Daily News: October 16, 2013

Newport Board Group Warns CEOs of Middle Market Hurdles

According to the latest Middle Market Indicator (MMI), a survey of 1,000 middle market executives conducted by the National Center for the Middle Market (NCMM), middle market revenues are expected to increase greater than 5% for the next 12 months.

Despite all of the growth in the middle market, many companies will stagnate or go out of business; one in ten will grow larger than 100 employees, and seven out of ten will eventually disappear, according to the Newport Board Group.

The Newport Board Group says small companies often end up in a sort of “no man’s land,” the place where growth has slowed or stopped for a variety of reasons, including:

Market – The management team struggles to do for customers what the founder had successfully done when the company was small.

Management – The company has been unable to develop a high-capability management team that can take the company to the next level.

Model – The company does not have a profitable economic model at a higher scale, and it has not created an infrastructure to support growth and to compete successfully with larger companies.

Money – The company does not have capital to fund the anticipated level of growth.

To read the full press release click here.