How to Make $1 Million as a Small Business

There are millions of small business owners within the United States and around the world. Together, they form a vibrant core of many national economies.

However, a large portion of these entities never achieve lasting success. According to the U.S. Small Business Administration (SBA), only about half of small businesses survive for at least five years—never mind making it big.

Most small businesses want to grow their revenues, but many employ small numbers of employees who must focus on operations, not sales.

Moreover, well-known marketing and growth tactics that work well for large companies may not apply for many small businesses.

The 10 tips below could launch you on the road to $1 million in revenue. So read on to learn how to grow a small business into a big success.

Key Takeaways

• Become a thought leader by communicating your expertise publicly.
• Social media can be a cost-effective way to distribute marketing messages.
• Passive income streams can remain in play while you build other revenue options.
• Customers who like your product(s) and customer service may send out recommendations via social media that reach thousands of potential customers.
• To learn what existing and potential customers want, ask them.

1. Be an Industry Thought Leader

This tip is provided first because so many businesses have used it to develop their potential to grow to more than $1 million a year in revenue.

Become the expert that people seek out when they need a solution.

If you market yourself enough and in ways that capture the right attention, you could start receiving emails and calls from individuals wanting to buy from you. That beats you cold calling individuals who have no interest in your business. 

Social Media: Cost-Effective and Potentially High Value

Start a podcast, post regularly on social media, speak at industry events. Publish an e-book on your niche area of business.

This is the least expensive marketing method for growing your business. There are plenty of platforms available through which you can produce and distribute top quality content. And it usually can be done at a relatively low cost or for free.

Invest an hour a day in learning about your market and incorporating that with knowledge of your business solutions. Then publish your insight and opinions.

This strategy works for all kinds of niches, from dog training, physical therapy, and copywriting to fundraising and hedge fund investing.

See where it takes you in six months, then in a year. Adjust your message as needed after you reflect on your progress.

At a certain point, you may be approached by potential customers and/or other businesses seeking a joint venture.

There seems to be an online audience looking to learn more about almost any subject. Start feeding them valuable content and they will start feeding your business with leads and sales opportunities.

2. Create Passive Income Streams

Subscription-based models and membership programs sell a customer once and then continue to earn a profit every month as long as customers remain happy.

That’s the beauty of a passive income stream; theoretically, you only need to sell people on the model one time. However, you must ensure that the product or content you provide maintains its high quality and that subscribers remain satisfied.

An example of this model is the sports news subscription service known as “The Athletic,” now owned by The New York Times.

For a monthly or annual subscription fee to The New York Times, or just “The Athletic”, readers receive high quality sports journalism from an all-star team of sports writers.

As long as the paying subscriber finds value in “The Athletic,” this stream of revenue should continue to generate income.

Passive income models could incorporate a low monthly fee for on-demand customer service or maintenance, subscription access to exclusive services, or even a personalized experience that syncs to all of your internet devices.

3. Up Sell Your Customers

One of the easiest ways to grow your business quickly is to earn additional sales through your current customers.

If a customer loves your product, maybe they’d love a premium version of it even more. Communicate an offer and see what happens.

If you get a good response, you may have a dependable route to more revenue from more customers.

Or, if a customer is a fan of your product and, perhaps, even your company, they might consider recommending you and your product to a friend, co-worker, or family member. If they make such recommendations via social media, their message may reach thousands of people.

So, ask your customers for recommendations. These days, you can do that directly or to a large group through social media.

But remember to keep your focus on product and service quality because if either deteriorates, so will the recommendations customers are willing to provide.

4. Over-Deliver Whenever Possible

Word of mouth is the most powerful marketing tool that you can employ. So another strategy, similar to that above, is to go beyond the existing expectations customers and potential buyers may have.

Surprise and delight them with every chance you get, especially with warm customer service before, during, and after a sale.

Many large corporations spend millions of dollars on marketing only to pay their customer service personnel closer to minimum wage.

This is an area of vulnerability for them. Your small business may be able to create more personal relationships and provide better customer service than most of the large players in the industry.

5. Conduct a Competitive Analysis

Analyze aspects of your top five competitors—everything from product lines, prices, digital presence, and level of customer service. 

Then, based on what you learn, come up with 10 new ideas you could use to supplant them.

If you do this once a year, not only will you keep up with your competitors as they innovate and evolve, but you may outpace their success with your own developments.

So many of your competitors neglect this approach because it’s hard work. But the new ideas you glean may lead to some creative and highly attractive solutions for your customers.

Note

To keep your business ideas fresh and to find new ones, join an active business network or niche business organization that meets in person and online. Learning about other business owners’ successes (and failures) can inspire you to take actions that may strengthen your business and boost your sales.

6. Stay Focused and Positive

Your business is an investment. Changing your environment by spending time with other motivated individuals can help you remain focused on your success and upbeat for the future.

Become a student of positive psychology, and clear your office and workspace of distractions. If you get up early and start each day by studying your industry, your competitors, and your top-level goals, you will work more efficiently and gain an edge on your competition.

7. Sell Globally

Research whether you may be able to extend your business into geographic areas in which you currently don’t operate. That may be across the country or in foreign countries.

Choose one to three target markets beyond your region of operation. Identify would-be competitors in those markets.

What do they charge? What products do they offer? Call or email these companies as time permits, and introduce yourself. Although you’re a potential competitor, they may be willing to talk to you.

Talk to other businesses in different niches. Since you’re not a competitor, many may be happy to lend you some insight and advice. In fact, they may see a financial benefit from a move you make into their area.

You may discover that there is no way to expand abroad. But you may also come across another product idea or customer acquisition strategy by completing the research and seeing how small businesses in your industry operate in other regions of the world.

8. Think Smartly About One Million

Work backwards from a million in revenue. If you want your business to generate one million dollars a year, that means you must make $83,333 a month, or $20,833 a week, or $4,166 per business day.

That is a lot of money to earn every business day, but thinking in such terms can make your planning more effective. You won’t feel as overwhelmed.

Next, consider the new products or services you could add now that could possibly earn that much within one to two years? Consider new strategies for making those sales of existing and new products.

Think in terms of leverage, systems to facilitate sales, and residual passive income streams.

9. Acquire a Business

Acquiring a business can be a smart way to build your revenues without having to develop new expertise and products yourself.

Look around. Who are your competitors? Are they a good fit for your business? Is the business stable with a solid customer base? Is the owner about to retire?

Many business owners who want to sell end up simply closing shop after not finding an interested buyer.

You may be able to pick up a business that, when combined with a business you already own, could pay for itself within 12–18 months. Some may sell for two to five times their annual earnings or profits.

This is an expensive but potentially quick way to reach a million (or more) in sales per year.

10. Test the Market

Many business owners find success in actively seeking out and listening to customers describe their needs. Or they test a market by offering a variety of business services or products.

Using each method or both can land the offering that resonates best with their target market and takes off in terms of sales.

Every experiment that you try can teach you something about your business and customers.

Some of the largest, most successful companies in the world market-test thousands of products to develop their eventual portfolios of one- to two-dozen product offerings.

Hard work creates luck and if you experiment long enough, you will find something that sticks.

How Do I Start Using Social Media for My Business?

Broadly, first define what it is that you feel is important to communicate to a targeted audience to help you achieve your specific goal. You may be familiar with the various social media platforms that exist. Look into them to find one, two, or more that match well with your style of communicating and your message(s). Then, plan your posts and the best time to make them. That’s a start.

Do I Handle My Business Social Media Myself?

You can, or you can delegate that task to someone else in your company. Perhaps that person is adept at using social media to achieve business objectives. Work with them to develop, launch, and maintain a social media strategy. You can also retain a company that specializes in handling social media to do the job for you.

I’m an Expert at My Business, But Am I a Thought Leader?

You could be. Or someone in your company could be. Consider your experience, expertise, and vision. Then, consider your comfort with declaring both publicly. You don’t have to claim that you’re a thought leader. The idea is to get others to do that for you by sharing well-reasoned, interesting, high-value content with them.

The Bottom Line

While this list is not exhaustive, it should help create some momentum and spur creative thinking about how to grow your business.

Many businesses may already put these tips to use. Like them, use those that you feel can make the most impact, and get started.

Don’t dismiss those that appear at first to be unworkable, like extending your region of operation. You never know when and where opportunities may spring up. It’s important to be ready for them.