Insights | Feb 11, 2019

Business Planning for Small Staffing Firms (Part 2 of 3)

By Tom Kosnik

Business planning for small staffing firms consists of three key factors.

The first key factor is “values” over “vision” and “mission.”

 

For a smaller firm, the vision is to get the business to the top of the “Owner Operator” structure, which again is typically around 15 million in annual revenue.  “Values” are far more important and it would behoove the owner of the business to articulate either the “values” of the business or the “key principles” to the members of their organization, as well as temporary employees, contractors and customers.  Values and principles play a critical role as the criteria for decision-making.  Good consistent decision-making is a critical element to growing a company. Business planning will assist with decision-making by forcing the owner of the business to articulate the values and/or key principles alongside the goals.

 

A strong “Internal Assessment” is the second key factor in planning for small staffing businesses.

 

The owner of the business has only so much time and money – and both time and money need to be laser-focused on specific parts of the business that will give one the greatest return on their time and financial investment.  A good internal assessment will evaluate the following factors: revenues; temps on billing; gross margin averages; bill rate averages; pay rate averages; net profit; strategy; leadership; marketing; management; recruiting system; sales system; accounting and finance; culture; people; rewards; technology; and customers.

 

This is the point where I say, “Don’t try this alone at home.”

 

One certainly can interpret all this data, but the ultimate value of business planning is not the end product of the plan itself.  Rather, it is the process of planning where someone is going to dialogue with the owner and possibly key personnel in the business and put their “backs against the wall” to determine how they compare and/or execute on these variables.  The business planning process should challenge the owner and make him or her uncomfortable about certain elements in the business.  A well facilitated business planning process will get people “thinking” differently about the business and how to solve specific issues within the business.

 

The third key factor consists of solid sales planning. In the last part of this series, I will give you some advice on sales planning, including a useful customer analysis tool.

Click here to read part 3

At Visus Group, we take great pride in helping our clients; please contact us today.

 

Share This Post

Recent News

Insights | | Dec 11, 2019
Factors To Consider When Tweaking Your Company’s Compensation Plan (Part 1)

Tweaking the corporate compensation plan annually at the end of the year is a good practice for any company.

Insights | | Dec 11, 2019
Factors to Consider When Tweaking Your Company’s Compensation Plan (Part 2)

As you think about making a change to your company’s compensation plan, consider these factors to help your employees adjust to these changes.

Insights | | Oct 21, 2019
Economic Trends October 2019: The Economy is Slowing!

The economy is slowing, what are the best staffing companies doing to prepare and respond? Watch our video for our perspective.

Insights | | Aug 28, 2019
Margins are Up, how come Net Income is Down?

Margins in the staffing industry have ticked up for the fourth consecutive year. Guess what else has ticket up?

Insights | | Apr 30, 2019
Why You’re Pulling Your Hair Out to Get Your People to Cross-Sell

It seems so simple. If we can just get our people to cross-sell between divisions, everyone wins!

Insights | | Apr 03, 2019
5 Strategies to Live by for Effective Price Negotiations

Here are some helpful strategies I use to coach my clients and reduce anxiety associated with price negotiations.

Insights | | Apr 01, 2019
Key Elements to Keep In Mind When Positioning to Sell

Pundits tell us to always be managing a business as if you are positioning to sell it. This advice is prudent for several reasons.

Insights | | Mar 25, 2019
Looking for Acquisitions? 7 Common Mistakes for Buyers to Avoid

Even though mergers and acquisitions are at an all-time high in the staffing industry, many transactions go sideways due to some common mistakes.

Insights | | Mar 25, 2019
Looking to Sell Your Business? 7 Common Mistakes Sellers Make

Let’s address some of the mistakes sellers often make when trying to sell their business.

Insights | | Mar 18, 2019
Want A More Effective Leadership Team? Take These 3 Action Steps

The staffing industry is by nature a very reactionary business. When a client needs to fill a position, they typically need someone immediately.

Insights | | Feb 11, 2019
Business Planning For Small Staffing Firms (Part 3 of 3)

In Part 2 of this series, I mention sales planning as the third key factor for business planning.

Insights | | Feb 11, 2019
Business Planning for Small Staffing Firms (Part 1 of 3)

The business sages tell us that if we want success then we must develop a plan for success.