What is a million-dollar, one-person business? How are they created and what has been their growth? The past few years have seen a growing number of million-dollar, one-person businesses and partnerships.
The American Census Bureau categorizes these businesses as nonemployer firms. This means that they are businesses without any employees on their payroll. Most of them get help from outsourcing services, automation, and contractors.
This helps them handle their day-to-day tasks more smartly and affordably, something that is important for their growth. Most of them are run and owned by one person, but you can find others with several founders who work as partners.
The Growth of The Million-Dollar, One-Person Businesses
According to data released by the U.S. Census Bureau, nonemployer businesses that hit between $1-$2.5 million in revenue in 2011 were approximately 26,744. This number rose to 39,494 in 2017 and then 41,666 in 2018. This is an increase of almost 50% from 2011.
The report also indicates that the number of businesses hitting six figures in revenue has been growing at the same rate. So, who are starting these million-dollar, one-person businesses and how can you start one?
The collection of data from nonemployer firms was recently simplified, making it easy to see different demographics regarding their ownership and operations. To start with, the nonemployer sector looks quite inclusive compared to other types of businesses. Very few of these businesses are owned by women and the minority.
What Makes These Businesses Successful?
It is not yet very clear what makes these businesses more successful compared to other types of businesses of the same size. Is it that they have access to more capital than other businesses? Are the owners good at management and running of businesses?
If people had a clear idea of the success of these businesses, we would see a lot of programs that seek to help other businesses become successful. Fortunately, we have a rough idea from research conducted by other firms and data available from organizations such as the U.S. Census Bureau.
In addition, with the continued growth of the million-dollar, one-person businesses, we are going to have access to more information to compare multiple businesses and identify the factors that help them grow.
That notwithstanding, what can you do to get your business to the level of a million-dollar, one-person business?
Ideas, Passions, and Likes
The first step to moving from where you are to the level of a million-dollar, one-person business is coming up with an idea of something that you want to do. You can also look at some of your hobbies or passions and see if you can make money from them, maybe by starting an eCommerce business.
The founder of GILI Sports (Jay Regan), a company that sells inflatable, stand-up paddleboards, started his eCommerce business from his passion for diving and surfing in 2017. The company has been making over $1 in revenue every year.
This tells you that you can start from your passion and grow your business to reach this elite club of businesses. You can start by asking yourself some questions, such as what you like or are passionate about and how you can monetize your passion and deliver value to your customers at the same time.
You also need to evaluate your passions and see if you really want to monetize them. Some people would like to keep some passions personal instead. Monetizing a passion means that you are ready to tell the whole world about what you like.
Getting Started
Before you get started, ensure that you understand everything that revolves around starting a micro business. This is where the founders of nonemployer firms start. They are normal people who have gained smart experience from their employment and probably grown tired of the typical employer-employee environment.
Most million-dollar, one-person businesses can be found in sectors such as real estate, personal services such as coaching and fitness, creative businesses and professional services such as consultancies, technology and marketing companies, content creation, and eCommerce.
In addition, these businesses are passionate about technology. Part of their success can be attributed to innovative tech solutions that they implement to run their operations. They also use mobile technology, automation, and outsourcing to grow their businesses.
Embrace The Right Path
Starting a business and getting it to the levels of other million-dollar, one-person businesses is not easy. You need to embrace the right path. It takes a lot of work and effort. You will need to keep tabs on technological advancements, automation, and how things around the working environment are changing.
Fortunately, with the rise and rise of million-dollar, one-person businesses, we are going to gain access to their operations and other demographics that can help other entrepreneurs reach the same levels.