How can I protect my staffing company in these tight economic times?
It's obvious that these are tough times for the staffing industry but there are certain things that you can do to help you weather the storm;
In good times and in bad times, running a credit check on your client before you send someone to their worksite is fundamental. But are you continually checking their credit? A company that was doing great 9 months ago may be seeing some tough times as well and may need to be re-evaluated by your financial team.
Clients that have a great payment history may be taking longer to pay your invoices. This is the time to keep building that relationship to understand the position the company is in and your place in the payment line. Keep in mind that this is a very fine line - don't lose the business with an overly aggressive collections approach.
Stay away from industries that you know are floundering in this economy. Keep a watchful eye on closures and if they affect your clients business. Diversification of clientele is key to keeping your business on an even keel in these times and in any time.
Ensure that you have a financial partner, like The Staffing Edge that understands the ups and downs of the industry and can offer you secure and adequate funding in the good times and the bad.