Recently, this blog discussed one entrepreneur who believes companies shouldn't be in the "startup" phase for too long. So how does a business grow to the next stage? Writing for Entrepreneur, contributor and founder Robert Sher identifies some of the challenges that appear as a business evolves and what owners need to do to meet those challenges. Not surprisingly, a lot depends upon the executives at the helm.
Sher writes that the conditions surrounding the company will shift, which means that the CEO will need to decide when a different style of leadership is necessary.
While CEOs can more directly manage smaller companies, they will have to work with a larger number of people and delegate tasks as the company develops to medium size. The CEO has to "lead the charge" through every stage of development.
"Executives at early-stage companies enjoy getting their hands dirty," he writes. "They like to execute, and everyone pitches in. But the larger the business, the more it needs planning, anticipation, strategy and an understanding of its market (or its future market). Some executives don't like these more sophisticated business processes, finding them tedious or bureaucratic."
Internally, it may feel like not much has changed, but becoming a medium-sized business marks a moment for enterprises to take themselves more seriously. If the business survives this transition, it will have firm ground on which to continue to build its reputation. The Guardian recently quoted Lara Morgan of Company Shortcuts, who said that the shift to medium size is "the most painful step" and can hinder a company financially.
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