6 Tips for Building a Steady Staffing Revenue Stream
December 19, 2016
Staffing and recruiting can be a lucrative business, but there are different ways to drive revenue, in both the short and long term, so it’s important to find balance.
Recruiting can provide a large cash influx because the compensation is generally based on the candidate’s salary. The problem is that while it can take months to make a single placement and in the case of contingent search, you can end up empty handed after a lot of work.
Temporary staffing, on the other hand, is admin intensive and brings a much quicker turnaround — typically weekly or monthly pay. If you establish a reputation with an employer or industry, you can get a substantial amount of work on a regular basis.
But how do you keep your revenue steady?
Mind your funnel. Keep bringing in new leads even when it seems that you have plenty of business. The supply of new candidates, clients or job orders can dry up before you know it and you can end up with revenue gaps.
Analyze profitability. Continually evaluate your customers to determine if you are getting out of them what you put in. It’s a reality of business that your most high-maintenance clients can sometimes bring in your lowest profits. The onus is on you to monitor how much of your revenue actually makes it to your bottom line profit.
Leverage social media. Make sure people know who you are and what you do. Engage with your audience, share jobs or answer questions to bring in new or recurring revenue.
Be a thought leader. People want to work with the best. If you have a great industry reputation, customers will come to you. Blog, speak, vlog and get yourself out there as an expert.
Diversify. Don’t let more than 10 percent of your revenue come from any single customer. Treat your clients well so they remain with you and continually bring in new prospects.
Mind your margins. Holding the line on hourly rates can go a long way toward increased profitability. Don’t undersell yourself in an attempt to win business.
Ask for referrals. If you’ve given a client or candidate outstanding service, don’t hesitate to capitalize on it. If they have been happy with the results you’ve produced, they will be happy to put you in touch with friends or business associates.