How To Grow To A Medium Business

Table of contents:

How To Grow To A Medium Business
How To Grow To A Medium Business

Video: How To Grow To A Medium Business

Video: How To Grow To A Medium Business
Video: 7 Strategies to Grow Your Business | Brian Tracy 2024, December
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Medium business differs from small and micro-enterprise not only in status. The owners of mid-level companies are most often presented with more loyal conditions in lending and government financing.

How to grow to a medium business
How to grow to a medium business

It is necessary

  • - report of the personnel department for the year;
  • - enterprise development strategy;
  • - annual report.

Instructions

Step 1

Analyze the annual report of the enterprise and compare it with the work of previous years. Conduct an analysis of the main strengths of your business. If your path is production, then you should analyze the revenue for the last year and the volume of working capital.

Step 2

Analyze the company's development strategy for the coming years. If such a program of action does not exist, and management is working on a whim, then you should start creating such a document. It will be based on the latest data from the annual report. According to the report of the personnel department, an analysis of the capabilities of the labor collective, options for optimizing working hours, adjusting tasks for subordinates and the possibilities of the wage fund should be carried out in parallel.

Step 3

Explore the business opportunities for staffing. According to the current legislation, in order to achieve the level of medium-sized business, an enterprise must employ from 101 to 250 people.

Step 4

Analyze turnover and explore opportunities to increase the company's annual profit. If your activity is related to production, then you should also analyze the sales market, production volumes and consumer market demands. In the event that you work in the trade or service market, then marketing research of consumer demand and a thorough study of the issue of increasing or expanding retail space will be required.

Step 5

Combine the obtained data and draw up an algorithm of actions to increase sales, expand the staff. However, there are cases where expansion of production or trade is not possible. This may be due to a number of reasons independent of the company's management: low demographic policy, population outflow, or a decline in consumer welfare. In this case, the management of the enterprise should think about the development of new types of activity without interrupting its main direction. Given the financial capabilities, the company can thus easily expand its staff, increase the annual turnover of the company and consolidate its position in the market. The issue of lack of funding can be resolved by attracting third-party investors, lenders and even state financial participation. However, one should not forget that a medium-sized enterprise, according to the law, should not have more than 25% of foreign or state investments in fixed capital.

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