The Importance of a Strategic Business Plan

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If you’re thinking of starting a staffing firm, congratulations! It’s a dynamic, growing market and one that is great for entrepreneurs and that provides the added satisfaction of helping people, whether they are your clients or your candidates.

Whether you are an entrepreneur looking to explore a new market, or a staffing pro looking to set out on your own, there are important steps to consider before you start out.  This can include assessing your strengths and weaknesses, understanding your market, and choosing your niche…but really it comes down to one major strategic device… a business plan.

Business plans can seem, at first glance, a daunting process. But if you look at it as steps to help you grow, a plan can really help you focus on your strengths and ensure success. By analyzing your plan and checking it for everything from customer service to marketing to sales and even Website design, you greatly improve your chances for success.

The Purpose of a Business Plan

The primary purpose of a business plan is to gather investors. This can be important when you looking at seed money for a start-up.

The second purpose is perhaps more important. Put simply, a business plan is your roadmap.  Ideally, it will be your compass and you can check and see how your growth reflects your vision.

The Ingredients

Typically speaking, a business plan will contain the following: An executive summary (first in your plan but usually what you create last); your company description; a market analysis (this includes your likely customers and candidates and also your competitors); a marketing and sales strategy; a recruiting plan; a technology strategy; in-house hiring; a funding strategy; and financial projections.

As you think these steps through, you should always keep opportunities in mind. For example, outsourcing everything but your core competencies can be a wise decision that allows you to focus on growing and sustaining your business.

Companies such as Madison can help you with everything from payroll funding to technology needs.

One other great aspect of working with Madison is that you can marry your plan to real-time business intelligence. You’ll get trends on sales gross profit, gross margin, MU % and headcounts; adjustable periods and comparisons with dropdowns for month, quarterly, or annually, and year-over-year or sequential comparison options, just for starters. In this way, your plan is not ‘pie in the sky,’ but backed up by real numbers and projections.

A Caveat

One important consideration in your business plan: don’t think of it as written in stone. You’re dealing, after all, in a dynamic, fluid market –also known as the real world.

You’ve got to maintain your flexibility, and not rigidly adhere to a plan. Keep your eyes on your vision and your goals, and be ready to adjust to meet them accordingly. Don’t feel tethered to your original plan. In most cases, you can bet that where you end up is not where you started. The good news is that staffing is about change and flexibility, and so you should have a natural affinity for folding that into your business model.

We Could Be Your Strategic Partner

At Madison, we’ve helped many staffing firms get off the ground and realize their dreams, and help them scale wisely as they grow. Let us give you the same advantage, and contact us today.