Celebrating 25 Years: 25 Tips for Growing Lower-Middle-Market Businesses

For 25 years, NewSpring has remained steadfast in our commitment to the lower-middle market, where innovation thrives and growth potential is immense. Throughout those 25 years, we have made investments in over 200 companies in support of their vision, and remain committed to empowering them with the resources, expertise, and guidance they need to scale.

As part of our 25-year anniversary, we’re featuring 25 unique insights from our invaluable network of operators and CEOs. These leaders have been at the forefront of innovation and growth, steering their companies through challenges and opportunities alike. Each week, we will unveil five pieces of powerful advice that these visionaries have received or imparted during their journeys.

"'What got you here, won't get you there' – a reminder from Marshalll Goldsmith that applies not only to personal behaviors but also to our teams and business strategies. As we strive for rapid growth, it’s essential to continuously think ahead and focus on relentless improvement. The strategies and approaches that led to past successes might not suffice for future challenges. Embrace innovation and adaptability to keep moving forward."

- Betsy Hamm, CEO, Duck Donuts

"Think long term. While daily operations are crucial, it’s important to consider the long-term effects of your decisions on your company and customers. Always ask, ‘How will this decision position our company in the future?’ and ‘How will my actions today affect our relationships with our customers over time?’ Visioning where you want to be in the future provides a roadmap for navigating today’s challenges for sustainable success."

 - Bob Bohny, President, VCI Emergency Vehicle Specialists

"After receiving an unsolicited offer to acquire our company, it prompted a critical strategic decision. Instead of jumping at the immediate opportunity, NewSpring’s Mike DiPiano advised us to be patient and focus on strengthening the company further. By enhancing key aspects of our operations, we aimed to provide a potential buyers with multiple compelling reasons to acquire the business and to see it as indispensable. This approach resulted in a faster and simpler exit process for Mobiquity. Our experience demonstrated the power of patience and strategic enhancement in navigating acquisition offers (thank you, Mike!)."

- John Castleman, CEO, Mobiquity

"Today’s challenge is to harness the incredible potential of our diverse generational workforce. Sharing business updates daily not only keeps our younger team members engaged and focused, but also clearly outlines the company’s objectives. In this era of social media and video content, delivering this information in written form with a platform for voices within the company to be heard is essential."

- Jeff Hargrove, President, FiberGlass Coatings Inc.

"Creating a thriving environment lies in embracing transparency, encouraging open communication, and cultivating mutual respect. These principles not only fuel growth– they build a resilient foundation for overcoming challenges and making pivotal business decisions together. The strength and unity of your team directly influences your success."

- Mike Boulanger, CEO, NSI-Lynn Electronics

"Feedback is a gift. Embrace it. Those who can give and receive feedback effectively are true changemakers! Always seek it out-you’ll never regret knowing the truth."

- Jeff Gallino, Founder & CEO, Callminer

"Scaling up from a tight-knit team of 20 to an organization of 400 demanded a fundamental shift in my management approach. Initially, I thought I needed more control, but I learned that true leadership at scale is about instilling a culture of autonomy and trust. This shift not only streamlined management but also enhanced our collective productivity and innovation."

- Danny Shepherd, Co-CEO, Intero Digital

"Embrace the wisdom of learning from everyone you meet. It takes humility to realize and accept that we don't know everything. Remember, we have two ears and one mouth for a reason – to listen more than we speak. You can’t learn new things if you’re always the one talking."

- Adam Mohr, CEO, ConTeras Industrial Group

"Creating change is a team sport. To transform from concept to reality, it’s crucial to communicate effectively enough to inspire others to join you, even if the idea seems unconventional or even crazy. Just as important, is your willingness to listen carefully to the input of your team. This collaborative approach allows the idea to evolve and improve incrementally each day."

- Virgil Bretz, Co-Founder & CEO, MacroHealth

"A critical lesson learned throughout my career is how much untapped potential typically resides in any organization. Getting your team to understand their potential, and reset their own expectations and remove self-limiting thoughts, is one of the fastest and most sustainable ways to create value."

- Michael Clark, CEO, USPack

"Build your social capital account. While all leaders focus on financial capital, it's just as important to have a healthy balance in your social capital account. Invest in building a strong network of friends and colleagues. These relationships can help you navigate challenges and develop new ideas."

- Peter Hotz, CEO, vybe urgent care

"Maintain a laser focus on the key elements that drive the most value for your customers and the business. It’s easy to get distracted, but meaningful impact stems from solving core problems exceptionally well. Priortitze what truly matters."

- Matt Turpin, CEO, Zentech Manufacturing

"Don't worry alone! Great teams invest in each other and rally around challenges that concern their colleagues. By encouraging transparency, you enable more minds to work toward solutions, strengthening team bonds and problem-solving capabilities."

- Mark Rowe, CEO, Mangrove Management Partners

"For all the founders among us, never lose the entrepreneurial spirit that brought you success in the past. Even as your business evolves and faces new chapters, this spirit is crucial. Call upon it to guide you forward. It is not only a potent tool for developing teams but also a key driver of growth."

- Kathi Holst, CEO, Traffic Safety Solutions

"Trust your gut! Nine hundred ninety-nine times out of a thousand, your first instinct is right. Make decisions swiftly and confidently—speed and conviction are often your best allies in achieving success."

- Garrett Marler, President, Aero Components 

"Less is often more when it comes to focus. The desire to do it all is tempting, but most of the time, success usually requires honing in on what truly matters. This might mean a limited product set, sharpened by focus, which can be exceptional. Prioritize quality and relevance over quantity."

- Jorge Brea, CEO, Symphonic

"The most enduring competitive advantage is team cohesion. Prioritize the strength and health of your leadership team over everything else."

- David DeWolf, Former CEO, 3Pillar Global

"For many lower-middle market businesses, growth will inevitably plateau without strategic change. Transitioning from a relationship-center selling model to a more systematic marketing and sales process will increase selling accountability and improve revenue visibility."

- John Shomaker, CEO, Strategic Communications Holdings

"As a CEO, you can’t grow a business if you’re only focused on running it. Instead, build and train a team capable of responsibly managing daily operations effectively so you, as CEO, can concentrate on strategic growth. Success will follow."

- Patrick Maginn, CEO, Northpoint Roofing Systems

"Give your team an invitation to give you bad news fast, because it doesn't get better with age! Creating this type of environment allows you to implement a quicker resolution and to more effectively manage difficult situations."

- Larry Berran, Former CEO, iPipeline

"Adopt the curiosity of a tourist in your daily life. On vacation, we observe everything from a different lens – noticing the unique ways people communicate, savoring new foods, navigating different streets. Apply that same lens to the everyday, and you’ll uncover innovations you never knew were possible."

- Kevin Gelfand, CEO, Shake Smart

"When pursuing acquisition opportunities, be absolutely certain that each fits strategically within your company’s roadmap and vision. An acquisition should be more than just a short-term EBITDA boost or a future buyer will see right through it. If the fit isn’t perfectly clear, rethink the deal!"

- Mike Baldwin, Former CEO, Altus Receivables Management

"Benjamin Franklin’s philosophy to "do well by doing good" has provided a great north star for our teams. It’s a commitment to excellence that doesn’t just aim for success, but ensures our path is ethically sound and socially beneficial."

- Dave French, CEO, BetterNight

"Execution is important, but culture is king – it overrides everything else. If there are execution issues in a weak culture, it falls to leadership to step in. However, if the team has a culture to perform and get results, they will navigate through the challenges. Invest time in building the right culture to really unlock the team’s full potential and elevate the entire organization."

- Ned Moore, CEO, Clutch

"Nothing goes further than a healthy dose of humility to cultivate cooperation, teamwork, and success across the organization. My philosophy of leadership is rooted in 'assumed excellence,' trusting in the expertise and competence of colleagues from the outset, inviting them to demonstrate their strengths."

- Matt Regan, President & CEO, Wealthcare Capital Management

Thank you for joining us in celebrating NewSpring's 25 years of investment excellence. We hope the insights shared by our network of accomplished CEOs have inspired and equipped you with practical strategies for leadership and growth. Each piece of advice reflects deep industry knowledge and the spirit of entrepreneurship that NewSpring has always championed. Continue to visit our page weekly for more pearls of wisdom and explore further how NewSpring can help transform lower-middle market businesses.