The merits of being your own CEO (especially within a well-crafted ecosystem)

Forget the side hustle, solopreneurs are earning more than their employed peers.

Excerpt" Over the last decade, the workplace has been defined by big headlines: mass layoffs, the rise of remote work, and the promise (or threat) of AI. But beneath the noise, a quieter revolution has been underway. 

Millions of people have left traditional jobs to build something of their own—fueled by technology, flexible work models, policy changes, and a cultural shift toward independence. As of 2023, there were almost 30 million solopreneurs or nonemployer businesses in the U.S.—in industries ranging from healthcare to real estate to tech. But here’s what’s different today: We’re no longer just talking about side hustlers, part-time freelancers, and gig workers.

At Gusto, we recently studied nearly 25,000 owner-only businesses. To focus on sustained business activity, we specifically looked at businesses that stayed open for at least five years and paid themselves during 75% of the months or more that they were on Gusto, indicating consistent business engagement. Our research showed that these folks—who I’ll refer to as established solopreneurs—were running real, sustainable, and growing businesses across every corner of the economy. 

THE QUIET RISE OF THE SOLO CAREER

What we found is incredibly surprising: In their first year, the average business revenue for these established solopreneurs is nearly $300,000. For example, construction solopreneurs—like general contractors and home repair pros—earn above-average revenue, offsetting high expenses with strong income. By year five, that number grows to over $500,000.

And while many start by paying themselves via payroll conservatively—about $41,000 in year one—by year five, they’re earning 25% more than similarly skilled full-time employees. What might start as a leap of faith with high aspirations becomes a smart financial decision in the end.