As the owner of a staffing company, you obsess about ways to drive growth. But are you really ready for that next stage of development? Having the right funds in place will ease the transition to a higher scale.
If you don’t feel quite prepared, don’t worry. You’re not alone. Only about half of all business owners (51%) say they are primarily focused on growth. Meanwhile, nearly a third (30%) want mainly to hold their current level, while 9% are looking to sell their companies outright.
How do you know if you’re ready to grab the opportunity presented by growth? It could take your staffing business to a higher level of performance and profitability. But you need the right resources first.
Five Signs That Your Staffing Firm Needs Funding to Grow
You Constantly Turn Down Clients
Finding leads isn’t your problem. In fact, you feel inundated by potential opportunities, including unsolicited approaches from potential clients. However, you don’t have the resources to respond effectively to your myriad business openings.
As a result, you have to turn down business. This is a sign that additional funding could facilitate a major growth spurt. You recognize that demand is there. You just need the resources to capture it.
Your Staff Is Overworked
Look around your office. Do people seem haggard? Stressed? Nearing burnout? If so, it might be time to bring in some reinforcements.
As a staffing firm, this argument should appeal to you. When your customer growth outpaces your ability to bring in new staff, your current employees suffer under the added workload. They have to make up for the shortfall in capacity.
This can work over a short period of time. But, long term, you’ll see smoother expansion if you bring in the funding you need to optimize your staffing levels.
You See a Specific Opportunity
Building a successful business involves grabbing opportunities when they arise. Unfortunately, these aren’t always predictable. You need the flexibility, and the necessary pool of resources, to jump on surprise chances when they come up.
Say a competitor suddenly wants to sell their business. Or a major new client approaches you. Or you want to open up additional locations in new markets. You can’t jump on these opportunities without adequate funding.
Ideally, you should have some resources in reserve for these situations. If that’s not possible, it’s time to look into your financing options. This will get you the money you need to launch your next big expansion.
You Need a Cash Flow Cushion
Growth can come in fits and starts. It’s not always a smooth process. However, you can’t signal that bumpy ride to your employees or to your customers. To them, everything needs to seem level and untroubled.
Having a reserve cushion gives you that flexibility. You never need to worry about upcoming payrolls or getting too aggressive about collecting from customers. With the right financing structure, you have the cash flow and security you need to handle any hurdles along the way to growth.
You Rely on Funding Sources with High-Interest Rates
You might already have some funding options in place. They just might not be the right ones. Relying on high-interest rate choices, like credit cards, will cost you more over time.
Stop treating every funding need as an emergency. Instead, put together a comprehensive plan that lets you have the flexibility you need, while not costing you too much.
Ready To Unlock Your Staffing Firms Potential? Frontline Funding Can Help!
Run a small and midsized staffing firm and want to weigh your options for growth? Frontline Funding can help you consider the possibilities.
Contact Frontline today to learn how different funding options could jumpstart your next growth phase.