At the end of 2016, there was a staggering 5.5 million businesses in the UK, 99.3% of which were classed as small or medium-sized businesses.
Today, you’d expect a lot more however, due to challenges including Brexit, the pandemic, and now the Ukrainian War, many businesses have failed. The UK Government site says there are 5.6 million businesses of which 5.548 are considered small businesses. This group makes up 99.2% of all businesses.
The EU definition of SMEs is:
- Less than 10 employees and turnover under £2 million – Micro Business
- Less than 50 employees and turnover under £10 million – Small Business
- Less than 250 employees and turnover under £50 million – Medium Business
So, what does a successful micro or small business need to consider to jump to a medium-sized business?
Investors in your business can provide the necessary funds to take the business to the next level. With adequate working capital to hire staff, improve digital transformation, and market to new customers your business will forever be treading water to sustain the status quo. Investment can come from:
- Angel investors
- Peer to peer lenders
- Private investors
- Venture capitalists
Knowing how you’re going to get somewhere is half the job done. To grow your business you’ll need a business plan that is the roadmap to take it from where it is today to where you want it to be tomorrow. What will that look like? What resources do you need? What actions need to be taken?
Consider Your Office Space
Your office space is vital for allowing you to make the jump between being a small business or a medium one.
Remember that your office represents your company – it can leave clients with a positive view of your business and inspire your employees to be more productive.
As well as the space’s vibe, you should also think about your office space logistically. Consider using a professional agency like Devono to help you find an office space that’s well-suited to your brand and suitable for your business’s future. It should have room for your business to grow and take on new employees, as well as scope for changes so that your business can evolve as it grows.
Sustain Your Sales
There are several ways that you can help your business sustain sales and continue to grow. You may want to invest money in new technology to develop your products, work to improve your existing products or spend time on marketing to reach new customers. Or all of the above.
Continuing to market your product, as well as releasing new ones can help you gain the attention of new markets and potential customers. That way, you can increase your profits, hire more employees and grow your company.
Train Your Staff
Reputation is significant and your business’s customer service is vital to maintaining this. 54% of millennials said they stopped using a business after receiving poor customer service, and a similar percentage of Gen Xers and baby boomers share the same view.
Your staff should be fully trained to deal with customer enquiries and complaints, and use social media platforms to respond to customers quickly. This is very important, and the figures prove this, as customer service interactions on Twitter have increased by 250% in the last two years. Doing this well means you can retain a loyal customer base and keep them returning to do business with you.
On paper, the gap between a small business and a medium one seems quite large and daunting. However, with hard work and forward-planning, it doesn’t have to be an impossible prospect. Three areas that you should consider are – your office space, your product sales and training your staff – then, you can make a jump from a small business to a medium one.