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As a business owner, at some point you'll want to know if your revenue is typical for your industry: Are you behind, above average, or just right in the middle?
While the right answer differs for every business, understanding your annual revenue helps price your services and plan for future expansion.
I've spent my career helping small business owners secure financing, and below, I'll break down the average annual revenue by industry for small businesses.
| Industry | Number of businesses | Average annual revenue |
|---|---|---|
| All businesses with no employees | 30,427,808 | $57,611 |
| Professional, scientific, and technical services | 4,075,717 | $57,479 |
| Transportation and warehousing | 4,057,127 | $45,200 |
| Other services (except public administration) | 3,206,392 | $38,030 |
| Real estate, rental, and leasing | 3,170,531 | $108,586 |
| Construction | 2,917,631 | $84,315 |
| Administrative and support and waste management and remediation services | 2,905,446 | $28,729 |
| Health care and social assistance | 2,303,883 | $41,576 |
| Retail trade | 2,081,566 | $64,084 |
| Arts, entertainment, and recreation | 1,737,630 | $34,209 |
| Accommodation and food services | 664,264 | $39,067 |
Source: U.S. Census Bureau, 2023 Nonemployer Statistics (NES)
How To Read the Revenue Numbers
The vast majority of U.S. businesses (82%) operate with no paid staff. They may hire some contractors or be owned by a sole proprietor, but they have no employees. Revenue from those businesses is represented in the table above; once you hire a full-time employee, your business falls outside of this dataset.
A few trends can be observed from the data. Transportation and warehousing contains over four million businesses, which closely ties with professional services for most businesses, yet only has an average revenue of $45,200. The recent growth in both rideshare and delivery service companies has caused increased entry into this space.
Real estate is experiencing the opposite trend. There are fewer businesses in real estate than in transportation, but they generate substantially more revenue on average ($108,586). One commission from a single home sale can pay far more than several hundred rideshare trips, but the barrier to entry is much higher. You need a real estate license, money for marketing, and a vehicle, and those costs add up quickly.
What Is Business Revenue?
Revenue, sometimes called operating revenue or total revenue, is all of the money that your business brings in from sales of goods or services before any costs.
Calculate your total revenue using this equation:
Total Revenue = Number of Units Sold × Price Per Unit
When you're looking for a benchmark, compare within your own industry.
Some industries have higher revenue per employee than others. For example, the cost per worker in manufacturing is sometimes higher because the industry deals with high-value items, while service businesses like consulting are leaner.
But revenue isn't the whole picture. Two businesses can have the same revenue and be in completely different financial shape. One might spend most of it on operating expenses, like payroll, rent, and inventory, keeping very little at the end of the day. The other might run very lean, with fewer employees and less rent, maintaining a healthier margin.
To understand your gross profit, start with your top line, then subtract your cost of goods sold. Subtracting your operating expenses (payroll, rent, and overhead) will give you net income. This is your bottom line.
How Revenue Shifts as a Business Ages
The age of your business also affects revenue. While every situation is different, newer businesses tend to have less revenue than more established ones.
During the startup phase, a business might experience the normal ups and downs in revenue that come with operating a new company. A large percentage of businesses fail at this stage.
As your business ages and gets out of the startup stage, attention shifts to growth. This could include expanding your operations, like adding a new location or employee, or adding a new client.
Once your business has been established for a while, revenue should stabilize, giving you a more consistent understanding of how much money you can expect to come in (and go out) on a weekly, monthly, and annual basis.
How Lenders Read Your Revenue
Revenue matters when you're applying for financing. Here's what lenders care about:
Consistent cash flow
Steady revenue month-to-month is a green flag for lenders
Regular deposits
Lenders want to see examples of real, ongoing sales in your business bank account
Steady growth
An upward trend line shows lenders that your business is growing
Time in business
A longer time in business shows that you know how to handle the ups and downs of your industry
Most lenders have a revenue minimum your business needs to get approved for a small business loan. At Clarify Capital, our network of lenders looks for a minimum of $10,000 a month in revenue.
Minimum Qualifications
For Financing Through Clarify Capital
$10,000 in monthly revenue
Your business must earn at least $10K per month in a business bank account.
500+ credit score
You can get approved with any credit score. But the better your credit rating, the better interest rates lenders offer. Your FICO score should be above 500.
Minimum six months in business
Your company should be operational for a minimum of six months. This shows business lenders that your company is sustainable and won't go out of business.
Have a business bank account
Your Clarify advisor will need three or four months of your most recent bank statements to verify income. This is just to see you're actually making $10K+ month in revenue.
Financing That Fits Your Revenue
The right financing depends on more than just your annual business revenue. Whether you're looking for money to grow your business or are adding a new asset, lenders review your full financial picture before making a decision.
When you're ready to see what you qualify for, apply today. Clarify Capital matches your application across our network of 75+ vetted, reputable lenders. Checking your options won't affect your credit score.
Frequently Asked Questions
Here are some common questions I get about small business revenue.
What Is the Average Annual Revenue for a Small Business?
The estimated 30 million U.S. businesses without employees average approximately $57,611 per year, according to 2023 U.S. Census data. The best way to see where you should be is to compare your business to others in your industry.
What Counts as Good Revenue for a Small Business?
It depends on your industry, the size of your company, and your profit margin. Look at what you retain (your profit), not just what you earn, when comparing your performance across the industry.
Is Revenue the Same as Profit?
No, revenue is all income generated through the sale of products or services prior to any costs. Profit is the amount retained after accounting for all the operating costs associated with running your business. While your revenue may be strong, if you have poor profit margins, you could lose money.
How Much Revenue Do You Need To Get a Business Loan?
It depends on the lender. Lenders look for consistency in your revenue more than anything. They also like to see steady growth, as opposed to a strong month followed by several weak ones.
Where Do These Revenue Numbers Come From?
All figures referenced here come from the U.S. Census Bureau's 2023 Nonemployer Statistics, which covers businesses with no paid employees.
Is My Business Information Safe When I Apply?
Yes. Clarify follows SOC 2 security principles. You can read more about how we protect your data.
Michael Baynes
Co-founder, Clarify
Michael has over 15 years of experience in the business finance industry working directly with entrepreneurs. He co-founded Clarify Capital with the mission to cut through the noise in the finance industry by providing fast funding and clear answers. He holds dual degrees in Accounting and Finance from the Kelley School of Business at Indiana University. More about the Clarify team →
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