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What Is A Micro Business? Examples & FAQs

What is a micro business? | Micro business vs. small business | Pros and cons of micro businesses | How to start a micro business | Challenges of micro businesses |

In the age of the side hustle , most people can name at least one or two business owners in their social circles. Platforms like Etsy, eBay, Upwork, and more have made it easier than ever to monetize skills and hobbies, and these platforms are only the beginning. Many entrepreneurs have their own websites and social media profiles selling goods and services. Did you know each of these gigs could be classified as its own micro business ?

Micro businesses are an increasingly common way for people to break out of traditional work environments. Running a micro business is no easy feat, but the benefits can make this an attractive opportunity for those with the time and the drive to succeed. If you are interested in becoming your own boss , selling your own products or services, or even supplementing your regular income: it may be time to consider starting a business. Continue reading to learn what a micro business is and how you can start one today.

What Is A Micro Business?

A micro business is a type of small business that employs less than ten people and earns less than $250,000 annually. It is common for micro businesses to operate as sole proprietorships, which consist only of the business owner. The Small Business Administration (SBA) also defines micro businesses as those requiring less than $50,000 to start. A few examples of micro businesses include freelance writers, Etsy shop owners, consultants, and many other self-employed workers. The business structure typically revolves around a smaller consumer market and allows owners to have a close relationship with their clientele.

Types Of Micro Businesses

Micro businesses can operate in any sector of the economy, though they are particularly common in retail, creative work, food service, and real estate. For example, someone operating an Airbnb may be considered a micro business owner. Similarly, your local bakery owner could also be considered a micro business. Many states have their own set of classifications for what makes a micro business, though they generally follow the same guidelines.

Micro Business Vs. Small Business

Micro businesses fall under the small business designation, though they are even smaller in structure. A small business can refer to any company with 500 employers or fewer, or $6 million or less in annual revenue (depending on the industry). There is a lot of room between micro vs. small businesses in terms of startup costs, revenue, and legal structure. These designations are important to consider as they directly impact how businesses are taxed.

Micro businesses are typically operated as sole proprietorships, while small businesses generally register as LLCs or corporations. Sole proprietors are taxed according to the owner’s tax rate, and business-related expenses can be deducted on a personal tax return. Single-member LLCs are taxed similarly; however, things get different with larger LLCs and corporate tax rates. Understanding these differences can help micro business owners choose the best legal designation when starting their own business.

Advantages Of A Micro Business

Many aspiring entrepreneurs are drawn to the idea of a micro business because they can provide supplemental income; in some cases, they can even replace your full-time job. There are some other advantages of a micro businesses to consider:

Flexibility: Micro businesses can offer owners a degree of flexibility that is not typically associated with an office job. Owners can set their working hours and decide how many projects or clients to take on.

Independence: Do you prefer to work alone? Starting your own business is a perfect opportunity to create the company of your dreams. Many people enjoy the foundational steps of starting a business as they have full creative control over the direction of the company.

Market Opportunity: Many micro businesses offer a specialized product or skill, such as graphic design work or even homemade bread. By offering a unique service, you can build a consistent network of clients. Eventually, this can help you expand your business and increase your overall profits.

Low Business Costs: Micro business owners also enjoy lower overhead expenses when compared to larger business structures. There is often not a designated office space to pay for (as many micro business owners work from home), and there are fewer employees on the payroll.

Disadvantages Of A Micro Business

There are a few disadvantages of micro businesses to consider before starting your own. Most notably, micro businesses require a high level of involvement from owners. Here are a few things to think about before starting a micro business:

High Risk: Your success as a micro business owner will depend entirely on your ability to market yourself and your product to clients over time. This could result in busy spells or periods without a lot of work. It can be risky to quit your full-time job to start a micro business for this reason.

Lack Of Support: The work of a micro business often demands diverse skill sets from everyone involved. If you are the sole employee, you will be directly responsible for marketing, financing, selling, and managing any other aspects of the business.

High Level Of Involvement: There is a lot of responsibility necessary to be a successful micro business owner. Oftentimes, you will be the only person holding yourself accountable for work and time management. Micro business owners need to be self-starters.

Difficult To Attract Talent: After you spend time building your micro business the way you want, it can be challenging to find the right employees to help with the job. Some business owners may struggle to attract talented workers who fit the hiring budget, while others struggle with relinquishing control over certain responsibilities.

How To Start A Micro Business In 6 Steps

Do you have a product or service in mind that you think you could effectively market? If you are interested in creating your own micro business, here are a few steps you can follow to get started:

Create Your Mission & Vision Statement

Plan Business Operations

Assess Financials

Create A Marketing Plan

Research & Test Your Product

File Your LLC

1. Create Your Mission & Vision Statement

With your product or service in mind, you first need to establish your business’ purpose. What are your core values and business goals? Think through your intentions when starting this business and document them appropriately. Not only can this help you get focused, but later on can help you attract investors and clientele.

2. Plan Business Operations

The next thing you need to work on is planning business operations. What services will you provide, and how much will they cost? Write out your products and a general business model you want to follow. Identify what type of resources you need to get started and set a schedule for yourself. This is also a great time to get organized. Consider the following resources as you plan out business operations:

Project Management Software: Look up software that will help you track your projects and business progress. Examples include Asana, Trello, and Kissflow Project.

Online Calendars: Organization is key, especially in the early stages of starting a business. Consider using Google Calendars, Doodle, or Calendly.

Accounting Programs: Before you fully plan out your finances, research a few programs that might help you with a business budget. A few popular options are Scoro, QuickBooks, or BillQuick.

3. Assess Financials

Before you begin searching for your first customer, it is important to establish a baseline for your business finances. Look at how much money you need to cover upstart costs and plan out a budget with your ideal revenue numbers. This will help you identify how many projects you need to take on to begin turning a profit. Assessing your finances is also crucial if you want to apply for a micro business loan, as lenders will request this information upfront.

4. Create A Marketing Plan

Now it’s time to develop a marketing strategy and begin planning how you will attract customers. This step will look different depending on your industry, but it is crucial to seek low-cost options when starting out. Research similar businesses for ideas to help you get started and write out your target audience. Again, marketing will vary from industry to industry, but here are a few places to help you get started:

Build a Business Website: Almost every micro business owner could benefit from a dedicated website. This will help clients gather information about your services and brand. Several platforms offer templates and monthly plans for small business owners. Review these options and customize a website based on your business.

Start Networking: Networking is also crucial for small business owners. Reach out to people in your area and let them know what services you provide. You can also join local business groups, Facebook pages, and more to build connections with other business owners. Word-of-mouth marketing is key for micro businesses, so always remember the importance of networking.

Establish Social Media Accounts: Create a social media page on every platform that might be relevant to your business. In today’s world, social media is often the first place prospective clients go to learn more about a business. It’s okay if you don’t have a regular posting schedule yet, but make sure your contact information and business services are clear.

5. Research & Test Your Product

While you already have a good idea of your product or service, there is no harm in extra market research. Fine-tune your offerings by researching similar businesses. Also, don’t be afraid to ask for feedback from early customers about your website or marketing strategies. These insights could be gathered in a quick online survey or through an exit phone call after you are done working with them. Use this information to improve your offerings, and don’t be afraid to test out new ideas.

6. File Your LLC

After establishing the foundation of your micro business, formalize your hard work and file for an LLC in your state. This process will look a little different depending on where you live. Still, for the most part, it will involve filing articles of organization along with an application fee to your state’s corporate filing office. If you are interested in learning more about the benefits of an LLC , be sure to read this guide.

What Challenges Do Micro Businesses Face?

While micro businesses enjoy many unique advantages, they also face some challenges. Here are the top three challenges to be aware of before you launch your micro business.

Securing Financing

Because micro businesses operate on a small financial scale, securing business financing can be tricky. Lenders often view small operations as unstable and unable to handle debt.

If you own a micro business and require funding, look to online lenders. While you may not qualify for a traditional small business loan, you can find working capital through micro loans, even if you have a low credit score .

Attracting Customers

Because you’re working with a smaller budget, you may have a harder time attracting potential customers. Small businesses often have a budget dedicated to marketing, advertising, and networking, while micro businesses don’t.

Luckily, there are plenty of digital marketing tools that are free or inexpensive to implement. In this digital age, commit to building a presence on at least one social media platform. Instagram and Facebook are great places to start. YOu may also consider expanding to Twitter, Pinterest, YouTube, TikTok, or LinkedIn, depending on your bandwidth and target market.

Don’t forget to tap into your personal and local networks. Word-of-mouth marketing is crucial for micro businesses. Send emails from your business email account to your contacts to announce your business and the products or services you offer. Encourage supporters to follow your business’s social media accounts and subscribe to your newsletter.

Multitasking

Although a business made up of 10 employees is still considered a micro business, most are owned and operated by one person. A solopreneur either cannot or will not hire employees, meaning that they wear many hats. They are on their own when it comes to marketing, taxes, operations, and sales.

Some of these tasks can be outsourced to subcontractors, while others can be streamlined using digital tools. Expect to spend a significant amount of time “on” your business rather than “in” your business.

Examples of Micro Businesses

Here are some examples of common micro businesses:

Freelancers: Are you a writer, editor, merchandiser, or consultant? You can build your career as a freelancer or independent contractor. You would take on clients as a micro business rather than as an employee of a company. This means that you would work independently and be in charge of your own business operations.

Event Specialists: Event designers, wedding florists, makeup artists, and musicians are a few examples of independent contractors that work in the event industry. These are micro businesses that market themselves independently to clients for their event needs.

Food truck owners: Food vendors using a food truck or cart typically employ just one or two employees to take food orders, prepare food, and handle point-of-sale transactions.

General Labor: Plumbers, carpenters, and independent mechanics are all examples of micro businesses in the general labor industry. These independent contractors may work with one or two employees who handle the administrative aspect of their micro businesses.

Coaches: The coaching industry is booming right now. You can find a coach for anything, such as relationships, health and wellness, or business. The majority of coaches are solopreneurs who spend just as much time marketing themselves as they do coaching.

How To Get A Microloan For Your Business

As you walk through the steps of creating a micro business, you may notice you need extra capital to get started. There are two main ways to get a microloan for your business. First, you can apply for a loan with a traditional financial institution. Research which banks in your area offer micro loans for small business owners. Look up loan amounts and interest rates before meeting with a potential lender. Be aware that not all banks provide loans in such small amounts, and you may need to seek out multiple options.

The other main option for receiving a microloan is to apply with the Small Business Administration (SBA). The SBA works with intermediary lenders to provide loans up to $50,000 for micro business owners. Find out if there is an SBA office in your area by searching online, or go ahead and research a list of potential intermediary lenders to work with. This will provide you with more information on the application process and potential loan details.

Microlending In Certain Areas

Small businesses are crucial to many local economies, and because of this, private lenders are often available to help micro business owners get started. Private lenders may be able to accommodate special circumstances for business owners in traditionally underserved communities. The U.S. Chamber of Commerce website has an excellent list of resources available for private microloans. These loans could help cover payroll costs, marketing campaigns, seasonal expenses, and supplies.

Micro Businesses Help From Your State

In addition to federal help, there are also state-specific programs that may be available to you. These could provide loans for upstart costs, inventory, and more as you create your micro business. For example, the California Infrastructure and Economic Development Bank offers both jump-start loans and financial relief programs for micro business owners. Look up micro loans in your state online to see what programs you may be eligible for, then compare interest rates and loan terms to find the right lender for your needs.

Starting your own business can be extremely rewarding. Not only can this accomplishment give you a sense of pride, but it can also help you establish financial security. That being said, owning a successful business will take time and dedication on your part. Research the numerous resources available to help you get started and begin marketing your unique product or service today. You may find that owning your own micro business turns into a fulfilling, lifelong career.

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What is a micro business & how to start one.

Micro businesses are hugely popular these days and they ’ re pretty easy to start!

Onto today’s topic: micro businesses. What exactly is a micro business or “micro enterprise” and how do you start one ? Contrary to what you might hope, a micro business is not a tiny storefront run by caterpillars. It’s a business that employs less than 10 people and makes less than $250,000 in annual sales. Statistically though, micro businesses  are usually operated by one person, the owner. 

Think of all those life coaches on Instagram. The Etsy shop owners, independent freelancers…these are all examples of micro businesses.

Here’s What We’ll Cover:

Micro Business vs. Small Business

How to start a micro business, key takeaways.

The definition of a “micro business” can vary, especially from state to state. However, there are some commonalities on what defines a business to be “micro”. These commonalities include: employs less than 10 people (so maximum 9), produces less than $250,000 in annual sales , was started up with less than $50,000. 

Similarly to micro businesses, the definition of a small business can vary depending on what state you are in. According to the U.S. Small Business Administration, a small business employs less than 1500 people and makes less than 38.5 million in annual sales. In some industries that number goes all the way down to 6 million. Still not a bad year, but a big difference when it comes to business type!

When it comes to taxes, both small businesses and micro businesses can function the same, depending on how they are registered. As the owner of a micro business, you have two options. You can register your business as a separate entity, or be the sole proprietor and include your micro business as part of your personal tax form. 

Registering your micro business as a separate entity (LLC or corporation) will give you a few benefits. These benefits include: a break on your taxes and “personal liability protection”. Having personal liability protection means that if things go south, the bank cannot go after your personal assets (home, car, savings account) but may take over your business account and property. A micro business doesn’t bring in enough revenue for registration to make sense. This is why the majority of micro business owners choose to be the sole proprietor.

Now onto the good stuff. How do you actually start one of these things? Here’s the breakdown:

Step 1 – Write out your mission statement: Before you do anything, you’ll need to figure out what sort of micro business you want to launch! All good businesses start with a solid mission statement, so grab a piece of paper and write down your goals. Really think about what will make your business stand out from the rest. Whatever you would include on your “about us” page would be a good start. 

Step 2 – Take stock of what you need to get started: Now it’s time to get into the nitty-gritty. Where will you source your supplies from? What are your business expenses ? Who is your target audience and what will they expect from you? Will you offer your product/service locally? Or internationally? Write all of this down and do your research. It’s always a good idea to talk to a fellow business owner in your space, to get a read on what to watch out for when you begin to put your micro business plan into action. 

Step 3 – Consider asking for a micro – loan: Keep your eyes open for programs and grants geared towards micro businesses. Some of these programs also offer workshops, coaching and other resources to help with business funding.

Step 4 – Come up with a marketing plan: There’s no point in having a micro business unless people actually know about it! Most micro businesses rely heavily on social media and email marketing as it’s low-cost, effective and easy for one person to execute. Figure out which platforms will best suit your brand and start getting the word out.

You don’t need to have gone to business school in order to launch your own micro business. All you need is a bit of money and the drive to get it started. To reiterate, here are the four steps to help get you started:

• Write out your mission statement 
• Take stock of what you need
• Consider asking for a loan
• Come up with a marketing strategies

It looks like when it comes to businesses, size really doesn’t matter! 

Read more about micro businesses on our resource hub .

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Discover the differences between small and micro businesses, and explore practical tips for starting and running a successful compact business.

Small businesses versus micro businesses: What’s the difference, you may ask. While all micro businesses are small businesses, making up 99.9% of all U.S. organizations, not all small businesses are micro businesses. However, these compact operations are instrumental in driving the economy, delivering specialized services to niche markets, and opening doors for budding entrepreneurs.

What are micro businesses?

Micro businesses are found nationwide, ranging from freelance professionals to mom-and-pop shops. Defined by the U.S. Small Business Administration as any company with nine or fewer employees, these small-scale operations typically provide specialized services or cater to specific market segments. Micro businesses generate less than $250,000 in annual revenue and require little startup capital to establish, making them accessible for those just entering the industry.

The advantages of having a micro business

Operating within specific niches, micro businesses offer unique services or products, serving as a significant differentiator for those aiming to establish a market presence. Plus, their low overhead costs result in reduced expenses for things like office space, staffing, and business operations.

The small scale of micro businesses also allows for easier management without needing external intervention. For example, if a business needs to adjust its operations due to underperformance, there's no need for a lengthy approval process through an internal hierarchy; businesses can make adjustments promptly. This flexibility can be freeing for employees, who can typically set their own schedules and working conditions.

[Read more: Why Hot Startups Like Pura Vida and Cure Hydration Are Getting Big Results From Micro-Influencers ]

The challenges

Despite needing less capital than larger enterprises, micro businesses often struggle to secure funding due to their limited history or brand recognition, with entrepreneurs frequently resorting to risky self-financing. Funding problems can impact consumers too, as smaller entities often struggle to set competitive prices and adapt to fluctuating demand.

Another hurdle for micro businesses is attracting customers due to brand recognition issues. While carving out a niche can appeal to consumers, micro businesses often operate with limited resources, potentially leaving them with too few staff members or needing more technological expertise to attract new customers as effectively as their larger counterparts.

Types of micro businesses

Micro businesses are prevalent across the country and vary widely, ranging from e-commerce storefronts and startups to independent contractors, retailers, and street vendors. These businesses can function from a commercial location, a retail storefront, or be home-based.

Qualifying as a micro business largely depends on staff size, encompassing many private practices including doctors' offices, financial professionals, and law firms. Local small businesses also qualify, as do retail businesses operating on online platforms with low overhead and few employees.

Operating within specific niches, micro businesses offer unique services or products, serving as a significant differentiator for those aiming to establish a market presence.

How to start a micro business

While starting a micro business is a much smaller undertaking than establishing a larger corporation, it still requires ample planning to be successful. Here are some tips to get you started.

Choose an industry

Begin developing your business idea by considering the areas you excel in. If you possess specialized skills or have a profitable hobby, it can steer you toward an industry where you're likely to thrive. Research the industry to confirm the need for your business, as well as a potential customer base, and ensure it suits your lifestyle.

Develop a business plan

Draft a business plan that encompasses details ranging from your business model to financial projections to your intended hiring strategies. Include information about your target market and define your marketing plan, along with goals you’d like to achieve and a corresponding timeline.

[Read more: Writing a Business Plan? Here’s How to Do It, Step by Step ]

Register your business

For most businesses, registering with local and state authorities is essential in order to obtain a state tax ID and Employer Identification Number (EIN). An EIN is necessary for various operations, including opening business bank accounts, filing taxes, or processing employee payroll.

Research and test your product

Conduct studies to test your product or service in your target market and determine areas of improvement. Gather feedback, whether it's from a small sampling of people during a soft launch or a wide range encompassing family and friends, focus groups, and other local vendors and businesses, to refine your product to be market-ready.

Secure financing

A financial plan is essential to getting your business off the ground. Secure capital through microloans and credit from banks, or explore funding options from external lenders or investors who believe in and support your business idea.

Attract customers

Micro businesses need a comprehensive marketing strategy to attract customers. Investigate your target market and competitors to guarantee that your business effectively communicates its value proposition. Employ marketing techniques, such as social media promotion and paid advertisements, and develop a website that reflects your business's core values to reach your audience.

[Read more: A New Selling Strategy? How to Create Virtual Micro-Experiences ]

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What Is a Microbusiness?

Definition and Examples of Microbusiness

• How a Microbusiness Works

State Aid for Microbusinesses

 jacoblund / Getty Images

A microbusiness is a subcategory of a small business, defined specifically by its small number of employees, annual revenue, and startup costs.

Key Takeaways

• A microbusiness is a type of small business that has under 10 employees (according to the SBA), meets specific annual revenue criteria set by state authorities, and has small startup needs.
• Identifying an organization as a microbusiness is key to sustaining growth and applying for resources and loans particular to microbusiness owners. 

Loans from the microloan program can be used to fund working capital, inventory or supplies, furniture or fixtures, or lastly, machinery and equipment. 

A microbusiness is an entity defined by its small number of employees, annual revenue, and startup costs . The U.S. Census Bureau and the Small Business Administration (SBA) define microbusinesses as companies with fewer than 10 employees. However, there is technically no universal definition, and each state tends to set its own standards for the size and scope of a microbusiness.

Examples of state regulation include Connecticut, which further identifies microbusinesses as making under $500,000 in annual revenue. California, on the other hand, defines a microbusiness as one with annual gross revenue of $2.5 million or less over the three previous years, or a business with 25 or fewer employees.

You can think of a microbusiness as a subset of a small business, though it operates and has very different challenges than a small business does. A microbusiness owner needs to create operations, capital needs, and scaling measures that are specific to a microbusiness entity. 

A microbusiness is often run by a sole proprietor , meaning the owner must spread themselves across various roles or departments to keep the business functioning. Further, dollars to invest in marketing and growing a customer base are more limited with a microbusiness, pushing an owner to get creative when it comes to building an active clientele.

Microbusinesses often fall within the industries of retail, construction, and health care. Many independently owned creative shops fall within this scope too, such as businesses on Etsy. According to 2017 data, microbusiness employers account for 74.8% of all private-sector employers.

Supporting microbusinesses in local economies is crucial to creating employment opportunities and building a sense of community in local neighborhoods. Selecting a solopreneur owned cafe over a big-brand coffee shop can make a difference for economic and employment diversity. 

• Alternate name: Microenterprise

How a Microbusiness Works 

A microbusiness is one of the smallest business entities, categorized as having much lesser annual revenue and employees than the average small business. 

To maintain status as a microbusiness according to the SBA, a company must:

• Employ one to nine employees, including the owner
• Make below specific annual revenue numbers set by state and local governments, such as Vermont’s regulation of $25,000 in annual revenue
• Have small startup costs and capital needs, aligned with the small scale operations necessary to keep the business running

As mentioned, microbusinesses often operate with a small team and slim resources. Keeping a business operational could mean a need for expansion, and expansion takes additional capital to ensure success. To lump microbusinesses into the same category as small businesses would create unfair challenges and competition for microbusiness owners seeking funding opportunities.

Just like a small business has specific loan programs available to help them thrive, so do microbusinesses. The SBA offers a microloan program that provides loans of up to $50,000 to help businesses and certain nonprofit child care centers startup and grow. The average microloan, though, is generally about $13,000.

The SBA provides funds to specifically chosen intermediary lenders, such as nonprofit organizations with lending experience, that then distribute the loans to eligible borrowers. Each lender has its own credit and lending requirements, and they generally require collateral and a personal guarantee of the business owner.

It can be very competitive for small businesses, including microbusinesses, to receive small business grants from the SBA. As a result, there are many state and local programs that provide aid for microbusinesses too.

Vermont, for example, offers a Micro Business Development Program to companies that have less than five employees and generate less than $25,000 in annual revenue. Through this program and others like it, microbusiness owners have the opportunity to:

• Network with other entrepreneurs
• Take relevant courses on topics like building your credit score and record-keeping
• Gain access to technology resources
• Work one-on-one with an experienced business counselor

Also keep in mind that many microbusinesses operate as sole proprietorships, not going as far to register as an LLC or corporation as many small businesses do. As a result, a microbusiness owner is taxed according to the tax rate on their personal tax return , as opposed to filing business taxes separately.

U.S. Small Business Administration Office of Advocacy. " Small Business Facts: The Role of Microbusiness Employers in the Economy ." Accessed Nov. 19, 2021.

Connecticut General Assembly. " Statutory Definitions of Small Businesses and Microenterprises. " Accessed Nov. 19, 2021.

California State Legislature. " Government Code - GOV Title 2. Government of the State of California [8000 - 22980] (Title 2 Enacted by Stats. 1943, Ch. 134.) Division 3. Executive Department [11000 - 15986] (Division 3 Added by Stats. 1945, Ch. 111.) Part 5.5. Department of General Services [14600 - 14985.11] (Part 5.5 added by Stats. 1965, Ch. 371.) Chapter 6.5. Small Business Procurement and Contract Act [14835 - 14847] (Chapter 6.5 Added by Stats. 1973, Ch. 1198.) Article 1. General Provisions [14835 - 14843] (Article 1 Heading Added by Stats. 1998, Ch. 917, Sec. 1.) 14837 ." Accessed Nov. 19, 2021.

 Vermont Agency for Human Services. " Micro Business Development Program ." Accessed Nov. 19, 2021.

U.S. Small Business Administration. " Loans and Grants Microloan Program ." Accessed Nov. 19, 2021.

Vermont Agency of Human Services Department for Children and Families. " Micro Business Development Program (MBDP) ." Accessed Nov. 19, 2021.

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Small Business Not for You? Here's How to Create a Micro Business Plan

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TABLE OF CONTENTS

Get the guide: How to Start a Micro Business

Do good things really come in small packages? If micro businesses are anything to judge by, then the answer is "no — they come in tiny ones." With a micro business, you can sidestep many of the headaches that come with small business ownership while still pursuing your entrepreneurial goals and running your own business.

So if you're ready to join the micro side, stick around to find out how to create a micro business plan.

Put your brilliant business ideas into action with Bizee’s Free DIY Course

What is a micro business.

By now, you've probably guessed that a micro business is even smaller than a small business. But what is a micro business exactly ?

In truth, it depends on who you ask. Some of the various definitions include:

• Businesses started with less than $50,000. While this makes sense at first glance, consider that Hewlett-Packard was founded with just $538 in 1939 or about $10,000 in today's money. The tech giant now employs over 50,000 people and earns tens of billions of dollars per year, and you'd be hard-pressed to find anyone who considers it a micro business. So, this definition has too much room for error.
• Businesses that earn less than $250,000 per year. Again, this definition seems sound at first. But when you remember that heavily investor-funded companies like Uber sometimes exist for many years before finally turning a profit , its practical use becomes much murkier.
• Business with less than 10 employees. OK, now we're getting somewhere. Even on Forbes ' annual Small Giants roundup , a list of 25 outstanding small businesses, it's difficult to find companies with less than 20 employees, let alone 10. As such, this is one of the most solid definitions so far, and it also happens to be the one used by the U.S. Small Business Administration (SBA) .

So which definition is the best one? There is no single agreed-upon answer, but for the sake of simplicity, we'll use the same one as the SBA and say that a micro business is any with less than 10 employees . If the business was started with less than $50,000 and/or earns less than $250,000 per year, that just contributes to its micro business status.

What are examples of micro businesses? In short, the sky's the limit. That's because any and every business with less than 10 employees can be considered a micro business, including:

• A brick-and-mortar retail shop with one owner and three sales associates
• A tax consultation company owned by two people who occasionally meet with clients
• A freelance writing business consisting of one person who works exclusively from home
• A real estate company with one owner and five employees who all work out of the same office

Those are just a few of many possible examples, but suffice it to say that there are myriad micro businesses across every industry and niche.

Micro Businesses by the Numbers

You've probably heard that small businesses are the backbone of the economy, and that's certainly accurate. But if we're getting really specific, the truth is that micro businesses form the foundation of the U.S.'s wealth.

As the SBA explained, they're the most common type of employer firm. And in 2016, the country's 3.8 million micro business employers made up nearly 75 percent of all private-sector employers:

And remember, those statistics don't even account for micro businesses that don't have any employees, i.e., those consisting only of one person. The U.S. Census Bureau pointed out that in that same year, only about 24 percent of the country's establishments had paid employees, meaning that 75 percent don't have any employees at all.

In other words, the majority of the U.S.'s businesses are micro businesses whose only employee is their owner. So if you're more interested in starting a micro business than you are in starting a small business destined for growth, you're far from being the only one.

How to Create a Micro Business Plan

So you want to start your own micro business, you're brimming with entrepreneurial energy and you're ready to go. Now, it's time to start planning. But what is a micro business plan?

In many regards, a micro business plan is very similar to a small business plan in that it:

• Provides a roadmap for starting and managing your business
• Plans for up to five years in the future
• Details what your business will do, how it will earn money and who it will sell to

Where micro business plans differ from other business plans, however, is in their scope. For example, all of these elements can be included in standard business plans but may be unnecessary in micro business plans:

• Overview of management structure/corporate hierarchy: Since most micro businesses only employ their owner, there's no need to dedicate a section to detailing the business's leaders and key staff members. And even if a micro business does have employees, it will have so few that this section can remain short and sweet.
• Funding requests: Larger businesses may need to include funding requests or investor information in their business plan. But with a micro business, your startup costs can likely be covered by your own funds (seriously — there are many businesses you can start for under $1,000 ).
• Growth goals and scalability: For businesses whose ultimate goal is to achieve as much growth as possible, it's important to detail how much they want to grow, when they want to achieve that growth and how their business will scale. But for micro businesses that are more focused on self-sufficiency than scalability, this isn't typically a concern.

But the question still remains, how do you write a mini business plan of your own? While there is no one right way to create a business plan, your micro business plan could look something like this:

• Business overview: A brief description of what your business will do, as well as your broader vision and goal.
• Market summary: A breakdown of your target audience, the value you're offering to them, your main competitors and your competitive edge.
• Marketing strategy: An outline of the marketing channels you'll use to find and connect with customers (this can include social media, content marketing, email marketing and the like), as well as the strategies you'll use to make the most of those channels (such as by posting one new blog post per week and one new Facebook post per day).
• Expected costs: An estimation of your business's costs, including those that you'll only have to pay once (such as state fees for filing an LLC ) and those that you'll have to pay on a regular basis (such as software subscriptions).
• Expected revenue: An estimation of how much money your business will earn from each sale and how frequently you expect sales to occur. Also note how many sales you'll need to make (and how often) in order to generate a profit.
• Key objectives: A summary of your next steps and when you want them to be completed. For instance, form an LLC within one month, make five sales within three months and break-even within six months.

In the end, what's most important is that your micro business plan helps you form a clearer idea of what you want your business to do and how you plan to do it. You don't need a 10-page essay in order to succeed — just as with micro businesses themselves, bigger isn't necessarily better.

Creating a business plan is just one piece of the puzzle, though. If you want a guide that walks you through every step of starting a micro business on your own, Bizee's DIY Business Course can help.

Carrie Buchholz-Powers

Carrie Buchholz-Powers is a Colorado-based writer who’s been creating content since 2013. From digital marketing to ecommerce to land conservation, she has experience in a wide range of fields and loves learning about them all. Carrie is fond of history, animals and beauty in equal measure. In her free time, she enjoys knitting, playing video games and exploring Colorado's prairies and mountains with her husband.

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Here’s How I Grew Five Businesses, and Eventually Sold One to a Fortune 500 Company.

MICRO BUSINESSES

Micro businesses operate similarly to small businesses but with some differences in terms of funding and expansion. However, they can be a profitable venture to pursue. In this article, we will look at microbusinesses and all the details required to start and run one. So, let’s get started.

What Is a Micro business?

A micro business is a small enterprise that typically has fewer than five employees. It is usually owned and operated by a single person or family with limited capital investment. Micro businesses provide goods and services that meet the needs of their local communities and often specialize in niche markets. They are frequently based in home offices or storefronts, using innovative technologies and methods to deliver quality products and services.

Micro businesses are commonly powered by entrepreneurs who would rather take their own path than work in a large corporation. Having these small business owners, drives creativity and new ideas while bringing helpful products and services to smaller areas. By staying flexible and agile, micro businesses are able to adapt to changing market conditions and customer needs quickly. They also offer consumers greater choice, as well as the opportunity to shop locally and support their own community.

The success of a micro business depends on its owner’s ability to identify potential opportunities within the local market, build relationships with customers, manage cash flow effectively, and develop long-term strategies for growth and sustainability.

With careful planning, hard work, and determination, a micro business can be an effective way to create financial stability and pursue personal passions.

In today’s digital world, it is also possible to launch a successful online micro business with relatively low startup costs. By utilizing various digital platforms and tools , entrepreneurs can create robust ecommerce operations that have the potential to reach a global customer base. This is an attractive option for many people who wish to maintain a certain degree of flexibility and autonomy in their business endeavors.

No matter what type of micro business you start, it is important to remember that success does not happen overnight. It requires hard work, dedication, and resilience. With the right plan in place and a positive attitude, you can create a successful small business that will bring financial stability and personal satisfaction.

How Does a Microbusiness Work? 

A micro business is a small-scale business that typically consists of one to five employees or less. It usually requires minimal upfront investment, such as office space, equipment and supplies.

Micro businesses operate in a similar fashion to much larger businesses with regards to:

•         Deciding on a legal business structure, e.g., LLC, corporation, or partnership
•         Structuring financial, management, marketing, and operations
•         Getting business permits and licenses

Taxes for micro businesses largely depend on the formal business legal structure used – sole proprietorship, corporation, partnership, or LLC. These taxes may include:

•         Income taxes
•         Payroll taxes
•         Sales taxes
•         Property taxes etc.

Here are the main components of how a micro business works:

– Establishing the Business : This involves researching the target market, developing a business plan , registering the business, obtaining any necessary permits and licenses, and choosing the appropriate legal structure.

– Financing : Microbusinesses typically rely on personal funds or small loans to cover start-up expenses.

– Supplies & Equipment : Different types of businesses require different supplies and equipment. Research into what is required to run the business should be conducted prior to purchasing anything.

– Marketing : This is a key component of any successful microbusiness. It involves strategizing and implementing an effective plan to reach potential customers.

– Operations : Operations are the day-to-day activities that maintain the business, such as accounting and record keeping, customer service, and employee management.

– Expansion : Once the business is established and running smoothly, it may be time to consider expansion options. This could include additional locations or products/services.

Entrepreneurs can create a successful small business by understanding how a micro business works and applying the necessary steps. With hard work and dedication, microbusinesses can become the backbone of the economy.

Micro Businesses vs. Small Businesses

Small businesses and micro businesses might appear to be interchangeable, but they actually aren’t. Micro businesses can more accurately be defined as a small subset of the term “small business.”

Small businesses, like micro businesses, don’t have a standard definition across the board, as the definition varies among different industries. For example, in the manufacturing industry, a small business includes less than or equal to 500 employees. Simultaneously, in the retail and service domain, the average annual revenue should be less than or equal to $6 million. SBA standards allow for small businesses to have easier access to loans and government contracts than micro businesses.

State Intervention Programs for Micro businesses

Like small businesses, micro businesses may benefit from intervention (aid) programs from the government; the degree of such intervention may vary from region to region.

For example, there is a Micro Business Development Program for low-to-moderate-income start-ups to help such micro businesses start and grow in Vermont. This aid covers networking, seminars and workshops, counseling, and networking for the micro business.

Mecklenburg County, Pennsylvania also has a micro businesses aid structure set up with financial support of up to $10,000 to help qualifying businesses navigate through an economic slump.

Consult with your local government structure for specific loan and aid programs for micro businesses.

Types of Micro Businesses

Micro businesses are typically small-scale operations that can be run by a single person or a group of people. Some common types of micro businesses include home-based businesses, freelance services, and consulting firms.

Home-based businesses offer convenience as they enable entrepreneurs to work from the comfort of their own homes. This type of business usually involves products or services that do not require a lot of overhead expenses and can be managed with minimal resources. Examples of home-based businesses include online stores, pet sitting services, and tutoring.

Freelance services are another type of micro business. Freelancers typically work on a contract basis for different clients and provide specialized services such as writing, graphic design, web development, and data entry.

This type of business is ideal for those who want to work on their own terms and have the flexibility to choose the projects they want to work on.

Consulting firms are also considered micro businesses. They provide advice and guidance to companies on a variety of different topics, such as marketing, finance, and operations. Consulting firms can also help businesses develop strategies for growth and success.

No matter what type of micro business you choose to pursue, it is important to understand the basics of running a business and know how to effectively manage your time , resources, and finances. With the right skills and dedication, any micro business can be successful.

These are just a few of the many types of micro businesses available to entrepreneurs. There are countless options, so it is important to do research and find the right fit for you. With dedication and hard work, any micro business can be successful.

Pros and Cons of a Micro business

Like any other venture, micro businesses have advantages and disadvantages.

Let’s explore some of the most significant advantages of running a micro business.

1. There is room for specialization in a specific niche

It is a common trend for businesses to start out trying to supply various goods and services. They start out with extensive teams and anticipate and invest hefty sums of money. Only with time do they start realizing which specific aspects of the business are sustainable and which should be suspended. The end result to this a trimming of the unnecessary workforce and more efficient operations

Some other companies take a different route to those mentioned earlier, starting out with a niche and quickly expanding the business to a more significant market only to end up with very little interest in the specific goods/services rendered. Of course, such start-ups could have been better served with a smaller area focus like a community.

Now, these are two polar ends of common business scenarios, and micro businesses can allow you to have the best of both worlds. A Micro business allows for a great deal of specialization in the market and remains profitable as the market expands. A niche allows for a greater degree of focus and dominance over the competition concerning the specific goods and services rendered.

2. Greater adaptability and flexibility to change

When it comes to start-ups, it is common to have start-ups pivoting business ideas to accommodate changing tastes. To do this, considerable changes must be made to the organization and the nature of the company’s products and services. This was the situation with well-known social media platforms like Instagram and Twitter, which underwent pivots and are now unmistakably on a soaring trend.

Now, the challenge with achieving a pivot in the midst of changing tastes and preferences in consumers is the team’s size. In the above example, teams constituted behemoths of friends and relatives who pursued their dreams and aspirations in doing what they loved. For such small teams, pivotal changes were a lot easier. With a team of over 40 members, however, not so much. It would take months to achieve a pivot.

This is where micro businesses shine. Their small teams allow adaptive changes within small time gaps. It also means whenever there is a shift in industry standards or consumer preferences, they can easily band together ideas and take advantage of new opportunities. Think of it regarding warfare: a small unit of elite warriors is better suited for hazardous or unchartered terrain than a large battalion of soldiers with diverse skills.

3. Lower overhead costs and fewer expenses

Increased business size means higher operational costs. Even with a shift from traditional to remote working setups, there is still the matter of comprehensive HR oversight and payroll management. It is an irrefutable fact that many businesses can’t fully operate remotely, necessitating the need for office spaces and other facilities.

In this dilemma, micro businesses present another advantage – the small team sizes allow for lower overhead costs as modern automation systems can be leveraged efficiently without the need for larger team sizes. There is also less need for oversight, especially with side-hustle start-ups like freelance marketing. It’s as simple as putting up campaigns, setting them in motion, and reviewing them seasonally.

Training and workshops are important for company success, but they can be costly. Company-wide sessions should be implemented rather than departmental or per-team sessions to save money. This will reduce costs while still allowing the company to reinvest in things like employee wages, advertisement campaigns, and better infrastructure–all of which help the micro business grow.

4. Independence for the Non-Committed

There is great liberty to choose a business path with micro businesses and determine the future you want as an entrepreneur. This freedom not only applies to the business owner but sips to the employees as well.

Having looked at some of the most significant advantages of running a micro business, let’s look at some of the disadvantages to running micro businesses. Here are a few to consider:

1. More significant workload on fewer employees.

There is the prevalence of more responsibilities for fewer people to manage .

Running a business is hard enough, but you have to contend with content marketing and reputation management in the modern age. A single negative review on social media can be disastrous, and you must constantly generate new content to keep up a healthy online presence.

Now, outsourcing some tasks can be a really decent and yet inexpensive way to get things done. However, it will still require time to outline the tasks, energy to manage communications and ensure deadlines are met in delivering results. Handling everything in-house could be the way to go, but it brings up another problem – the few members on the team means there may not be available the necessary skill needed at the time.

One of the main reasons more prominent companies hire new employees regularly is to stock up enough skills to get things done efficiently. For example, they may hire a graphic designer to aid in branding and publicity adverts, thus improving the company’s overall productivity. With micro businesses, the fewer employees mean much is left to the charge of fewer individuals. Though it may be fun at first, it can quickly degenerate into a grievous and strenuous venture.

2. Higher risk of failure and funding challenges

Surely you’ve heard the phrase, “Too big to fail”, often associated with financial institutions that have had a hand in major financial crises. But since they are heavily relied upon to the point that the collateral damage upon their dissolution would be irreparable, the government instead chooses to encourage and promote them.

So, what’s the point of all this? Well, size sometimes does matter, and a company can survive through some hardship and challenges simply because of its size. The larger the company, the stronger its brand, the greater its turnover, the more recognition it accrues. In the event of a challenge or difficulty, they can fall back to savings, downscale, or even relinquish some assets to ensure survival. Also, more prominent companies would have a lot less of a hassle getting loans or investments since they’d have more significant financial records.

In contrast, micro businesses are much smaller and face difficulties when getting loans or appealing to outside investors. Even if they try to attract investments, their lack of size makes them seem risky, and potential investors will only see a few opportunities for profit if the business puts in the effort.

3. Limited access to valuable resources

Companies that are widely recognized usually have an easier time getting favors and discounts because other industry leaders want to support them. Most of the time, companies give each other bigger discounts when trying to attract a profitable contract.

Micro businesses have neither the considerable name recognition nor the size to attract such bonuses and discounts. Since they usually won’t be able to pay for large contracts, concessions on their rates would hardly be made in their favor. As such, it holds that the bigger the business, the better the prices you’d get for goods and services from other service providers. Additionally it will be easier to convince others to value a potential business relationship. Such leverage is hard to deny and is indeed farfetched for many micro businesses.

How to Start a Micro Business in 6 Steps

So, are you interested in starting a micro business? The advantages are, no doubt, significant and, like any other type of business, there are challenges to it. But I dare say those with the will to succeed can surely set up and succeed with a micro business. Here’s a step-by-step approach to starting a micro business.

Step 1: Establish a mission, vision and values statement.

It is essential to develop and clearly state the intents and purpose of the business. This is the foundation of the business and surmounts the mission and vision statement. When there isn’t a clear vision, mission and values statement, growth will be hindered as the path to realizing the business’s more detailed plans will be blurred.

Well-structured vision, values and mission statements also reveal what the business stands for and will attract customers and investors who are interested in the business’s core values.

Step 2: Draw up a good business plan

Your business plan is a document that explains and outlines the goals, estimated costs, and strategies for running your micro business. If you want to attract investors or acquire loans, then you need a formal business plan.

Research shows that people who write up great business plans are more likely to start up the business. Writing up a business plan also triggers critical question for the success of the business like:

•         What market is available for my product or service, and what is its current outlook?
•         Who would be my market competition, and how would I stand out from the crowd?
•         Who are my potential customers?
•         How will I reach them?
•         What will it cost me to survive my first year in the micro business?
•         Where will the needed money come from?

A business plan would typically include financial details—projections of sales, expenses, assets, and cash flow. The financial documents needed for a formal business plan include:

•         Balance sheet, showing what you own and what you owe
•         Profit and loss (or income) statement summarizing revenues and expenses every three months (quarterly) and annually (each year).
•         Cash flow statement (or forecast), showing working capital for better expenditure predictions.

Step 3: Decide micro business structure

Setting up a successful business is essential to establish the business structure – legal entity –to run the business.

Sole proprietorships (which are single-owner businesses) and partnerships (having two or more owners of the business) are the least costly business structures. In these setups, owners have all the power in business decisions. They also are obliged to make reports detailing income and losses and are, thus, personally liable for any and all business-related debts.  In the event of business failure, they may file for bankruptcy, which may allow them to abandon debts, but damage personal credit history in the process.

A corporation is a legal business structure that is legally separate from the people who own it under state or federal law. Like people, corporations can also own property, incur debt, sue, and be sued. Most corporations exclude members from personal liability with corporation dealings or lawsuits.

A Limited Liability Company (LLC) is a business structure that combines a corporation’s features and those of a sole proprietorship or partnership. An LLC offers some protection of personal assets and from personal liability and is a suitable option for both one-owner or multi-owner micro businesses.

LLCs also require more legal documentation than much simpler sole proprietorships or partnerships, but the legal requirements are fewer than corporations.

Step 4: Establish detailed operation plans for the business

The next step is to outline plans of operation for the business clearly. There are numerous moving parts in a company, but it all simplifies well-structured goals and milestones with timelines to organize day-to-day activities. And to make things easier, there are diverse technological tools today like business model canvases or one-pagers to address any potential issues that may arise in the running of the business

To achieve an effective plan of action , you should ask yourself the following questions:

•         Who are my key partners and suppliers?
•         Where does my micro business function?
•         What facilities do I need, and how much do they cost?
•         What is my business structure?
•         Who are my target customers?
•         What ways can I possibly use to meet the needs of my target customers?
•         What is my cost structure/revenue stream?

Step 5: Anticipate financial needs

Creating a financial plan is the best way to pitch your business to potential investors and lenders. A well-researched and comprehensive plan will give you the best chance of success.

Many businesses fail primarily because of lack of funding, and it is imperative to assess financial needs before setting up a micro business carefully.

Such funding anticipations should include operating costs for at least a year. Having reliable predictions of the micro business’s running cost will enable you to prepare a reasonable budget better to accommodate your business plan.

The estimates should include:

•         Your salary needs: This is the money from the micro business you’ll live on if you’re quitting a salaried job.
•         Initial (start-up) costs: This will include the cost of equipment, installations, remodeling, professional and legal fees, licenses, etc.
•          Direct costs : This will cover the cost of raw materials or inventory
•         Overhead Cost: This will include rent, office supplies, utilities, and maintenance
•         Recurring costs: This will include salary payments, tax payments, advertising and promotion costs, as well as micro business insurance costs .

In many cases, micro businesses start with the founder’s savings, so it follows that having a saving will bail you out of tight corners in your micro business. However, even without saving to start up with, you could still borrow the needed capital. Taking loans requires a good credit history, a means of repaying the debt, and, in the case of larger loans, collateral.

Here are some familiar sources of people use to start micro businesses:

•         Use money from savings
•         Form a partnership
•         Applying for a Small Business Administration loan.
•         Tapping individual life insurance.
•         Leasing equipment, rather than buying it.
•         Bartering—or exchanging—property or services directly

Step 6: Organize a marketing strategy

Marketing strategy is an indispensable requirement for a successful micro business and is especially important seeing the small team sizes with micro businesses. You must understand your customers and develop ways on how to reach them, backed by proper research. Such information will enable you to launch online campaigns like Google ads, social media ads, email marketing, and content marketing/SEO.

Step 7: Research and test your product

Prototyping is an excellent strategy to better your micro business from consumers’ viewpoints. Some research examples for microbusinesses include:

•         Surveys
•         A templated, pre-launched, or preview website
•         Offers to build an email list
•         Calling vendors and potential customers

When there is resistance or opposition from people to test your product or service, jump on it as an opportunity to request feedback on how to improve your product or customer service.

Step 8: File your micro business and Start

After establishing an operational mission and vision statement, operation plans, financial plans, marketing plans, legal framework, and adequate research on the product you’re marketing, it’s time to officially file your micro business with the government for the legal backup to operate.

With the above steps, you’re sure to start up a micro business effectively .

So, there you have it, folks! Check out these blogs on 51 Best Start-up Ideas and a Business Startup Checklist !

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10 Examples of Successful Micro Businesses

Idea To Income

How to start a company and turn your entrepreneurial dreams into reality, in this article, what is a micro business, micro business vs side hustle: what’s the difference, … micro businesses are better, 10 micro businesses examples & ideas , lawn care year-round , micro business additional resources.

What is a micro business?

Do you want to make more money? No, you don’t have to ask for a raise or change jobs. 

You can start a micro business from an idea that either you're passionate about or a void you see in the marketplace. 

How much work does a micro business take? How much money can you earn from a micro business? Is it similar to a “ side hustle ”? 

In this article, we will explain everything you need to know about micro businesses, including:

• What a micro business is, what a side hustle is, and the differences between each
• Micro business examples and micro business ideas
• Additional micro business & entrepreneurship resources 

If you’re ready to boost your income with a micro business, let’s get started!

A micro business is a type of small business that has a small number of employees and minimal startup costs.

According to the Small Business Association (SBA), a micro business employs fewer than 10 people.

Why should you start a micro business? 

Let’s look at it like this.

In early morning hours of a Wednesday in May, drivers on an Indiana highway experienced something incredible: hundreds of thousands of dollars blowing across the road. 

The backdoor of an armored Brinks truck malfunctioned and opened in transit, spewing bags of cash all over the road. 

Police quickly arrived to blockade the area, but those who experienced it later admitted how tempting it was to grab cash off the ground.

It’s easy to imagine why it was so tempting. Few people would turn down the opportunity to make more money. 

Only 19% of workers in the U.S. feel comfortable with how much they're making. 

So how can you make more money? 

With a micro business — or a side hustle. 

Instead of finding cash on the side of a highway or winning on a game show, 44 million Americans have turned to “ side hustles ”, extra work in addition to a full time job. 

Most side hustlers make an additional $100-$1,000 per month. 

People start a side hustle for a variety of reasons:

• paying off debt
• Saving for a big event, like a wedding
• saving for a holiday splurge
• Some have an unquenchable entrepreneurial spirit

Side Hustles Are Great ...

Side hustles are an effective and easy way to generate more income by providing a service in your free time. 

Side hustlers usually have full time jobs and side hustle to supplement their income.

Here are a few common side hustles: 

• Driving with Uber or Lyft 
• Delivering take out orders with UberEATS or DoorDash 
• Renting your Home with Airbnb
• Child Care with SitterCity, Care, or UrbanSitter 
• Teaching courses online
• Complete chores using Task Rabbit 
• Coaching sports at local universities, schools, and leagues
• Start a mobile car wash and detailing
• Graphic design

According to the Association for Enterprise Opportunity 86% of side hustlers do it at least once a month. More than a third of side hustlers earn more than $500 per month . 

Side hustles are common because there is such a low barrier to entry. 

You can start a side hustle easily. You don’t need much money or other people to start.

For example, to become an Uber driver all you need is a driver's license, a car, a smartphone, and enough common sense to pass a simple online test.

Side hustles are great, but the problem with side hustles is you’re trading time for money . Your time is limited, so your income is too. 

The main difference between a side hustle and what we’ll discuss next — a micro business — is short-term gains or lasting wealth .

Side hustles are great at generating cash to help you pay the bills or save for an upcoming vacation. But a side hustle isn’t going to help you achieve a financial breakthrough or move any closer to true “wealth” — the abundance of time , money and influence . Instead, if you want lasting improvements to your wealth, you need a micro business.

If you're going to invest time and energy in generating extra income, why not focus on something with a higher potential return on your investment? 

Stop trading time for money and instead focus on a business that can provide permanent passive income.

You need to level up your side hustle to a micro business.

Micro Business Characteristics

Micro businesses are side hustles without the constant time loss. 

Micro businesses typically have one owner, 1-5 employees, and are small, simple, and flexible.

Micro businesses:

• focus on a single product or service, and maximize its profitability
• can be scaled, systematized, and structured as passive income 

If you structure a micro business correctly, the time commitment can eventually be minimized.

Like side hustles, micro businesses are easy to get off the ground. 

More than 77% of micro business owners start off using only personal savings, and only 10% use a bank business loan .

A micro business can bring you experience, capital, and connections. But the real benefit is leveraging those things into even greater opportunities.

Don’t confuse micro businesses with small businesses. Small businesses are larger and have different goals. They’re also more difficult to start.

A small business typically has more than five employees, depending on the industry and product. 

Like micro businesses, small businesses also can:

• operate without you
• don’t have an immediate limit on earning potential

But you need a lot more money to start a small business .

Passive income from a micro business is great ... but it gets even better . 

If you build a strong enough micro business, you can sell it for six-figures. In fact, it’s not uncommon for larger businesses to purchase well performing micro businesses.

Starting a micro business doesn’t need to be more complicated than a side hustle. It can be simple.  

Next, we’ll look at micro business examples and micro business ideas. 

Here are a few stories of people who skipped the side hustle and created successful micro businesses. 

Their stories are fantastic but not uncommon. 

Let their stories encourage you to get started on your own micro business.

The Midas of Micro Business

In college, Matt worked in a jewelry store. One day the jeweler told him a story of a friend who made huge profits going door to door buying scrap gold in the 1980s (a time when the value of gold skyrocketed), and then “flipping” that gold to a local refiner. Intrigued, Matt decided to give it a try. 

He netted $1,100 in his first week! 

He continued to side hustle gold, but eventually he quit his job at the jeweler and turned his side hustle into a micro business. 

Over the next 8 months he pulled in over $1M worth of gold and silver. 

He hired two employees, and opened a retail jewelry store in his hometown of Albany, Oregon turned his business into a course on buying gold called “Gold Rush Training.” 

This made his company scalable, and a true micro business.

A Company in the Corner of Starbucks

Andy had a full time job but he wanted financial freedom. 

He knew he’d have to put in time outside of his 9-5, and made a Starbucks corner his weekend office. 

He recruited a team, developed real estate software, and using affiliate marketing, the team made $550K in the first year. 

They eventually sold the company and used what they learned to move on to other businesses.

Selling a Comfortable Squat

In his mid 20s, Isaia wasn’t just looking for a way to make extra income; he was looking to become an entrepreneur . 

Instead of starting a small business, he went after a micro business. He found an opportunity to sell a product on Amazon and got to work. 

Soon he started selling his Barbell Squat Pad . 

After only 11 months, he sold the whole micro business for $170K and — you guessed it — he moved on to his next venture.

Alternative Wedding Bands 

In his late 20s, Matthew had a full time job but, like most people, he wanted to increase his income. 

While still working full time, he spent all of his weekends and time off learning to create and sell products on Amazon. 

He eventually found a void in the wedding ring market. He developed the product himself and had it manufactured overseas. 

Then he got to work selling silicone wedding rings . 

Today, Matthew passively nets $8K per month from this micro business, and has time to focus on other entrepreneurial ventures.

Marcus took note of the lawn care complaints of the residents where he resided. His typically quiet suburban town was all in a buzz over needing landscaping services in any type of weather year-round.

Marcus jumped at the opportunity, offering not only the basic lawn care services, but also water displays, natural pools, and snow removal in his new micro business. 

After only a few months in business, Marcus started to net around $1,800 weekly — certainly not bad for a micro business. 

Take to The Streets

Cynthia regularly hosted dinner parties at her house, featuring her closest friends and family. She was surprised by how her guests always complimented her tacos and quesadillas — they exclaimed that her recipes were unlike any other. 

So, Cynthia wanted to share her love of authentic Mexican food by bringing it to a greater audience. She purchased a humble-looking food truck and got to work sprucing it up. 

In no time, her dream became a reality — and a micro business. 

In the first three months of operation, Cynthia’s food truck micro business took home $13,000. 

Feel The Burn

Andrea was a familiar face at her local yoga studio. But, once she became a mother, she realized that attending classes regularly became difficult. 

So, Andrea started hosting her own workout classes in the comfort of her own home. These completely online classes took off in her local community and even abroad.

Within her first year, Andrea’s fitness micro business was able to net $78,000. 

A Cut Above The Rest

Angelo had a part-time job cutting and styling hair, after having received his license in 1997. He decided he wanted to do more. 

He opened his own salon with two chairs in 2019. After making $140,000 in 14 months with his micro business, Angelo sold his salon to start other business ventures. 

Barking Up The Right Tree  

Rob and Stephanie had a passion for their golden retrievers Lucky and Lucy. But, they didn't like the ingredients found in their treats. 

Rob and Stephanie began making small batches of homemade treats, and selling them at their farmer's market. 

Not long after, their micro business was born. 

While Rob and Stephanie made $56,000 in their first year with the micro business, primarily in online sales.

Bron, a former English teacher in New York, began working independently for publishers, offering his proofreading services. 

In his first month, Bron’s micro business brought in $11,000.

Ready to Start a Micro Business?

It’s never been easier to start a micro business. 

The digital age provides so many tools and shortcuts. You can even sell your product before it’s ready , such as building landing pages just to test the demand. 

If you already have a full-time commitment but want to increase your income, start a micro business, not a side hustle. 

A side hustle will increase your income at the expense of your time. A micro business will make you wealthy in both time and money. It’s an easy sell.

Now that you know the benefits of a micro business, along with micro business examples and micro business ideas, don’t stop learning there. 

Here are additional resources (and free) that can help you pursue your entrepreneurial endeavors … and succeed !

• Here are the 16 best entrepreneurship classes
• Use this quickstart guide to start your own Amazon business 
• Here are 12 easy ways to make money from a website 
• These are the 5 traits of successful entrepreneurs
• Find out if social entrepreneurship is right for you

About The Author

Cash Lambert

Managing Editor

Cash is the author of Waves of Healing: How Surfing Changes the Lives of Children with Autism, published by Hatherleigh Press & Penguin Random House. He previously served as the Editor of Hawaii’s Freesurf Magazine. His articles have been featured in ESPN Outdoors, Autism Parenting Magazine, Surfing Magazine, Eastern Surf Magazine, and Surfline.

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What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

ZenBusiness

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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What is a Business Plan? Definition, Tips, and Templates

Published: June 07, 2023

In an era where more than 20% of small enterprises fail in their first year, having a clear, defined, and well-thought-out business plan is a crucial first step for setting up a business for long-term success.

Business plans are a required tool for all entrepreneurs, business owners, business acquirers, and even business school students. But … what exactly is a business plan?

In this post, we'll explain what a business plan is, the reasons why you'd need one, identify different types of business plans, and what you should include in yours.

What is a business plan?

A business plan is a documented strategy for a business that highlights its goals and its plans for achieving them. It outlines a company's go-to-market plan, financial projections, market research, business purpose, and mission statement. Key staff who are responsible for achieving the goals may also be included in the business plan along with a timeline.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

What is a business plan used for?

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

Business Plan Template [ Download Now ]

Working on your business plan? Try using our Business Plan Template . Pre-filled with the sections a great business plan needs, the template will give aspiring entrepreneurs a feel for what a business plan is, what should be in it, and how it can be used to establish and grow a business from the ground up.

Purposes of a Business Plan

Chances are, someone drafting a business plan will be doing so for one or more of the following reasons:

1. Securing financing from investors.

Since its contents revolve around how businesses succeed, break even, and turn a profit, a business plan is used as a tool for sourcing capital. This document is an entrepreneur's way of showing potential investors or lenders how their capital will be put to work and how it will help the business thrive.

All banks, investors, and venture capital firms will want to see a business plan before handing over their money, and investors typically expect a 10% ROI or more from the capital they invest in a business.

Therefore, these investors need to know if — and when — they'll be making their money back (and then some). Additionally, they'll want to read about the process and strategy for how the business will reach those financial goals, which is where the context provided by sales, marketing, and operations plans come into play.

2. Documenting a company's strategy and goals.

A business plan should leave no stone unturned.

Business plans can span dozens or even hundreds of pages, affording their drafters the opportunity to explain what a business' goals are and how the business will achieve them.

To show potential investors that they've addressed every question and thought through every possible scenario, entrepreneurs should thoroughly explain their marketing, sales, and operations strategies — from acquiring a physical location for the business to explaining a tactical approach for marketing penetration.

These explanations should ultimately lead to a business' break-even point supported by a sales forecast and financial projections, with the business plan writer being able to speak to the why behind anything outlined in the plan.

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

• Outline your idea.
• Pitch to investors.
• Secure funding.
• Get to work!

You're all set!

Click this link to access this resource at any time.

Free Business Plan [Template]

Fill out the form to access your free business plan., 3. legitimizing a business idea..

Everyone's got a great idea for a company — until they put pen to paper and realize that it's not exactly feasible.

A business plan is an aspiring entrepreneur's way to prove that a business idea is actually worth pursuing.

As entrepreneurs document their go-to-market process, capital needs, and expected return on investment, entrepreneurs likely come across a few hiccups that will make them second guess their strategies and metrics — and that's exactly what the business plan is for.

It ensures an entrepreneur's ducks are in a row before bringing their business idea to the world and reassures the readers that whoever wrote the plan is serious about the idea, having put hours into thinking of the business idea, fleshing out growth tactics, and calculating financial projections.

4. Getting an A in your business class.

Speaking from personal experience, there's a chance you're here to get business plan ideas for your Business 101 class project.

If that's the case, might we suggest checking out this post on How to Write a Business Plan — providing a section-by-section guide on creating your plan?

What does a business plan need to include?

• Business Plan Subtitle
• Executive Summary
• Company Description
• The Business Opportunity
• Competitive Analysis
• Target Market
• Marketing Plan
• Financial Summary
• Funding Requirements

1. Business Plan Subtitle

Every great business plan starts with a captivating title and subtitle. You’ll want to make it clear that the document is, in fact, a business plan, but the subtitle can help tell the story of your business in just a short sentence.

2. Executive Summary

Although this is the last part of the business plan that you’ll write, it’s the first section (and maybe the only section) that stakeholders will read. The executive summary of a business plan sets the stage for the rest of the document. It includes your company’s mission or vision statement, value proposition, and long-term goals.

3. Company Description

This brief part of your business plan will detail your business name, years in operation, key offerings, and positioning statement. You might even add core values or a short history of the company. The company description’s role in a business plan is to introduce your business to the reader in a compelling and concise way.

4. The Business Opportunity

The business opportunity should convince investors that your organization meets the needs of the market in a way that no other company can. This section explains the specific problem your business solves within the marketplace and how it solves them. It will include your value proposition as well as some high-level information about your target market.

5. Competitive Analysis

Just about every industry has more than one player in the market. Even if your business owns the majority of the market share in your industry or your business concept is the first of its kind, you still have competition. In the competitive analysis section, you’ll take an objective look at the industry landscape to determine where your business fits. A SWOT analysis is an organized way to format this section.

6. Target Market

Who are the core customers of your business and why? The target market portion of your business plan outlines this in detail. The target market should explain the demographics, psychographics, behavioristics, and geographics of the ideal customer.

7. Marketing Plan

Marketing is expansive, and it’ll be tempting to cover every type of marketing possible, but a brief overview of how you’ll market your unique value proposition to your target audience, followed by a tactical plan will suffice.

Think broadly and narrow down from there: Will you focus on a slow-and-steady play where you make an upfront investment in organic customer acquisition? Or will you generate lots of quick customers using a pay-to-play advertising strategy? This kind of information should guide the marketing plan section of your business plan.

8. Financial Summary

Money doesn’t grow on trees and even the most digital, sustainable businesses have expenses. Outlining a financial summary of where your business is currently and where you’d like it to be in the future will substantiate this section. Consider including any monetary information that will give potential investors a glimpse into the financial health of your business. Assets, liabilities, expenses, debt, investments, revenue, and more are all useful adds here.

So, you’ve outlined some great goals, the business opportunity is valid, and the industry is ready for what you have to offer. Who’s responsible for turning all this high-level talk into results? The "team" section of your business plan answers that question by providing an overview of the roles responsible for each goal. Don’t worry if you don’t have every team member on board yet, knowing what roles to hire for is helpful as you seek funding from investors.

10. Funding Requirements

Remember that one of the goals of a business plan is to secure funding from investors, so you’ll need to include funding requirements you’d like them to fulfill. The amount your business needs, for what reasons, and for how long will meet the requirement for this section.

Types of Business Plans

• Startup Business Plan
• Feasibility Business Plan
• Internal Business Plan
• Strategic Business Plan
• Business Acquisition Plan
• Business Repositioning Plan
• Expansion or Growth Business Plan

There’s no one size fits all business plan as there are several types of businesses in the market today. From startups with just one founder to historic household names that need to stay competitive, every type of business needs a business plan that’s tailored to its needs. Below are a few of the most common types of business plans.

For even more examples, check out these sample business plans to help you write your own .

1. Startup Business Plan

As one of the most common types of business plans, a startup business plan is for new business ideas. This plan lays the foundation for the eventual success of a business.

The biggest challenge with the startup business plan is that it’s written completely from scratch. Startup business plans often reference existing industry data. They also explain unique business strategies and go-to-market plans.

Because startup business plans expand on an original idea, the contents will vary by the top priority goals.

For example, say a startup is looking for funding. If capital is a priority, this business plan might focus more on financial projections than marketing or company culture.

2. Feasibility Business Plan

This type of business plan focuses on a single essential aspect of the business — the product or service. It may be part of a startup business plan or a standalone plan for an existing organization. This comprehensive plan may include:

• A detailed product description
• Market analysis
• Technology needs
• Production needs
• Financial sources
• Production operations

According to CBInsights research, 35% of startups fail because of a lack of market need. Another 10% fail because of mistimed products.

Some businesses will complete a feasibility study to explore ideas and narrow product plans to the best choice. They conduct these studies before completing the feasibility business plan. Then the feasibility plan centers on that one product or service.

3. Internal Business Plan

Internal business plans help leaders communicate company goals, strategy, and performance. This helps the business align and work toward objectives more effectively.

Besides the typical elements in a startup business plan, an internal business plan may also include:

• Department-specific budgets
• Target demographic analysis
• Market size and share of voice analysis
• Action plans
• Sustainability plans

Most external-facing business plans focus on raising capital and support for a business. But an internal business plan helps keep the business mission consistent in the face of change.

4. Strategic Business Plan

Strategic business plans focus on long-term objectives for your business. They usually cover the first three to five years of operations. This is different from the typical startup business plan which focuses on the first one to three years. The audience for this plan is also primarily internal stakeholders.

These types of business plans may include:

• Relevant data and analysis
• Assessments of company resources
• Vision and mission statements

It's important to remember that, while many businesses create a strategic plan before launching, some business owners just jump in. So, this business plan can add value by outlining how your business plans to reach specific goals. This type of planning can also help a business anticipate future challenges.

5. Business Acquisition Plan

Investors use business plans to acquire existing businesses, too — not just new businesses.

A business acquisition plan may include costs, schedules, or management requirements. This data will come from an acquisition strategy.

A business plan for an existing company will explain:

• How an acquisition will change its operating model
• What will stay the same under new ownership
• Why things will change or stay the same
• Acquisition planning documentation
• Timelines for acquisition

Additionally, the business plan should speak to the current state of the business and why it's up for sale.

For example, if someone is purchasing a failing business, the business plan should explain why the business is being purchased. It should also include:

• What the new owner will do to turn the business around
• Historic business metrics
• Sales projections after the acquisition
• Justification for those projections

6. Business Repositioning Plan

When a business wants to avoid acquisition, reposition its brand, or try something new, CEOs or owners will develop a business repositioning plan.

This plan will:

• Acknowledge the current state of the company.
• State a vision for the future of the company.
• Explain why the business needs to reposition itself.
• Outline a process for how the company will adjust.

Companies planning for a business reposition often do so — proactively or retroactively — due to a shift in market trends and customer needs.

For example, shoe brand AllBirds plans to refocus its brand on core customers and shift its go-to-market strategy. These decisions are a reaction to lackluster sales following product changes and other missteps.

7. Expansion or Growth Business Plan

When your business is ready to expand, a growth business plan creates a useful structure for reaching specific targets.

For example, a successful business expanding into another location can use a growth business plan. This is because it may also mean the business needs to focus on a new target market or generate more capital.

This type of plan usually covers the next year or two of growth. It often references current sales, revenue, and successes. It may also include:

• SWOT analysis
• Growth opportunity studies
• Financial goals and plans
• Marketing plans
• Capability planning

These types of business plans will vary by business, but they can help businesses quickly rally around new priorities to drive growth.

Getting Started With Your Business Plan

At the end of the day, a business plan is simply an explanation of a business idea and why it will be successful. The more detail and thought you put into it, the more successful your plan — and the business it outlines — will be.

When writing your business plan, you’ll benefit from extensive research, feedback from your team or board of directors, and a solid template to organize your thoughts. If you need one of these, download HubSpot's Free Business Plan Template below to get started.

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.

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Micro business – definition, benefits, challenges, tips for getting started

• Small Business Tips
• Jul 03, 2023
• By deependra

What is a micro business?

A micro business operates on a very small scale with fewer than 10 employees. As an entrepreneur, you may have toyed with the idea of starting your own business . If you’re new to business ownership, starting a micro business might be the right move for you.

Tiny but mighty, micro businesses can be a great way to kickstart your entrepreneurial career; you can even set up shop from the comfort of your home. They can be a great way to turn your hobby into a business.  

A micro-business, unlike a side hustle, is a fully functioning business which operates on a smaller scale. This can be a great option for those who have other jobs or want to grow their business slowly. So, let’s dive into all things micro business and explore what’s involved in starting your own.

Does that pique your interest? If so, Learn more about what exactly a micro business is, the pros and cons of starting a micro business, and the crucial steps for starting one.

Micro business vs small business: What’s the difference?

All micro businesses are small businesses. The key difference is the number of employees you have, your start-up costs, and your annual earnings. When compared to a small business, a micro business consists of fewer employees and generally generates less revenue.

Other guidelines, like requiring less than $50,000 in startup costs or not having access to traditional capital loans, would put you under the micro business.

Are you a micro business or a small business?

Generally speaking, if you are self-employed, a sole trader, and/or have just a few employees, you are very likely running a micro business.

Is a micro business right for you?

If you are considering starting a micro business, it’s worth noting that there are certain advantages and disadvantages that come with micro business ownership. You can benefit from being aware of these pros and cons before you commit to starting your own micro business. To help you decide if starting a micro business is the right move for you, here is a pros and cons list for starting your own micro business below.

The Pros of starting a micro business

1. Flexibility

A larger business may require several levels of approvals before a decision can be made – even if it’s only a small change. However, micro businesses have the advantage of freedom to make decisions fast and implement change fast. When combined, this can lead to quicker turnaround times when big decisions are on the table, such as pivoting the business. changing direction.

2. Simpler operation

With fewer employees, there will be fewer departments to oversee and fewer processes to maintain. This could mean more streamlined workflow and communication throughout your business.

3. Skill specialisation

As a micro business, you will likely focus on less services and product offerings than large corporations, which can enable you to be an expert in the services and products that you do offer.

4. Lower costs

Micro business owners maintain lower business costs since there are fewer salaries to pay and less operating expenses due to the simplicity of the business. And if you operate as a remote or home-based micro business, you’ll also save on property rental costs for a working space or office space.

The cons of a micro business

1. More responsibility on your employees

In a micro business you only have very few employees, which means each employee will hold more responsibility and ownership for their day-to-day tasks. That means you’ll have to hire high quality, talented employees that you can trust.

2. Higher risk

Although you can start a micro business as a side hustle, there will still be a level of risk associated with starting your new business. Micro businesses can often be denied funding because of their inability to turn a profit in their early years.

3. Limited resources

Smaller companies tend to have less financial or promotional resources to put into marketing activities and sales promotions to attract new customers to their business. This can be a big challenge as successful businesses need a loyal customer base to thrive.

4. Hiring disadvantages

Limited resources could also make it challenging to get your name out there to attract top-notch employees that you can depend upon.

Five critical steps for successfully starting a micro business

It’s never too late to start a business; in fact, a compelling argument can be made that the later you start your business, the better off it may turn out. If you are ready to get going with your shiny new microbusiness.

1. Identify the right business for you

If a new business venture idea doesn’t stumble upon you, lean into what you know or what you’re passionate about. Is there a special skill set you have or a creative hobby that brings you joy? Jotting down the answers to these questions is a great place to start. It’s also a good idea to do research before diving into a new business to learn if it’s really the right fit for your experience and interests and if there’s a viable consumer base that you can target.

2. Create a business plan

There’s way more to a business than just coming up with a business name . Once you’ve solidified your micro business idea, it is time to develop a business plan for how you will run your new micro business. Your business plan may include the following:

• an executive summary;
• your business model;
• market analysis;
• product offerings/services;
• operations or organisational structure;
• marketing and sales strategy;
• Financial plan; and
• an appendix.

Your business plan may also include a clear outline of your vision and business goals. You can use this for reference as you develop your business and introduce your business to investors (if you intend to seek them).

3. Get your funds in order

Having a thoroughly researched and prepared financial plan will assist you when pitching to outside investors and lenders. Understanding exactly how much money you need to get started and be successful is also important before diving into a new business venture, as a lack of sufficient capital is one of the most common reasons why small businesses fail .

4. Research and test your product

After you’ve come up with a product or prototype, test your product to see how consumers respond to it. You can get your product in front of a study group, local vendors and business owners, or even your friends and family. Then conduct a survey to gather feedback or constructive criticism on your product before its official launch.

You could even start with a soft launch, or soft opening, for a sample of consumers to preview your product before it’s released to the wider general public. This can be a great way to gather valuable data and insights ahead of your official launch date.

5. Protect your business with business insurance*

Launching and growing a business – even a micro business – is no walk in the p ark. There will be challenges to face and obstacles to overcome as you build your business. You wouldn’t want to go to all of that effort only to see your business come undone, would you? Well, this is where business insurance can have your back. Business insurance can save your microbusiness from worst-case scenarios in the event of an insured event.

Experience business insurance the BizCover way

There are many, many fantastic microbusiness ideas out there – some of which may not even exist yet. If you can think of it and can build a business plan around it, and there’s demand for it, there’s no reason why your microbusiness idea can’t be successful.

Whether yours is a starter business or a low risk business, or perhaps you are onto your second or third business; no matter how ‘micro’ your micro business may be, it’s not too micro to benefit from reducing its exposure to risk via business insurance.

Explore your business insurance options with BizCover and discover just how fast, easy, and hassle-free business insurance can be when you choose BizCover. Compare competitive business insurance quotes onlin e or call us on 1300 920 868 and enjoy a better business insurance experience today.

*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769.

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Microgreens Business Plan Template

Written by Dave Lavinsky

Microgreens Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their microgreens farms. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a microgreens business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your microgreens business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a microgreens business or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your microgreens business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Microgreen Businesses

With regards to funding, the main sources of funding for a microgreens business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for a microgreen business.

Finish Your Business Plan Today!

How to write a business plan for a microgreens farm.

If you want to start a microgreens business or expand your current one, you need a business plan. The microgreens business plan template below provides a guide to what you should in each section of your own business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of microgreens business you are operating and the status. For example, are you a startup, do you have a microgreens business that you would like to grow, or are you operating a chain of microgreen businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the microgreens industry. Discuss the type of microgreens business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of microgreens business you are operating.

For example, you might operate one of the following types of microgreens businesses:

• Organic Microgreens : this type of business grows only organic plants, which means starting with organic seeds and avoiding pesticides or herbicides in the growing process.
• Hydroponic Microgreens: this type of business grows plants from water instead of soil.
• Soil Grown Microgreens: this type of business is where microgreens are grown in soil.

In addition to explaining the type of microgreens business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, number of wholesale contracts, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the microgreens industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the microgreens industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the microgreens industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your microgreens business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: restaurants, local grocery stores, farmer’s markets and CSAs.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of microgreens business you operate. Clearly, restaurants would respond to different marketing promotions than residents at farmer’s markets, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most microgreens businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Microgreens Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other microgreens businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes plant nurseries, co-ops and CSAs. You need to mention such competition as well.

With regards to direct competition, you want to describe the other microgreens businesses with which you compete. Most likely, your direct competitors will be microgreens businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of microgreens do they grow and sell?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a better product or a wider product variety?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a microgreens business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of microgreens company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to microgreens, will you provide delivery services, wholesaling or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your microgreens company. Document your location and mention how the location will impact your success. For example, is your microgreens business located in your home, a greenhouse, or an industrial facility with room for packaging operations and expansion, etc.? Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your microgreens marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your business, including cultivating plants, harvesting, packaging, making deliveries and meeting with potential customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach X pounds of plant sales, or when you hope to reach $X in revenue. It could also be when you expect to expand your microgreens business to a new city.  

Management Team

To demonstrate your microgreens business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing microgreens businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing microgreens operations or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you gain one new customer per month or per quarter? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your microgreens business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a microgreens business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility location lease or blueprints of the growing operation you are working on.  

Putting together a business plan for your microgreens business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert microgreens business plan; download it to PDF to show banks and investors. You will really understand the microgreens industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful microgreens business.  

Microgreens Business Plan FAQs

What is the easiest way to complete my microgreens business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Microgreens Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of microgreens business you are operating and the status; for example, are you a startup, do you have a microgreens business that you would like to grow, or are you operating a chain of microgreens businesses?

Don’t you wish there was a faster, easier way to finish your Microgreens business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

What is Micro Planning: How to Plan and Execute Tasks with Ease

Micro planning is a great way to plan and execute tasks with ease. It is a simple process that can be used for any type of project, large or small. In this blog post, we will discuss what micro planning is and how you can use it to improve your productivity.

What is micro planning?

Micro planning is the process of creating a detailed plan of action to achieve a specific goal. This type of planning is often used in businesses and organizations to reach desired goals.

The process of micro planning involves breaking down a goal into smaller, more manageable pieces. And then creating a timeline and specific tasks for each step. This type of planning can be extremely helpful in ensuring that complex goals are achieved efficiently and effectively.

However, it is important to note that micro planning can also be very time-consuming and may not be suitable for all types of goals.

The benefits of using this approach to task management

Micro planning is a task management approach that breaks down projects into small, manageable steps. This can be an effective way to improve productivity and focus, as it allows you to break complex tasks into small, achievable goals .

Micro planning can also help to increase efficiency by allowing you to better divide your time and resources. This approach is useful when working on deadlines, as it can help you to avoid last-minute scrambling and ensure that each task is given the attention it deserves.

Micro planning can help to reduce stress levels by providing a clear roadmap for completing a project.

Difference between micro planing and macro planning

Micro-planning is at the individual project level, where detailed task lists and timelines are created. Macro-planning is a strategic planning process that looks at the big picture and sets goals for an organization or individual.

The main difference between micro and macro planning is the level of detail and the time frame involved. Micro-planning is concerned with the day-to-day details of a project. Macro-planning takes a longer-term view, setting goals and objectives for an organization or individual.

While both processes are important, micro-planning is often seen as the more immediate and pressing concern, as it deals with the day-to-day tasks that need to be completed to keep a project on track.

For this reason, micro-planning is often given priority over macro-planning. However, both processes are essential for ensuring that a project runs smoothly and achieves its objectives.

How to add micro planning to your planning process

Here are a few tips on how to incorporate micro planning into your planning process:

1. Define the scope of the project. Before you can start breaking down the project into smaller tasks, you need to have a clear understanding of its scope. What are the overall goals and objectives? What are the deliverables? What are the timelines? Once you have answers to these questions, you can start mapping out the details of the project.

2. Create a task list . Once you have defined the scope of the project, it’s time to create a list of all the tasks that need to be completed. Be as specific as possible, and include deadlines for each task. This will give you a clear overview of what needs to be done and when.

3. Assign responsibility for each task. Once you have a list of all the tasks that need to be completed, it’s important to assign responsibility for each one.

How to break down larger tasks into manageable micro tasks

Any large project can be daunting, but by breaking it down into smaller micro-tasks, it becomes much more manageable.

For example, if your goal is to write a book, your micro tasks might be to come up with a list of potential topics, research those topics, outline the book, write a chapter, etc.

Tips for successfully implementing a micro planning strategy in your own life

Developing and sticking to a micro planning strategy is the key to success in achieving any sort of personal or professional goal. By breaking down a goal into smaller, more manageable steps, it becomes much easier to chart a path towards completion. Here are a few tips to help you put in place a micro planning strategy in your own life:

1. Be realistic in your goal setting. It’s important to remember that micro planning is all about taking small steps towards a larger goal. As such, set realistic goals that can be achieved within a reasonable timeframe. Trying to do too much at once will only lead to frustration and setbacks.

2. Make use of technology. Many apps and software programs are available to track your progress and plan each step of your journey. Utilizing these tools can help you stay organized and on track.

3. Stay flexible . Life is full of surprises, and sometimes the best-laid plans need to be adjusted. Don’t be afraid to make changes to your strategy as needed to accommodate new developments.

4. Persevere when faced with setbacks. Everyone encounters bumps in the road from time to time. The key is not to let these setbacks derail your entire plan. Stay focused on your goals and continue moving forward, one step at a time.

5. Use your available resources efficiently. Time, energy, and money are all limited resources. It’s important to use them wisely to have a good micro plan.

6. Delegate tasks . Mentally and physically, you can’t do everything yourself. Trying to do so will only lead to burnout. Learn to delegate tasks to others who can help you accomplish your goals.

Micro planning may seem like a lot of work, but following these simple tips can help make the process easier and more effective.

Examples of how micro planning can be used in various areas of life

Micro planning is used in various areas of life to help achieve goals and objectives.

For example, micro planning can be used to plan for a vacation, a wedding, or a project at work. When micro planning for a vacation, individuals can use it to map out their travel route, plan where they will stay each night, and choose activities that fit within their budget and schedule.

When planning for a wedding, couples can use micro planning to create a budget, choose a venue, select vendors, and design their invitations.

And when micro planning for a project at work, employees can use micro planning to create a timeline, assign tasks, and establish deadlines.

The importance of flexibility and adjusting your micro plan as needed

In any type of planning, keep in mind that the plan is not set in stone and may need changes as circumstances arise.

This is especially true when it comes to micro planning, which involves mapping out specific actions to achieve a goal. Because micro planning is so reliant on specific details, it can be easy to get caught up in the plan and lose sight of the bigger picture.

By remaining flexible and adjusting the plan as needed, you can ensure that it remains effective and relevant. Micro plans are an essential tool for achieving success, but they must be used with care to yield the best results.

How to troubleshoot any issues with a micro plan

Micro plans are an essential part of any business, providing a roadmap for daily operations and ensuring that everyone is on the same page. But as with any complex system, micro plans can sometimes encounter issues. Fortunately, there are a few simple steps you can take to troubleshoot any problems.

First, check that all the components of the micro plan are in place and accounted for. This includes everything from the overall structure and goals to the individual tasks and deadlines. If any elements are missing or unclear, that could be the source of the problem.

Next, take a look at how the micro plan is being implemented. Are people following the intended timeline and procedures? Are there any bottlenecks or disruptions in the workflow? If so, that could be causing issues down the line.

Finally, consider whether the micro plan itself is realistic and achievable. Are the goals too ambitious or unrealistic? Are the timelines too tight? If so, that could be putting unnecessary pressure on everyone involved and leading to mistakes or missed deadlines.

Create your own micro plan

Micro planning is an approach to task management that can be incredibly helpful in keeping you on track and organized. By breaking down your tasks into smaller, more manageable pieces, you can streamline your workflow and achieve greater productivity.

We hope these tips for successfully implementing a micro plan have been helpful for you. And most importantly, have fun with it! Planning doesn’t have to be a chore – it can actually be quite enjoyable when you find the system that works best for you. What strategies do you use for micro planning?

Related articles: How to write a great business plan

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WASHINGTON — With the April tax filing deadline here, the Internal Revenue Service highlighted a variety of improvements that dramatically expanded service for millions of taxpayers during the 2024 filing season.

Through Inflation Reduction Act funding, the IRS continued to expand taxpayer service levels not seen in more than a decade with double-digit gains occurring in critical areas. Compared to a year ago, the IRS answered over 1 million more taxpayer phone calls this tax season, helped over 170,000 more people in-person and saw 75 million more IRS.gov visits fueled by a new and expanded Where’s My Refund? tool.

“Taxpayers continued to see major improvements from the IRS during the 2024 tax season,” said IRS Commissioner Danny Werfel. “A well-funded IRS is like night and day for taxpayers. With the help of more funding and added resources, service for taxpayers this filing season eclipsed levels seen during the past decade. This tax season meant real-world improvements for people looking for help, whether calling, visiting in-person or using IRS.gov.”

“We still have much more work to do, both to finish the 2024 tax season as well as put in place continued improvements made possible by Inflation Reduction Act funding,” Werfel said. “But this filing season marks another important chapter where we’ve improved service for taxpayers, continuing an accelerating trend in the story of transforming the IRS.”

Through April 6, the IRS processed more than 100 million individual tax returns. Tens of millions more will come in advance of the April deadline, the busiest time of the year for tax returns. The IRS also projects about 19 million taxpayers will file extensions, which will be due Oct. 15.

Since the start of the January tax season, the IRS has delivered more than $200 billion in refunds through early April. The average refund was $3,011, a 4.6% increase from last April’s average of $2,878.

Here are major filing season numbers in 10 key areas. These numbers, generally from late March and early April, reflect the historic 2024 tax season taking place at the IRS:

• Improved phone service . Continuing a trend seen last year following the addition of 5,000 new telephone assistors, the IRS level of service on its main phone lines reached more than 88%. That’s above the 84% level seen last year and more than a five-fold increase from the phone service levels seen during the pandemic era period, when the level of service was at just 15% in 2022.
• More calls answered. The IRS answered more taxpayer calls on its live assistor lines this year, a 16.8% increase from 2023. IRS assistors handled 7,608,000 calls, up from 6,513,000 the year before. IRS automated lines handled another approximately 7 million calls, 280,000 more than the previous year.
• Faster response times. Taxpayers waited, on average, just over three minutes for help on the IRS main phone lines. This is down from four minutes in 2023 and 28 minutes in filing season 2022.
• More callback options. The IRS offered callback options on 97% of the phone lines this filing season. The agency offered call back for over 4 million taxpayers this tax season, more than double the 1.8 million calls in 2023. This option, offered when phone lines were busy, saved taxpayers nearly 1.4 million hours of wait time on the phones.
• More in-person help. The IRS helped 170,000 more taxpayers in-person this filing season than in 2023. IRS employees at Taxpayer Assistance Centers (TACs) served 648,000 taxpayers this year, up from 474,000 in 2023, a 37% increase.
• Expanded in-person hours . The IRS added extended hours at 242 TAC locations across the nation, generating more than 11,000 extra service hours for taxpayers during the 2024 filing season. In addition to extended service hours, IRS also offered taxpayer assistance on Saturdays in more than 70 locations. These evening and Saturday hours made it more convenient for thousands of hard-working taxpayers to get help.
• Additional free help at volunteer sites. The IRS saw tax return preparation work at volunteer sites increase to more than 2.3 million returns this tax season, up 200,000 from last year following work at Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites.
• More taxpayers file for free. In addition to volunteer sites, the IRS saw more taxpayers file for free this year; in all, there were over 450,000 more returns filed between volunteer sites, Direct File and Free File. The new Direct File pilot, offered on a limited basis in 12 states, generated more than 60,000 tax returns after opening widely in mid-March. At the same time, the IRS partnership with the Free File partners offering free private-sector software via IRS.gov saw growth with more than 2 million tax returns filed, an increase of 11.2% or more than 200,000 more Free File returns than 2023 .
• Higher usage of IRS.gov. Driven by increased use of the expanded information on the Where’s My Refund? for the 2024 filing season, IRS.gov saw large increases in traffic. The website had nearly 500 million visits, an 18% increase. And Where’s My Refund? accounted for more than 275 million of those visits, up 62 million from 2023 representing a 29% increase.
• More chatbot use. The IRS saw more use of its virtual assistant tool on key IRS.gov pages. There were 832,000 uses this filing season, up nearly 150% from 330,000 uses in 2023.

“These numbers illustrate the strength of this year’s filing season, but the IRS needs to continue working hard to make more improvements and continue transforming to serve taxpayers – not just through the April tax deadline but throughout the year and into the future,” Werfel said.

With the April deadline approaching, the IRS reminds taxpayers there are many ways to get last-minute help. They can visit the special free help page on IRS.gov.

For taxpayers who need an extension of time to file their taxes, there are several options to get an automatic extension through Oct. 15. Although an extension grants extra time to file, it does not extend the obligation to pay taxes due on April 15, 2024. To avoid penalties and late fees, taxpayers who owe should pay either their full tax bill or at least what they can afford to pay by the April 15 deadline.

The IRS estimates 19 million taxpayers will file for an automatic extension.

Taxpayers in Maine and Massachusetts have until April 17 to file and pay taxes due this year. This is because these states observe the Patriots’ Day holiday on April 15 this year and April 16 is the Emancipation Day holiday in the District of Columbia.

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Opinion: Homeless camps are impacting my business. Police say they can’t help.

It is the responsibility of our elected officials and policymakers to manage these issues and provide for the safety of our citizens and businesses..

(Trent Nelson | The Salt Lake Tribune) A no camping sign as the site of a future legal homeless camp is announced in Salt Lake City on Thursday, Sept. 14, 2023.

In September, I signed on as one of the nine plaintiffs in a lawsuit against Salt Lake City over its handling of homeless camps. I was disappointed to see the case thrown out .

Mayor Erin Mendenhall’s response that the issue is best addressed by elected officials and policymakers, not the courts, indicates that she doesn’t understand the intent of the lawsuit. Her statement reflects exactly what the lawsuit asks: to give the elected officials and policymakers who have dropped the ball the responsibility — and hopefully the motivation and incentive — to do something to help minimize the problem.

Allow me to provide some examples which demonstrate the concern. A transient woman lived in the alley behind my business for six weeks. She would scream obscenities at our cars and charge them as we would try to drive by. People in an encampment to the side of our building would ask our customers if they wanted to purchase drugs. Encampment residents built fires in grocery carts. Upon confronting a transient man that was defecating against our back door, he threatened to “gut” me with his knife. The police allowed him to continue living in the alley anyway. A homeless individual sat pleasuring himself in our private parking lot for three hours. The police never came, despite multiple calls requesting assistance.

Elected officials and policymakers are expected to help in these situations. Instead, the situations were ignored and no action was taken, regardless of the number of times they were reported. As a business owner, I was powerless to do anything about these situations. I wanted to feel safe, and I wanted my employees to feel safe.

A police officer who could see my frustration spoke to me about it. He said that we weren’t getting much response because our reports indicated the issues involved a person experiencing homelessness. The officer indicated that law enforcement’s hands were tied because the mayor’s office had asked them to leave the homeless alone. He suggested that we should not include the homelessness information in our report and just focus on the illegal activity. For example, drug use, defecation, lewdness etc. Upon following his advice, we were able to get a bit more help.

As a business owner and tax-paying citizen, I should be able to focus on my business, my employees and everything that happens inside my walls. That is where my expertise, and responsibility, lie.

I am not an expert in handling a transient woman attacking me inside my business, extinguishing shopping cart fires or managing inappropriate public behavior. I do not have the answers on how to handle these situations. I would like to stay in my lane and help my own business to thrive.

It is the responsibility of our elected officials and policymakers to manage these issues and provide for the safety of our citizens and businesses. These items and concerns are in their lane. These areas are a part of their job and what they are paid to manage so citizens feel safe and so businesses can focus on business. That is what the lawsuit was about.

(Photo courtesy of Randy Topham) Randy Topham

Randy Topham loves Salt Lake City. He owns a commercial property, as well as a personal residence, in the city.

The Salt Lake Tribune is committed to creating a space where Utahns can share ideas, perspectives and solutions that move our state forward. We rely on your insight to do this. Find out how to share your opinion here , and email us at [email protected] .

Donate to the newsroom now. The Salt Lake Tribune, Inc. is a 501(c)(3) public charity and contributions are tax deductible

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Want to see the next total solar eclipse in 2026? An expert recommends booking travel now.

• 2026 will be Europe's first total solar eclipse in 27 years.
• Travelers worldwide will likely head to Spain, Iceland, and Greenland for the event.
• A hotel expert encouraged travelers to start planning and booking their trips now.

It'll be two decades before the next total solar eclipse hits the US .

Another option: hop on a plane to Europe and turn the 2026 total solar eclipse into a viewing vacation.

Eclipse cartographer Michael Zeiler at GreatAmericanEclipse.com told Space.com that up to 3.7 million people likely traveled for the solar eclipse on Monday.

HotelPlanner's chief communication officer, Philip Ballard, told Business Insider that the eclipse was a major revenue generator for many cities. For places like Austin, Texas, and Rochester, New York, it could have created $1 billion in revenue, Vox reported.

"I would say the total solar eclipse has become a global phenomenon," Ballard said.

Ballard added that the next solar eclipse , which will pass through Iceland, Greenland, and Spain on August 12, 2026, could result in similar tourism and revenue influxes.

And if travelers are considering a trip to Europe for the solar eclipse, Ballard recommends planning your trip now.

Determine your eclipse viewing destination

According to Space.com , 2026 will be Europe's first total solar eclipse in 27 years. Its path will go through Greenland, parts of western Iceland, and northern Spain.

Choosing where to watch the eclipse will be a tough and important decision for travelers.

Iceland and Greenland have some positives. These regions will experience longer totality times, so viewers can watch the eclipse longer. Plus, the sun will be higher in the sky, so finding a spot to watch the eclipse will be less challenging, Space.com reported.

The downside is that these regions are more likely to be cloudy, according to the outlet.

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While parts of Spain are likely to offer clearer skies, the eclipse's timing will be shorter and closer to the horizon, which means travelers will need to plan and track down a viewing location with unobstructed views of the western horizon, Space.com reported.

Regardless of the destination, according to the outlet, one bonus is that the strongest meteor shower in the Northern Hemisphere will happen the following night, so travelers can pack two events into one trip.

Book flights and hotels far in advance

Ballard encouraged people to book their hotels in their destination of choice as far in advance as possible.

"You should start looking now and booking hotels now because those cities in the path are already going to be at peak season," Ballard said.

Ballard said it's similar to when a Super Bowl city is determined or a Taylor Swift tour date is announced — you immediately see spikes in bookings. He predicts hotel occupancy rates will hit near-record highs, and room prices may double around the solar eclipse date.

Ballard's general rule of thumb is to book international travel at least three months in advance, but since this is such an anticipated event, booking earlier is smart. His advice is to start discussing plans with friends and family. If you decide on a destination, book a refundable room to keep your options open if plans change.

Regarding purchasing a plane ticket, a study from Expedia states that international travel's sweet spot is at least six months in advance.

According to Expedia, travelers who book six months in advance save an average of 10% more than travelers booking within two months or less.

Skip the hassle of planning altogether and book a solar eclipse tour

Another option is to let a tour operator do the work for you. A handful of tour companies have seen the increased interest in the solar eclipse and launched tours designed around the event.

These tours will have predetermined locations to view the eclipse, hotel blocks reserved, and itineraries highlighting both the region and the eclipse.

However, these can sell out quickly. For example, Space and Telescope created an 11-day tour of Spain around viewing the 2026 solar eclipse. The tour has already sold out as of Wednesday, and the waitlist is full.

Other operators, such as Wilderness Travel and Eclipse Traveler, have similar itineraries for the total eclipse in 2026.

Watch: A small Australian town was treated to a rare hybrid solar eclipse

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