The Key to Staffing Agency Success– Balance and Maintain Growth

ThinkstockPhotos-77745839As staffing agency owners, we crave growth and expansion. It’s typically associated with success, especially in this industry. But growth can also create a number of challenges. Oftentimes, businesses that experience success and development in the first few years are affected by stages of rapid change, altering the stability of the company. Maintaining growth can be difficult for anyone, regardless of the industry. It’s our responsibility as business owners to be prepared, creating a successful long-term business environment.

I’ve learned there are two key components business owners must understand to maintain growth. It’s essential to keep a constant balance between business development and internal infrastructure, while never letting one priority get too far in front of the other.

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There are several issues I’ve seen happen when staffing firms ignored balancing business development and infrastructure.

Ignoring business development makes you susceptible to obstacles

Always look for new business. As our business grows and our days become busier, business development sometimes slips our minds. This can result in a lack of new customers or expansion into new markets. When we lose focus, it can be easier to forget about the untapped market. We must constantly brainstorm ideas and reach out to new markets to maintain our growth.

Cut bad business ties. Another possible problem we encounter when business development is ignored is engaging in business with predatory customers. This is especially dangerous when we do business with ones that use partnerships as a low cost source of credit rather than a source of talent. It’s best to end client relationships that won’t help your business grow in the long-term.

Expand your client base. When we concentrate business within a single core customer, we also run the risk of upsetting relationships with other lenders and insurers. This can limit our resources and, ultimately, our potential to continue growing. Plus, if all of your resources and profits are tied to one client your business is in jeopardy if they decide to leave.

Ignoring infrastructure can be detrimental

Scalability is important. When we place too much focus on business development or other aspects of our companies, it’s possible that our technology systems won’t scale outside the first couple of storefronts. Keeping infrastructure as a priority will allow us to be more consistent and grow steadily within all of our locations.

Keep insurance policies up-to-date. Another issue I see happen is ignoring insurance. Lacking the proper insurance policy can become very expensive in the absence of face control of customers and safety guidelines for temporary employees. Having an up-to-date insurance plan in place is important and can save your growing business in a detrimental situation.

Keep investors top of mind. Ignoring infrastructure can also lead to lenders being inflexible and expensive. It’s important that your company infrastructure can support business efforts and initiatives in order to generate cash flow. Without the ability to produce profits, it will be difficult to entice investors to believe in your company.

Within my own company, along with the many clients I’ve worked with over the years, I’ve witnessed firsthand what maintaining this balance can do for any business. The best companies in the staffing industry uphold this balance but this advice applies to all businesses. Most staffing agencies that stopped growing did so because they were unable to maintain a constant focus on both.

Successful staffing firms grow responsibly and profitably because they concentrate on both business development and infrastructure.  There is always a focus on sales but at the same time, the companies never skimped on technology and other updates. They know they need them both in the years to come when they become a magnitude of order larger.

MORE: Big data won’t replace staffing experience

David Dourgarian

David Dourgarian
David Dourgarian is CEO of TempWorks Software, a provider of staffing software and payroll funding.

David Dourgarian

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  18. David Stemm says:

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