Funding Myths: Is Funding a Last Resort for Staffing Firms?

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In this edition of Funding Myths, we are highlighting one that also is pervasive within the industry.  That is that funding firms are to be used as only a “last ditch” effort, whether to cover payroll gaps or to infuse cash for a sudden upsurge or downturn. It is true that a good funding company will help you navigate some of those dangerous ups and downs. But that is really only part of the overall picture.

Chiefly, a good funding firm will not be a last resort, like calling the fire department when your house is on fire. Rather, a competent and professional (as mentioned above) funding firm will partner with you, plot growth strategies with you, and ideally prevent that house fire. Really, to keep going with the house metaphor, a funding company should be a foundation for growth….with you from the beginning.

One of the greatest attributes a funding company can bring to a client is a true partnership. This means that yes, a funding company can help you speed up cash flow, but there are other excellent tools you can use as well.

3 Ways Funding Can Be Strategic to Your Company

1) Helping You Launch, And Grow.

At Madison, we are here from the time you start your company up, to all the way down the line. When you are starting your company, it is so important to focus on getting off the ground… that is, focusing on building your client list, getting candidates in the pipeline, and hiring your in-house staff. Madison lets you focus on these sales and service priorities.

2) Helping You Grow Steadily.

In staffing, it is ironic that growth can be as dangerous as the lack of growth. Explosive growth can mean explosive challenges. Financing. Technology. Back office support. They all need to improve in tandem with your sales opportunities.

And with good funding companies, that’s what you’ll get. For example, at Madison, we have a suite of services that help you get the maximum out of your effort with the minimum of headaches.

Again, far beyond the “last resort” myth, we can offer excellent back office services, which allow you to bill your customers in a timely fashion, At Madison Resources, we provide the back office support your staffing firm needs. From outsourced payroll services and outsourced billing services to our complete back office support solutions, we give you more time to focus on increasing sales, recruiting talent and serving your clients better.

All back office services are conducted with your branding by a team of professionals. And all included under our one-fee structure.

3) Helping You Navigate Your Markets.

Whether you’re growing, or you’re looking to build organically or even acquire, you need a partner who can help you get there.

At Madison, we offer what amounts to your own financial planning and analysis department. We can give you your trends on sales, gross profit, gross margin, headcounts and other statistics. And this, of course, includes adjustable periods and comparisons.

You can also get year over year sequential comparison options, and if you are achieving or building up to growth mode, we can work with you to provide a tool where branches (and regions) can be configured for “what if” analysis.

Are you looking to grow your staffing company?

As you can see by these examples, a proper funding company goes far beyond a bail-out option. In fact, with the right partner, you will avoid those bail-out emergencies. Contact us today to see how we can help….we love to help out staffing firms.