Over the last several years I have focused most of my consulting time on small companies. I can make a case that some of these experiences have been painful! In my book I suggest that the three revenue barriers that pose the most challenges to companies are $2M, $5M, and $10M. I created these based on my experiences so if you’re looking for some references to the Wharton School of Business-not so much there!
One element that seems to rear its ugly head often is lack of common sense. The lack of common sense almost takes on a certain degree of insularity or isolation. Companies with revenues under $15M may be competing with companies that have revenue in the hundreds of millions, assuming that the marketplace is mature. But they can also compete in a marketplace with other small to medium size companies.
Here are some other conditions that could exist with these companies:
- Less than 10 employees
- Family ownership
- Strong work ethic
- Quality product (Not always!)
So here you have a tightly knit group of people (Again, not always) who are focused on creating revenue and growing the business. Here is where the isolation factor or lack of common sense enters the picture. Owners or managers of these companies are so focused on production, service, quality that they forget about sales processes, lead tracking, how to hire, territory coverage, how the market thinks, who are the decision makers that can influence large segments of the marketplace, how to sell the product.
Yikes! This stuff drives me crazy! Over the next several weeks I will pinpoint several of the more serious issues-under the guise of lack of common sense-that haunt small companies. Should be fun. Tune in.
It’s not the size of the dog in the fight, it’s the size of the fight (common sense) in the dog!