How to create a hierarchy to create Parent categories having subcategories and so on

Looking to develop a business directory backend using Strapi. I was wondering if there were any best practices or suggestions from others on how to best set up the category hierarchy collections.

I started out with a simple category collection: Parent Cat. Cat. Name. Slug. but I can already see potential issues creating the listings and having a mix of Parent Categories and subcategories.

My use case could potentially have 50+ Parent categories with those parents having multiple subcategories and so on and potential subcategories having their own subcategories.

Parent 1
-Sub Category 1
-Sub Category 2
– Sub Category 3

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