The CFO’s Approach to Overcoming Growing Pains for SMEs.
Growing a small business can be incredibly rewarding, but it’s rarely painless. As you scale up from a one-person band to a team-driven enterprise, things often get harder before they get easier.
Many SME owners find themselves stretched too thin, facing growing complexity, inconsistent profits, and difficulty carving out a clear identity. If that sounds familiar, you’re not alone.
But the good news is there’s a proven framework to help you break through these barriers: PAIN – People, Automation, Income, and Niche. These are the four most common growing pains SMEs face, and overcoming them is key to building a stable, successful business.
We'll look at each in more detail and see how they played out for CMS Ltd, a company where, as Co-Founder and CFO, I helped take them from start-up to high-value sale in less than 5 years, overcoming all the common growing pains in the process.
P is for People: Build a Team That Runs the Business Without You
In most start-ups, the founder does everything. But once your business starts to grow, staying involved in every decision becomes a serious bottleneck.
To scale, you need to surround yourself with capable people and give them the autonomy to do their jobs. That means clearly defining roles and responsibilities, and then stepping back.
➜ Action point: Create a three-year vision for your ideal team. What will the business look like then? Map out the structure and roles needed, without worrying (at first) about who you currently have in place.
CMS Ltd example: In the early days, the founders had to cover all the roles themselves. But as revenue grew, we brought in part-time specialists, in HR, IT, sales and operations, on a contract basis. This allowed us to access high-level skills without committing to full-time salaries, and helped us grow to 50 employees with the right expertise in place.
A is for Automation: Systemise to Save Time and Reduce Errors
As businesses grow, manual processes start to break. Mistakes creep in, things fall through the cracks, and inefficiencies multiply.
The solution? Systems. Not necessarily high-tech ones (though they help), but repeatable processes that allow tasks to be carried out consistently, without you (the Founder) having to oversee everything.
➜ Action point: Start small. Use tools like Trello or Monday.com for task management, Loom to record repeatable processes, and software like Xero or QuickBooks for your finances. Build a digital playbook your team can follow.
CMS Ltd example: Early on, we used Visio to map processes and Loom to record step-by-step videos. Later, we invested in a bespoke online platform that allowed clients to upload documents directly, eliminating paperwork, reducing errors, and significantly improving efficiency. This gave us a real competitive edge and made the business far more scalable.
I is for Income: Focus on High-Quality, Recurring Revenue
Not all income is equal. Chasing every sale can leave you with high turnover but low profits, or worse, lots of work and no cash.
The goal is to focus on good income, high-margin, recurring, and generated from work your business is well set up to deliver.
➜ Action point: Review your pricing. Could you increase rates for certain clients or services? Move to monthly billing or upfront payments? Automate your collections to improve cash flow?
CMS Ltd example: We focused on long-term contracts where we could deliver a premium service. We were never the cheapest — and didn’t want to be — but our value was clear. This gave us reliable income, allowed us to plan ahead, and ultimately increased the value of the business when we came to sell.
N is for Niche: Be a Specialist, Not a Generalist
Trying to serve everyone usually leads to watered-down services and unclear messaging. The most successful SMEs tend to have a well-defined niche: they know exactly who their ideal clients are and what specific problems they solve.
➜ Action point: Look at your best clients, the ones who value your service, pay on time, and don’t create drama. What do they have in common? Focus your marketing and operations around serving more of them.
CMS Ltd example: The company provided Quality Management to a very small market (only around 25 potential clients globally), but our in-depth expertise meant we became a big player in that space. Rather than expanding too broadly, we stayed focused, maintained high profit margins, and built a reputation for excellence.
Final Thoughts: Don’t Just Survive Growing Pains, Use Them to Thrive
Every growing business hits rough patches. But the four PAIN areas - People, Automation, Income, and Niche, are not just problems to solve. They’re opportunities to build something stronger.
ABC Ltd succeeded not because they were lucky, but because they tackled these challenges head-on. They were clear about the business they wanted to build and made smart decisions along the way to get there.
If your SME is going through growing pains, take a step back and ask:
Are you building a team that can run without you?
Do you have systems that make things easier, not harder?
Is your income predictable, profitable, and worth the effort?
Are you clearly positioned in a niche where you can lead?
Get those right and the pain becomes progress.
What’s Next?
Ready to go beyond the numbers? Get in touch to explore how outsourcing your CFO function can unlock strategic growth. At Pareto FD, we don’t just deliver reports — we provide the clarity, direction, and hands-on support SMEs need to thrive.
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