What’s a micro-business?

Did you know that there are over 7 million women entrepreneurs in this country.  About 6 million are micro-businesses.

 

What’s a micro-business?

Glad you asked.  This is what the wikipedia said:

A micro-enterprise (or microenterprise) is a type of small business, often unregistered, having five or fewer employees and requiring seed capital of not more than $35,000 . The term is often used in Australia to refer to a business with a single owner-operator, and no employees.

en.wikipedia.org/wiki/Micro-Business

Personally, I’d bump it up to fewer than 10 people, employees or owners.  I’m a micro business. You’re a micro-business.  Wouldn’t you like to be a micro-business, too? (Ok, that was a random Dr. Pepper reference-sorry)

Here is an absolutely fab infographic created by Vistaprint.

What is a micro business?

infographic of micro business by Vistaprint

 

 

 50% of micro businesses earn less than $25K

That’s a startling statistic, isn’t it?  First, because it’s easy to imagine that everyone but you is making a mint.  Turns out, not so much.

Second, because it tarnishes the shiniest brass ring in online marketing- making six figures…gasp!

Only 7% of micro business owners make over $100k.  Think about that the next time a guru promises to take your business to the exalted six figure mark and beyond.

That path is littered with bodies exhausted on the journey to nirvana.  I don’t say that to be mean.  Just to be realistic.  Part of being powerful is recognizing when NOT to make something happen.

This might be sacrilegious but it’s ok not to make six figures with your small business.

That’s where the micro-pricing concept came from

You don’t have to feel bad about not making 100k.  You can feel great about adding $1k to your bottom line.  That adds up.  The more small income streams you add the longer you get to stay around and figure the recipe out.

What recipe? Cooking and business are very similar for me.  I think in terms of the recipe for success.  And, just like real cooking sometime you gotta tweak the recipe before it’s perfect.

Selling mini-products at micro-prices allows you time (and money) to tweak your recipe for success. To find that illusive combination of ingredients (marketing, sales, message, audience) that makes a satisfying, profitable stew.

As you know, I’m still in the test kitchen myself working on Survey Sherpa, my mini-product. Here’s how it’s going so far.

 

How would you describe a micro business? Are you one, too?

 

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Leave A Reply (8 comments so far)


  1. Carla Johnson
    5 years ago

    I like that it will help me and other understand when I describe my business.


  2. Ernest Adams
    5 years ago

    Dina always has great things to say, and the topic of micro-pricing is no exception. I’m looking forward to reading what she says about setting prices according to how we value our experience.


    • Dina Eisenberg
      5 years ago

      Ernest you say the nicest things-thanks.


  3. tobey dodge
    5 years ago

    You make a lot of sense:) I’m going to use some of these principles you explain in a micro pricing for maximum effects.
    Thanks for the insight.


    • Dina Eisenberg
      5 years ago

      My pleasure Toby. I’d love to hear what you come up with!


  4. Mary Thompson
    5 years ago

    Love that there is a “name” for my business type. Small business was always a category that was beyond where I wanted to go. I like micro …it fits. I have thought about doing mini products for a long time. On line “how to make” a professional corsage or boutonniere… the right way not as taught by freebie how to articles. Also selling kits with materials as well as instructions… I went as far as putting a kit together. Then just got busy and let it slide. You are inspiring me to try again.


    • Dina Eisenberg
      5 years ago

      Mary you are a superhero! I love that you want to lick this! Git always wins Sometimes a crazy idea pops up. I see you creating a couple of video series for guys who want o pick the best grocery store flowers. Great mini- product. next time you know you educate him into… Hmmmmm a monthly subscription, a recipe for a new bouquet. Now you’re covering a couple of flower buyers. It could work. Lemme know if you try it!

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