81% percent of small businesses have one worker (aka: you, the founder) and no other employees. Just you. A solo operation.
If this is you, keep reading.
Because we need to have a chat about your money, and why you’re not earning as much as you could be.
Let’s start with the facts.
How much money do solopreneurs make, on average?
If you run a solo business with no employees aside from yourself, you can expect to make a piddly $47,000 per year.
That’s the national average here in the United States. Cue: sad violin music.
What happens if you keep working solo and never hire any employees?
Your revenue will eventually hit a wall.
If you’re working alone—no employees—it’s possible to hustle your ass off and eventually earn $100,000 or even $200,000 per year.
But then—as The Open Forum from American Express reports—around the $250K mark, something happens. Solopreneurs hit a brick wall. Revenue gets stuck. Things plateau. Studies show, it’s extremely unlikely and difficult to grow beyond $250,000 unless you start hiring.
What happens if you decide to hire employees?
You make more money. Period.
Businesses with 1 to 4 employees generate an average of $387,000 in revenue per year. Businesses with 5 to 9 employees average $1,080,000. The numbers keep growing exponentially from there.
But wait, but what about all these millionaire solopreneurs I keep hearing about?
Books like The Million-Dollar, One-Person Business proclaim that you can totally generate $1mil per year by yourself, no employees required.
Is this possible? Sure, anything is possible. Getting a DM from Regé-Jean Page from Bridgerton inviting you on a private tropical island vacation is possible, too. But is it likely? No. The solopreneur business model almost never leads to 7 figure revenue. It’s very uncommon.
And, don’t get it twisted.
These so-called “million-dollar solopreneurs” still have a team, including freelancers, outsourced services, and manufacturing partners—like this dude who runs a one-man million-dollar business selling inflatable paddleboards. Technically, he’s the only “employee”—but he relies on factories to produce the boards that he designed. He’s not building each board by himself in his basement.
Solopreneurs who make big money are hiring, even if they’re not hiring full time employees.
Bottom line:
If you want to make serious money—over $250K per year, eventually $1mil per year and above—then you need to hire employees.
There is no way around this. This is the path you need to take.
You need a team. And no, not a cobbled-together rag-tag crew of part-time freelancers. You need a legitimate team.
You need people who are dedicated to your mission. People who can give you their undivided attention because you’re their sole employer, not one of a dozen clients vying for their attention. People who are willing to roll with you over the long haul and stay with your company for 2 to 3 years or more.
You need legit employees to make a milly.
Most women think:
“I will make tons of money all by myself, and THEN I will hire someone amazing.”
It’s actually the opposite. You gotta flip it around and start thinking:
“I will hire someone amazing and THAT is how I will make tons of money, faster, and more sustainably.”
Like so many things in life, you need to be brave and take action before you feel ready.
Hire sooner. Earn more. Don’t hire. Earn less.
And, my colleagues who finally stop stalling and start hiring—you know what they unanimously tell me?
“I only wish I had done this sooner.”
xo
Rachel
PS. If this message was EXACTLY what you needed to hear today, click reply and say “YES! Preach! This is totally me,” or even better, forward this email to a friend who needs to hear this, too.
PPS. If you are making less than $1mil per year, then you need to join The Club.
We’ve got everything you need. A supportive community. Master Coaches with expertise on business, finances, legal matters, and more. Plus, training on every topic imaginable—including how to make your first hire and do it right.
Not a Club member yet? Join here.
We can’t wait to welcome you into the Club—and mail your Swag Box to you, with your official Club workbook, t-shirt, and surprises inside!
PPPS. We’re hiring. Want to work at Hello Seven? See open positions and apply.
