How to Determine the Size of Your Business in a Business Plan Example

When creating a business plan, it is important to determine the size of your business accurately. This helps in outlining the strategies to achieve the set objectives and also in determining the financial requirements needed.

Here are some ways to determine the size of your business:

1. Employee Count

Determining the number of employees in the business is one way to determine the size of your business. This can be classified into three categories: a small business has less than 50 employees, a medium-sized business has between 50 to 250 employees, while a large business has 250 or more employees.

2. Revenue

Revenue is another way to determine the size of your business. A small business has less than $5 million in revenue, a medium-sized business has between $5 to $100 million in revenue, while a large business has more than $100 million in revenue.

3. Assets

Assets owned by the business can also determine its size. A small business has assets worth less than $5 million, a medium-sized business has assets between $5 to $100 million, while a large business has more than $100 million in assets.

4. Market Share

Market share can also determine the size of your business. A small business has a market share of less than 5%, a medium-sized business has between 5 to 20% market share, while a large business has a market share of more than 20%.

5. Industry Comparison

Comparing the size of your business to others in the same industry can also provide insight into its size. This helps in identifying where your business stands in terms of growth potential, resources, and competition.

In conclusion, determining the size of your business plays a crucial role in creating a successful business plan. By understanding and accurately measuring the size of your business, you can better identify your strengths and weaknesses, develop a growth strategy, and make informed decisions to move your business forward.