It is hard for many new freelancers to imagine earning a six-figure income. But that goal can be very attainable if you stick with it.
Here’s some information that may get you inspired:
More solopreneurs are earning $1 million and up, according to newly released Census figures, which I covered in more detail in Forbes. In fact, their numbers increased 10% from 2011 to 2012. The U.S. government found that the number of “nonemployer” firms with $1 million to $2.5 million in revenue rose from 26, 744 firms 29,494 companies that period.
Even more impressive: There are 2,286 super freelancers, who earn $2.5 million and up. Their numbers are ticking up, too.
Do they earn this amount from year to year consistently or break into these income ranges on a one-time basis because of a windfall from a big project, such as selling a book? My guess is that it varies from entrepreneur to entrepreneur.
The first step to getting there is building a sustainable business. In reporting another post for Forbes, I learned that research by Gallup shows that most microbusiness owners don’t rely on their income from their business as their main source until at least the second year. That old saw about keeping your day job, at least for a while, seems to hold some truth.
One key step toward generating all of your income independently, according to recent research, is getting a handle on cash flow in your business. If you’re like me, you may not enjoy creating Excel spreadsheets and learning cloud-based accounting software. But the Corporation for Enterprise Development has found that using such methods can help you keep your personal cash flow steady, too. When you run a microbusiness, your revenue is often closely linked to how much money you can pay yourself–so giving your business finances a bit of extra attention can make your quality of life much better.