Mid-market companies – those with revenues between $10 million and $1 billion – are powerful players in the marketplace. They’re the fourth-largest global economy in the world, employing 34% of the U.S. workforce. According to the latest Middle Market Power Index from Dun & Bradstreet, the growth of U.S. middle market firms is outpacing the national average; since 2011, they’ve shown an 87% increase in number of firms, a 103% surge in employment and a 100% rise in revenue.
However, while desire for growth is insatiable to any business, it’s not the only prerequisite to success. Once mid-market organizations reach a certain size, they need the ability to scale. Many midcaps falter, when it comes to making the leap to the next level, for one simple reason: They confused growth with scaling. Continue reading
The mid-market accounts for approximately one-third of private U.S. employment and includes close to 200,000 businesses. It’s a powerhouse of the American economy.
Yet middle market companies face significant challenges. Despite changing economic conditions, rising costs and having to do more with less, they need to stay competitive and go up against against huge multinational organizations.
In today’s volatile economy, the pressure is starting to show.
As reported by Inc.com, the 2015 fourth quarter survey by the National Center for the Middle Market (NCMM) indicates that corporate financials took a hit, with the middle market bearing the brunt of it. And, The Wall Street Journal reveals that, although private middle market revenues are robust, rising wages and a strong dollar are hurting profit margins.
Growing Pains: Trying to Keep Up in the Digital Evolution
The fastest-growing mid-market companies are leading the way with digital technology, using it to help streamline front-end processes like customer service to maximize efficiency and promote growth. The mid-market C-suite understands the need for a real-time operation and decision-making environment, and how it can make them more productive than their less digital counterparts. Continue reading
After “making it”, fast-growth companies face a variety of challenges as they strive to sustain growth, drive market share and increase revenues. As they cast their eyes at global markets, these midsize businesses need to expand aggressively, but profitably.
Technology is critical to growth. Yet, without the shadow of a doubt, it can also be a company’s largest capital investment. Growing companies have some of structure in place, but need more to expand and to continue their trajectory. However, the cost – infrastructure, hardware, training and specialized staff– are not insignificant.
And, while the company needs technology to better serve frontline customers, or to speed up and improve the quality of product production, the Finance and Accounting department has its own tech needs. Supporting rapid growth can be felt in five primary pain points across the F&A department: Continue reading
The National Center for the Middle Market released its latest Q1 indicator, and for the first time, mid-market executives were asked to write their greatest internal and external challenges for both the near and long term. From an internal perspective, talented-related concerns emerged, including acquisition, retention, and training. External concerns include increasing competition and government regulations.
To succeed, mid-market companies must focus primarily on service delivery to their core business, the product or service that gives them their edge. Not surprisingly, a number of these businesses don’t have the processes, technology or infrastructure in place to support the costly (and growing) internal systems that comprise many of the F&A functions.
Mid-market companies are often faced with rapid growth and the need for F&A talent. As these companies grow, the question looms: hire in-house or outsource? Continue reading
For mid-market CFOs, the thought of acquiring, training and retaining Finance & Accounting talent is enough to keep any executive awake at night. Year after year, survey after survey, mid-market executives have named talent management and developing future leaders as a major challenge.
Outsourcing for F&A Talent
Traditionally, outsourcing helps mid-market companies acquire and retain the talent they need in two key ways: Continue reading
It’s mid-market month here on The Accounting Minute, so we’ve gathered a few related articles that caught our eye this week. Read on to discover the latest trends, challenges and opportunities in the middle market.
IT Outsourcing – Size Matters
When it comes to IT outsourcing, mid-market companies benefit from engaging with large system integrators; more than that, they need to do so in order to remain competitive with big enterprises. But smaller businesses aren’t always a priority for large integrators. A Continue reading
In the current uncertain economic environment, middle-market companies are facing the twin pressure of revenue growth and cost reduction. Last year, 82% of mid-market companies expected more than 20% of their sales growth would come from foreign markets, according to a survey by the National Center for the Middle Market.
Overseas markets are highly alluring to mid-market companies who are eyeing future global expansion as a growth strategy. As well, many mid-market execs feel that their companies’ success necessitates the geographic diversity of business interests.
The uncertain U.S. economy has propelled many mid-market companies to explore overseas markets. Some companies will opt to work with new joint partners, distributors Continue reading
Middle market companies are in a constant state of transformation. But throughout all that change, they need to make sure they’re always growing, if they want to remain competitive.
With the upcoming 2013 National Middle Market Summit on October 30, we thought the time was ripe to outline recent findings on growth and success in the mid-market.
Success by Numbers
In its report, Blueprint for Growth: Middle Market Growth Champions Reveal a Framework Continue reading
In a recent post, we talked about the benefits to mid-market companies of adopting a BPaaS model when outsourcing F&A functions. For mid-market businesses wanting to go up against Fortune 500 companies and other enterprise organizations, BPaaS represents a way to remain highly competitive.
But what does it take to ensure that your mid-market company successfully integrates BPaaS? Here are some of the best practices you should follow to secure a competitive advantage in today’s demanding marketplace: Continue reading
For larger “Tier 1” organizations, F&A outsourcing is a given, a known quantity proven to be a worthwhile investment. Yet mid-market companies are traditionally reluctant to dip their toes in the water, largely due to concerns about high upfront costs, ROI and delayed payback periods.
Mid-market companies may not reap the benefits of scale that large companies enjoy, however, they are still often required to go head-to-head with their enterprise-level competitors. With that in mind, mid-market companies need something to help level the playing field.
That’s where BPaaS (Business Process as a Service) comes in. The model brings together Continue reading