What percentage of small businesses in Delaware County bring in more than one million dollars in sales each year?
Before we answer that, let’s first spend a minute to define what we mean by small business. The SBA definition of a small business is 500 or fewer employees. The Small Biz CEO thinks that is way too big. There is a huge difference between operating a business with only five employees and one with 500 employees.
Our definition of a small business is any company that has 20 or fewer employees. Using this definition and data from Applied Geographic Solutions and the Census Bureau we find out that there are 20,738 businesses in Delaware County. We know most of the big ones with over 100 employees but 93% of businesses in DELCO, have fewer than 20 employees, that’s over 19,000!! Many folks call these businesses a Main Street business or a Mom and Pop shop. In reality they are everyday businesses that might not be of interest to venture capitalists who are looking for big payday, but they are a vital part of our economy since they employ thousands of people and generate hundreds of millions of dollars of economic activity.
Check out how many have sales over one million dollars. Are you surprised by these numbers?
Over 70% of businesses in the county do NOT break the one million dollars in annual sales barrier. On average a small business with less than five employees has annual sales of $387,000. When the employee count is between 10 to 20 employees, average annual sales are $2.1million.
A significant number of these small businesses owners grapple with making ends meet and find themselves struggling to grow their business. If you aspire to reach one million dollars in annual sales, perhaps you need a business check up.
By having an outside perspective and using a structured process, the Small Business CEO can help you uncover blind spots and opportunities for additional profits and help identify areas that drive future growth and success. Find out more about getting a Business Assessment to get ready for 2024.