It’s typically associated with success, especially in the business world.
But growth can also create a number of challenges.
Oftentimes, businesses that experience success and development in the first few years are affected by stages of rapid change, which can alter the stability of the company.
Maintaining growth can be difficult for anyone, regardless of the industry.
It’s the responsibility of business owners to prepare themselves, creating a successful long-term business environment, or they may learn the hard way.
According to David Dourgarian, CEO of TempWorks Software, there are two key components business owners must understand to maintain growth. He believes keeping a constant balance between business development and internal infrastructure, while never letting one priority get too far in front of the other, is essential.
Dourgarian describes some of the issues he’s seen when staffing industry business owners ignored balancing business and infrastructure:
If companies ignore business development, they are susceptible to these obstacles:
· A lack of new customers or expansion into new markets
· Engaging in business with predatory customers, ones that use partnerships as a low cost source of credit rather than a source of talent
· Upsetting relationships with lenders and insurers by concentrating business within a single core customer
Ignoring infrastructure can lead to the following problems:
· Technology systems don’t scale outside the first couple of storefronts
· Lenders continue to be inflexible and expensive
· Insurance remains expensive in the absence of
o face control of customers (and)
o safety guidelines for temporary employees
From firsthand experience within his own company, along with the many clients he’s worked with over the years, Dourgarian has witnessed firsthand what maintaining this balance can do for any business.
“In the staffing industry, the best companies balance business development and internal infrastructure, but this advice applies to all businesses. Most staffing agencies that stop growing did so because they were unable to maintain a constant focus on both,” said Dourgarian. “If you look at some of our customers like Hire Dynamicsor Integrity, they grow responsibly and profitably because they concentrate on both business development and infrastructure. There was always a focus on sales but at the same time, the companies never skimped on technology and other updates. They knew they would need them both in the years to come when they were a magnitude of order larger.”
David Dourgarian is the CEO of TempWorks Software, a provider of staffing software and payroll funding.