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The Need to Scale

Robert Shegog
President & CEO
Recorder Media Group

In the ever-evolving landscape of the U.S. economy, the call for sustainable business models has become increasingly pronounced. Among the numerous challenges faced by many businesses, the concept of scale emerges as a transformative force that not only benefits these enterprises but holds profound implications for the broader economy.

Businesses operating below a certain threshold often grapple with barriers that impede their growth. Limited access to capital, a smaller customer base, and reduced bargaining power with suppliers can stifle the potential of these enterprises. However, embracing the notion of scale provides a pathway to overcome these obstacles. Scaling up allows businesses to tap into resources, expand their market reach, and establish a more robust financial foundation.

We have discovered that the businesses who most have the potential to scale, often lack access to knowledge, resources and margin to scale effectively. These small to midsize businesses are the heartbeat of communities yet they are one unpaid invoice away from financial distress. These businesses rely on personal capital and often have meager savings to bolster them through an economic downturn or emergency. 

It is evident that more needs to be done for these businesses as their economic impact already mobilizes economic development by stimulating job creation and contributing to the growth and prosperity of their communities. The ripple effect is measurable and with intentionality leads to higher consumer spending and motivates sustainable growth. 

Scaling can no longer be postponed, and the clear question of how has emerged. 

Businesses need to be equipped with strategies and growth plans that help them grow their customer base, build strong teams, optimize their operations, and help them explore new markets or products/ services. 

The importance of scaling affects all businesses as we look to sustainable economic participation and stability. In 2024 we look forward to highlighting businesses that have invested time, energy, and resources towards their growth. 

Robert is proud to lead one of the country's oldest and most respected African-American newspapers as well as two minority business magazines.

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