During our conversation Ian mentioned proudly that he was no longer a “small business owner” and was now a “medium sized business.” And I had to stop him for a second and explain that he was not only not a “medium sized business” but he was also no longer a “small business owner”….and why that was a good thing.
The majority of business owners have the preconceived notion that the size of your business has more to do with your sales numbers and less to do with the number of employees that you have. But as Ian worked towards increasing profits and streamlining his operations he had actually changed his status from “Small Business” to “Micro Business.”
Eight out of every ten small businesses fail within the first five years. However according to the Small Business Administration, 62 percent of micro businesses are over five years old.” So it stands to reason that the smaller the footprint, the higher the chances are for success over the long haul.
And the third reason I think that micro businesses are a good idea, has to do with scaling and growing responsibly. As your business grows, you are going to want to pay close attention to your profit margins and adjust accordingly. It is much easier to hire as you go, then to downsize to maximum profits. So by starting small and making smart decisions, you can grow into your business.
Ian is a proud owner of a micro business well on it’s way to crushing it’s revenue goals for the year. And that’s something to be proud of! For proven business advice on how to grow your own small business from seasoned industry experts, schedule a session with a small business coach today.