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Posted: 6:00 a.m. Wednesday, July 24, 2013

Defining success as a small business

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By Clark Howard

ClarkHoward.com


There are 22 million one-person companies in the United States. I call them "micro-businesses," while Forbes calls them "solopreneurs."

Whatever you call them, the bulk of them don't generate much revenue. The average is $44,000 annually. But that number doesn't tell the whole story. Of those 22 million, about 3 million are positively big time:

  • 1.6 million micro-businesses have sales of up to $250,000 annually
  • Nearly 500,000 of them have up to $500,000 in annual revenue
  • More than 200,000 have up to $1 million in revenue
  • 26,000 have annual sales between $1 million and $2.5 million
  • 2,000 have more than $2.5 million in revenue


These people behind these businesses maybe got cut adrift from corporate America and went out on their own. They took their skills, expertise, knowledge, and experience and put it to work.

What exactly are they doing? Many are working in finance and insurance. Others are artists and entertainers. You have people in professional scientific and technical field. And still others work in retail, like Internet businesses.

If you're cast loose from corporate America and want to do a franchise, I want you to think again. I'm not saying that's the wrong choice. I'm just saying don't be too quick to distance yourself from your recent past. You can use that skill level you developed in a corporate career.

What you already know is where you should go!

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