How to grow a service business with erratic monthly income? Advice needed!

  • Here are the details to fill in the gaps. I’m looking for advice on how to get to a point of hiring people to scale. (instead of contracting people)

    I own a project services business meaning we provide project services on a “one off” basis to our clients. We are slowly getting more business, but my challenge is having enough cash on hand to HIRE team members? Our income is erratic throughout the year due to 60/90 day pay cycles and having additional cash tied up in projects. (10k one month, 2k the next, 50k the next etc.)

    Right now its just me and I recruit/1099 all my guys through agencies (which costs me more).

    Quick stats: 2013 revenue was $250k, 2014 is projected to be $500k+, no investors, all organic growth, 10yrs in business.

    Thanks in advance for advice.

  • You just have to be willing to fire if your burn rate becomes unsustainable.

    I sold a services company and one reason we decided to sell was that the risk of hiring enough staff to cover all our potential customer work was too high for some founders.

    It’s a risk, but hiring those 2 or 3 first employees will bring so much value to your company. Make sure you’re hiring the right people though. Hire slow, fire fast.

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