Growing from medium to large: keep all wheels on the bus
Photo by Dino Reichmuth
Many mid-corporate service providers I work with share a powerful vision: to grow their businesses in ways that create a meaningful impact for their customers, communities, and employees. These companies aren’t just about profits—they are about people, relationships, and delivering flexible, high-quality services that truly make a difference.
If you lead a midsized service company, you probably already know the magic that happens when your team is engaged, your customers feel valued, and your culture feels like a family. You’ve built something special. But as you look ahead, you might wonder: How do I take this success to the next level without losing what makes us unique?
The truth is that growing a mid-corporate service business is one of the most exciting—and challenging—journeys you can take. It’s not just about adding more clients or increasing revenue. It’s about evolving your organization, your culture, and your leadership in ways that can feel uncomfortable and complex.
I’ve partnered with dozens of mid-corp service providers navigating this path. From my experience, growth is never a straight line. It’s a series of transitions demanding new skills, mindsets, and structures. And if you’re not prepared, the things that made your company great can become obstacles.
In this blog, I’ll share the four critical realities every mid-corp service provider must face when scaling—and how to master them so your growth is sustainable, impactful, and aligned with your core values.
Formalize the informal
In the early days of your business, informal roles and relationships are your secret sauce. Maybe your IT support is handled by a colleague who “knows a bit about computers,” or HR tasks fall to the assistant who’s excellent with people and remembers everyone’s birthday. These informal arrangements create a warm, flexible environment where everyone pitches in.
However, as your company grows beyond 50 or 100 employees, this informal approach starts to break down.
Why Formalization Is Inevitable—and Good
I remember working with a client whose procurement manager handled IT service support. He wasn’t formally trained in IT but loved solving tech problems and was the go-to person for quick fixes. This worked perfectly when the company was small; everyone appreciated his help.
However, as the company grew, IT systems became more complex, and the informal approach couldn’t keep up. The company needed consistent, high-quality IT service management with formal processes and accountability. The procurement manager had to step back from his beloved IT role, and my client established a dedicated IT team.
This transition was tough. Colleagues missed the convenience of dropping by for a quick fix and now had to file service tickets and wait. It created frustration and a sense of lost agility. However, formalizing corporate functions like IT, HR, and finance is critical for scalability. It might feel like losing some “family magic,” but it’s essential for building a resilient organization that can serve more customers without sacrificing quality.
2. The changing role of the owner
If you founded your company, you probably vividly remember the early days: the thrill of every decision, the energy of being deeply involved in every detail, and the sense that your personal touch was driving success.
But as your company grows, your role inevitably changes—which can be one of the most complex adjustments.
When Influence Feels Like It’s Slipping Away
I vividly remember an encounter with one of the founding partners of a consulting firm I worked for. He shared how he used to make decisions on the fly—from approving expenses to signing contracts. However, as the firm grew to 150 employees, even simple choices required formal approval processes. He was stuck in meetings, overwhelmed by requests, and missing the entrepreneurial spark that once energized him.
Eventually, he stepped back from day-to-day management, allowing professional leaders to take over. The company grew, eventually appointing a CEO and expanding beyond 300 employees.
This story is familiar. Founders often feel a loss of control and struggle with the shift from “doer” to “leader.” But embracing this change is vital for sustainable growth. Transitioning from entrepreneurial founder to strategic leader is a rite of passage for growing companies. It’s not about stepping away—it’s about stepping up.
3. Embrace a temporary dip in results
Growth is exciting, but it’s rarely smooth. One of the biggest surprises for many leaders is the temporary dip in financial performance during scaling.
When you grow, costs increase—new hires, system upgrades, training, and reorganizations all require investment. At the same time, scaling often exposes weaknesses in your existing processes. What worked for 50 employees might not work for 200.
For example, poor service delivery or operational inefficiencies might surface, requiring additional resources to fix, leading to negative financial results—sometimes months or years.
A Real-World Turnaround Story
I worked with a family-owned service company that faced significant losses for several years. Customer satisfaction was low, and poor service experiences even made national news. The family owners were understandably concerned.
We developed a turnaround plan with the management team focused on operational improvements and customer experience. Progress was slower than hoped, and financial results lagged. However, the management team maintained transparency with the owners, explaining why additional investments were necessary.
Over time, these efforts paid off. Operational performance improved, customer satisfaction rose, and the company returned to profitability. The journey was stressful, but the commitment to long-term success made all the difference.
Growth is a marathon, not a sprint. Embracing the temporary dip is essential for building a stronger, more resilient business.
4. Adapting to a corporate culture
Your culture inevitably evolves as your company grows beyond a few hundred employees. The informal entrepreneurial style that fueled early success often gives way to more formal structures and processes.
The Challenge of Cultural Evolution
I recall working with a family-owned business that grew from 50 to over 400 employees across multiple locations. The founding brothers managed the company with a pragmatic, hands-on style—gathering everyone in the cafeteria to share news and decisions.
However, as the company expanded, this approach no longer worked. They needed professional HR, IT, and finance functions—and experienced leaders who understood how to manage complexity. The brothers felt they were losing control and ultimately stepped aside to create space for new leadership.
This transition can feel like losing your company’s soul. But it’s actually about preserving its essence in a new form. Adapting your culture is not about abandoning your entrepreneurial spirit but evolving it to meet new challenges and opportunities.
Want to learn more?
Scaling a mid-corporate service provider is a complex journey filled with opportunity and challenge. The key to success lies in understanding the realities of growth and preparing your organization—and yourself—to evolve.
Here’s a quick checklist to help you lead this transformation:
Formalize key functions early, but keep the human touch alive.
Redefine your leadership role to focus on strategy and culture.
Prepare for and communicate about the inevitable temporary dip in results.
Invest in professional management and adapt your culture thoughtfully.
If you’re ready to take your business to the next level but want guidance on navigating these challenges, I’m here to help. Together, we can build a growth strategy that honors your company’s unique strengths while preparing you for a sustainable, impactful future.
Do you want to learn more from my experience growing organizations to make a meaningful impact? Subscribe to our newsletter or contact us directly.