Growing midsize companies are at a pivotal, awkward stage, exposed to hidden traps.
The management, despite having brought the company to its current state, may lack the skill set for larger corporate dealings. The business model itself may need to change; making the wrong promises in contracts to customers can be a death knell. Certainly, there needs to be new systems of reporting so that leaders can determine at any point, the company’s cash position and profitability. All the while, the leaders have to burnish a culture to maintain enthusiasm among employees.
The book best describes the money challenges created by quantum leaps in growth. Cash flow choke-points are common and they are seldom relieved by banks or investors. Anticipating the cash crunches, while adding fixed costs is crucial in the midsize company zone of death.
In addition to describing the risks and pitfalls of fast growth for midsize companies, the author invites company owners to consider if staying as a smaller lifestyle company might suit just as well as pursuit of rampant growth. If an owner chooses to pursue growth, there are three ways it could end, acquisition by a bigger company, continuing prosperity or going out of business ugly.
No Man’s Land offers useful insights for companies that are not yet big but that are not still small.
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