Staffing firms in growth mode are in a great position. It’s every entrepreneur’s goal to be in high growth mode. But it does have its own set of challenges. While growing is exciting and, let’s face it, fun as well, here is a list of the top five problems growing staffing firms face and how you can avoid these growing pains.
Five Problems Staffing Companies Face
Problem #1: Cash Flow and Financial Management.
This is the top challenge that can stall your business and potentially turn your business into an also-ran.
You can make sure this doesn’t happen by having a trusted funding partner that can scale your growth and step in when there is a cash flow problem or an opportunity that requires extra investment.
You also need to keep an eye on every aspect of your working capital, so that you can maximize your cash flow. You can do this by using business intelligence and outsourcing non-core functions such as billing and collections.
Problem #2: Staying Focused on What You Do Best.
This can be a challenge when you’re in growth mode. You may be distracted from your key goals, which are sales, recruiting, and customer service.
At Madison, we can provide back-office services that will maintain your billing and accounting in an efficient and professional way.
Problem #3: Deciding What Problems Need Your Attention.
This is not as easy as it sounds. A business in growth mode can sometimes seem like it runs from crisis to crisis. As an owner or operator, you need to focus on which one requires your full attention.
For example, spending time soothing an irritated client should be a priority, unless it takes up too much of your focus that could be spent more productively elsewhere. Is one client worth using more bandwidth than finding new clients or, say, hiring a great sales pro that can help you grow? In this case, it’s a matter of deciding if your client is worth the extra effort, which depends upon your history, your relationship, and the value or prestige the client brings to your business.
Problem #4: Keeping Up With the Market.
Too often, staffing company entrepreneurs consider market research a one-time thing, say, when preparing a launch. But it really should be an every-day part of your business. The good news is that with your growth, you’ll naturally get a sense of where the market is heading and what your clients are asking for.
But you can use other data as well. For example, at Madison Resources we provide performance analytics that will allow you real-time insight into your business, and also analytics that allow you to run future growth scenarios. Excellent tools to help you stay ahead of your competition.
Problem #5: Devoting Yourself to an Integrated System.
An integrated system, such as a combination of back-office. ATS/CRM, and funding, can help you manage the chaos of growth more effectively.
Are you looking for solutions from a company that gets staffing companies?
At Madison, we provide unlimited payroll funding; Cloud-based ATS/CRM technology and reporting available to you 24/7; fully outsourced (and scalable) back office support; and expert business advice. Give us a call today and see how we can make your growth successful.