Grow your small firm into medium business by Sage Global
9 min read
As a business owner, there comes a time when you realise your firm is changing from a small to a medium business. This realisation can come as quite a shock (as well as a time of excitement), so you’ll need to be prepared.
This newsletter and the full post on the Sage Advice Blog highlight the complexities you need to be aware of and how the right business management software can help you stay on top of things.
Moving away from being a small business
Rob Moore and Mark Homer set up property investment firm Progressive Property in 2007 with the help of family members, two salespeople, one marketing person and a personal assistant. Since then, their business has grown considerably. Moore says: “As a medium-sized business, we grew from 35 staff… we currently have 86 staff in-house and up to 100 outsourced employees…
“It’s far easier to track all costs and metrics in a small business as there are fewer moving parts.
“As you scale, there can be simply too many customers and staff to keep a close eye on everything, and your business can become very wasteful…
“Some founders are very good at starting businesses and have entrepreneurial spirit and flare. But they don’t have the different skills required, or passions, to take the business through to medium and large scale.”
Dealing with complexity as you turn into a medium business
There are many complex issues to consider in the move from small to medium-sized business, from delegation and cash flow management to organisation.
Moore highlights the complexities: “As you scale up, staff can get overworked and overwhelmed. Your costs go up, sometimes disproportionate to the extra revenue you’re making, and, as such, your margins can reduce.
“Your culture and organisation can become very chaotic and reactive, where nothing seems to be ordered. Staff can leave under the pressure…
“Your costs go up again for the recruitment of the right staff, and it becomes harder to track and measure your finances...”
Mike Smith, director of alternative business finance solutions firm Business Expert, shares 5 tips to help you grow your business:
Plan for mistakes
Find and retain the right people
Measure performance & progress
Put systems and processes in place
To find out more about the challenges which Rob Moore and Mark Homer encountered during their business transformation and the advice Mike Smith offers, please read the full post on the Sage Advice Blog.
Alternatively you can have a look at this week’s featured article in your local market at the links below.
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