Scaling to succeed
A thought leadership article by Ellis
How hard is it to scale a business?
In 2014, according to U.S. Census Bureau data, there were 28,8 million firms in the US. The odds against a startup growing large are 10,000 to one. Refer to the statistics below as we explore that. If you have a single employee that you pay W-2 wages, you have already outperformed 23 million businesses. It’s the rest of them that concern us here
If you have 20 employees, you have already outperformed 22.8 (79%) million firms. 6 million (21%) have outperformed you.
If you have 500 workers you are considered large by the SBA. This is the gold standard. You’ve outperformed 28.5 million firms and 5.8 million (99.7%) employer firms. 300,000 (0.3%) outperform you.
- 5,830,000 million employer firms
- 5,000,000 have 20 employees or more.
- 300,000 have 500 employees or more.
How fast do you want to succeed? Five years? (You’ll have to add 8 employees a month.) 10 years? (You’ll have to add 4 emploryees a month.) 20 years? (You’ll have to add 2 employees every month for twent years.
How hard will it be? Very hard. Almost impossible.That’s why the odds are so high. That’s also why the money is so large in that rarified air.
If it’s your intent to growl, you will find it much easier with our assistance. We specialize in privately owned businesses. Our purpose is to save privately owned firms from the ravages of the markrtplace. There is at least one other company helping firms grow. But that company only works with already large firms. We are very likely the only game in town
- 28,800,000 firms in the US.
- 1 in 10,000 of all starts (0.01%) > 500 employees (per SBA)
- One biz in 10,000 grows to 500 employees.
- 5.83 million (20%) employer firms in the United States.
- 1,152,000 (4%) > $1 million revenue
- 115,200 (0.4%) > $10 million revenue
- 17,000 (0.06%) > $50 million revenue.
- 2,500 (0.009%) > $500 million revenue
- 500 (0.0002%) > $5 billion revenue*
- 22.8 million of all firms <
- 5,8 million employer firms (99.7%) < 500 workers
- 5.2 million employer firms (89.4%) < 20 workers
Data provided by U.S. Census Bureau & the SBA.