Scaling an SMB

Best Practice / Change and Organization

Scaling an SMB
Arun Ramu , CEO, India

What SMBs lack to scale up to a large business is the practice of formal reviews

In my experience i have noticed many an SMB failing to scale up to a large organization. On closer observation it is not the hunger or the audacious goal that is missing. The main reason in my opinion is - not setting up a set of predictable review parameters and doing formal review that is the undoing of such organizations. Best Practice: Predictable review parameters should be decided based on the criticality of goal and the stretch that is built into it. Based on this one can decide the actual review parameter and the frequency of the reviews to provide predictable results. Once this is in place the SMB managers have to let go of micro managing and trust in the review and correction cycle to achieve scale. For example: A company that is currently doing $1M and wanting to scale to $10M should not start by just reviewing sales and revenues. These are post process parameters and do not predict if the process has changed enough to achieve the new stretch targets. Instead, reviewing the increase in the sales activity (calls, meetings) , the resulting increase in sales pipeline and the increased sales hit rate will be a more predictable review parameter. If these numbers go up revenues will finally be achieved. These parameters should be reviewed frequently till the habit catches on and the hit rate increases. Later one can start counting revenues etc. Similarly, review parameters should be selected in other areas too.

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