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Thursday, January 14, 2016

How Does A Small Company Grow Into A Big One?

Every company starts small. Think of Microsoft, or think of Google or think of any other big company of today.

It's interesting to note that any small company would have and should have only one primary goal in the long-term - to grow into a big one!

Of course, in the short-term the primary goal would be to survive and not die, and in the medium-term the primary goal would be to sustain its survival and to stay alive.

How does a small company grow into a big one?

Here's a quick list of some points that would be important if a small company wants to grow into a big one, eventually:
  • Its product and service offerings should be in a market segment where demand is huge or has the potential to scale up to a huge number. It is important the revenue growth is high enough to feed into the growth cycle.
  • Its leadership team should be not only competent and motivated but also highly professional and ethical. It is important the founders do not run the company using a close-knit coterie, a closed-mind and a tight-fist.
  • Its systems and processes should get established fast and keep on evolving in line with the growth objectives and actual growth. It is important the best practices from similar businesses are adopted and ingrained into the way the organization functions.
  • Its people practices should allow a fair, open and transparent culture to get established. It is important that club of loyalists, coterie and cronies are not allowed to develop and grow in the organization.
For a small company to grow into a big one, the time factor is also important. In case the company remains small for a long time (a few years to a decade or so), there is a high chance of the company dying and going out of business.

So really speaking the future path of any small company is quite clearly laid out - grow  into a big one or go out of business as a small company itself.

The points above remain applicable even if a small company becomes a big one. Even big companies can go out of business if they forget the basic principles.

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