5 Differences Between a $500k business and a $5M business

Before making the decision to scale a company… there’s a lot of change you’ll want to consider.

Here’s some areas of change you will want to consider ⬇️

Make sure you’re up for all that comes with it! The operational differences between a company with 500,000 in revenue and one with 5,000,000 in revenue can be significant.

1. Decision Making: In a larger company, decision-making may be more centralized, with decisions made by senior management or a board of directors, while in a smaller company, decisions may be made by the owner or a small leadership team.

2. Complexity: As a company grows, the operations tend to become more complex, and the company may need to invest in systems and processes to support this.

3. Size of workforce to manage: more people, more layers of management, the need for a full time HR department.

4. Risk Tolerance: Larger companies have a higher risk tolerance and can absorb a financial hit from a failed project. For example, spending $10,000 on an event that isn’t successful could be devastating to a $500,000 company but not to a $5,000,000 company.

5. Market Positioning: When you’re small you’ll survive by eating low hanging fruit. As you grow you must fight harder to nurture clients in a more competitive sales landscape.