Case Study
AzTech Staffing Solutions
AzTech Staffing Solutions is a 10-year-old staffing agency specializing in technology positions. The CEO is highly experienced in his trade and committed to offering his clients a great service at a fair price.
Case Study
AzTech Staffing Solutions
AzTech Staffing Solutions is a 10-year-old staffing agency specializing in technology positions. The CEO is highly experienced in his trade and committed to offering his clients a great service at a fair price.
After serving her country in the military for 4 years, including a stint as a recruiting officer, Angelina went to work for a staffing agency and eventually opened her own business, specializing in technology positions.
But after ten years, she was working long hours and felt like she was getting nowhere.
That’s when she was introduced to Limitless.
After a deep-dive into the business, we discovered that Angelina’s biggest roadblock was her gross margin.
Her margins were getting squeezed by the traditional industry approach and as a result, she continued to operate at a deficit each month.
Also, she had just a few repeat customers that represented over 60% of her revenue and no real lead generation program in place for new business development other than her own referral network.
Limitless helped her expand her service offering beyond the ‘traditional’ tech market to specialize in high demand positions and price it accordingly.
We helped her build a reliable revenue machine complete with a clear marketing strategy (target market/offering), lead gen programs (messaging/measurable KPIs), and a well-defined sales process (scripts) and infrastructure (sales team) that no longer relied on her.
Angelina was able to eventually sell her business for over $7M when it was initially valued at less than $1M.
Results
Grew revenue from $3.7M to $5.1M in 12 months
Improved net income from $69k to $250k
Increased from less than $1M valuation to a $7M+ exit
How we got there...
Revenue
Challenge
Angelina was the sole source of new business, all of which was coming only through referrals. Because she was spending so much time also fulfilling staffing requests, she wasn’t able to focus much on building a reliable new business development system. As a result, revenue from new clients was almost non-existent.
Solution
We helped the company implement a multi-pronged lead generation strategy that included niching down the target market, LinkedIn marketing campaigns, and targeting “dream list” clients with a high touch marketing strategy. We helped remove Angelina from these activities and utilized a cost-effective combination of vendors, contract staff and employees to carry the load. A simple, yet comprehensive tracking of key performance indicators was key in driving the improvements.
Results
Month over month, new business started to become more steady and reliable. Angelina was able to forecast and track performance, make corrections as required and easily see how to reach her valuation goal. Revenue grew by 38% in just one year.
Profit Margins
Challenge
When we first met Angelina, her financials did not provide a clear picture of her gross margins by service offerings. And once they did, we soon discovered some unprofitable segments.
Solution
We worked with her bookkeeper to get a clear line of sight into the margins for each of her target segments. Then we doubled-down on those that were acceptable and eliminated those that were losing her money.
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Angelina began to operate profitably for the first time in over a year and improved net income from $69k to $250k.
Organization
Challenge
The company was salary heavy with several underperformers. The culture lacked both a motivational force and accountability metrics.
Solution
Together, we identified cost effective staffing solutions and implemented programs to improve staff performance, motivate the team and hold each member accountable with monthly performance reviews and educational plans.
Results
The company hired top quality talent, both contract and staff, without overpaying, improving operational efficiency and overall morale.
“Frankly, I was exhausted and starting to think about throwing in the towel. But the Limitless team got me out of my own head and pushed me beyond my comfort zone. Thank goodness. Now, I am comfortably retired, planning my next phase of life, and spending time with family and friends.”
- Angelina Ruiz
Main Takeaways
It’s never too early to start thinking about your company’s valuation. Driving profitable, steady growth is what ALL business owners want. It’s the same work that ensures your company’s maximum value when it comes time to exit.
In a study of 23,158 companies, we found 40% of business owners have one thing in common: They are Rainmakers – the primary revenue driver for their company.
Rainmakers are exceptional at rapidly accelerating business growth, but they eventually hit a ceiling.
Revenue stagnates and business value plateaus, forcing owners to confront the Rainmaker’s Dilemma.
The solution? Become an Architect.
In this eBook you will learn:
- The defining characteristics of a Rainmaker
- The one problem Rainmakers will encounter
- Quantitative evidence on how Rainmakers affect company value
- The negative impact Rainmakers have on receiving an acquisition offer
- 9 strategies to transition from a Rainmaker to an Architect