Medium-sized Business Growing Pains: How to Get Relief

If the growth of your business is outpacing the competencies and capabilities of your organization, it may be time to look outside your organization for some help.

The European Union defines a small company as one that has a head count of 50 employees or fewer with assets of less than €10 million ($13 million U.S.)

The EU defines a medium-sized business as one that has a head count of less than 250 employees and less than €43 million ($59 million U.S.) The National Centre for the Middle Market at Ohio State University, classifies medium-sized firms as those with annual revenues between $10 million and $1 billion. America has fewer than 200,000 medium-sized firms, which employ more than 40 million people.

Core Competencies

When an organization is growing it can be difficult to focus on important issues because everything is important. The key is to focus on what your customers uniquely value in you. Your core competency is what makes customers choose you. Your resources should not be tied up performing tasks that do not support your core. Of course, outsourcing only makes sense if the cost for the service goes down while the quality of the service goes up or improves.

Every company outsources in one form or another. Companies that recognize their own strengths outsource those tasks in which they themselves are weak. The types of services that are outsourced fall into three categories: highly skilled or executive expertise; highly repetitive tasks; specialized knowledge, notes Gregg Landers, the Director of Growth Management at CBIZ HMH.

Branding

Branding is about creating a powerful and lasting emotional connection with your customer. If your logo does not evoke an emotional reaction, then maybe you should look to the experts for some help. Hiring an expensive well-known designer to craft your logo may not be an option right now. However, services do exist to help you design your new logo at a reasonable cost.

Legal Services

Legal documentation, document review, and litigation are all services that are better handled by the experts. This can be advantageous to smaller businesses, especially when you are looking at a six figure salary to have a legal representative on staff. Outsourced legal services provide anything from simple legal documentation to overseas representation.

Marketing

With the invention of social media, Internet marketing has changed the marketing arena. Search Engine Optimization, pay-per-click management, email marketing, and mobile marketing are all key buzzwords in this field. Outsourcing your marketing efforts will provide you with strategic and insightful direction on what works in print and on-line media to help you grow your customer base.

Data Management

Data loss is a risk that is frequently overlooked by medium-size businesses. Managing data storage, multiple servers and data security are all better left to the experts. Technology is one area where there is plenty of help. Colocation services can help you attain greater bandwidth and connectivity within your organization.

Successful companies thrive on changing markets. As you grow, be sure to stay nimble and take advantage of other resources while you enjoy your growing pains.