Dreaming to be small is a big dream. Understanding the difference between Nano, Micro and Small Businesses.

Dreaming to be small is a big dream.

Understanding the difference between Nano, Micro and Small Businesses for a better navigation. 

When you start doing business, there is a sense of power that settles in. You can do it. You don’t need a 9-5 job in someone else’s business to afford your living. You can handle it on your own and you can also create jobs, and eventually change the world for the better. That is very fulfilling and empowering feeling, even though your new working schedule is 24/7.

Entrepreneurship is not about freedom as there’s none, it is about empowering and feeling empowered. Free are those people who don’t worry about anything, not because they are rich or have a good life, but because they don’t want more. They found happiness in what it is, as it is.

Leaving that aside and coming back to our sheep, this very strong sensation of power combined with adrenaline often blinds you. It holds the potential to make you lose contact with the roots. For me the roots are two main things: the dictionary and the laws and regulations. Each time I lose myself from the meaning of things and get confused, I go back to the roots. They show me the arena with its rules and exit doors, my place on the map. They clear things up.

Being caught in the mechanisms’ wheels of money-making while your ego grows behind your back, you think that your small business goes well and that’s a very good start.  After a while, you start needing money to develop it or to just keep it on track and that is when you hit the wall of reality and of the meaning of the words.

In today’s financing frameworks for SME, micro, small and medium do not mean what you think.

Small business means generating sales of about 10 million dollars/euros a year (with about 20 employees).

Micro business means generating sales of about 2 million dollars/euros a year (with up to 10 employees).

Your business hardly generating sales of 150k a year (which is common and considered successful) is a nano business and it is located at the bottom of the pyramid. You don’t die, but you also don’t live.

Sales of 150k a year means very little, but very much for most people. Think that most of the people earn between 1,000 and 5,000 dollars/euros a year (where 5,000 ranks as a very good salary) which means an average of 30k a year. If on your own, you can generate 150k in today’s world, you are a talent and a shining star. 

After you extract costs and taxes, if you get an optimistic margin of 10-20% (depending on your business profile and the country you live in), that hardly covers your current living expenses.

Setting a nano business up and making it work starting from nothing, one that can generate that number, it is like climbing Himalayas naked, and the one billion necessity entrepreneurs and solopreneurs know it too well. It’s not easy at all. 

This is the hot spot where most enterprising people need tangible help, education, guidance and support regardless the countries they live in. This is where the gold is, the solutions for many problems. 

Dreaming to be small is a big dream.

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