Where a midsize company should focus? This article shade lights on how midsize companies should achieve growth.
Most management writing focuses on startups or large companies, but if recent performance is any indicator, midcap companies are the place to be. U.S. organizations with $10 million$1 billion in revenue make up the fourth largest global economy in the world, with $3.8 trillion in private sector GDP. Over 200,000 midcap businesses collectively employ 34% of the U.S. workforce. During the 2008 recession, midcap companies proved surprisingly tough: Fully 82% of them survived to see the recovery (only 57% of small businesses made it through), and midcap companies added an average of 20 jobs each while big businesses were shedding thousands of jobs.
The stall point for many midcaps is when they find themselves a $100 million organization trapped in the body of a $30 million company. Looking much like the teenage boy wearing his fathers suit, they havent quite grown into the size theyve achieved. Why? They confuse growth for scaling. Growth means adding revenue at the same pace you are adding resources; scaling means adding revenue at a much greater rate than cost. With intensified pressure to keep up, leaders often react to mere symptoms of poorly managed growth, such as widespread conflict or a sense of organizational mayhem.
Leaders in this position need to shift from working in their company to working on their company. Here are three things executives can do to secure scalable growth for their midcap companies.
Midcaps that grow through effective scaling are seeing greater results: 65% of growth-minded companies are enjoying new markets, and 61% are finding new opportunities in international markets. As a leader, if you mature with the discipline to build an organization that can grow and scale, you too can gain the advantages of leading a growth company that can go the distance.
Replace counterfeit strategies with real market identity.
Build capacity to scale dont just replicate.
Welcome standardization you wont lose the entrepreneurial vibe.