ExecutiveChronicles.com | Transition from a Small Business to a Long-term Enterprise | It’s quite possible that your business was started with modest ambitions.
Maybe it was started out of a dorm room at college like with Dell or it was just an initial idea without much thought to the medium- or long-term. However, now it’s growing and it’s no longer small at all. This creates some complications because there are many remnants of its modest beginnings and low-scale goals, which may still linger uncomfortably. In which case, what should you do?
Here are four tips to help with a transition from a small business to a long-term one.
Get a Qualified Management Team in Place
For many businesses, they need a different CEO from the founder when it reaches a certain size. This is because the founder has either realized that they’re ill-equipped to handle a business this size or due to the fact that they wish to move onto other interests now.
Also, the management team below the CEO must expand as the business grows to a serious concern. The CEO is only one person and the role can quickly become overwhelming. Yet, the executives must be qualified and possess the right previous experience to handle their role and lighten the load that the CEO shoulders. In this instance, using a service like HR Personnel executive search solves this problem neatly by finding the best people for each position.
Create Proper Systems and Processes
Another area that usually needs addressing with growing companies is the need for proper systems and established processes. This is something that small businesses neglect to create due to a lack of time or not knowing that it would be useful.
Creating business systems establishes how the company does things and breaks this down to necessary individual processes. Coupled with work instructions for different job roles, it also makes it easier for new employees to learn a new role or for someone to cover for another person’s temporary absence.
Expand on the Winners and Cull the Losers
When it comes to products or services, sometimes small businesses only launch one. Other times, they opt for a flurry of activity! With the latter, the issue is that they’re taking the approach of throwing a lot of paint at the proverbial wall and seeing what sticks. This often takes the place of expensive market research, which would have established ahead of time what was likely to be successful and outright duds to be avoided.
In a situation where there are many products or services offered despite the small relative size of the business, examine whether this is creating confusion for customers. Also, inevitably some should be withdrawn from the market now because they produce little or no profit.
Develop the Right Culture for the Future
Lastly, the subject of culture is relevant to growing businesses.
The culture is not always as positive as it should be. This can be worked on to encourage staff to approach working for the company in a different way than they have in the past. It’s also something that the management team can actively encourage too.
Transitioning from a small business to a more mature one must be done carefully. After all, many companies fail to make this evolution successfully.