Micro, Small, Medium, Large: Which one are you?

Micro, Small, Medium, Large and Companies; What does this all mean? These are terms used to describe businesses of different sizes, however definitions vary depending on where in the world you are located. For example, in the US, a small business is defined as a business with fewer than 250 employees. Oh! That is not very small. In Europe, Small Business is less than 50.

Does it matter what category your business is in? Actually it does. Companies of different sizes need to take different approaches to overcome their challenges. That is, the size of your business will dictate the types of problems you encounter and the most effective ways to solve these problems within a realistic time frame and budget.

Let’s define what these business categories are, based on where you are in the world. In the US, Micro has fewer than 10 employees, Small <250, Medium <500, Large <1000. In Europe, Micro is less than 10, Small <50, Medium <250, Large <1000. In Australia, Micro <2, Small <10, Medium <200, Large <500.

Many micro business owners (MBOs) are trying to overcome their business challenges by using small business strategies. Therefore, these strategies, although very smart and effective, are not suitable for MBO. It’s like buying a suit or dress that’s exactly the style and color you want, but it’s two sizes too big. You can’t take it as it is. You’ll need to tailor it, and even then, it may not look quite right. I see this all the time with “wrong size” solutions for the MBO.

So the first step in helping MBOs be more successful is getting them to admit who they are. Go ahead, okay, you can say, “Hello, my name is (Your Name Here) and I’m a small business owner.” See, don’t you feel better? Our next step is to have our Co-MBOs do the same. This will allow us to form the basis of a community. By knowing what we are and who we are, we can work together to create greater mutual success.

As an MBO, your solutions to your challenges are unique from companies of other sizes. You may have the same challenges as small or midsize business owners, but the way you need to solve them is different. You must be faster, more flexible, more creative and more effective. You have no room for inefficiency or ineffectiveness.

Grow, interview, hire, manage, lead, develop a team, processes, systems, communication, as well as marketing, sales and customer service; they are an integral part of running a successful business. However, if you don’t know what it is, if you follow “small business” advice instead of micro business advice, you may be harming or indeed delaying your success.

In your networks, make sure your fellow MBOs know what they are. Together, we can truly make a difference in our own businesses, the businesses of others, our local communities, our nation’s economies, and global entrepreneurship.