A lot of people start a small business to get rich.
Before you start, you need to know the odds of success and the likely rewards so you can do it for the handful of right reasons: freedom, community contribution, and serving customers.
Three Small Business Profitability Statistics You Should Know
In small business you are truly subject to the whims of the open market. It’s competitive out there and these statistics will help you start from the right footing, knowing that you need to stand out and get it right to attain financial success.
Are small businesses profitable?
The stat: Only 40% of small businesses are profitable.
While 40% of businesses start to become profitable at one point, 30% start losing money, and 30% break even.
How much do small business owners make?
The stat: 86% of small business owners earn an annual salary of less than $100,000.
As you’d probably expect, small business owners rarely make as much money as the CEOs of big corporations. They usually make less than $100,000 a year, but what’s even more surprising is that 30% don’t take any salary at all.
Will small business make you a millionaire?
The stat: In 2018, just 9% of small businesses made more than $1 million.
The most profitable small businesses make over $1 million, while the least profitable 16% made less than $10,000.
Starting a small business is a lot of work.
Your small business will quickly become all consuming because there is so much that needs to be done. Product, operations, human resources, finance, technology, customer service, everything, it’s all on you. So you should do it for the right reasons.
I hope this has helped you get in the right mindset!
Before you go...
We all know that small business is about doing the little things right.
The little optimisations, the high-impact tweaks and the 1% gains you can make to your business to make it a little better, a little more profitable and even a little bit more pleasant to run.
I have interviewed 500+ business owners, surveyed thousands more, and I am always probing for their best tips, tricks and hacks to improve their business. There are three that stand out above the rest and I want to share them with you.
Join my email list for free and I’ll send them to you right now.