Small to medium sized enterprises (SMEs) face a unique set of challenges when attempting to scale up into the realm of large corporations.
The upper end of the SME spectrum already represents a high level of business, so to expand even further can require an entirely new way of doing things. In other words, whatever has been working for the company thus far may not even be applicable once you being to scale into the big leagues. If you’re trying to bring your business from a burgeoning SME to a Fortune 500 company, check out the following four tips:
- Switch to Managed Services
When your operations are still relatively manageable, it’s easy to leave all technological tasks in-house. However, as business volume begins to increase dramatically, and the load on your servers and software systems becomes intense, you ‘ll eventually find the need to upgrade to fully managed services. For example, many larger companies are starting to use software-defined wide area networks (SD WANs) to increase bandwidth availability and boost network performance. Of course, the logical next step would be to find a company that can help you manage such complex systems effectively.
- Develop Advanced Productivity Systems
Maximizing productivity is absolutely essential when you’re trying to compete in the high rankings of any modern industry. To achieve this goal, you may need to start using enterprise project management platforms, employee performance monitoring software, productivity coaching and consultations, and any other products or services that can help your teams get more done in less time.
- Set Growth Goals and Projections
If you examine the leadership practices of major corporations, one thing you’ll notice that they all have in common is the policy of holding well-planned business meetings to discuss the short-term future of the company. Creating a comprehensive game plan that is designed to facilitate precise achievements will keep your entire company on the same page as you work towards very specific and realistic goals.
- Bring in New Leadership
If your current management team has never dealt with the difficulties of operating a major corporation, it’s unlikely that they’ll be the best candidates for the job going forward, That’s not say that you should immediately fire everyone who has helped your company get to where it is today, but it’s definitely wise to consider the addition of leaders who possess extensive experience in corporate administration.
Bonus Tip: Arrange Flexible Financing
Finally, one more step you can take to position your SME for optimal growth is to reduce the overall cash flow burden by arranging more flexible forms of financing such as invoice factoring. Essentially, it’s good to consider any form of financing that will allow you to make investments, purchase inventory, fulfill orders, and perform other crucial operating tasks without significantly hurting your bottom line. While creating an exuberant amount of company debt isn’t recommended, it’s better to rely partially on external financing than to depend solely on the company’s available capital.