Why staying solo is a strategic decision

At one point in my life, I managed a team of seven. My days consisted of 1:1 calls, performance reviews, and running interference between the team, other departments, and customers. 

I thought that’s what I wanted: the perceived power and responsibility of being a manager. But in reality, it was very stressful. 

Today, I have been a solopreneur for three years. The assumption is that solo businesses are a starting point. You launch alone, build momentum, hire employees, and scale. That’s the entrepreneur’s playbook, right? 

But over 80% of small businesses in the U.S. have no employees, according to the U.S. Small Business Administration. For many of us, that’s not a limitation. Staying solo is a deliberate strategy that prioritizes control and flexibility over growth for growth’s sake.

Small is a strategy, not a stepping stone

The “grow or die” mentality makes sense for companies that have dreams of becoming large, enterprise organizations. And some small businesses may have that dream. 

The cultural assumption is that a solo business is Phase One: something to outgrow. But many solopreneurs are choosing to stay small permanently.

Hiring employees fundamentally changes what you do every day. You stop being a practitioner and become a manager. Some people want that transition. Many don’t — and recognizing that isn’t a failure of ambition. It’s simply prioritizing a different way of working.

Revenue isn’t profit

A report by Gusto found that 77% of solopreneurs are profitable in their first year, compared to just 54% of businesses with employees. And 93% of solopreneurs expect to be profitable in 2025, versus 80% of employer businesses.

A company earning a million dollars per year sounds impressive until you subtract salaries, benefits, payroll taxes, equipment, and the overhead required to keep it all running. The owner of that business may take home less than a solopreneur earning a third of that revenue with almost no overhead.

When you stay solo, you can increase your effective rate by being selective. You might take on fewer, better-paying clients instead of chasing volume. In the end, revenue is a vanity metric if you’re working more hours for less take-home pay.

You don’t need permission to reinvent yourself

Staying solo means retaining total control over your business and your life. When you have employees, every pivot requires buy-in, transition planning, and often difficult conversations. You can’t just decide to raise your rates, shift your niche, or take a three-month sabbatical.

In the several years I’ve worked for myself, I’ve gone through several iterations of “Who am I? What do I do? What clients should I serve?”

I can change my entire service offering without consulting anyone. I can walk away from a client who isn’t working out without worrying about how it affects someone else’s paycheck. That flexibility is especially valuable in an uncertain economy because I can respond to market changes in days, not months.

The question solopreneurs should ask themselves isn’t necessarily, “How can I grow and scale?” It’s “What kind of business do I actually want to run?”

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