Solopreneur

Profitability

Revenue & Salary

How Profitable Is A Solopreneur? (Updated for 2024)

Pat Walls

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Updated: September 16th, 2024

How Profitable Is A Solopreneur? (Updated for 2024)

So you want to start a solopreneur?

And the first question that came to your mind was, “well, are solopreneurs actually profitable?”

Especially considering:

You could start a solopreneur with as low as $5
Based on our data, solopreneurs generate an average of $3.42M per year
You could see gross margins as high as 100% with solopreneurs

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a solopreneur.

Let’s dive in!

Is a solopreneur profitable?

Yes, a solopreneur is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $3.42M per year with an estimated gross margin of %, you could expect to recover your investment within months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your solopreneur.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your solopreneur is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a solopreneur worth it?

If you’re wondering if a solopreneur is worth it, the answer is a big YES. With solopreneurs, you have the potential to earn $3.42M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a solopreneur to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful solopreneurs case studies.

Examples Of Profitable Solopreneurs

Here are a few examples of profitable solopreneurs, and a few more details about them:

1. Sync2Sheets ($108K/year)

Leandro, a former freelance software developer from Buenos Aires, pivoted from freelancing to building Sync2Sheets, a tool syncing Notion databases with Google Sheets. Launched rapidly in just two weeks, the product now boasts $9k MRR and over 400 paying customers, including Canva and Wix.

Is it profitable? Yes
What's the gross margin? 85%
How much money it makes: $108K/year
How much did it cost to start: $0

My Google Sheets Add-On For Notion Hit $9K MRR

A Software Engineer turned SaaS founder shares the journey of building Sync2Sheets, a Google Workspace Add-On that syncs Notion databases with Google Sheets, generating $9k MRR with over 400 paying customers, strategic marketing tactics, and plans for expansion into other services.

Read this case study

Read by 2,808 founders

2. Stardew Valley ($300M/year)

In 2011, Eric started working on the video game Stardew Valley as a way to improve his chances of getting a job.

Is it profitable? Yes
What's the gross margin? 100%
How much money it makes: $300M/year

Profile: Eric Barone Built A $300M/Year Video Game By Himself

Stardew Valley: An indie video game sensation making $300M/year, started by Eric Barone in 2011, with initial sales of $1 million within three weeks.

Read this case study

Read by 4,628 founders

3. Justin Welsh ($3.8M/year)

After handling loads of stress as an SVP of sales, Justin decided to step down from his job and start a consulting business. He started creating digital content from there on, and have been moving forward ever since, releasing courses, building a massive following, and double down on his solopreneurship efforts.

Is it profitable? Yes
What's the gross margin? 91%
How much money it makes: $3.8M/year
How much did it cost to start: $1K

How Justin Welsh Built A $2M Solopreneur Empire

Solopreneur Justin Welsh built a knowledge business through social media with over $2M in annual revenue and no full-time employees, offering flagship digital courses with a monthly revenue of $80K and $45K respectively, through LinkedIn and Twitter growth as well as organic and affiliate marketing.

Read this case study

Read by 28,979 founders

Learn more about starting a solopreneur:

Where to start?

Need inspiration?

-> Other solopreneur success stories

Other resources

How much can you make with a solopreneur?

With a solopreneur, you can make an average of $3.42M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $5. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within months.

How much does a solopreneur make a week?

Based on our data, average weekly revenue for a solopreneur ranges around $71.2K. As such, you could see monthly revenues of $285K.

To know if your solopreneur achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your solopreneur.

How much do solopreneurs owners make?

The income of a solopreneur owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established solopreneur is about $71.2K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a solopreneur owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Solopreneur Profit Margins

Generally speaking, a solopreneur can expect profit margin of around %. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a solopreneur, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, solopreneur owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, solopreneur owners can ensure long-term sustainability and profitability for their business.

Solopreneur owner salary

The salary of a solopreneur owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established solopreneur, in a prime position, might see an average weekly salary around the ballpark of .

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a solopreneur may be a promising business to start - but the success of your solopreneur mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable solopreneur.