Funding

It is not difficult to see why staffing companies consistently face cash flow problems. It is an uphill battle when it comes to liquidity. In an industry where your payables are weekly, but your receivables are six to eight weeks and beyond, cash flow can be a significant issue. Staffing Is Expensive

In my last post, I discussed several challenges staffing firms face. Here, I address planning for growth through partnerships - focusing on business strengths and building around weaknesses Partnering with the right financial and back-office services providers allows staffing firms to focus on their strengths.

Ensuring Legal Compliance Can Be Costly

Staffing firms, especially those working primarily with large corporations or with a high concentration in one or two customers, can find themselves in a cash crisis when waiting out extended payment terms or late payments from customers. This can result in an inability to make payroll, provide benefits for employees and meet tax requirements.

The gig economy emerged in the wake of the recession 10 years ago when high unemployment made temporary workers easy to find. Employment conditions have changed considerably since then, yet there is no sign that the gig economy is going away.

In the month since the inauguration things have been rather chaotic. Business dislikes uncertainty which makes it hard to plan for the future with any degree of confidence.

With the upturn in the US economy, staffing is on every business owner's mind. Qualified workers are scarce, especially in some states, and the aging population doesn't help the situation. You don't need a crystal ball to tell you that finding the right staff is one of the top concerns of most business owners.

Would you run a fast-food restaurant in the lobby of your office? How about a machine repair shop?