Posted on Nov 13, 2017
What annual revenue does your business need to earn for you to feel like you're a successful entrepreneur?
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Posted in these groups: 
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Small Business Small Business Owner Personal Development Entrepreneur Business
Posted 7 y ago
Responses: 4
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You are right to imply that success is relative, personally and financially.
I think I get where you're going with it, but for clarity's sake though, Revenue does not equal Net Income, so it may depend on what measure of success you are looking at.
So, first question, how does one define "success"? Depends. Revenue can be a fine measure of business growth period over period. However if we're defining success as "profitability", revenue of $1,000,000 sounds great...unless your cost of goods sold (for example) is $1,100,000, and your bottom line is negative.
I don't bring that up to merely barf up Business School 101 crap, its just some entrepreneurs/small business owners, may have their sights set on the one, and miss the impact of the other. I have a friend of mine who owns a small business, and he was wrapped up in the fact his sales were so much better than the year prior, but he wasn't really any better off. He was tracking his revenue, but wasn't tracking his expenses, which had gone up commensurate with sales. So while he added up his sales religiously, he would absentmindedly pay expanses when they came, but wasn't putting it all together...at first.
I think I get where you're going with it, but for clarity's sake though, Revenue does not equal Net Income, so it may depend on what measure of success you are looking at.
So, first question, how does one define "success"? Depends. Revenue can be a fine measure of business growth period over period. However if we're defining success as "profitability", revenue of $1,000,000 sounds great...unless your cost of goods sold (for example) is $1,100,000, and your bottom line is negative.
I don't bring that up to merely barf up Business School 101 crap, its just some entrepreneurs/small business owners, may have their sights set on the one, and miss the impact of the other. I have a friend of mine who owns a small business, and he was wrapped up in the fact his sales were so much better than the year prior, but he wasn't really any better off. He was tracking his revenue, but wasn't tracking his expenses, which had gone up commensurate with sales. So while he added up his sales religiously, he would absentmindedly pay expanses when they came, but wasn't putting it all together...at first.
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CPT Christopher Coker
I absolutely agree with this.
Money is one way to qualify the success of our business, not necessarily the success of the business owner. What does his/her family life look like? Health? Happiness?
I pose the questions because I'm curious what people think they need to be paying themselves in order to justify being a full-time business owner. What do we need to be bringing home in order to quit calling it a side hustle and committing to our business full time?
Money is one way to qualify the success of our business, not necessarily the success of the business owner. What does his/her family life look like? Health? Happiness?
I pose the questions because I'm curious what people think they need to be paying themselves in order to justify being a full-time business owner. What do we need to be bringing home in order to quit calling it a side hustle and committing to our business full time?
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1st Lt (Join to see)
Spot on. My experiences owning a small landscaping & snow removal company in a small community are similar. I had graduated successes until I hired my 3rd full-timer. But, due to business demands, I needed to grow more and eventually had around 15 (FT and PT). My sweetest spot for returns was me and a helper. Though I ended around $450k gross/$125k net, I knew it was time to sell in 2009 (go figure).
I was successful but not tied down. However, if it was nice out, I was working. If it was snowy, I was working. I hadn’t taught my kids how to ride their bikes or taken them sledding. My definition of success changed then.
I sold it, joined the Guard, finished my MBA and while I now work for “the man,” I’m much happier and doing similar financially.
I love the business owners in the world. I just got my life back!
Good luck to anyone willing to work!
I was successful but not tied down. However, if it was nice out, I was working. If it was snowy, I was working. I hadn’t taught my kids how to ride their bikes or taken them sledding. My definition of success changed then.
I sold it, joined the Guard, finished my MBA and while I now work for “the man,” I’m much happier and doing similar financially.
I love the business owners in the world. I just got my life back!
Good luck to anyone willing to work!
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