Why SMBs Aren’t Built To Grow Fast—and How To Fix It

Small and medium-sized businesses (SMBs) often have an edge over large companies: agility. With less red tape, fewer management layers, and an openness for creativity, SMBs are built to move fast—at least, that’s the intent.

The problem is, agility alone isn’t always enough. SMBs often lack the budget, infrastructure, and expertise that big companies rely on to grow quickly.

If you work in an SMB, this doesn’t mean you must settle for inching forward. With the right approach, you can unlock the resources you need to turn your agility into fuel for scalable, sustainable success.

Common challenges that prevent SMBs from scaling

Being scrappy often sparks innovation. But limited resources can hold you back from growing as quickly or as much as you’d like.

Here are a few common growth challenges SMBs face:

• Tight cash flow. Scaling takes upfront investment, but SMBs often need to stretch every dollar.
• Lean teams. Employees wear multiple hats and juggle heavy workloads, leaving little time for strategic growth.
• Inefficient processes. Relying on manual systems (think: Excel spreadsheets) or using tools that don’t sync creates bottlenecks.
• Outdated technology. Older systems struggle to handle growing workloads or integrate with the tools you need to stay competitive.
• Customer growth. With limited time, staff, and budget, it’s tough to balance the tasks required to acquire new customers and keep existing ones happy. 

Issues faced when trying to push forward

When you’re short on resources, even the most dedicated teams can fall short. SMBs often have these undesired results  when scaling:

Missed opportunities

Without enough budget or the right talent, you must let some opportunities go. Maybe you have to cancel a promising marketing campaign that could’ve brought in new customers. Perhaps your technology lacks the advanced analytics needed to uncover how a new product could meet customer needs. Or you must put off hiring resources with critical skills, which allows competitors to pull ahead.

Overwhelmed teams

If teams are already juggling heavy workloads, there’s little room to take on anything else. Employees often get pulled into so many projects that they’re asked to do tasks outside their strengths. Sure, they might get the job done, but they may not deliver the results you’re looking for. Plus piling more onto employees has consequences. Their stress levels rise, productivity drops, and they eventually burn out.

Dissatisfied customers

Customers expect seamless, responsive, and personalized experiences. But when teams or systems are trying to handle more than they’re able, customers may end up with slower responses, more mistakes, and inconsistent service instead. Eventually, service disappointments could lower your retention rates and damage your brand reputation. Even your most loyal customers may begin considering competitors.

These obstacles may be common, but they’re avoidable. Even if you only have a handful of employees, you can still speed up scaling while protecting the long-term health of your people and business.

How leading SMBs catalyze and sustain growth

Scaling your business can feel like an uphill battle when you’re short on time, talent, or budget. But it’s possible to hit new growth levels without draining your resources. The key is shifting how you work in two simple but powerful ways.

1. Prioritize projects by their cost of delay
   Cost of delay (CoD) is the impact on your business when a project isn’t done on time—like lost revenue, fines incurred, or missed opportunities. If you’re not familiar with CoD, get details in the article, The Real Cost of Pushing Out Projects—and How to Avoid It.
2. Use freelancers to deliver outcomes, not just tasks
   Freelancers are often called in for a specific task like updating a website, building a dashboard, or designing a logo. While these tactical items are important and may be all you need in some cases, you can leverage their skills and flexibility to do so much more.

Delivering outcomes means handling the whole package. Instead of contracting freelancers to do bits and pieces, you can bring in managed service providers (MSPs) to take on entire projects from start to finish.

Think:

• Moving operations to the cloud with minimal downtime
• Creating a video training series for employees
• Running a digital marketing campaign from ideation to post-campaign analysis

Why hire for outcomes

Why hire for outcomes instead of tasks? So you can compete like a large company—even if you’re not one yet.

By hiring for outcomes, you can scale faster, innovate quicker, and lower your risks. For example, you:

• Gain agility. During your busy season, let an MSP hire, train, and manage additional customer support agents. Managers can focus on their daily tasks as the business maintains its service levels without burning out your team.
• Save time. Have an MSP pilot a new product to test customer demand. Teams can test more ideas more quickly while employees remain focused on core projects.
• Tap into expertise. Meeting compliance regulations can be daunting. An MSP can handle data storage, communication rules, and all the paperwork so you avoid costly mistakes.

Case study: How Mobileum Unified HR Across 52 Countries with Upwork Managed Services

Tips for choosing an MSP

Finding the right MSP means balancing expertise, service, and cost. These tips will help you choose a partner who supports your business needs today and as you grow.

• Understand your needs
  Before starting your search, get clear on what you need. For example, if you’re looking for cybersecurity support, you may want to consider:some text
  • Your current vulnerabilities
  • Compliance requirements
  • Whether the MSP’s tools integrate well with your systems and can scale as you grow
• Look for proven expertise
  Check if the MSP has experience working with businesses like yours—such as size, industry, and type of engagement. Potential questions include:some text
  • Who are their clients?
  • How long have they been in business?
  • Do they have case studies or testimonials to back up their claims?
• Review service level agreements (SLAs)
  SLAs are your safety net, so make sure you look into details so that you’re not surprised by hidden fees or service exceptions. Items to look out for include:some text
  • Response times
  • Performance guarantees
  • Termination clauses
    
• Plan for the future
  If you want a long-term partner, make sure the MSP offers a range of services and has the technology to adapt as your business grows. Ask about how they handle:some text
  • Short-term workload spikes
  • Long-term scaling needs
• Compare pricing models
  Some MSPs use fixed monthly fees while others bill per user or service, for instance. Request a detailed cost breakdown and ask for explanations if anything seems unclear. Be aware of:some text
  • Usage limits
  • Setup or onboarding costs
  • After-hours support charges 
• Check customer feedback
  Look up reviews on social media or industry platforms to spot trends—good or bad. Better yet, talk to their current clients and ask:some text
  • What’s their experience like?
  • Were there any unexpected charges?
  • How well does the MSP deliver on its promises?

Partner with Upwork Managed Services for seamless execution

No business has the resources to do everything themselves, especially SMBs. While financial and talent limitations are real, they don’t have to hold the business back. By rethinking how you prioritize projects and partnering with managed service providers to deliver outcomes, you can compete like a larger company.

At Upwork Managed Services, we can handle any project, at any scale, requiring nearly any specialized skill. Yes, it’s a bold claim—and here’s why we can make it: Our experienced teams draw from the Upwork Talent Marketplace, one of the world’s largest pools of professional talent.

This means we have unmatched flexibility in assembling the perfect team for your needs, no matter how niche or complex.

And the best part: You receive guaranteed outcomes. When you partner with Upwork, you hire for results. Let’s make big things happen for your business; visit Upwork Managed Services.