Resources to help your company grow
A staffing agency turns to Ask FSB for growth resources.
Scott Zimmer, AAA Labor, Minneapolis, Minn.
I purchased a 52-year-old industrial staffing agency. Where can I find affordable assistance to help structure the company for growth? There is very little help available for staffing agencies.
By Paul Roberts, Fortune Small Business contributor
Dear Scott: The experts we spoke with said that your best bet for finding help is the American Staffing Association (ASA). The ASA was founded in 1966; its members account for 15,000 offices nationwide and 85% of the total staffing revenues in the US, according to Richard Wahlquist, who is president and CEO of the ASA.
The ASA represents a broad range of staffing companies – from those offering day laborers to firms that place high paid executives. Industrial staffing is one of the largest segments within the ASA's membership.
Your comment about finding someone to help you “structure the company for growth” suggests that you are looking for the help of a management consultant. A good place to start looking is ASA's supplier index. It's a free, online resource that provides contact information and links to service providers catering to many aspects of the staffing industry. Joining a local chapter of the ASA gives you access to more data, including weekly publications, industry trends, and online educational tools, as well as the ASA's annual conference, which provides networking opportunities, Wahlquist said.
More locally, consider the Minnesota Recruiting and Staffing Association, which provides a wealth of information and training opportunities for its members on issues affecting the staffing industry, including contacts with local vendors and updates on legislative initiatives at the state and federal level. Joining one or more of these professional associations should enable you to find the help you need to start building your business.
Give us your advice: Check out recent “Ask & Answer” questions.
Related links:
From Greg Palmer Laguna Beach Ca Scott , we can help you.Www.GPalmerandassociates.com
greg@Gpalmerandassociates.com
949 232 7101
G Palmer
A business doesn’t stand still; either it’s growing or dying. And growth is measured in four to five distinct stages. Here is information on the first two stages of growth.
Newly started organizations eat money like it's going out of style. Consequently, they have two primary tasks–get the product out the door and keep the cash coming in. Companies in this initial phase tend to have the following problems:
Running out of cash. A young organization often uses so much cash to grow that there's little left to pay the bills.
Making a fatal mistake. The company gets hit with a product liability lawsuit, misjudges the price point of its product, or suffers some major trauma from which it can't recover. Unlike larger companies with more resources, it only takes one major mistake to deliver a death blow to an infant business.
Loss of commitment. Often the founder gives up too much equity in order to finance the business. Once he or she loses control, the founder often loses interest and the company dies of neglect.
Personal problems. Many times, the founder's spouse doesn't share his or her vision and dream for the business. When the spouse resents how much time the entrepreneur spends with the business, the personal turmoil can easily tear the fledgling business apart.
Tips on making it through the initial phase:
Keep the cash flow positive. Tone down your growth to keep too much cash from leaving.
Don't give up control. You may have to give up some equity, but never give away controlling interest in your business.
Track cash flow before profits. Rather than using traditional monthly P&L statements to monitor your company's financial performance, use a 13-week rolling cash flow report. Forget about profits and watch cash flow like a hawk.
Don't seek the advice of consultants. Most are trained to work with larger, more mature organizations. Use peer-to-peer CEO groups and benefit from those who have “been there and done that.” These peer-to-peer groups are comprised of business owners who help each other solve pressing business issues.
Avoid premature delegation. Do not delegate any roles or responsibilities until you know exactly what you're delegating.
As a company grows it establishes ongoing sales and a predictable income. Cash flow problems become a thing of the past, and the company no longer has to struggle to survive. Now that it has some money to work with, the company begins chasing one opportunity after the other and commonly suffers from these problems:
Lack of controls. As the growth rate begins to climb, the company fails to shore up that growth with the proper infrastructure. Lacking any internal systems, budgets, policies or procedures, the organization becomes an accident waiting to happen.
Midas Touch syndrome. The founder starts to get an inflated sense of his or her own worth. Fueled by hubris, arrogance and ego, the founder may venture into new products or businesses that have nothing to do with the core competencies.
Lack of resources. As the company starts to grow in all directions, the founder gets spread alarmingly thin and leaps into areas he or she knows nothing about. Things begin to fall through the cracks.
"More is better" syndrome. A myopic focus on sales causes problems in other areas of the organization and to the balance sheet.
Wakeup call. Every company in this growth phase eventually makes a major mistake, such as taking a huge financial hit from an unprofitable acquisition or losing a major customer. If the company is lucky, the disaster serves as a wakeup call. If not, the founder can lose overnight what may have taken years to create.
Tips on getting through the second growth period:
Stay focused (as much as possible). Before adding any new product, acquiring another line of businesses or plunging ahead with any new venture, ask yourself, "Why am I doing this? Does this really fit our business? Do we have the core competence, knowledge and skills to take this on?"
Don't spread yourself too thin. Entrepreneurs love to work hard and make things happen, but they can only do so much. Ask yourself, "Do I really need to take on this new role or responsibility? Does this truly add value to the organization or will it distract me from more important duties?"
Keep your ego in check. Just because you have had some success with your small company, don't automatically assume that you now have the magic touch.
As you grow you will need to hire employees. You can download a free best practices report on hiring the right people the first time at http://www.vistage.com/staffing.