[Column] Growth Trajectory of Small and Medium Enterprises 2: Stability Period

I would like to introduce a column article.

■Stabilization Period When viewed in terms of sales, the stabilization period shows about 500 million yen for manufacturers, around 1 billion yen for wholesalers, and about 700 million yen for retailers. Entering the stabilization period brings two significant changes within the company. The first is the ability to begin comparing with the previous year. The second is that management starts to distance itself from the operational front lines. In small and medium-sized enterprises, the president leads from the front, driving growth. However, once in the stabilization period, it becomes necessary to have a factory manager to oversee production or a sales manager to handle sales. As a result, management must shift its focus from day-to-day operations to organizational management and steering the company. The number of employees also grows from 10 to 20, and from 20 to 30. It becomes difficult for the president to remain the top person on the ground indefinitely. The president must shift gears to focus on management tasks. In other words, without building management skills suited to the company, further growth cannot be expected.

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