Editor’s Note: This content is condensed from our eBook, The Staffing and Recruiting Guide to Growth. For in-depth discussion on specific growth strategies, funding options, preparing your staff for growth, and more, download the full guide here.
The staffing and recruiting industry is a highly competitive space. If you want to stand out as a go-to talent provider, growth is essential to your visibility. In this blog post, we provide insights and guidance on some of the key factors that determine success, including setting smart goals, choosing a growth strategy that aligns with your risk tolerance, and planning for the unexpected.
1. Determine goals, motivations, and obstacles
Before embarking on any growth initiative, it’s essential to identify your goals. Whether you plan to grow organically or by acquisition, your plan should align with your objectives and proceed with a purpose that will keep you motivated.
It’s also crucial to assess the obstacles to your growth. Identifying these hurdles and addressing them in your growth plan is critical to increasing investments and achieving success.
2. Gauge risk tolerance and choose a strategy
As with any other investment, investing in the growth of your own company involves a certain level of risk. Therefore, it’s essential to determine your risk tolerance before choosing a strategy.
Staffing firms typically choose one of two primary growth strategies: organic growth or growth by acquisition. Organic growth takes longer to achieve but carries a lower level of risk. Conversely, mergers and acquisitions can lead to faster growth but carry a higher level of risk.
Both organic growth and growth by acquisition are legitimate strategies. The right choice for your success should be based on an honest evaluation of your resources and risk tolerance.
3. Plan for economic shifts
Economic shifts can come without warning and sometimes happen overnight. While wringing your hands and planning for every possible disaster is paralyzing and counterproductive, it is still important that you examine the leading economic indicators that may impact your business before investing in growth.
While it is impossible to perfectly time your investments, you should still plan for potential impacts. Your ability to respond to or control these impacts may vary, but ignoring them could have a detrimental effect on your success.
4. Prepare for lifestyle adjustment
Finally, it’s essential to recognize that pursuing and achieving your growth targets will inevitably impact your lifestyle. In the long run, implementing a winning growth strategy will likely have a positive effect on your business and personal life. However, in the short term, you may experience a constricted cash flow and limited personal time, which may require significant sacrifices.
Remember, success does not come overnight. Achieving your growth targets will require a significant investment of time, effort, and resources. You may need to work longer hours, forgo vacations, and reduce personal expenses to invest in your business’ growth. This can be challenging, but if you remain focused on your long-term objectives and remain committed to achieving them, the rewards can be substantial.
Implementing a growth plan can be a daunting and sometimes overwhelming task. However, a little time and commitment to researching and assessing your company’s current position as well as future goals can ensure long-term success.
Lastly, it is critical that you are ready for either financial gain or loss alongside potentially stressful lifestyle adjustments due to increased responsibilities for yourself and existing staff members associated with expansion efforts. Growth can be painful in the short term, but the long-term rewards are worth the sacrifice!