Up and to the right. That’s what every business manager wants to see on a revenue or profit chart. However, you can’t count on this. Even a fast-expanding startup will eventually see its ascension slow down. The key is to identify a looming plateau and strategize about how to reignite your growth prospects.
The first step in this process is predicting when growth has started to flatten out. The more time you have to think about the next stage of your development, the better positioned you’ll be to avoid stagnation. As such, you need to see that plateau coming as early as possible.
To do that, you need to be aware of potential red flags. Before the slower growth numbers show up on your financial statements, you want to recognize subtle operational signs of diminishing momentum.
After all, a growth breather doesn’t have to mark the end of your firm’s evolution. Rather, it can act as a momentary pause that refreshes. Turn that plateau into a launching pad for another upward drive.
To get a head start on this process, here are four signs your staffing firm is entering a growth plateau:
Most of Your Revenue Growth Comes from Existing Customers
Driving additional revenue from existing customers offers an excellent business strategy. Where do you think the cliche of upsells comes from? Grabbing extra dollars from previous clients represents a high-margin, low-cost way to improve your top line.
However, you shouldn’t become overly dependent on this trick. Without expanding your roster of clients, you’ll become too reliant on a narrow set of important partners. This limits your long-term growth and puts you at risk.
Rather, look for a mixed strategy of growth. Yes, find ways to increase revenue from your current customers. But at the same time, continue to invest in drawing in new clients as well.
You Keep Pitching to the Same Potential Clients
At the start of any business endeavor, the potential customer base can feel infinite. When you’re just scraping together a business plan at your kitchen table, the idea that you could saturate your market seems like a pleasant fantasy. However, as your staffing business grows, you can reach the confines of your market relatively quickly.
As a practical sign of this, you’ll notice that names keep recycling in your sales process. Potential customers become white whales — prospects that you end up pitching multiple times.
These repeat sales attempts represent underutilized resources. At the same time, they signal that your horizons may have become restricted.
Rather than prepare yet another presentation for people you’ve met before, consider how you can break out of your current restrictions. Look for new ways to grow your business and find new prospects to entice.
You Lose Business Because You Don’t Have Adequate Staffing Levels
Sometimes the issue doesn’t come on the sales end. You might have potential customers lined up, ready to start sending you cash. However, you don’t have the staff necessary to fulfill this demand. (We know, an ironic problem for a staffing firm.)
This can be a frustrating problem. It also represents a Catch-22 situation. You just need to expand operations to fill the demand. However, all your resources are caught up with a hectic schedule of delivering as much as you can.
In these situations, you need additional funding to expand. An investment in your future can put you on firmer footing long term. By getting the resources you need, you can break out of the trap and take advantage of the opportunities ahead of you.
Your Cash Flow Remains Unpredictable
Growth rarely comes in a straight line. At times, it can feel like you’ve hit a growth spurt, only to discover the surge represented only a temporary blip.
While you can’t count on a constant growth rate, major fluctuations can create hardships. Wide enough swings in your cash flow can even put your operation at risk. You need to take steps to lower the risk of a cash crunch, while still providing the resources you need to fund expansion.
Ready to Kick Start Your Growth?
Building a partnership with a strong funding company can achieve these goals. A top industry player, like Frontline Funding, can give you the support you need to sustain your growth over the long term, while still offering the peace of mind you need along the way.
Contact Frontline Funding today to learn more.