Launching into the Future: Middle Market Trends for 2025, with Doug Farren

Speaker A: Thinking differently is going to be crucial for the middle market. Eventually these companies will hit that barrier where you say, okay, you need a little bit more sophistication or you need a little bit different way of thinking to get over that wall.

Speaker B: I'm Ari Marin, and you're listening to season six of In Good Companies from Kaden's bank, the podcast where we talk about the future of business to help

Speaker C: you get where you want to go.

Speaker B: Whether you're a budding entrepreneur or a seasoned leader, we're with you. Our priority is your success. Hey, M. Folks, there's something I need to tell you. It's a secret we've been keeping here at, uh, In Good Companies. We weren't sure when to announce it, but, yeah, it's time. All throughout season six, we've been talking about the future and we've had some time to think. We love making this show, but when we looked back on the last four years, four years together, we realized we're kind of reaching a turning point. I mean, when we started this podcast, we wanted to create a resource for leaders, a kind of guidebook that business people could come back to week after week. And we've been so lucky to speak with guests from all over the map. I mean, we've got to meet some incredible people. We got a former FBI agent on the mic, professional athletes turned entrepreneurs, experts on culture who worked for Beyonce M. And that's just to mention a few tech, security, communications, corporate well being. We've covered a lot, and something we've learned along the way is that you can only grow as far as your vision takes you. For ingood companies, the vision is complete. So you've probably guessed by now, but this is the final episode of the show. This season we brought you the tools to embrace the future, whatever it holds. And now we're launching you into 2025. That is our parting gift. So buckle up. It's a goodie. I mean, you didn't think we were going to leave you without saying goodbye, did you? Introducing our next and final guest, Mr. Doug Farren.

Speaker A: My name's Doug Farren. I'm the Managing director of the national center for the Middle Market, and we are located at the Ohio State University Fisher College of Business.

Speaker B: Doug is a pioneer in business research, a graduate from Penn State University and the Fisher College of Business. He has spent his early career in the field, from banking to supply chain, logistics and consulting. He got to know the corporate world inside and out. Then 14 years ago, he co founded the national center for the Middle Market at the Ohio State University, the first research institute focused on mid sized businesses. At the time that was really big. There wasn't much data on how those companies were performing. In fact, for most people the middle market is still a bit of a mystery.

Speaker A: I can't tell you, Ari, how many times I go into a big conference or I'm making a presentation and half the audience is like, what's the middle market like? I've never heard of that.

Speaker B: So today we're going to learn about the middle market and find out what mid sized companies can expect for 2025. So get ready to take some notes. From tech to talent retention and risk management, we've got some serious business talk coming your way, starting with the important questions, of course. What's it like being a Penn State

Speaker C: alumni and an Ohio State alumni?

Speaker A: Yeah, it is very difficult. Uh, particularly during the fall. Um, I would say for the most part I will support Ohio State sports except for that one game a year where they play each other. But uh, no, it's a great place to live and the university is such a huge community here that there's always innovation dynamic things are happening around campus. So it's been really fun.

Speaker B: Okay, that one was just for fun. But really we've got a great episode on our hands. So let's get started. So the middle market used to be very hard to Track. And since 2011, Doug has been trying to get to the root of the issue.

Speaker A: One of the biggest things we heard is it's really hard to benchmark and it's really hard to understand best practices for like size organizations because of the fact that really just you don't even really know who your peers are. We were launched really with this idea that the middle market was kind of a misunderstood, ignored, somewhat underserved segment of our economy. So the idea was work with the private sector and a business school and conduct some research on who the middle market was, whether these companies skewed towards certain industries or certain parts of the country.

Speaker C: So not wanting to take anything for granted, what is the middle market?

Speaker A: It's an interesting question because so many organizations have different perspectives of what that means, but we use a very specific revenue based definition of 10 million to 1 billion in annual revenue. Less formally, I would say these companies are bigger than small, bigger than startups, but they're not quite to enterprise size. So it's kind of everything that falls in between. Now the first question I always get is that is a massive range. We clearly understand that. And so in a lot of our Research, we have the ability to create smaller segments where it becomes more apples to apples rather than comparing 20 or $30 million revenue company to an $800 million revenue company. They're just completely different. So in that lower end, which we would call lower middle market or emerging middle market, 10 million to 50 million, they tend to behave a lot more like small businesses. But clearly as you get up into the upper end of our range, they're starting to think a lot more, uh, like multibillion dollar companies that may be international, they may have multiple locations. So it's a clear kind of a growth journey that they take. And so we've had the ability to kind of look at those different characteristics over time.

Speaker B: So just to recap, mid sized businesses have a problem of scale. They're no longer operating at the small company level. But often they don't have the practices and thought leadership of a big player. Some of them have multiple locations and make up 1 billion in revenues. Others are still in the early millions. Within this definition, Doug and his team cover the middle tier of the economy. When the center launched, that was about 200,000 businesses in the U.S. a uh, third of the private sector falling under the radar.

Speaker A: The creation of the center was really designed to help shed light on these businesses, kind of understand their, not only their challenges, but their opportunities and then for creating programs, content and community that would help support growth. So I mean that, that really is our vision and mission, is making sure that more people recognize the middle market and then making sure that there are resources available to the leaders of these companies to continue to support their growth.

Speaker B: So what are the needs of mid sized companies? To answer that question, let's look at the dynamics of the middle market.

Speaker A: It's really interesting because we oftentimes say that these are companies that have big company problems, but small company resources. You know, I'll just throw some stats at you. 90% of them are privately held.

Speaker B: Yeah.

Speaker A: Uh, and that also is why there was just so little information out there, is because you can't just go in an online search and look at financial statements and there's just not a lot of coverage about these companies. So that has made it difficult. Average number of years in business, about 32 to 33 years, average.

Speaker D: Wow.

Speaker A: Certainly we've come across companies that have been around for 80, 90, 100 years, but that just tells us that they've kind of experienced different cycles of business, the ups and downs. They've clearly grown out of the startup phase. And what that means really is that they oftentimes run very lean in terms of the number of people they have, the number of systems that they may be running. But at the same time they're confronted with these huge opportunities to kind of continue to drive growth.

Speaker B: Since coming out of the pandemic, mid sized companies are growing on average by 12 to 13% per year. That's a lot to keep up with. What that means for leaders is they have to be quick on their feet to address some of the key business

Speaker A: questions, whether it be how to expand, how to innovate, hiring people and growing workforce. So you take technology, going to implement a new system, and having worked at a Fortune 500 company, I know that we had teams and huge specialists that could spend all their time focused on certain projects or issues. And a lot of times you've got people at middle market companies who are juggling multiple priorities. So it forces them to really be intentional about where they're spending their time and focusing their limited resources, whether it be time, capital, kind of, you name it.

Speaker C: It just kind of seems from my own experience that there's a lot of resources for starting a business, but not necessarily once you've gone from start to you've proven your concept right and you're a successful business and then what else? What's next?

Speaker A: Yeah, yeah, it's kind of like a no man's land when you're in this middle market space. Because to your point, sometimes we'll see like founder owners who grow their companies to a certain point and then they just kind of hit a wall because, you know, maybe they've outstretched their capabilities or they just really don't know what steps to take next. So they're kind of relying on their trusted advisors, whether it's their bank, their accountant, their lawyer, their trade group.

Speaker B: Connecting with peers is a big part of the growth. It's how you find your bearings. But it's a pain point for a lot of the middle market. Doug has seen this time and time again.

Speaker A: Probably in our second or third year, we were kind of traveling around and meeting with some business owners. And I remember talking to this, I believe he was the CFO of this company. They were supplying materials to oil and gas customers, uh, refining and drilling and things like that. And he just was really struggling with being able to talk to people who could kind of speak his language. And so I started throwing out some statistics from some of our early research. He's like, yep, you nailed it. And yes, that perfectly describes our company. And so that just kind of solidified for me that the center we Were serving a purpose of kind of filling some of those gaps, Whether it be with simply providing data or, you know, creating materials that businesses could access to kind of measure themselves against other companies in the middle market.

Speaker B: Mid sized businesses need to hear from each other. So to help them, Doug and his team created a survey introducing the middle market indicator. This study is run twice a year and attracts key aspects of the middle market. Revenue growth, employment, capital, investment planning, things like that.

Speaker A: So the purpose was really, let's go survey a bunch of companies, let's create a huge data set. Uh, we do it over time and that way we can start to develop trends. We needed the ability to have a consistent, ongoing tool that would help us measure performance and sentiment. If you had to put it into two buckets, those are the things that we wanted to kind of keep our thumb on, so to speak. So we've looked at things, you know, ranging from, oh my gosh, the Affordable Care act years ago and Brexit when that happened, certainly the pandemic. We've asked questions about that, uh, more recently, you know, looking at the macro economy, interest rates, inflation, and so here we are at the start of this year. We just finished up our 42nd version of the MMI. And I think it's proven to be pretty valuable because we get a lot of people that reach out to us either have questions about the data or want to learn a little bit more about the information. So I know that there's a strong built in audience for the results of each mmi.

Speaker C: What type of factors does the survey track?

Speaker A: Yeah, so there are five things that we measure in every mmi. It's growth. So from a revenue growth and employment growth standpoint, we also look at confidence levels in three areas of the economy. So that could be global, national, and then local, could be their city, state, region, wherever they tend to operate. We, uh, also ask about key challenges. So you know, what are they facing in terms of headwinds that may be preventing or slowing growth? And then the last one would be capital investment planning.

Speaker B: When it comes to capital investment, Doug asked leaders a simple question. Maybe give this a try too.

Speaker A: We say, hey, uh, if you had an additional dollar of revenue, what would you do with that dollar? And they have the choice to either say, well, we would save it. You know, cash is really important to us. We would just maybe hold it. Or they could say, we're going to hold it, uh, but we've got an investment in mind, maybe a big capex expenditure or we'd like to build a new Facility. Or the third choice would be we would invest it back into the business. But if they choose that, then we want to know, okay, where are you investing? Is it in areas like it? Is it in personnel, training, plant, facility, equipment? Is it maybe in an acquisition? You want to grow inorganically by buying a competitor or an adjacent company, uh, in your industry. So it gives us a really good insight to how they're thinking about kind of growth and what they're doing with their capital. So those are the areas that we talk about consistently.

Speaker C: How do you think that helps the individual owners understanding these metrics and getting these surveys and the results back?

Speaker A: Yeah, I mean, it kind of goes back to that, you know, benchmarking and best practices. So our number one audience would be middle market leaders. We would hope that they get their hands on this data and they can use it to help in their decision making processes. But we also think about other audiences, whether they be, you know, state, local, even at the federal level. I mean, what it would do is allow these businesses to say, okay, the MMI is saying my industry is growing at these rates, or, you know, is doing this with their capital. How do we compare to that?

Speaker B: I love this exercise. It's simple, but it really gives you a sense of what is top of mind for your company. You see, the survey doesn't just provide an overview of how the middle market is doing. It's also an opportunity for leaders to learn about their business environment and better understand their own needs. Let's talk about your most recent research. The December Middle Market Indicator fleshed out

Speaker C: some of the business trends that we can expect in 2025.

Speaker B: So in your opinion, what is the growth environment going to look like this year?

Speaker A: Yeah. So let me start by saying we had an election. We are not political. But that does influence the thinking of a lot of businesses in terms of, you know, what are the policies that are going to be at play. Is it, uh, viewed as a maybe more pro business administration than the prior things like that? Second, you've got a little bit of stabilization in the macroeconomic environment. So yes, interest rates have been a challenge. Inflation has been a challenge. All of that creates uncertainty. So I wouldn't say it's a great environment, but it is stable in the fact that at least, you know, there can be some better planning done around that. And then since 2021, we have seen, I have called it a prolonged recovery rebound. I mean, whatever. You can, you know, put different tags on that. But, you know, clearly in 2020, the bottom fell out. Everything ground to a halt for all businesses and you could say society. But within a year, we started to see a bounce back in terms of growth, in terms of expansionary behavior and activity. So this growth continues. We haven't seen really any erosion in, in performance. All that lends itself to this confidence that quite frankly, we haven't seen these confidence levels ever, uh, heading into this new year. So it's looking like it could be a very strong year for the middle market based on those factors that are, you know, lending itself to how these leaders are viewing the next 12 months.

Speaker B: So write this down. It looks like 2025 is going to be a good year for business. That's because the perception of the market is positive. It's a virtuous loop. Leaders are confident in the macroeconomic environment, so they produce more and that breeds more opportunity. Now, beyond the financial side, there are trends that will impact how we carry out business this year. And the first one, well, it's the one everybody's been talking about. The middle market is no exception.

Speaker A: It's been AI because as I started going to conferences and making presentations, it was usually number one or two on the agenda. And so naturally we wanted to start incorporating some AI related questions about middle market companies as well. So we started looking at technology in the middle market, how middle market companies are thinking about their digital strategy, how they're investing in different things.

Speaker B: If you remember from previous episodes, there are essentially two things technology can help. Talent retention and productivity.

Speaker A: Over the last five years, we've really started to see more adoption across a number of different areas, whether it be ERP systems, customer relationship management systems, moving things to the cloud to more sophisticated areas. So that has continued. I mentioned AI as being certainly the hottest topic that's out there right now. It might not necessarily be embedded in their business processes right now, but certainly we've seen a trend where more and more of them are starting to test it and think about ways that it makes sense for their businesses. So I'm a big believer that this is going to be an ongoing opportunity for mid sized companies in the years ahead. Quite honestly, do you think, I know

Speaker C: this is, it's a big range, right? But do you see the middle market as being early adopters or late adopters? Or is it a mixed bag or do you have to actually segment the middle market or just all over the place?

Speaker A: Yeah, great question. I think it's kind of a mixed bag, you know, certainly at the higher end. So 100 million and above, we see bigger investments, we see maybe a little Bit more early adoption because again, they have bigger resources to work with. I think at the lower end it becomes more of a challenge simply because they're placing a bet on something and they have to really be confident that it's going to be the right thing for them.

Speaker B: That's another interesting thing. While mid sized companies are big enough that they benefit from large tech integration, a lot of the times they can't afford to financially or culturally. It's a scale thing. Again, make changes step by step.

Speaker A: It tends to be smaller incremental investments that can be bolted on. So you start with something very basic and then you add to it over time as your team gets comfortable with it, as it kind of proves itself out as there's roi, which is, uh, I think in many cases the right approach for these companies. So they're not making a decision that backs them into a corner, so to speak, and they're stuck with something that maybe they figure out they weren't quite ready for, they don't need or they don't have the resources to support.

Speaker B: Another thing to look out for in 2025 is brand visibility. You know, it's the thing we mentioned at the start of this episode. No one really knows what the middle market is this year. That's going to continue to be a challenge. And Doug thinks there's a reason for that.

Speaker A: A lot of them tend to be B2B businesses. So as consumers, you and I may not really recognize a lot of the names of these companies. There's an analogy that we use here locally. So we have an outer belt that goes around the city of Columbus. 270 is the outer belt. If you drive around that, just within kind of the five county area, just here in central Ohio, there's nearly a thousand middle market companies. But I can guarantee you as many of those as I pass, you know, just on my commute from my home into into campus here, I probably wouldn't know a majority of these companies.

Speaker B: So how do we bridge that gap? Well, one way would be to communicate differently around your brand. But the smarter way is to invest in the people who already know you and make them want to stay on board.

Speaker A: How am I going to grow my career at this middle M market company? At a big company maybe a little bit more mapped out, right? You've got kind of a path, hey, I'm going to go get promoted to this level and then I can move over here and maybe more opportunities to do that. A small business, probably a very small team, all hands on deck. You're kind of having to do everything at the business. When you get into this middle market space, it becomes a bigger question of how are we going to develop our people? How are we going to reward them for their contributions to driving our growth?

Speaker B: So to put it simply, to retain talent, pay attention to two things.

Speaker A: Employee value proposition and this employer brand. Whether it's annual bonuses, awarding equity stock, things like, uh, whatever it may be, that creates a strong culture and an employee value proposition where people actually want to work there. And then that employer brand is. How does that get communicated out to the larger job pool, the community, wherever you're sourcing your talent from, that kind of needs to be a story that you have to tell. And I think those are some of the factors that create that challenge.

Speaker B: That's right. How you grow your employee culture will have a ripple effect on your business. Whether it's positive or negative, it's up to you. Having said this, now, a caveat. Employee longevity isn't going to solve everything.

Speaker A: So I mentioned the average age being, you know, lower 30 years. Not uncommon to see people who came into that business shortly after the founding and have kind of grown their careers with it. And it's, you know, and that creates some risk as well because eventually those people are going to want to retire. And so how are you creating succession plans? How are you backfilling? How are you identifying the most critical talent that you know? Certainly if someone leaves for another opportunity or says, Hey, 40 years is enough, I'm going to go off and enjoy the rest of my retirement. Are these businesses ready and capable of backfilling? So, yeah, a different challenge there.

Speaker C: One of the challenges that I've just experienced myself working with business owners in this space is that um, they start to talk about their succession plan and they don't know who could lead and run the company.

Speaker A: Yes.

Speaker C: And so oftentimes they're like, well, have you tried to mentor anybody? Have you tried to identify anybody? Have you tried to put any kind of real steps in place to try to find a successor? Oh, I don't see anybody. Well, it can be learned.

Speaker A: Yes. Yeah, we use this term here that So a lot of middle market companies work in the business, but not on the business. And what that means is, just like you said, Ari, stepping back. So it could be creating a three to five year strategic plan, it could be thinking about our talent plan in succession. It could be creating a digital and technology roadmap. These, there are things that can sometimes go unaddressed by mid sized companies because again, they're so focused on the day to day and they do it really well and I don't fault them for doing that. But what we've tried to do is say, hey, have you thought strategically about your succession plan? Because to your point, when that founder owner says like hey, I'm ready to pass this thing down, who's going to take it over? It is a big issue which is only going to get worse as we're facing this. The so called kind of silver tsunami with a lot of the baby boomers getting to the age where they're going to be retiring. And what is that going to mean for the middle market? I think it's going to be a huge issue in the next three or four years.

Speaker C: Do you think that there's a failure in effective governance with a lot of these companies where they're not establishing boards, they don't have the right members on those boards?

Speaker B: If they do, yeah.

Speaker A: I mean it's an opportunity, right? I mean it doesn't even have to be really all that formal, but just putting together a group of advisors that can really help weigh in and help guide the leadership team. It certainly is critical.

Speaker B: I'm going to pause here quickly because what Doug said is so important. When you're growing fast and taking your business from one level to the next, it's tempting to put all your energy into the day to day operations. But actually sometimes the best thing you can do is take a step back and assess where are we going with this? What matters long term? Where is this growth taking us as a business? Plan ahead and cover all your bases. Yes. That also means thinking about who comes after you. Oh, uh, and another thing, consider the risks that your business will face in the coming years. Take the climate for example. If the start of 2025 is any indication, companies should plan how to stay safe this year. The middle market indicator took special interest in that question.

Speaker A: I mean part of this was just our relationship with Chubb, uh, a commercial, commercial insurance company. This is what they deal with is, is risk protecting assets, risk mitigation insurance. So that was part of it. But I'm just thinking back here. Most recently, I mean we've had multiple hurricane events that have hit the southeast, wildfires on the west. I mean putting politics, personal views, all those things aside about climate change, climate is, is a uh, non controllable impact. It is there, it is happening. You can't do much about it.

Speaker B: Climate has an impact on our ability to conduct business. So in 2025 and M beyond middle market companies should factor that into their growth.

Speaker A: We wanted to see basically how are middle market companies thinking about it? The uncontrollable aspect of the climate that could impact their operations, their suppliers, their supply chain? Certainly, how are they protecting themselves against it? Does it influence decision making? Do they have contingency plans in place if they experience disruptions? Typically the number one thing that they do from an organic growth standpoint is introduce new products and services. About 50 to 60% of companies say that they're doing this annually is thinking about, you know, increasing their portfolio of products and services. But usually the number two organic growth tactic is domestic expansion. So let's just say I'm focused on the Midwest, all my customers are in the mid. I want to start thinking about growing my business in other parts of the country. Well, a consideration into that, whether it's your customer base, your supply base, maybe where you want to build a new warehouse, even could be, what is the climate? Am I in a high risk area for flooding, hurricane damage, I mean earthquakes, you name it, all of these climate related risks. And then the second part of this is, do they have the right protection in place? Are their assets protected? So if there is an issue and they lose inventory or they lose a facility, have they thought that through, maybe with the help of some expert advice and guidance and given them kind of a roadmap to think about? Hopefully they're never disrupted in a significant way. But if they are, do they have the ability to rebound from that and continue on and have those losses kind of recouped in some ways?

Speaker C: I spoke with one business owner a few months ago and he was saying not necessarily with, with climate disasters, but he was looking to open a new factory somewhere. And one of the decisions where he decided to build it was the fact that he could build it in a cooler climate where the heating and cooling costs wouldn't be so expensive per year. So he considered something like that.

Speaker A: Yeah, that is a great example. Typically you would say, well, where can I get the cheapest real estate and where can I find good access to a workforce? But that's a great example of just another factor that should be put into that decision making process.

Speaker B: When it comes to the environment, Assess your situation critically, learn about the risks in your region. You'll be better off in the long run. Now on a more uplifting note, with the exception of 2020, mid market companies have always outperformed their forecasts. It's been growth, growth, growth. And Doug is pretty positive this will continue in 2025.

Speaker A: So I think for this coming year Just to give you an example, the revenue growth was projected at 9.5%. The average over the last three, three and a half years has been closer to 12% or more. So I think it's going to continue to deliver on, um, what has been again, really solid performance over the last few years.

Speaker C: If you had one word of advice for leaders out there who are still trying to find their 2025 focus and

Speaker B: aiming on this kind of growth, what would it be?

Speaker A: Maybe innovation. Um, thinking differently is going to be crucial to these companies. And again, I don't want to discount all the hard work and the expertise and excellence that these businesses have built over the years. But with that being said, if you just say, well, you know, we'll just keep doing what we do because we're great at it and it's gotten us this far, eventually I think these companies will hit that growth wall or that barrier where you say, okay, you need a little bit more sophistication or you need a little bit different way of thinking to get over that wall. And again, I'm not going to say AI is the silver bullet that solves that, but this could be something that really helps us unlock some different efficiencies. So being open to that way of thinking, I think is going to be critical for the middle market.

Speaker C: Are there any partnerships that are available with universities or governments or chambers of commerce that they can partner with to be on the cutting edge when it comes to innovation?

Speaker A: There are entities that U.S. commercial trade offices that are located throughout the country that offer free resources to all size businesses that are looking to perhaps go into an international market so they can help with guidance along how to deal with some of the paperwork that needs to be done, particularly if you're exporting.

Speaker B: Now remember, the reason that's important is because a lot of the time the middle market lacks the expertise to access the next stage. So they need organizations that can provide information.

Speaker A: And then that relates to a program we have here at Fisher College of Business where we actually send interns out to primarily middle market companies throughout the state. Their wages are subsidized by the Ohio Department of Development. The middle market companies use that intern who has been trained on how to start up an exporting program and they help that company establish that process. So it's a really good partnership. Something that I know we're really proud of here is because that now has created a new capability that that company didn't have before. We have seen a lot of success with that and the company saying we could have Never gotten this far this fast without the help that these types of programs have provided. So that's just one example that I'm very familiar with. I'm sure there are others across the country, whether it be through a university, through a chamber, and it really just takes a little bit of time reaching out and kind of exploring what those programs are.

Speaker C: Yeah, I hope that more business owners take advantage of those because I do know, at least from some articles I've read somewhat recently, that the appetite for hiring hundreds of thousand dollar consultants is waning.

Speaker A: Yeah, exactly. And really, I mean it goes back to like, what is the win win? You know, I mean, in my experience with the courses that I've taught, I mean it is a huge win win because middle market companies are craving the extra help. And again, students, they may not bring a great deal of business experience to the table, but I found that that's actually helpful because they ask questions and see things that the business leaders may be overlooking. Right. They come at it with a fresh perspective and they may say, uh, well, I just don't understand why you do it this way. Can you explain that to me? So yeah, that's where I think it's just vital to look at those type

Speaker B: of partnerships beyond this year.

Speaker C: Why is it important to continue to

Speaker B: look towards the future of business?

Speaker A: Oh, I mean it's just so dynamic from how hybrid work environments are now being viewed. I mean a lot of controversy around that, but quite honestly in the middle market, again very industry dependent, but we're seeing a lot of middle market companies kind of back to that war for talent. Said like, hey, we're willing to make this change and offer hybrid, uh, work environments when and where it makes sense. So it's just really important to kind of stay up on these trends. Whether or not you're actually incorporating them and using them is a different story. But at least having a knowledge of what's going on out there, I think wherever you're going for information, thought leadership, business news, I mean it's just really important.

Speaker B: As for what's in store for Doug and his team, well, they are more than ever committed to their mission, investigating and learning from mid sized businesses. So leaders, listen carefully.

Speaker A: Whether you're a, uh, CEO or just starting your career or wherever it may be, lifelong learning is just so critical. I think it's exciting, number one, because it creates stimulation and new ways of doing things and we're trying to support that too. I think writing up those things would be just tremendously valuable for businesses to take read and I'm not talking 20, 30 page, I'm talking about very short two or three page PDFs with some takeaways that can allow businesses to say, well great, that's a very similar issue to what I'm facing. Maybe I won't make these same mistakes or I can accelerate the way that I change what I do based on learning, you know, from what a, uh, very similar type company did. Clearly we've done that today with some of the examples that we've shared. But could we write up case studies on what companies have done? Real middle market companies kind of telling us their story, how they've addressed a challenge that they've had, how they did that, what the results were and what they learned from it. So I think that part is very exciting for us is building more of a, uh, educational impact across mid sized companies because there's a lot of ways that they can upskill and become more sophisticated to just be stronger businesses.

Speaker B: I could not agree more. When it comes to businesses, we all stand to learn from each other. There's no one way to make it. And the more we tell our stories and connect with our peers, the closer we are to reaching our goals, creating resources and a collection of stories. It's what we wanted with this podcast. So one last time, let me wrap up with a few tips from us to you. Alright, let's crank up the music. If you're in the middle market, you're most likely doing between 10 million and 1 billion in revenue per year. You're experiencing growth and trying to scale up quickly. But you might struggle with visibility or access to resources. This year. Here's what you can focus on to grow better. First, think about technology. This topic is going to stay top of mind for a while. Could you benefit from automation? Is AI the right place to start? Don't cut to the chase. Going all in on the new tech will shake your operations. So take it step by step. You want to make sure your team is coming with you. So tip number two, make talent retention your priority. Your team is your best publicity. If they're happy, you'll attract new people, new clients and so on. So ask yourself, how can I invest in them? What will make them want to stay? Not to be dramatic, but this could change your future. You want to establish a strong governance for your company and find the talent that can succeed you. We don't know what life is made of. So as a leader, if you're in the trenches right now, try to take a step back. You want to assess the risks you're taking not just financially, but, but in your environment, too. Climate risks are going to impact business in 2025 and beyond, so be mindful of that to help you out. One last tip. And not the least, get informed. There's a lot out there to help you navigate the middle market. Look up partnerships between government and educational institutions, or even check out the national center for the Middle Market. On their website, you'll find a podcast that they run, which Doug hosts, and you'll get insights from the Middle Market Indicator. If it helps, we've left a link in the show notes. Remember, knowledge is power. When you understand what's going on in your field, you're better placed to make sound business decisions. In the spirit of that, we hope you return to the series whenever you feel the need. Speaking for myself, I know I will, just because, uh, we had a lot of fun making it.

Speaker C: Is there anything I haven't asked that

Speaker A: I should have my prediction for the national championship game? Uh, no. This has been a great discussion. I appreciate all the thought that's been put into the questions and we've covered a lot of ground. So it's been fun and I appreciate it.

Speaker C: Perhaps you can study the results of the, uh, local team winning a national championship.

Speaker B: Yeah. One last time. I'm Ari Marin. I've been your host. Our production team, a real powerhouse. I give you Natalie Barron, Edie Pinkelli, and our executive producer, the astute Danielle Carnell.

Speaker D: There we go.

Speaker B: If you want to stay in good company with us, uh, at Kadence bank, you can find us on our website@kadencebank.com you can also write to our team. Our emails are in the show notes. And if you feel like it, give us five stars or leave a review. We'd love to hear your thoughts. To keep the conversation going, a quick shout out to Lower street, who helped us bring this podcast to life. If you want to check out their work, go to Lowerstreet. Co. That's co. Uh,

Speaker D: I added a plugin. I hope you don't mind.

Speaker B: No, no, I'm glad you did.

Speaker D: Okay, perfect. Can I have that once more with a quick shout out to Lower street all the way to the end? Because that sounded really good.

Speaker B: I can tell at this point, point when you start off like, what you're going to ask me to do. So I knew, I knew you're gonna ask me to redo it just by the way you started that song.

Speaker D: You just know me. That's kids.

Speaker B: That's helpful. On, um, this show, the writing and production was from Lisa Lovati Sound design and mixing from Christy Chan In Good Companies was a podcast from Cadence bank member FDIC equal opportunity lender. We've got more than 350 locations across the south and Texas and we're not going to anyway, so we'll see you out there.

Speaker E: This podcast is provided as a free service to you and is for general informational purposes only. Cadence bank and its affiliates make no representation or warranties as to the accuracy, completeness or timeliness of the content in the podcast. The podcast is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes. The views and opinions expressed by the host and guests in this podcast are solely their own current opinions regarding the subject matters discussed in the podcast and are based on their own perspectives. Such views, perspectives and opinions do not reflect those of Cadence bank or any of its affiliates or the companies in which any guest is or may be affiliated. The production and presentation of this podcast by Kaden's bank does not imply the expression of any opinion on part of Cadence bank or any of its affiliates.