Become an Industry Olympian: Middle Market Tips for Success

Middle market companies are firms which have revenues ranging from $50 million to $500 million. They are the lifeblood of the American economy.

Yet they lack the scale of large cap companies yet have significant size advantages over small businesses. Compared to small businesses, a middle market company is better funded to handle difficulties, hire top talent, and fund innovation.

Compared to larger enterprises, they are deeply connected to their customers, are agile, and still have that entrepreneurial spirit.

There is much more potential for growth for a middle market firm which can be fueled through acquisitions and different forms of organic growth like product launches, market expansions, and vertical integration.

Here are 4 tips for middle market companies seeking to get to the next level.

1. Become Adaptable

In order for a business to evolve, it needs to change its course or reinvent itself periodically. Yet this is easier said than done as effecting true change is often a difficult process.

Middle market management teams are blessed with fewer employees and less reporting relationships allowing them to be more autonomous and creative. With less layers and bureaucracy, they can adapt to changing market conditions more rapidly. Empowering management is the key to becoming adaptable.

2. Build Your Customer’s Trust

It is easy to declare, “Our customers matter!” or “You come first!” but hard to put it into action. Many companies talk about taking care of their customers but their actions do not follow through.

Active engagement and consistent follow through is the key to building your customer’s trust. Once you connect with your customer and they know that you are looking out for their interest, you will earn their trust.

3. Focus on Hiring the Right People

For a middle market company to achieve growth, it is essential to build and maintain a high quality work force. In a service and technology based economy, human capital is the only long term competitive differentiator.

Domain expertise, attitude and the ability to get things done are important criteria to seek in employees. Remember that job skills can be taught, but certain things like passion and attitude cannot be.