How to grow to medium business

Medium-sized businesses from small and micro-enterprises differ not only in status. The owners of mid-level companies are most often presented with more loyal conditions for lending and state financing.

You will need

• - HR report for the year;

• - enterprise development strategy;

• - annual report.

Instruction manual

1

Analyze the annual report of the enterprise and compare it with the work of previous years. Analyze 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.

2

Carry out an analysis of the enterprise development strategy for the coming years. If such an action program does not exist, and management works on a hunch, then you should start creating such a document. It will be based on the latest annual report data. According to the report of the personnel department, an analysis of the capabilities of the labor collective, options for optimizing working time, updating tasks for subordinates and the possibility of a wage fund should be carried out in parallel.

3

Explore enterprise expansion opportunities. According to the current legislation, from 101 to 250 people must be involved in order to achieve the medium-sized business level at the enterprise.

4

Analyze the turnover and explore the possibilities of increasing the annual profit of the company. If your activity is connected with production, then you should also analyze the sales market, production volumes and consumer market demands. In the event that you are working in the market of trade or the provision of services, you will need marketing research on consumer demand and a thorough study of the issue of increasing or expanding retail space.

5

Combine the data and create an algorithm of actions to increase sales, expand staff. However, there are cases when the expansion of production or trade is impossible. This may be due to a number of reasons independent of company management: a low demographic policy, an outflow of the population, or a decrease in consumer welfare. In this case, the management of the enterprise should think about the development of new activities without interruption from its main focus. Given the financial capabilities, a company can thus easily expand its staff, increase the annual turnover of the enterprise and consolidate its position in the market. The lack of funding can be resolved by attracting outside investors, lenders, and even state financial participation. However, do not forget that the medium-sized enterprise, according to the law, should not have more than 25% of foreign or state investments in fixed capital.