Suppose your business has surpassed 100 employees and more (including contractors) and generates a revenue of between $50 million and a billion; firstly, kudos! And secondly, you are now a medium-sized business by Gartner’s definition. It is imperative to note that this transition calls for some tangible changes to be made in your business process.
In this article, we shall quickly run over the 7 most imperative points you need to take care of in order to ensure a smooth transition from a small business to a flourishing mid-sized company.
7 ways to transition from a small to medium-sized business seamlessly
1. Upgrading The Office Space
We hope that you do not see some free feet of carpet area as potential dollars. Many businesspeople (some even famous ones) are guilty of doing so. The point is, as a business, you’re investing in people, and for people’s wellbeing, you must offer them a spacious and comfortable workspace at the very least.
At the bottom of this article, there is a calculator of how much square feet of area you’d require based on these three factors:
- Number of employees
- How spacious do you want your working space to be?
- How much common space do you want to have?
Moreover, here is some information by HubbleHQ on the space you would need for certain extra facilities:
Board room [15-20 people] – 220 sq.ft.
Meeting room (small) [2-4 people] – 100 sq.ft.
Meeting room (large) [4-8 people] – 150 sq.ft.
Conference room [20 – 30 person) – 300 sq.ft.
Kitchen/Cafe – 100 sq.ft.
Server room (small) [1 server rack] – 40 sq.ft.
Server room (large) [4 server racks] – 120 sq.ft.
Manager’s office – 100 sq. ft.
Manager’s office (with a small meeting table] – 200 sq. ft.
Director’s office (with four-person meeting table] – 250 sq.ft.
2. Business Restructuring
Now is also the time to restructure your existing business identity and rename it accordingly.
Some businesses who start off a business in a partnership, i.e., as a limited liability company (L.L.C.), often restructure the business to Incorporated (Inc.).
Here is what you should know about the differences between a liability company (denoted by L.L.C. or L.L.C.) and an incorporated company (Inc.).
A limited liability company has a business structure that offers limited liability as the name suggests to its owners, which means that the business is a different legal entity and the owners. And, they aren’t legally liable for some acts and debts of the L.L.C. Incorporated (Inc.) denotes a corporation — a corporation also offers liability protection however is different from an L.L.C. with regards to ownership structure, regulations to follow, management overhead, and taxing of profits.
Here is an article for you from diffen.com to be aware of the difference in the tax implications and extensive accounting records between the both.
3. I.T. Structure
You now need to develop a more nuanced I.T. system, one tailored to your business needs with advanced cybersecurity facilities.
There is a need to stay extra cautious about how your employees treat your data. Do not expect this to be a D.I.Y. job and get professionals on board to iron-clad your cybersecurity.
Not just cybersecurity, you need to have an I.T. support system to ensure a seamless transition of all your software and hardware.
4. CRM Software
With a growing business grows the customer base — making you a recognizable brand. This is the time when you have to not disappoint any customer even once.
The bigger the business — the bigger the responsibility of becoming a customer-first business. And the best way to do so is by having customer relationship management software in place.
CRM software helps in ways more than one. It helps you nurture a lead and a customer across their customer journey. It helps automate and optimize the process of acquisition and retention and also ensures the best customer experience.
5. Accounting Software
One of the major scaling mistakes that businesses make is losing track of their accounts through disorganization. Not only is this an avoidable disaster, but it also has serious tax and legal consequences.
To avoid this, you must do two things.
- Hire an accountant to routinely stay on top of your finances, and,
- Invest in accounting software to effectively manage your needs — invoicing, reporting, and integrating with other systems like supplier systems, CRM, or eCommerce software.
6. Production and Warehouse Space
If you’re selling physical products, you need to consider upgrading the space of your production facilities and warehouse. Since the demand for your products is increasing, ask yourself questions like: do you require larger production facilities, more storage space, more efficient systems, or new operating processes?
It is wise to bring automation to the product-making process and also invest in supply chain and procurement software.
This may be the right time for you to reflect on your brand’s image and strategize to better convey the messaging of your products, services, and business altogether. If you are launching new products and services, then consider rebranding along with the launch. Here is an insightful read by Crowdspring on how to rebrand in 2021 and beyond.
No matter how you rebrand — ensure your customers are getting served better than they used to.
We hope you found this article of actionable value. For more such insights, stay tuned to newtheory.com.
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