What is a good annual revenue for a small business?

Unfortunately, pinning down a “good” annual revenue for a small business is like nailing Jell-O to a wall – it depends entirely on the jiggle of the specific situation.

Industry matters massively. A bakery thriving at $100,000 might be limping by in the tech world. Location plays a role too. A cozy bookstore in a beach town might have different financial goals than a bustling consultancy in Manhattan.

However, instead of a single number, I can offer a spectrum of success:

• The Seedling: This business is just sprouting, pulling in maybe $20,000-$50,000. It’s focused on survival, not riches. Think a passionate Etsy hobbyist scaling up.
• The Sprout: With $50,000-$250,000, it’s starting to establish roots. The owner can likely draw a salary, but reinvestment is key. Imagine a local coffee shop with a loyal following.
• The Small Tree: Reaching $250,000-$1 million, it’s providing a comfortable living for the owner and maybe some employees. Think a neighborhood restaurant with a consistent buzz.
• The Branching Out Tree: This business, with $1 million-$5 million, is expanding its reach, perhaps opening new locations or diversifying its offerings. Picture a regional fitness chain or a popular online clothing boutique.
• The Redwood: Towering with over $5 million, it’s a local giant, employing dozens and making waves in its industry. Imagine a successful construction company or a software firm with national reach.

Remember, “good” revenue isn’t just about the number. It’s about sustainability, growth, and achieving the owner’s personal goals. So, while a bakery owner making $100,000 might be ecstatic, that same amount might feel like stagnation to a tech entrepreneur.

The key is to find your own financial sweet spot, where your business flourishes and your dreams bloom.