It’s Small Business Month! So, What Does That Mean?

What does MAKO Define as a Small Business?

More often than not, you’ll be surprised by how many small businesses exist in comparison to larger businesses. However, the lines between what defines a “small business” vary.

Although the definition of a small business can be based on a number of different variables, most commonly, a small business can be defined by the number of employees and average annual receipts. The number of employees a small business can have typically varies from less than 250 to 200 employees or from having a maximum of 1500 employees.

The reason why these numbers are drastically different is because the definition of what is considered a small business depends on which industry the small business is in. Additionally, a small business is run by either privately owned corporations, partnerships, or sole proprietorships.

Another way to separate a small business from larger businesses is by their average annual receipts, which range from 750k to 38.5 million. What may surprise people is how much small businesses dominate the economy as 99.7% of U.S firms are made up of small businesses, in which 89.6% of these small businesses have fewer than 20 employees. 

These numbers can be attributed to the fact that there are a lot of benefits of small business! Keep reading below to find out what they are.

The Benefits of a Small Business

From a business point of view, a lot of people typically have the impression that the bigger your business is, the more successful it is. However, sometimes some businesses, especially depending on the industry, can actually benefit more from remaining as a small business that expanding to becoming larger or owned by another huge corporation. Some of the benefits of being or owning a small business include:

Independence:

By far, one of the greatest benefits of a small business is the freedom for entrepreneurs to be their own boss. As a small business owner, you get to choose what your business does and who to work with. Additionally, since small businesses owners make all the decisions, you get to fully control every aspect of your employees’ guidelines, and the direction of your business, ultimately taking control of the destiny to where your small business can lead to.

Financial gain:

Another huge aspect and benefit of a small business is financial gain. Since you own your own small business, rather than owing your revenue to someone else, you can control exactly where your profits and spending go. Ultimately, the hard work and effort you put into your business goes back to you.

Control:

A huge aspect of owning a small business is the amount of control you get. From the concept, to sales, to business operations, everything is depending on your own control and decisions. You can choose to be part of every element of your business and truly create a visionary aspect of your business.

Small business owners also find that they can establish more closer relationships with their clients, and ultimately control how these relationships can manifest into greater profits, great word of mouth, and even future business ventures!

Prestige:

A great small business benefit is definitely the pride in being able to say and explain that the success or road that your small business is headed in is all thanks to you! Most entrepreneurs and small business owners are most proud of the fact that they can attest to the fact that the success of their business is thanks to the effort that they created for themselves the moment they decided to invest in their small business!

Equity:

One of the biggest goals for entrepreneurs and small business owners who go into owning a business is to create and build equity. With owning a business comes a lot of power, but the benefits of a small business are that you get to choose what you do with your ownership.

With equity, you can build, keep, self or pass on your shares onto someone else or for your family. If, as a business owner, you become invested in other passions or areas of business, having equity can allow you to share what you’ve built and gained onto someone else, or even sell for profit and create an even bigger business!

As the owner of your small business, with the amount of control and freedom you have, your equity and direction of your business is all up to you.

Opportunity:

Owning a small business is an exciting job. With so much control and possibility with what you can do, everyday presents something new.

Entrepreneurs will be glad to know that since the benefits of a small business come with so much responsibility and freedom, there also comes the chance to make and contribute to many opportunities within the industry of your small business and your small business itself!

Not only can you achieve great personal and business-related goals, but you can also help create opportunities for your community as a whole. Any huge achievements and innovations help contribute to society and the economy as well.

How MAKO Caters to Small Businesses

One of the greatest things that separates MAKO Design + Invent as a product development firm is how we are one of the first product development firms to cater our services exclusively towards small businesses and home inventors.

When MAKO Design + Invent was first founded, our CEO, Kevin Mako, was looking to fill an uncharted gap within the product development space. He noticed that there was no product development firms that make it easy for small businesses and home inventors to build and make their products come to life.

Thus, we’ve built our company structure on delivering world-class and high quality results to small businesses and home inventors to level out the playing field and bring innovation to the product design realm from inventors who may not have the opportunity to bring their ideas to life like big corporations do. MAKO Design + Invent recognizes and sees the benefits of a small business and the pride we feel in helping bring a small business to success through its amazing inventions and determination!

If you have a great new invention and you’d like to learn more about this process, get in touch with MAKO today and visit our website to find out more. Or feel free to give us a call at 1-888-MAKO, and we can set you up on a call with our product strategist!

About: MAKO Design + Invent is the original firm providing world-class consumer product development services tailored to startups, small manufacturers, and inventors. Simply put, we are the leading one-stop-shop for developing your physical product from idea to store shelves, all in a high-quality, cost-effective, and timely manner. We operate as one powerhouse 30-person product design team spread across 4 offices to serve you (Austin, Miami, San Francisco, & Toronto). We have full-stack in-house industrial design, mechanical engineering, electrical engineering, patent referral, prototyping, and manufacturing services. To assist our startup and inventor clients, in addition to above, we help with business strategy, product strategy, marketing, and sales/distribution for all consumer product categories. Also, our founder Kevin Mako hosts The Product Startup Podcast, the industry's leading hardware podcast. Check it out for tips, interviews, and best practices for hardware startups, inventors, and product developers. Click HERE to learn more about MAKO Design + Invent!