If you run a successful staffing company then you’ve probably run into this problem: things just don’t feel like they are running as smoothly as they should. Maybe you see it in your monthly expense reports or your yearly audit — small financial indicators that tell you that your business growth has scaled well, but your back-office management could use some optimization.
These indicators can affect a staffing company of any size, and only get worse over time if they aren’t addressed as you grow your business. Obviously you don’t want to put the brakes on your business growth because of a few financial inconsistencies, right?
However, ignoring these warning signs can cause your staffing company to lose money and business over time, and can make your yearly audits painful and costly. At Insurnt, we’ve worked with staffing companies large and small, and have made a short list of thing you can start doing today to optimize your staffing business and get things back on track as you scale up.
1. Develop a Dependable Sales Process
When your staffing company first started, your sales process was probably simple and straightforward because your client list was smaller and more manageable. However, as your sales team grows you’ll need to create a dependable sales process that will make sure your team is bringing in the right type of clients.
This is the key to growing any staffing business, large or small.
Consistently analyzing your key performance indicators will help you stay on top of those sales and will help develop that successful process from start to finish. Client rates and delivery expectations start at the time of the sale, so make sure your process is optimized from the very beginning.
2. Back-Office Automation
When you started your staffing company, you and your staff were probably happy to do the small, tedious tasks that it takes to grow a business. But now that your staffing company has grown larger, those tedious tasks can slow down your staff, resulting in a decrease in employee productivity and a hit to your bottom line. Automating your back-office functions will allow you and your employees to focus on what’s important: generating more revenue and a smoother running office.
3. Identify Your Niche
When your company was small and only had one or two clients, your niche was already identified for you. However, as staffing companies grow and increase their book of business, they may lose sight of the clients that are the most profitable.
Taking a step back and analyzing your clients can help you focus on what matters most: profitability. Understand and analyze your niche market by looking at your overall costs per client, and focus on the industry type that works best with your business. While industry type is the most important factor in determining a niche market, company size and state location can impact your niche as well.
4. Optimize Your Pricing
Talking about optimization is great, but every new client relationship comes down to a very important component: your charge rate. Most staffing companies miss a key consideration when they are determining their charge rate with new or existing clients:
Your prices and rates will change over time.
That means without constant and consistent analysis and optimization, that once profitable charge rate can actually start costing you money long term. By continually analyzing and optimizing these charge rates, you make sure that your are being fair to your clients and maximizing the profit you are bringing in to your company.
5. Utilize Available Technology
The adoption of technology in the staffing space can be summed up in one word: slow. Actively embracing technology can help increase your growth in terms of revenue and client acquisition.There are technological advances being made in HR, employee management, insurance, and sales. Utilizing this available technology will help your staffing company develop a dependable sales process, automate back office support, identify industries and target markets, and optimize pricing.
The One-Size-Fits-All Solution
We realize these steps sound good in theory, but we know that in practice in can be difficult to know how to start implementing these changes to your growing business. That’s where Insurnt comes in. We work with staffing companies of all sizes to help with these changes so your business can grow and your profits can grow along with it.
Scaling your business shouldn’t get in the way of profitability, and with Insurnt’s expert optimization you can grow your client list without the fear of a bad audit or missed financial milestones.
Insurnt is your partner in profitability, and we can help staffing companies of any size and in any industry.