The Arguments for Investing in Growth

We need to increase our earning power

While most sta�ng agency and recruiting firm owners automatically assume that growth is a good thing, there may be reasons to maintain your company’s status quo.

This checklist and worksheet was designed to help you and your management team explore the pros and cons of growth to help in making the decision of whether to invest in a growth strategy.

Growth Models for Sta�ng Agencies √ Deepen market penetration and get more

market share

√ Take your agency into new geographic

markets

√ Expand your current service line

√ Diversification

√ Merger or acquisitions

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We need to limit our clients’ ability to control our growth

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We need to build more capitalRelevancy (1-10):

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Growth allows us to become more of an expert in our niche(s)

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Growth gives us a better opportunity to build our brand and reputation

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We need to respond to increased market demandRelevancy (1-10):

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We’re turning down work because we have a lack of capacity

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Growth lets us build on our current successesRelevancy (1-10):

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We’re struggling with tight competition and could benefit from moving into a new location

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We’re struggling with how to di�erentiate ourselves and could benefit from moving into a new location

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Growth gives us an opportunity to take advantage of economies of scale

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Growth gives us an opportunity to attract better candidates

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Growth gives us an opportunity to attract better employers

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Growth gives us an opportunity to attract better employees

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Growth puts the owners in a better position for selling or exiting the business

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Picking the wrong strategy will have disastrous consequences

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Growth is costlyRelevancy (1-10):

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The Arguments Against Investing in Growth

We don’t have the resources for growth on handRelevancy (1-10):

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Growth means being less responsive to our current clients

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We will have additional expenses for trainingRelevancy (1-10):

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It will become di�cult to maintain our current competitive advantages if we grow

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Finding the right people to implement our growth strategy will be di�cult

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Growth means that we will have more financial obligations

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We risk tying up too much cash in pursuit of growthRelevancy (1-10):

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Growth will require higher sales quotas and better sales people

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Growth will increase the pressure on our sta�Relevancy (1-10):

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Growth can mean working longer hours with bigger responsibilities for owners and managers

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As we grow our agency, increased revenues will likely be accompanied by increased expenses

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Taking on more sta�, growing our customer base and managing our agency’s technology will increase pressure on our systems and processes

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Growth will require that we take on new sta� and we’ll need to worry about training, taxes, insurance, accountability, and more

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