Early stages of every company are all about progress. How can the company position itself to best meet the needs of the market that it is about to enter? Can the company grow and become successful based on the dynamics of the industry?
There are nearly 200,000 middle market companies in the United States economy that come in all different shapes and sizes. These businesses have revenue between $10 million and $1 billion per year. They are positioned between the small business segment and the billion dollar company segment. Middle market firms account for a significant share of job creation and are generally among the fastest-growing firms based on revenue. If looked at as an individual market segment, the middle market would be the fifth-largest global economy ahead of Germany and behind Japan. So how can your company join this thriving opportunity?
- Shed the start-up approach. It’s time to scale and expand your business as efficiently and effectively as possible. Your company needs to have systems and processes in place to execute sustainable growth in business development. Be bold about new markets and new products.
- Find capital. Growth requires funding and we are living in an age where there are many ways to access capital. You can approach a bank, an online lender, or speak to an advisor. There might be a way to raise cash through better management of your assets. You can never have too much growth capital on hand.
- Measure your success. Take a look at your business analytics on a daily, weekly, monthly, and quarterly basis. Understand what your business should do to increase sales, revenues and profits, while decreasing your expenses. Develop a set of key performance indicators to help you benchmark your progress. Remember, you treasure what you measure.
- Identify and expand your niche. It’s important to be relatable to your customers. The ones that find you to meet their needs will most likely come back for future deals. Repeat business is the lifeblood of profitable expansion. Always ask how you can add more value to your existing customers.
Middle market companies strategize their business around strong cash flows and high EBITDA, not high assets. Focus your business on these two criteria and you will start to build a great middle market company.