Being Prepared for Financial Uncertainty: A Staffing Owner's Guide

Excerpts from the Guide

In staffing, the one thing you can be certain of is that things will change. For staffing firm owners, volatility and uncertainty is part of the challenge you face every day. Here are a few excerpts from our larger guide on preparing for uncertainty:

Tip #1: Be Smart with Your Money While you can’t control the general economy, but you can determine how you deal with your money and cash flow.

  • KEEP AN EYE ON COSTS. Take a close look at all your business expenses to make sure you’re being efficient. Are there things you’re not using, such as certain licenses or subscriptions
  • REFINANCE OLD DEBT. If you can’t afford to pay off old debt, consider refinancing or consolidating at a lower rate. This gives you an opportunity to put more principle towards your debt and bring the balance down.
  • REVISE AND UPDATE YOUR BUDGET. When it comes to financial goals, you’re not going to know where you’re going without a goal or a roadmap.

Tip #2: Know Your Debt Structure When the future is uncertain, knowledge about your own debt structure is power. Your debt structure provides a historical window into your liabilities, giving you an idea of how soon your business must settle debts and whether you have the working capital to do so.

Tip #3: Explore New Revenue Opportunities In uncertain times, having different sources of revenue can help ease the anxiety and maintain your top line. Here are a few ideas on how to bring more dollars in: DIVEST IN VERTICALS Consider divesting into other verticals. It is good to branch out your business so you don’t rely on one vertical/industry too heavily.

OUTPLACEMENT Another thing to consider is using your skills as a staffing firm in other ways. For instance, outplacement is a counter cyclical service. You can help people find jobs while also keeping yourself in with your end client.

UPSKILLING Upskilling—sometimes referred to as retraining and reskilling—is the process of helping workers turn outdated skills into ones that are highly applicable to the current job landscape. This is a critical service that staffing firms are in a good position to provide.

Tip #4: Focus on Relationships In tough times, the people you rely on make a huge difference in weathering the storm. Here are some keys to building business relationships:

Start Internally

Trust starts at home. Focus on creating an environment inside your staffing firm that prioritizes fairness, trust, and honesty.

Build Your Referral List

Some of your best business will come from referrals, so it’s important to keep and maintain a good list of your industry contacts. Start by taking a few minutes to identify 25 people who can help you move your business forward.

Spend Face-To-Face Time

This applies to your business networks, your team members, your vendors and, most importantly, your customers. You cannot depend on emails, texts, newsletters, blogs, etc., to build these relationships.

Align with Strategic Partners

What strategic partners does your business need in order to move forward?

Give Without Expecting Something in Return

Reciprocity is a powerful psychological phenomenon. Use this to your advantage by passing along good information, resources, or tips to your business contacts even if it doesn’t directly relate to your bottom line.

Commit To It

Building strong relationships require a commitment of time and effort. If it’s not blocked out on your calendar, chances are that it’s not happening.

Interested in more tips? Check out the FULL GUIDE here.