Allow Me to Share A No-BS Approach That Is Realistic for Service-Based Experts
First off, know that hitting one million dollars is the exception.
SBA’s 2022 report says that small businesses with no employees have an average annual revenue of $46,978.
Only 9% of small businesses reach $1 million or more in revenue.
According to the United States Census Bureau, most U.S. businesses have fewer than five employees.
Small businesses account for 99.9% of all U.S. companies.
In this world of fakers, these numbers should sober you up.
So next time some wonker posts that he is making 40k or 100k per month as a solopreneur, you will know that most of them are full of s@#…
It is tough to hit the big numbers. Remember that business owners who do must also deduct their expenses. Having a team can quickly add up. Add in taxes, and some business owners don’t have enough left to pay themselves. Always look at profit over revenue.
Cash flow is the number one reason businesses fail.
I specialize in broke coaches, consultants, and single-member business owners. At least they start this way. Because they don’t want to take the route of lying about their wealth or success to attract clients like the bro dudes. My people are the good ones. And they sincerely want to know how to increase their business revenue in a good, ethical way.
What Makes You Different?
But before we dive in, let’s clear up your big-picture focus.
Start by identifying your area of service-based expertise in Business, Relationships, Health, or Hobbies. Knowing this vertical is essential so you can analyze your market and know who you are competing against, which keywords you must fight for, and where you will fit in.
Next, let’s define your niche audience. Examples: Business growth for black entrepreneurs, technology platform for creators to offer their paid services, relationship coaching for divorced single parents, or mental health for trauma survivors. Try to please everyone and serve no one. The niche is incredibly important. Remember your niche must be able to pay you too.
Lastly, we need to position you as being different from the millions of other experts in your niche. What makes you unique and special? Is this difference compelling enough to pick you? Why would someone stop using another service to switch to yours? What is your ‘no brainer’ pitch?
Do your market research to validate the demand for your services and adjust your positioning strategy and messaging to be 100% sure you are going to be successful. Do this before you try to enter any market.
If you don’t take the time to answer these questions carefully and make sure there is a market gap you can fill that your audience can pay for, you should not proceed. It would be a waste of time and money.
Five Strategies for Solopreneurs To Hit One Million
Here are five ways that a a single-member entrepreneur can hit one million dollars in annual revenue. This list is not exhaustive. I have picked some of the most obvious routes for a solopreneur that wouldn’t require much time, money investment, training, special equipment, or hiring a team.
1) Subscription Model
This is the quantity approach. You have an incredible service that you want to offer to the most significant number of people possible.
Your success will depend entirely on your visibility. You will need to get in front of thousands of people and create popularity for your membership.
Your challenge: scale your online presence and popularity while focusing clearly on one platform, one problem, and one niche.
Your advantage: This income is passive, active, and scalable.
Your disadvantage: It comes easier to certain types of people, plus finding the right niche can be tough. I find you have to tweak it until you understand who the perfect members would be.
2) Consulting Model
This is the quality approach. You don’t need many clients, but you’ll need to get a much higher contract from each client. Your success will depend on who you can reach. You don’t need to know everyone, only a few select people with money and influence. But these individuals are often the hardest to reach as they have gatekeepers who carefully guard their time and attention. Hint: You won’t find them in free groups.
Your success will depend on having an impressive background that wows your client and building an excellent reputation that opens doors for you.
Your challenge: Getting attention from the right people means knowing where and how to reach them.
Your advantage: Once you win, you have that portfolio for life and can use the few prestige clients to attract other high-quality clients.
Your disadvantage: This is a highly competitive market, so you will often deal with politics and cutthroat strategies to get (and then keep) the big accounts.
3) Digital Products Model
When you build digital products, you enter a new level in your business. Freelancers and consultants don’t have them, so they can’t compete with you. You not only look more professional ,but you also create more ways to pay money, which is always the goal.
The more products and services you have, the more comprehensive solutions you can offer and you can appeal to your niche at different stages, budgets, and preferences. Ultimately, you will convert higher numbers.
Your challenge: Knowing your customer’s needs so well that you sell them exactly what they want and need.
Your advantage: Digital products are passive, so you only have to build them once.
Your disadvantage: It is a lot of work to build an excellent digital product and it will cost you money. Also, you must know your client well first, so the thousand-hour rule applies.
4) Affiliate Revenue Model
Selling others’ products can be a great solution for a strong, recurring revenue stream for single-member entrepreneurs.
Your challenge: Finding excellent products you know your audience will love is difficult. Also, your success will depend entirely on your sales skills, so if those are weak, your sales will be too.
Your advantage: What could be better than selling others’ products? You don’t have to build sales pages, deal with payments, handle customer service, or deliver the services. This can be a great source of cash flow, especially in the long term if you drop affiliate links while growing your audience.
Your disadvantage: You need to know the product in and out. I personally never sell products I haven’t used. You are making money but not building your own empire.
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5) Live Events
Live events are excellent for growing your audience and filling your pipeline. Make no mistake: I am only talking about PAID live events. Free attract free, and by charging a fee, you will filter out low-quality leads to focus on leads more likely to convert.
Under live events, I count workshops, boot camps, challenges, webinars, and masterclasses.
Your challenge: Promoting live events can be tough, so I run trainings on how to do that.
Your advantage: Live interaction with your leads is always best. Not only do you see them in real time, but you get the best questions. It is a unique opportunity to build relationships and for the know, like, and trust factor.
Your disadvantage: This is an active revenue stream, so you’ll need to show up, which means they aren’t scalable.
Resources for Further Success
I also would like to highlight a few excellent books for single-member entrepreneurs:
The Million-Dollar, One-Person Businessby Elaine Pofeldt
The E_Myth Revistedby Michael Gerber
Rich Dad’s Cashflow Quadrant: Guide to Financial Freedomby Robert Kiyosaki
This list is only a small sample! If you enjoy non-fiction business books, consider joining ourBook Club for Business Leaders.
Are You Ready for Solutions?
Some people need to fail longer than others, especially stubborn or perfectionist types. Oh well! It is my desire for all entrepreneurs to start winning as soon as possible, which is why I have three offers to share:
Join my community of go-gettersBonus: Gain instant access to classes about all the five multiple revenue streams I mentioned in today’s article!
Join my business academyBonus: Gain instant access to classes about all the five multiple revenue streams I mentioned in today’s article!
Coach with me. Get 1:1 personalized advice.
Here’s to your success! Whatever stage you are at in your career, make it count. Because the days are long and the years are short. Focus on what matters most.
