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8 Realities CEOs of Middle-Market B2B Companies Must Face

m. allen Dec 15, 2024

Leading a mid-sized B2B company comes with unique challenges. Here are 8 truths CEOs in this space need to recognize and address:

1. You're caught in a constant balancing act

"Middle-market CEOs are always juggling competing priorities," says Matt Slonaker, founder of M. Allen. "They need to maintain the agility of a smaller company while building the infrastructure for growth. It's a delicate balance that requires constant attention."

2. Talent acquisition and retention is an ongoing struggle

Finding and keeping top talent is challenging when competing with both larger enterprises and nimble startups. "Successful CEOs in this space focus on creating a compelling company culture and offering unique growth opportunities," Slonaker advises.

3. Digital transformation is no longer optional

"Even traditional B2B companies must embrace digital tools and processes to remain competitive," notes Slonaker. "CEOs need to drive this transformation, even if it means stepping out of their comfort zone."

4. Funding growth can be tricky

Middle-market companies often find themselves in a funding gap - too large for many early-stage investors but too small for significant private equity interest. "Creative financing strategies and strong banking relationships are crucial," Slonaker explains.

5. You need to be both strategist and operator

"Unlike in larger companies, middle-market CEOs can't solely focus on high-level strategy," says Slonaker. "They need to be deeply involved in day-to-day operations while also charting the company's future course."

6. Customer concentration risk is real

Many middle-market B2B companies rely heavily on a small number of key accounts. "Diversifying the customer base is essential for long-term stability," Slonaker advises. "It's a constant challenge that requires ongoing attention."

7. Scaling processes and systems is an ongoing challenge

What works for a small company often breaks down as you grow. "CEOs need to constantly evaluate and evolve their operational infrastructure," notes Slonaker. "It's about finding the right balance between flexibility and standardization."

8. You're always in the spotlight

In a mid-sized company, the CEO's actions and decisions are highly visible to all employees. "Everything you do sets the tone for the organization," Slonaker explains. "Successful CEOs embrace this visibility and use it to shape company culture positively."

By acknowledging and proactively addressing these realities, CEOs of middle-market B2B companies can navigate their unique challenges more effectively and drive sustainable growth.