Given the extreme cyclical nature of the staffing industry, staying afloat is challenging. Because your business goes down when your clients’ business goes down, your staffing firm needs to strategically diversify to survive during recessions. In order to expand into new areas, you need access to the right amount of process support and funding. You need to maintain your flexibility. Because banks are often risk-averse when it comes to loaning money to staffing firms, odds are you will need an alternative form of financing. Find out how Madison Resources can provide that flexibility for support and funding to position you to strategically diversify.
Funding is Easily Secured
Funding for strategic diversification typically is easier to secure than a bank loan. A loan can be time-consuming, require complex paperwork, incur company debt, and be difficult to secure especially if your staffing firm is less than three years old. Madison Resources takes into consideration your staffing firm’s creditworthiness and total assets when consulting with you on the best options that meet your goals. You may receive support and funding in a short amount of time, so you can move forward with your strategic diversification plans and your flexibility in a much quicker timeframe.
Diversification May Ease Cyclicality
Supporting your organization flexibility and Funding for strategic diversification can ease the burden of business downturns. Because business tends to be cyclical, diversifying into related offerings managed service providers (MSP) diverse types of skills may bring in revenue when business in other areas is down. Staffing clients are more inclined to use MSP when they understand the advantages that these and other services can provide.
Case Study: Robert M.’s Staffing Firm Enters a New Vertical
When Robert M. decided to strategically diversify his staffing firm from exclusively in the administrative field to include IT, he contacted Madison Resources to discuss his needs. Robert was concerned about getting financing, structuring a deal with a new subject matter expert, and learning about the intricacies of the IT space. Our team created a plan to structure the financing and made significant recommendations for structuring a deal between Robert and his new partner. We also spent hours on the phone with his tax and legal advisors and taught him necessary techniques involving special practice areas, independent contractor agreements, H1B visa issues and more. Our speed and assistance saved Robert weeks of planning.
Strategically Diversify With Help From Madison Resources
When the time comes to strategically diversify your staffing firm, gain help from Madison Resources. Our seasoned professionals use their expertise to assist you with planning and funding your strategy. Contact us today!