You Are Not Small, You Are Tiny

TweetWe have a problem.

And it is effecting 80% of businesses in the U.S. according to the US Census Bureau.

The problem is that most businesses that call themselves Small Businesses… are actually Tiny Businesses.

The Small Business Administration is forced to have a clear definition of what a small business is because they need to know what organizations qualify for their programs.

Below are some of the specifications to qualify for SBA programs.

“The size standard for most retail trade industries is $7.0 million in average annual receipts. ”

“For the service industries, the most common size standard is $7.0 million in average annual receipts … the highest annual receipts size standard in any service industry is $35.5 million.”

Firstly, if you have $7.0 million in average annual receipts — you are reading the wrong blog!

This blog is aimed at those of us that are making a good living (or want to make a good living) with sales that don’t even come close to the million dollar level. Businesses with very few employees — in many cases it is a solo entrepreneur running the business.

Ok… So What’s The Problem?

The problem is that those of us running tiny businesses lump ourselves in with small business.

We are actually tiny businesses — and we are proud of it!

There is an enormous difference between a solo entrepreneur doing consulting work from a home office and doing $125,000 in sales and an engineering firm with 100 employees doing $35 million in annual sales.

However, it is very possible that the consultant that works alone from his home could be earning more than any one person involved in the engineering firm.

The solo consultant and the engineering firm from the example have completely different problems and therefore need completely different approaches.

This problem effects a staggering number of businesses.  According to the US Census Bureau

• There are over 20 million solo businesses in the United States alone.
• Solo businesses make up almost 80% of businesses in the United States.

This means that this definition problem effects 8 out of 10 businesses and over 20 million people that are not SMALL they are TINY.

It is beyond the scope of this post to analyze all of the differences between what is considered a SMALL and Tiny business but suffice it to say that there are many.

Tiny businesses have different challenges than small businesses and this site is dedicated to addressing those challenges.

If you are a tiny business, be proud!  Join this community and don’t think of yourself as small, think of yourself as Tiny & Mighty.