Feb
9
How Small is Small?
by Crystal Clayton, filed under In General
Well, the Small Business Administration (SBA) considers most retail and service businesses in the USA as “small” if they make less than $6.5 million a year. So raise your hand if your business brings in less than that?
A count of hands (including mine and likely yours) shows there are 27 million businesses that don’t make that much. Which is pretty much every business in the US—99.7%.
But earnings aside, many SBA-defined “small businesses” can have up to 500 employees. Seriously? That’s not small. By my definition, the business is small if I can have the team over for dinner.
And most small business teams actually could fit in my apartment, if not around my microscopic IKEA dining table. There are 20 million small businesses that employ fewer than 10 people, putting them in a different league. Those small shops are considered micro-businesses. Now that’s what I call small!
And then there are the millions of folks like me who are a Business of One. Whether you call us sole proprietors or solopreneurs, a business can’t get any smaller than that 
Which is all to say, when you feel like you’re the only one struggling to stay profitable with a handful of people—be assured that you’re not.
In fact, you’re one in 20 million…and you’re in excellent company.
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5 Responses to “How Small is Small?”
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Whew! Taking a short break from blogging, folks. More posts coming soon. Thanks for your patience!
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Nit pick:
It can get smaller. One person working part time is a smaller business than one person working full time.
But then again, most of us singularities are probably ALWAYS working, at least in some sense. Even if it’s at a simmer, there’s usually something business related cooking in my brain while I’m doing other things.
Hi Tony, and HA! You’re right…half a person is definitely smaller
And you’re right about always working, too. I’m sure we’re not the only ones who simmer in our sleep, at the grocery store, in the line at the bank…
Now if I could just figure out how to effectively bill for that off-task simmerin’ time?
Thanks for your comment!
Crystal
ps I love the word “singularities”!
Crystal’s last blog post..7 Off-Season Income Ideas for an Event Website
[...] How Small Is Small [...]
Well, after reading your article, I think it is a good one.
I personally think that the size of business should refer to the business organization (company organization) and not the revenue of the business.
A business can remain “small” while the revenue is “very big”.
Recent blog post from Eva: Marketing - What are people buying?
I found your blog through a FriendFeed search on microbusiness and I enjoy this “about” page! The definition of “small” by government standards is not “small” by my or most microbusiness owners’ standards.
Tony Lawrence’s comment about part time v. full time also makes a lot of sense, including those of us who may already run one biz full time and exploring a new biz on a part time basis (i.e. full time does not always have to mean full time employment/job).