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"Solo" Entrepreneurs Becoming the Norm
I recently learned that more and more people are opting for a solo entrepreneur career path. In 2022, the number of independent workers, including solo entrepreneurs, increased by 26% compared to the previous year, reaching 64.6 million. The number of Full-Time Independents, or those working for more than 15 hours per week, also saw a significant increase of 27% to 21.6 million, up from 15.3 million in 2019. These are exciting times for those building their own independent businesses.
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At the same time, long-time search engine marketing analysts are questioning whether small business owners or individuals (like bloggers) will be able to compete with larger brands in the SERPs (search engine ranking pages) in the years ahead.
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In fact, some have gone as far as predicting that WE (those doing business in 2023) will be the last generation of small business owners who will be able to break through to first-page rankings in the competitive niches.
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I don't buy into the doom and gloom projections, but I can see it getting more challenging in the years ahead. That said, there may never be a better time than right now to make your move. If your goal is to get your business onto the 1st page of the search engine pages, you won't find a better time than now to make your move.
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Some have argued that people won't be doing searches in the future as they do today. Instead, they'll be asking an AI and getting their information that way. That may be true, to a point. A percentage of searches may be done that way. But they won't make business websites or personal brands obsolete.
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They once said that e-commerce would make brick-and-mortar stores obsolete. Yes, online shopping may have put a dent in offline sales. I won't argue that. But offline stores will continue to exist for the foreseeable future.
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Earning Potential for Solo-Run Businesses
One out of five solo entrepreneurs (entrepreneurs who operate their businesses alone) earns between $100k to $300k annually without additional help from freelancers or part-timers. This information is based on a survey conducted by FreshBooks, a cloud accounting software company. Take a moment to let that sink in.
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Those earning a million dollars or more usually employ at least one freelancer or part-time worker to help them.
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Only 10% of Solopreneurs Come from the Technology Related Industries
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Yes, it is true that only 10% of solopreneurs come from technology-related industries. The remaining 90% are involved in a wide range of other industries.
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Some examples of industries that solopreneurs come from include:
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- Creative industries such as photography, graphic design, and writing
- Consulting services such as marketing, accounting, and coaching
- Personal services such as fitness training, massage therapy, and beauty services
- Retail businesses such as online stores or handmade crafts
- Food and hospitality industries such as catering or running a bed and breakfast
Solopreneurs in technology-related industries typically sell digital products or services, such as software development, web design, or social media marketing. However, there are also solopreneurs in technology-related industries who sell physical products, such as e-commerce store owners who sell tech gadgets or accessories.
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Other Industries Solo Entrepreneurs are Thriving In
Here are a few examples of the industries that the other 90% of solo entrepreneurs are currently thriving within:
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Health and wellness: This includes personal trainers, nutritionists, yoga instructors, and therapists.
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Education: This includes online course creators, tutors, and coaches.
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Real estate: This includes real estate agents, property managers, and investors.
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Financial services: This includes accountants, bookkeepers, and financial planners.
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Arts and entertainment: This includes musicians, actors, writers, and visual artists.
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Home services: This includes cleaners, handymen, landscapers, and repair technicians.
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Pet care: This includes pet sitters, dog walkers, and trainers.
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Hospitality: This includes bed and breakfast owners, Airbnb hosts, and event planners.
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Retail: This includes online store owners, crafters, and vintage or antique sellers.
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Solo Online Business Models with Their Multiple Streams of Income Percentages
Next, here are a few examples of different business models that are popular with online solo entrepreneurs. I've also included a breakdown of the multiple streams of income generated percentage-wise for each model:
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- Membership fees: 50%
- Product sales: 30%
- Affiliate marketing: 15%
- Advertising: 5%
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- Hourly/project-based services: 70%
- Product sales: 20%
- Affiliate marketing: 5%
- Advertising: 5%
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- Product sales: 80%
- Affiliate marketing: 10%
- Advertising: 10%
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Information products model:
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- Product sales: 70%
- Affiliate marketing: 20%
- Advertising: 5%
- Membership fees: 5%
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- Advertising: 90%
- Affiliate marketing: 5%
- Product sales: 5%
These are just examples of how the income percentages break down with each business model. The breakdown of income streams can vary greatly depending on the specific business and the entrepreneur's strategies, abilities, and priorities.
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Conclusion
Have we entered the "Age of the Solo Entrepreneur?" It's certainly looking that way. Especially when you consider the fact that about 15% of the solo entrepreneurs out there today are between the ages of 18-24.
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I think the bottom line is that there are plenty of opportunities out there today to build a solid, full-time income without having to manage a team of people. That's not to say that you can't hire others on an as-needed basis. The point is, you have a choice. With most businesses, you don't.
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How do you feel about these statistics? Do they give you a bit of inspiration or possibly a more hopeful outlook for the future of your business? Feel free to let me know!
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For more information, please visit:
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