giving them access to clients. Little by little.
Add Services
Another step to building your thriving online agency can be adding services. You may provide one specific service, even specializing in a particular system. This is necessary as a solopreneur.
As an agency owner, you may find that clients begin to request other services from you. It does not mean you have to be able to complete this service yourself. It is a great way to utilize other subcontractors who can do these tasks for clients.
I don’t suggest adding them immediately as you add a subcontractor. I would wait until you’ve worked comfortably with your subcontractor, built trust, and have added at least one full client to their workload.
Get The News Out
Start by sending out an email to existing and past clients. Introduce the new service and offer a special one-time monthly fee good for a limited time. This may bring in more work right away, and it is a good testing field.
Once you’ve proven that your business can handle the extra service, then release it in other markets. Put it out to your various audiences as a big reveal.
If you’ve not already filled the number you had in mind at the special price, you could offer it to the remainder of your audience.
If you do this, put a limit on the number that you allow at the special price. Indicate this on your marketing copy as well. Your copy should include that it is for a limited time and for a limited number (first come, first served basis).
I do not suggest adding more than one new service at a time.
Keep in mind that if your subcontractor leaves, you need to be able to provide this service or find another subcontractor right away. It all comes back on you.
I kept a chart of subs and their skills/services so if I needed one I could easily go to the chart. As an agency owner, you will always be responsible for providing the services to your clients. It does not mean you have to learn it all, but you should have subcontractors ready in the wings.
Stop Doing Client Work & Delegate
A big part of this process involves you letting go so you can grow a healthy, thriving online agency. This can be a difficult process if you’ve done the solopreneur thing for some time.
You must eventually stop doing any client service tasks and start delegating those to your subcontractor(s).
As I mentioned, I did this in steps. I was a hover manager at the beginning of building my team. My next step was to be partially hands-off, but still couldn’t fully let go.
It took me time, but I wish I had stepped right into that full hands-off manager role. What I could not see but clearly see now is that by letting go, my business would forever change. It would be much healthier, more profitable, and hit higher revenues than ever before.
Later doesn’t come. People don’t stop moving just because you are immersed in your business. Children do not stop growing. Set priorities that will help you have healthy business practices.
From Solopreneur to CEO
I finally transitioned to letting my subs have full client access. This completely changed my business!
Suddenly, I had more flexibility and time. I could also work on my business, not just in it. And the company was earning higher than ever revenue! No more working 18-hour days, falling asleep on my laptop, and feeling utterly exhausted.
I had done it. I transitioned from solopreneur to become a CEO.
I was still the face of the company as I made time to do monthly strategy calls with clients. I worked closely with them to plan out their digital marketing, but the subs implemented everything.
I learned the hard way how to create and manage a subcontracted team.
Now, when I coach & consult clients about adding a team, I always recommend that they give them client access to work on their client tasks.
I advise having the subcontractor(s) take over your client tasks, which will free you up to work on your business. You have to learn to trust your subcontractor. It does not mean that you just hand over all the client work to a new subcontractor. They must build trust with you first.
As you do this, you will grow a thriving online agency.
Keep Scaling
If you keep your marketing wheel turning and keep good leads coming in regularly, along with all the other items we discussed, you will keep growing into a thriving agency. Scaling a business involves many steps over time.
It is not simply one step. There are natural growth patterns that take place. Every business is different.
Scaling a business involves:
- Good processes and systems
- Consistent genuine content
- Other marketing channels
- Subcontractors
- Services added
- Delegation
Sometimes scaling a business involves getting additional help. This can mean getting business coaching and/or consulting services. We all need a coach or a consultant.
Tammy Durden is an award-winning business coach and consultant. She has established herself as an authority figure over the last 18 years while creating and growing several online service businesses. She is also a sought-after thought leader, course creator, and speaker in the online service industry.