A recent report by 1-800Accountant provides insights into the earnings of independent businesses in the US. The report analyzed data from thousands of 1099 businesses, freelancers, and independent contractors across the country. The results show that independent business income is modest, with a typical industry median ranging from the low hundreds to the high five figures.
Industry Comparison
The report found that skilled services, distribution, and asset-light work are among the top-earning industries, with wholesale and distribution leading at a typical $77,000 in revenue. In contrast, industries such as apparel, publishing, and e-commerce report median expenses well above median revenue.
The report highlights the importance of margin, with most service industries reporting between 45 and 80 cents of expenses for every dollar of revenue. However, in some industries, the expense ratio climbs above $1, meaning the typical operator spends more than it brings in.
Implications
The report’s findings have implications for individuals deciding where to spend their independent effort. Service, skilled trade, and distribution work offer a higher and more reliable floor, while product and inventory work offer a low floor with a long shot at a high ceiling.
Original reporting: KTVZ (Central Oregon) — read the source article.
