Your staffing firm likely was impacted by the coronavirus pandemic in 2020. You spent months operating through uncertain times and pivoting in response to external events. Now, as the year comes to an end, your new challenge is to plan your sales forecasts throughout 2021. However, predicting what may happen next year based on what happened this year is difficult. As circumstances continue to change due to COVID-19, it is necessary to use data and metrics for forecasting while maintaining flexibility for the evolving environment.
Implement these tips to more accurately forecast your staffing firm’s sales for 2021.
Go Back to the Fundamentals
Begin your forecasting efforts by focusing on the fundamentals. For instance, consider whether your niche within the broader staffing industry is growing, remaining steady, shrinking, or becoming obsolete. Depending on your answer, you may need to reinvent your business. Also, determine who your key targets and customers are, have they changed ?. Figure out the likelihood of increasing or decreasing their spending on your staffing services. Include whether they are likely to increase spending on other services you could offer; talk to your customers. Think about whether your resource plan maps to your sales/revenue plan. If you need additional funding, we can help.
Focus on Leading Indicators
Forecast your sales numbers based on key performance indicators (KPIs). As leading indicators, these metrics show where you should finish in the future. Resist the urge to look at lagging indicators, the metrics for sales that already happened. These indicators do not provide insight into future performance because they cannot be changed. You need to focus on numbers that can adapt to the markets to more accurately predict sales. We can provide you with advice specific to the staffing industry.
Target Your Best Future Customers
Focus your sales and marketing efforts on the companies you believe will be your best future customers. This may include customers you have had long-term or a new group of customers. Think about whether your targets are in mature or growth markets. Determine whether they are using all of your staffing services or could benefit even more from cross-selling. Consider whether you have changed your value proposition messaging to align with these objectives.
Run a Customer Credit Analysis and Risk Assessment
Be sure to have us run a credit analysis and risk assessment on all of your customers. We provide commercial credit reviews on prospective and existing customers, ongoing credit monitoring of all active customers, and credit issue alerts. Here is one testimonial from our client, Karen, about working with our Credit department:
“Madison has taken the time to learn and understand our business model, which has been invaluable to our entire team. Credit staff always comes through for us. That we can pick up the phone, make a request, and get a near-instant response is invaluable.”
Manage Your Bottom Line
When forecasting for 2021, take advantage of the services that Madison Resources provides. Our funding, technology, back-office services, and business intelligence combine to offer the best possible success for your staffing firm. Find out more today.