Transitioning from a small to a medium-sized business is a significant milestone, but it’s not without its challenges. To scale successfully, businesses must focus on four critical areas: people, strategy, execution, and cash. Here’s how you can tackle these areas effectively:
1. Invest in the Right People
Your business can only grow as fast as your team allows it. One common mistake small businesses make is keeping all decision-making with the CEO. However, to scale, you need leaders who can manage, delegate, and predict trends. This leadership transition helps free up the CEO to focus on broader business strategies. Evaluate your key relationships—not just employees, but also vendors, customers, and advisors—to ensure they align with your growth goals. Outgrowing certain vendors or advisors is normal and necessary for growth.
2. Simplify Your Strategy
A simple and effective strategy is key to sustainable growth. Ask yourself: does my strategy resonate with customers, and does it differentiate me from competitors? Many small businesses struggle with execution because their strategies are too complex. Make sure that every team member is on the same page by adopting a simple, one-page strategy plan that drives alignment and accountability.
3. Focus on Execution
Execution is where good strategies come to life. Start by selecting a few key priorities, tracking relevant data, and establishing a rhythm of daily, weekly, and monthly reviews to ensure progress. Execution should be iterative—think, plan, act, and learn—before repeating the cycle.
4. Maintain Strong Cash Flow
Cash is the oxygen your business needs to grow. Structure deals with suppliers, employees, and customers carefully, and monitor your cash flow daily to avoid surprises. A strong cash reserve will help you manage growth without stalling during difficult periods.
5. Cooperation Between Marketing and Procurement
As your business grows, operational efficiency becomes critical. One often overlooked partnership that can drive this is between the marketing and procurement departments. By consolidating suppliers, optimizing procurement processes, and aligning marketing efforts, your business can reduce costs and streamline operations. For example, Medialister offers a solution to this by giving businesses access to over 100,000 publishers under one invoice, making the process of managing multiple marketing vendors simpler and more efficient.
