What is good revenue growth for a small business?

Asked by: Rachelle Heaney  |  Last update: September 23, 2026
Score: 4.8/5 (47 votes)

A good annual revenue growth rate for a small business is generally considered to be 10–20% year-over-year (YOY). While high-growth startups may target 20–50% or more, consistent, sustainable growth in the 15–25% range is often ideal for long-term stability and profitability. GoCardless +2

What is a good revenue growth rate for a small business?

Ideal business growth rates vary by the type of business and industry as well as the stage that the business is at in its development. In general, however, a healthy growth rate should be sustainable for the company. In most cases, an ideal growth rate will be around 15 and 25% annually.

Is 4% revenue growth good?

Good economic growth can vary, but typically falls within two to four percent. This means that even if a company is only growing five percent a year, it could still have a good growth rate compared to other businesses.

Is 30% revenue growth good?

What Is Good Revenue Growth? A good revenue growth rate varies by industry, company size, and market conditions. However, as a general benchmark: For startups and high-growth companies: A 30%–50% annual growth rate is often considered strong, especially in SaaS and tech industries.

Is 12% revenue growth good?

In the early stages, percentages don't mean much since the base is so small. Investors look for the growth rate as a proxy for how long it takes to hit $1m ARR. After that, companies are looking for between 10-16% month-over-month revenue growth rate.

7 Strategies to Grow Your Business | Brian Tracy

41 related questions found

What is the 30 20 10 rule in business?

Additionally, I recommend that you always apply the 30/20/10 rule when considering a company to buy. In other words, the company needs to have at least 30% gross profit, less than 20% selling, general and administrative expenses (SG&A) and make at least 10 cents on the dollar.

What is the 3-3-3 rule in sales?

The 3-3-3 rule in sales is a versatile framework for structuring outreach and engagement, often meaning making 3 touches (calls/emails/social) over 3 weeks, or focusing on 3 seconds to grab attention, 3 minutes to build interest, and following up within 3 days, or even 3 contacts across 3 levels in a company to deepen relationships. It emphasizes consistency, clarity, and strategic focus in prospecting and nurturing leads to build stronger connections and improve conversion rates, according to various sales experts. 

What is the 10 3 1 rule in sales?

The 10-3-1 sales rule is a guideline stating that out of 10 initial opportunities or leads, you'll get 3 meaningful conversations or appointments, which will then result in 1 sale, emphasizing that high activity levels are needed for consistent results, as most efforts don't close deals. It highlights that effective selling requires consistent prospecting to feed the funnel, turning raw leads into interested prospects, then qualified appointments, and finally, paying customers. 

What is a realistic revenue growth?

Growth rate benchmarks vary by company stage but on average, companies fall between 15% and 45% for year-over-year growth. Businesses with less than $2 million in annual revenue generally have much higher growth rates according to a Pacific Crest SaaS Survey.

What is the 80/20 rule for startups?

The 80/20 Rule for startups, or Pareto Principle, means 80% of results come from 20% of efforts, guiding founders to focus limited resources (time, capital) on high-impact activities like key customers, core features, or effective marketing channels to drive the majority of success, rather than getting spread thin by low-value tasks or "vanity metrics". For startups, this translates to identifying the vital few areas that yield the most significant outcomes, such as a few valuable features in an MVP or top customers driving most revenue, and doubling down on them for survival and growth.

What is the 60 40 rule in sales?

At its core, the 60/40 rule says this: For maximum financial performance, companies should spend ~60% of their budget on brand building and ~40% on sales activation.

What are the 3 F's in sales?

The "3 Fs in sales" most commonly refers to the Feel, Felt, Found technique for handling customer objections, where you empathize ("I understand how you feel"), share that others have had similar experiences ("Others have felt that way"), and then offer a positive resolution ("What they found was...") to build rapport and guide them to the solution, moving focus from the objection to the benefits.
 

What is the 70-10-10-10 budget rule?

Forget complicated budgets — the 70/10/10/10 rule offers an easy, stress-free way to manage your money. You simply divide your income into four parts: 70% for daily expenses, 10% for savings, 10% for investments, and 10% for debt repayment.

How much should I sell my LLC for?

The vast majority of small and mid-sized companies are valued on a multiple of EBITDA. Some rules of thumb are: Companies under $250K in EBITDA = 1.5 – 2.5 X EBITDA. Companies $250k – $750k in EBITDA = 2 – 3.5 X EBITDA.

Is 1 million in revenue good for a small business?

If your business has achieved $1MM in revenue, congratulations on beating the odds (estimated by the SBA), which say that 30% of small businesses fail within the first year, 50% within five years and 66% during the first ten.