The number of million-dollar, one-person businesses in the U.S. nearly doubled from 2021 to 2022. According to U.S. Census Bureau statistics, there were 116,803 such businesses in 2022, an all-time high. 2022 104,525 firms earned $1-2.49 million in annual revenue, up from 53,460 in 2021. 11,314 businesses brought in $2.5 million to $4.99 million, and 965 businesses earned $5 million or more. Nonemployer businesses, which include these million-dollar ventures, don’t run payroll as traditional employers do. Many solo operations utilize automation, outsourcing, and contractors to scale efficiently.
Million-dollar one-person firms expand
Despite their rapid growth, millionaire one-person businesses are rare, comprising less than 1% of all nonemployer businesses. In 2022, there were 29.8 million nonemployer firms, up from 28.5 million in 2021, with an average revenue of $57,922. Several trends have contributed to this exponential growth in million-dollar, one-person businesses:
- Economic rebound: The U.S. economy was recovering from the pandemic despite inflation and high interest rates.
- Artificial intelligence: AI technology, such as OpenAI’s ChatGPT, launched in November 2022, has made solopreneurs more productive.
- Back to the office: Many people have intensified their side businesses, particularly those started during the pandemic, as employers demand returns to the office.
These seven-figure businesses span various industries, including e-commerce, professional services, personal services like nutrition and fitness, content creation, and more. Specific industries have witnessed significant growth:
– E-commerce: The pandemic fueled e-commerce, with 16,268 nonemployer retail businesses earning $1-2.49 million in 2022.
– Wholesaling: Solopreneur wholesalers increased their revenues significantly, selling inventory to retailers who relied on them more than ever.
– Transportation and warehousing: The e-commerce boom increased demand for last-mile delivery services, greatly benefiting solo entrepreneurs in this sector.
– Professional services: The largest category for million-dollar, one-person businesses include professional services that have integrated AI early. Mike Brown, founder of Unbreakable Wealth in Golden, Colo., attributes much of his success to leveraging AI to boost productivity.
“I believe that in the next 18 months, we’ll see a billion-dollar, one-person company,” he said during a panel discussion. “With no-code platforms and AI, we can create things that used to require significant time and investment.”
As more entrepreneurs harness the power of AI and other emerging technologies, the number of million-dollar, one-person businesses is poised to grow even further. Understanding the mindset of these successful entrepreneurs is crucial for anyone looking to replicate their success.
Photo by; Avinash Kumar on Unsplash
