It’s a massive accomplishment to start a firm and build it into a self-sustaining success. However, this only acts as a foundation for the next stage of your staffing firm’s development. Now that you’ve established yourself, it’s time to think about getting your company ready to grow.
But how do you know when you should take the next step? What signs should you look for to determine if your established staffing firm is ready to grow?
This represents a scary transition. Expansion requires resources and risk. You’ve built a comfortable, viable business. As such, you don’t want to jeopardize everything you’ve created by jumping into an ill-advised growth project.
Still, you can’t stand still. When the time is right, it’s important to take opportunities as they arise. That way, you can create an organization that can last far into the future.
The key is knowing when to take the chance. With that in mind, here are some signs your established firm is ready to grow:
Indicators That Your Established Firm is Ready to Expand
You Are Turning Down Business
Ideally, you want to grab any revenue available. However, you can’t always accept all the business that comes your way. Bottlenecks, a lack of resources, and practical limitations can force you to turn down meaningful opportunities.
If you receive more interest than you can answer given your current structure, it may be time to invest in additional capacity. Your staffing firm has obviously generated sufficient demand. Achieving additional success just means expanding to the point where you can capture it.
Customers Consistently Ask You for More
Chances for revenue growth don’t only come from new customers. Your current clients represent an excellent source of potential demand. Additional requests from your current clients put you in a superb position to generate additional growth. You just need to be able to provide the services they want.
Talk to your customers to determine ways you can effectively build on your current offerings. With this intel, you can broaden your approach and develop successful add-on services.
Your Employees Are Overworked
Your customers, both current and potential, offer key signs it may be time to expand. However, you can also read signals from inside your company. Gauge from your employees whether you have additional room to grow.
Does your staff constantly push towards its breaking point? If so, it may be time for an additional investment. When heroic efforts are needed to keep pace with their workload, it means you don’t have the foundation in place for your next phase. Take the steps necessary to create a sustainable base for the future.
You See Promising Data
So far, we’ve looked at more anecdotal signs that expansion makes sense. You see from the market or from internal workloads that it’s time to build out your operations. However, there’s a way to create a more formal process to highlight growth opportunities.
Utilize data to build quantitative models. These will give you a more precise way of looking at your business prospects. By gathering as much information as possible, and looking at it in a rigorous way, you’ll gather actionable insights into your competitive advantages.
Your Cash Cushion Keeps Growing
At its heart, tracking success is relatively easy. Just count the money. If your cash reserve keeps growing over time, that means you have the resources to invest in growth initiatives.
Here, it’s important to keep detailed accounting. A firm grasp of cash flow and other financial measures will make sure that you really have the ammunition you need to take your staffing firm to the next level.
Looking for Further Assistance with Your Growth Efforts?
In that endeavor, it helps to have a strong support system. A top financial partner, like Frontline Funding, can provide the additional resources you need to fuel your growth efforts.
Contact Frontline today to find out more.