*91% of all businesses will NOT hit the $1m revenue, does that mean they are not successful?
Now this particular stat is a few years old so I fully expect this to be a little different in 2023, but still it will be the exception and not the rule. With so many posts about businesses making multiple millions being shared on social media it can sometimes feel this is the norm, and when you don’t achieve this, you begin to wonder is there something wrong with you or your business.
Let me share some statistics from 2022 in the UK with you
- In total, the most up-to-date government figures show a total of 5.58 million SMEs are currently active in the UK, making up 99.2% of ALL businesses. A SME is up to 49 employees
- 4.2 million small businesses had no employees, and 1.4 million have employees
- And the UK private sector business population is made up of 3.1 million sole proprietorships (take a bow all my fellow 1 person businesses)
I share these numbers to highlight statistically only a small number of business owners are hitting £1mil in revenue let alone profit. And honestly every single person that is reaching that milestone should be celebrated. I am seeing many coaches and trainers achieving multiple £mil launches and I LOVE it not just for them but the inspiration it gives to others.
But I have also seen wedding and creative clients become disheartened at not having 6 figure launches or feeling despair at the pressure to have a 7 figure business.
I dislike how many creatives are feeling embarrassed about their revenue, instead of feeling proud of the business they have built they feel demoralised if they are not achieving the same level of turnover they frequently see on social media.
What about all those numbers in between £100k – £1 million?
Lets be frank, there is a big jump from £100,000 to £1,000,000. No one seems to talk about getting from £100k to £200k or even £500k. Nope it’s predominately getting to £100k then ignoring the next £900k! It’s ludicrous if you think about it. Cast your mind back to marketing messages, I bet you can remember campaigns talking about 6 figures? And in recent years 7 figures? But what all the hundreds of thousands in between?! When working with clients I also ask them to break goals down and this includes financial targets. So know what you want to bring into the business then think about how to make that happen. So in the case of a £100k or £1 million, below shows you what you need to bring in each month to reach that target.
£100k = £8,334 per month
£1mil = £83,334 per month
Is it any wonder creatives are suffering with their mindset and imposter syndrome when they see these numbers? There is a big difference between bringing in £8.3k per month vs £83k! Can it be done, yes absolutely. But it might mean changing your business model, launching a new business and exploring passive income streams.
The fact is business success for everyone is different and thus I feel strongly strategies should be crafted to achieve the goals and dreams of the business owner. And not what any online hype is promoting. Take a moment to think about what financial target you want revenue and profit wise. Work on a revenue goal that will bring joy and freedom to your life, and not a target dictated by others.
Analyse your current services or products, what would you need to sell to make this happen? Reaching any financial goal doesn’t happen by just wishing for it, you need a strategy in place. What knowledge do you need to gain ? Is it time to upgrade systems? Is it necessary to hire a *coach or mentor to help you?
If you are one of the 5.58 million SMEs making up 99.2% of all businesses. Know that you are keeping this country ticking over. You may be a SME. But together you make up a pretty amazing collective of businesses.
*If you need support getting to 7 figures let me know and I will refer you to some fabulous coaches. This is not my level of expertise. I specialise in clients reach 6 figures and beyond. My strengths are analysing your business and advising bespoke strategies to match.
In January I am hosting a Mastermind Day where together we will discuss what revenue goals suit you and more importantly HOW to make this happen. Earlybird rate increases on the 12th November. This is the perfect way to step away from your business and plan away from all distractions.
Head on over to our sales page to read more of the testimonials.
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This Mastermind Day is for ALL entrepreneurs in the wedding and creative industry. It is designed for those that already have a business, the ideal mix is planners, cake makers, florists, stationers, stylists, photographers, artists and more! To learn more or to book click below.
UK 2022 business statistics – Federation of Small Businesses
Collaboration not Competition