Crossing the $1 Million gross revenue level is a key indicator that a small business is becoming established in its industry, local business sector or a prospective contractor or with larger corporations, public sector organizations. Being an established business is more than hitting financial benchmarks. The owner has matured into an experienced business decision maker who manages about five to ten staff members. The business is operating with processes and practices to sustain itself and take growth steps.
The key benefits to business owners of hitting the $1 million gross revenue level it that corporations frequently prefer this minimum business size to qualify as a contractor. Business bankers are also more receptive to doing business with companies of this size.
It takes an investment in growth planning, ongoing operations improvement and financing to reach this established business milestone. The patterns of success of client businesses who crossed the $1 million milestone are:
- Commit to working toward the $1 Million milestone.
- Understand the investment in time and money as benefit to the business long-term.
- Have realistic time frames to cross and sustain growth beyond $1 Million.
- Learning from this early revenue growth effort is practice for future growth to achieve long-term goals
- Do all the homework necessary before you seek funding in any form.
The most frequent errors we have observed with clients as they aim for any growth step are:
- Selling more product than they can produce
- Producing more product than they can sell
- Inadequate planning, funding, and operations to build and sustain a larger company
Once your company is beyond the $1 Million gross revenue level, there is even more to consider in reaching for higher levels of revenue. Mid-Market revenue levels now range from $40 Million to $3 Billion! You can grow your business to generate multi-generational wealth when the processes for planning, operations and funding are well thought-out, fine tuned and managed.