How to get ahead of your competitors in labour hire
As a labour hire firm, you need to make your mark quickly in order to get ahead of your competitors. Identifying common issues faced by both labour hire companies and the clients they serve is a crucial first step.
1) Getting known within the industry
All businesses face the same initial hurdle - making potential clients aware that you're open and ready to trade. Network by attending industry events and making direct contact with organisations you expect to work with. Impress those you meet by having researched the types of roles they need and the pressures they're facing.
However, don't blindly turn up at every event on the calendar. Do your research around where the right people are going and why. Use online marketing tools to track what kind of searches are popular, what pages users are interested in and what kind of social media conversation is happening to stay up-to-date.
2) Having the funds to pay out before you've made any money
As a labour hire startup, you'll often need to pay your employees as soon as they've completed the work you assigned to them. However, the organisations you work with may expect to be invoiced with payment terms of 30 or 60 days. This means you need to pay out before you get anything coming in.
Eliminate cash flow worries by working with an invoice discounting company. These organisations allow you to assign your invoices to them temporarily. They advance a percentage of the invoice value, so you can use it to keep trading instead of worrying about cashflow. You maintain control of liaising with your client for payment, so the whole arrangement is entirely confidential. The service fee you pay is well worth having the funds required to keep investing.
3) Offering something your competitors don't
Your overall offer is going to be much the same as your competitors - good staff at short notice, for a reasonable price. So what can you do differently? By thinking beyond labour hire, and about your business as a whole, you can find ways to make working with your company that much more straightforward.
For example, could you offer a better deal to clients or workers? What about investing in the latest technology to enable your clients to put through a request online, see that it’s been received and check back for regular updates? Although you’re not really offering a different end result, you’re making it much easier to work with you than any of your competitors.
Of course, this relies on doing a bit of research, and talking to your clients about their biggest pain points.
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