SMB to Corporation Transition
Small and medium businesses do not become corporations because of a mixture of three issues: strategies, policies & leadership.
What is the difference between a Business Strategy and a Business Tactic? A strategy is a mixture of goals, visions and paths to a desired destination. Tactics are the implementation milestones, tasks and details. Most small and medium business executives can not accurately describe the difference between the two concepts, putting them at a disadvantage to larger firms which well defined strategies to create momentum within the firm in a unified direction. If you have ever felt lost in your business, you do not have an effective strategy.
How do large corporations effectively use lower skilled workers to produce higher quality results than small businesses? One word: Policies. Large corporations use carefully constructed corporate policies to simply complex tasks. This can create a consistent customer experience lacking in many small and medium businesses.
Small businesses are run with a flat, straightforward structure while corporations are tiered. Without a tiered structure, all major decisions go through one person. This works well for a small company just getting going and needs absolute leadership on all topics. As the company grows, this individual no longer has the bandwidth to deal with all the challenges facing the company, and MUST delegate responsibility effectively. How you delegate responsibilities is based upon your leadership skills and your company’s needs. We work with the company’s current and future leaders to expand their leadership skill set while creating a structure which allows the company to naturally grow yet keeps key decisions at the appropriate level.