05 October 2007

Making a business more stable

A small business that I know set up a new offer in my area about a year ago. From a standing start this offering has generated new revenues of about $400k in the last 12 months. That indicates that there is a genuine need for the service and the pricing must be relatively attractive, particularly since this growth has been achieved without anything other than poster advertising.

It wants to grow the revenues from this new offer further since its core business has been cyclical and the new service is significantly more predictable, limited by the capacity of its facilities and the availability of suitably qualified staff. The supply side is complex with both national and local suppliers, all competing for the same kinds of staff and not differing much in the pay and benefits on offer. It looks as though recruitment may well be the key process in helping the business to grow.

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