The need to help and support medium sized businesses (MSB) is very much at the heart of economic policy making at the moment. The missing component of the great work research institutes, accountants and think tanks have come up with is, just how difficult it is to set up and build one? Having done it with Winning Pitch (and working with a handful of others to do the same) there are so many lessons I would like to share. Here are 10 platforms critical to anyone on a MSB journey:
- Think big – genuine ambition is vital – be clear on your higher purpose.
- Be clear on the business model – a detailed plan to execute and operationalize the strategy to scale is crucial.
- Understand the different funding routes and instruments to fuel growth.
- A high quality senior team is vital, combine this with a great culture and you have the magic dust – values become more important the more staff you recruit.
- Consider the role of NEDs – having someone who has already done it sat round the boardroom table offers many advantages.
- Don’t be too precious about hanging on to your equity – smart people want a share of the value they bring.
- Embed tight operational control and strong performance management – remember it comes down to always having enough cash.
- Establish a clear brand and communicate this with passion – celebrate with fervor what makes you different and why you are the “go to organisation” for what you do.
- Strong internal (in the office) and external (in the market place) leadership is vital.
- Stay one step ahead of your competitors by living in the customer’s world – deliver innovative propositions with an edge.
From a UK business base of 4.8M companies, 99% employ less than 49 staff. So the current stock of mid sized businesses is less than 50,000. We must not only look at helping existing mid sized companies we also need to address how we fill the pipeline – the next generation.
Sustaining growth beyond 50 staff is a massive task – this is why so many entrepreneurs sell out before they burn out. Beyond 50 staff, business help and guidance becomes more sophisticated – PE/VC, NEDs, headhunters, governance, IPO’s, expensive lawyers and financial engineers, corporate finance… trusted support is pivotal to sustained growth. A community of trusted help is vital to the entrepreneurs who are aiming to do something special with their business.