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Starting Up a Small Business - What is a 'Small Business'? | Up and to the Right | Episode 057
Manage episode 280433902 series 2712583
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Show Notes: https://b50p.info/uattr057
What is a Small Business?
Over the years I've come across a lot of misinformation about what it means to be a small business. Sometimes people think it's determined by the number of employees, sometimes by revenue, even by the corporate structure. As we'll see below it's actually easy to understand why there is confusion identifying what is a small business.
Defining Small Business
So, if there's so much confusion around how to define a business as small then how can we go about doing it correctly?
The good news here is that while it isn't as easy as a single criterion that we can point to, there is a place we can go to find out exactly how to classify our own business as small or not.
There are three pieces of information that you're going to need to put all of this together.
Your NAICS Code
The Number of Employees
Average Annual Revenue (based on three years)
Once you have those three pieces of information you'll be able to get the right answer for answering the question... "What is a small business?" at least, for your case!
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