Yes, you’re in business to match candidates with open positions. You help job seekers achieve their career goals and you aid customers in reaching their business objectives.
All noble reasons to run your staffing firm. But don’t forget about the literal bottom line: you’re also in business to make money.
Don’t be so busy facilitating everyone else’s dreams that you forget to take advantage of your own opportunities. Take the steps necessary to maximize your investment.
To that end, here are five ways to increase the profit at your staffing firm:
Get More from Your Current Resources
Expand your revenues, not your expenses. Seek out productivity improvements, so that you can drive bottom-line growth even without substantial revenue expansion. Here are a few approaches to consider:
Invest in new technology. The right tech backbone can unlock your team’s potential. Shop around for hardware and software that can get the most out of your current staff.
Develop better processes. Work with your staff to streamline the way you do things. There might be efficiencies you can achieve by upgrading your procedures.
Create incentives. A well-constructed system of bonuses and other incentives can supercharge your team’s performance.
Deepen Relationships with Existing Customers
Selling to existing customers is much easier than trying to find new ones. One data set suggested that sales attempts with a current client have a 60%-70% success rate, compared to 5%-20% for sales attempts aimed at a stranger. That means you have anywhere from 3x to 14x better odds with your current roster of clients.
This insight makes intuitive sense, even without the statistics. You already have an established relationship, with pre-established trust and rapport. As such, an extra investment in those entrenched connections can lead to a significant increase in business. Meanwhile, these sales gains come at a better margin, because you’ve already done the basic legwork to land the client in the first place.
The more you know, the better you will do. Without gathering information, you are making business decisions blind. That’s why it’s so important to gather data and effectively analyze it.
Use surveys to learn about your existing customers. This will give you insight in what other services you can offer them. In addition, you’ll better understand what sets you apart from the competition, information that will improve your marketing efforts.
At the same time, learn about the candidates you are placing. Understand their thought process and what they expect from you as a staffing partner. This will let you attract better talent, which, in turn, will make you more appealing to customers.
Look for Expansion Opportunities
Gaining market share and increasing revenue from current customers offer two significant methods for driving higher profits. However, there are other, more aggressive, approaches you can take as well.
Search for opportunities to grab new sources of revenue. Consider moving out of your current niche to offer a broader range of staffing services. Or you can weigh possibilities like acquisitions or geographic expansion.
Implement an Efficient Financing Strategy
Remember the old expression: “it takes money to make money.” It means you’ll need resources to drive any earnings-enhancing endeavor. Whether you’re upgrading your technology infrastructure to become more efficient, adding sales staff, targeting an acquisition, or launching a new marketing effort, you’ll need cash to prime the profit pump.
To do this, you’ll need a comprehensive financing strategy. By developing a relationship with a funding company, you give yourself options to deliver the cash you need when you need it.
Need Customized Funding For Your Staffing Firm? Frontline Funding Has Solutions!
Frontline Funding can help in this process. You’ll get the financing options you need to drive every last penny to the bottom line.
Contact Frontline Funding today to unlock your future.