As a medium sized business owner are people always asking you when you're going to take your company to the next level and grow it further? Are you asking yourself? Are you bored of this question…(especially if you don’t have the answer yet!) yeah don't worry we all are... But let's face it - it's a niggling thought at the back of your mind. It's OK to admit it. You're amongst friends.
So let's address this repetitive yet burning question… When is the Right Time to Grow Your Medium Sized Business?
First of all, let’s break down what is considered as a medium sized business within the world of SHE Ltd.
We define a company size based on its total headcount of employees (both full and part time), rather than its turnover or profit. Generally speaking we consider a midsized company to have between 50 to 500 staff members on their payroll.
Organisations of this size will need to meet any number of demands (depending on its industry) and as such will require dedicated teams who work in ‘close coordination’ with one another and utilising their specific skill sets to ensure tasks are carried out efficiently.
Businesses of this size are expected to have it ‘all sussed out’ by having the necessary resources, such as technology and operational infrastructure (just to mention two of many key elements) in place and functioning to enable future growth…
It is often in this phase of development that many businesses face ‘growing pains’: the need to upgrade systems and processes in order for the business to become more efficient and successful. It is no secret that this is an extremely stressful time for those at the helm (and the crew who are having to often blindly trust the process). This is why with careful planning and the right assistance, businesses can overcome this awkward stage to become even more successful. Only then will you get your answer to that question you’ve been trying to avoid at the dinner party: “When are you going to grow your business?”
The problem with the question above is that it almost seems fatalistic and implies that you should grow just because. It also feels like there is very little room for manoeuvre pushing you towards an always or never frame of mind. But, as with most things in life, the answer to this question is “it depends.” When and (if) you grow may be determined by your industry, the wider economy, how attractive your proposition is to the talent pool, the options available to you supplement human resources with automation and more importantly your own ambitions for growth. Just because you’re a business owner of 50 may not equate to you desperately wanting to lead a workforce of 500 and so on!
But let’s assume you are that person - you’re reading this article so the odds are pretty good you want to grow your company. Excellent. In that case, let’s take a closer look at the other points important for defining your ‘Grow Moment’...(and decide if it’s time to hit the big red button!)
Industry and Economy
We’ll tackle these topics as one. (Which is a bit sneaky but hey we’re all about efficiency here at SHE!) These are both largely out of your control and also ephemeral. They are more like the atmosphere you operate within and, unless you are very large or very very rich, the
y are hard to do anything about! As such, these factors should be understood, like being aware of the weather, so you can prepare for it (even though you can’t change it!), especially if this last Summer was anything to go by!
Knowing whether the economy is growing or shrinking, what the interest and inflationary pressures are even down to the more nuanced areas of regulatory requirements are all able to influence your company’s goals. However, despite the perception, it is often easy to grow in a recession by targeting the areas that were weakened as the cost can be lower, or underserved areas that grow in an overall shrinking economy. For example, estate agents
benefit from a growing economy, as house prices rise and commissions increase and a shrinking economy where available housing stock increases and sale volumes can increase leading to a commissions increase. Clever eh?
How Attractive your Proposition is to the Talent Pool
There is a reason this topic is ‘done to death’ by every recruitment platform and agency going. Sadly love it or hate - people have got to WANT to work for you! Gone are the days when 18 year olds came to you and committed themselves to your cause until the day they retired. Sorry, but very few companies are that compelling these days. This is backed up by Government statistics which state that within 2022 35,900 businesses were medium-sized (50 to 249 employees) making up for almost 7% the 5.5 million businesses within the UK. Our point? People have a choice of where they want to work and if they have transferable skills and experience you can bet your last penny that they’ll take these with them to companies who:
Pay well
Have flexible working options
Champion career progression
Enable a good work life balance
Have a clear mission
Maintain a happy workforce (good workplace culture)
Provide benefits such as healthcare options and strong pension schemes
Amongst many other cons
iderations when individuals are weighing up their life choices.
As such you need to know what you can offer your workforce over not just others in your industry but others within your size and is this sustainable long term as you grow in headcount. It’s also worth knowing what you want to offer in the future. The last thing you want to do is offer something then take it away. On average individuals are staying in a job for a little under 5 years and there are many factors impacting this - you want to be above the average - with the right team around you! Then you will have a clearer picture of when you’re going to grow…
Options available to you supplement human resources
Quite simply put - how much technology is the
re for your industry? Is Ai, ML and automation taking the place of headcount. How much does it cost and what benefits does it bring? Or, if you were to implement it, what could you lose?
Are you thrilled by the advancements in your industry specific technology or do you see it as a necessary evil? Are you resistant to the changes this technology is bringing about or do you embrace it wholeheartedly? Moreover, do these factors impact your headcount growth? Can you grow alongside it, plateau or dare we say it scale back?
As a business owner of a medium sized business, regardless of your views of the technological advancements of your industry, you need to keep up to date with what’s available and how it can impact your growth and what direction you’ll be steering your ship towards! This can help you make a decision as to when you press the big red button as we spoke about earlier…
Why are we taking the time to write all this then? There’s a sea of articles out there on this topic helping you navigate uncharted territory. However here at SHE we pride ourselves on understanding how all of the pieces fit together. We take the time to get to know your team, how they work together and how they collaborate with ‘outsiders’ (like us!). Here at SHE Ltd we believe in growing consciously. Understand where you want to be and why you want to be there. Let us work on the how and the when (or perhaps even if) with you. It’s likely you have ideas and that’s great but perhaps not the experience on how to steer the ship or who you’ll need to help you do it! We can’t help with the boats (regardless of what this article may lead you to believe) but we can help you make your organisation fit for growth.
So if you want to grow (and have your answer ready at the dinner table) but don’t know how, let’s talk: https://www.slaughter.ltd/contact
Resources used within this article:
Note: This content is for informational purposes only and should not be construed as financial, legal, or professional advice. For specific advice related to your business, please consult with relevant experts.
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