If you are an entrepreneur or a business owner you have probably understood by now that nothing comes easy when it comes to business and that growth takes a lot of effort and a lot of time. Every success story contains many failure stories and every great achievement contains smaller milestones achieved overtime and that is exactly how Small Medium Enterprises turn in to Large Enterprises. The steps a company follows and the barriers it meets are various and never-ending, but there is a turning point where small-medium enterprises move higher up the ladder and transform into Large Enterprises gaining much bigger market shares and brand awareness. So what is the path from small-medium to large and how can companies focus on development and growth in order to get to the next level? Lets begin with the basics.
What is the difference between SMEs and LEs?
A company could be considered either an SME or an LE based on the revenues it produces, the assets it possesses and the number of people it employs. Usually SMEs maintain these elements under a certain threshold and once they overcome it the can be considered an LE. Categorising companies to SME and LE can vary from country to country and it has to do with many things such as the industry the company operates in and the size of that country. Now that we have a more clear image of what SMEs are it is time to see how they can become Large Enterprises.
How do SMEs become Large Enterprises?
The truth is that there is no perfect recipe for an SME to become a Large Enterprise but there are a few business hacks that can help your company go the distance and achieve your goals. If we try to observe closely the differences between SMEs and LEs we can understand that there are a few things that small medium enterprises don’t do as much and that is the key to start walking on the right path and start thriving.
Build the Right Team: The first thing companies that operate in a larger scale do is invest in their human resources. Their objective is to gather top tier talent and build a team that is based on a long lasting relationships and delivery of quality services. Large enterprises understand that if you form the right team and you give them the desired resources you can achieve more than you would if you were to change the team constantly. This is part of the LE mentality that has to do more with the long term rather than the short term. So start here, and try to build great teams with top talent that would deliver the best results as possible.
Rethink your Vision: When you start a company you have a vision and your desires could be unlimited, but when you start operating as a company you must have a specific vision that will guide you to where you want to go and you want to achieve. It is only logical that it is not possible for your company to have the same vision from day one till the day you are about to make a great step. The reason why this happens is because when you grow as a company you also get a better image of what is going on in your environment and your industry while you also understand your capabilities and you start to want to achieve more. In simple words it is time to rethink the vision that took your company from zero to SME and create a new one that will take you from SME to LE.
Reform Recruitment: As we said previously a key differentiator between these two types of businesses is that the larger ones invest in their human resources. The way to achieve something like this is to attract better talent. In order for a company to attract better talent it must reform its recruitment methods. Human Resources and Recruiting is one of the top and most important operations nowadays for companies that are willing to grow and you must invest in it. Find the right experts and reform you recruitment techniques, become more friendly and offer more to the people that are the soul of your business in order to keep them happy and you will always attract new and better talent ensuring a more successful outcome for your business.
Upgrade & Upscale Products/Services: If you want to go big you must first think big. Start by upgrading your services and your products and focus on delivering more than you already delivered. Upgrade your operations, your products and your services. This will help your customers and employees understand the significant difference that is being made and value will be added to your brand taking you one step closer to your goal.
Think Strong & Strategically: The bigger you grow the bigger the companies and the customers you interact with. Invest in networking and try to think strategically as much as you can. Set as one of your objectives to build strong strategic relationships with other companies that will increase and stabilise your revenues. The key to growing is to ensure that you keep your existing client base as is while you attract more new clients. This can be achieved through networking and partnerships and don’t think about and start planning now.