We Need More Mid Sized Businesses (MSB’s) – 10 Ways To Build One

A while back a much wiser man than I, someone I can on some levels call a mentor, told me that the real opportunity for business advisers now, will be someone who can help SME's become MSB's. 

For those of you not in the business support industry that means small and medium businesses to and mid sized businesses.

I think Phil Jones, is right, maybe start up and small businesses are not where we should be looking anymore for our country's growth

Maybe they have had plenty of help and the spotlight already.

Maybe the real growth needs to come from, as John Leech, writer of this article and CEO of Winning Pitch, says from the MSB's. 

"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."

As he puts it: 

"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:

1. Think big – genuine ambition is vital – be clear on your higher purpose.

2.  Be clear on the business model - a detailed plan to execute and operationalize the strategy to scale is crucial.

3. Understand the different funding routes and instruments to fuel growth.

4. 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.

5. Consider the role of NEDs – having someone who has already done it sat round the boardroom table offers many advantages. Something that Phil Jones echoed in his talk at VentureFest about including wise owls in your team.

6. Don't be too precious about hanging on to your equity – smart people want a share of the value they bring.

7. Embed tight operational control and strong performance management – remember it comes down to always having enough cash.

8. 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.

9. Strong internal (in the office) and external (in the market place) leadership is vital. 

10. Stay one step ahead of your competitors by living in the customer’s world – deliver innovative propositions with an edge. 

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."

Wise words Mr Leach wise words. Follow on John Leach on Twitter here.

The last point being the best - as many micro businesses - including my own stayed small due to the lack of training and courage of their boards. Perhaps NowTryThat will be different but I doubt it.

However, by using data to help companies with their digital marketing - Now Try That might just be able to help larger businesses take part in the digital revolution that start ups are already part of.

And just as an aside - congrats John for winning the best Chief Executive at the DIBManc #Mancoolian14 awards! Richly deserved - your high growth business is a lesson to us all.