Growing your marquee hire business has very many implications - not least increasing temporary and permanent staff
Your marquee hire business is a finely tuned balancing act of finite resources and assets being deployed to the best of your managerial ability for the conversion of optimal bookings into business profits.
Whilst, this is an ideal measure - in practice, its achievement can be quite evasive.
A mix between permanent and temporary staff will be arranged by you according to expectation of the coming season of bookings. Management of this is a matter of risk.
Permanent salaries of course means your business carries a significant, unavoidable exposure to revenue expense, however you have the confidence of committed, tried & tested, team members who are near enough guaranteed as 'golden' labour resources for the trying times ahead - offering an assurance and steadiness, simply not afforded by the hiring temporary, or agency staff.
'Temps' are contracted on a short-term, 'as needed' basis to suffice a specific need, as an 'on paper' like-for-like match against a reserved booking, the profit of which provides the funds for your acquisition.
Risk: Permanent vs. Temporary Hire...
Bookings cancellations coupled with unbooked labour capacity, if not covered by replacement business can leave your company open to unutilised labour in one form or another.
This kind of loss of potential profits, or 'opportunity cost', is unrecoverable and therefore to be minimised. However, realistically, it must be accepted within your business model that it will occur at times (especially during the winter if the downturn is not overcome).
Also, in need of risk evaluation is your company's dependence on the availability of permanent staff who for one entirely valid and respectable reason or another may not be available to work for a duration (specified, or unspecified), which had already been assumed in planning.
With temporary staff, where you have prior experience, you are able to benchmark the expected output of a particular assignment. Where you are having a first-time hire encounter, you can never be sure about their actual competency until you see it for yourself on the day.
Where you have a mismatch of performance vs. what was expected, this comes with varying levels of loss incurred by your business. The resulting damage depending upon exactly how misaligned the appointment really was.
Growing your marquee hire business...required more hands on deck
If operating at optimum profitability, to grow your business geographically, or to multiply marquee hire service capacity will consequentially mean that you will have to recruit to increase your labour quota.
We all know that staff, by definition are not a uniform class and quality market commodity, but rather each person being a unique blend of qualities, experiences, competencies and circumstances which all need to be considered carefully in their assessment for hire.
Recruitment agents should offer considerable value here in tailored pre-screening of candidates when sourced and thorough qualification of appropriateness for the vacancy. Latter stage recruitment could include personal 1-to-1 interview where a meeting and perhaps even practical/professional demonstration will be required.
The cost of hire also must be accounted for and the necessary revenue cost planned and made available within the business model to facilitate it.
Minimising the risk of over stretching with growth...
Where you have firm bookings or cash reserves, the risk of recruiting new hires is put out.
If, however, there is uncertainty about the materialising of said collateral, then there is exposure to unrealised return-on-investment (ROI) until the matter has been fulfilled.
Don't get caught?
Indecision, procrastination - these have got to be two of the most crippling enemies of a marquee hire business owner. Where wavering occurs, then neither progress nor calculated restraint takes place, but wasting of time which profits no man.
Draft a well-considered business plan and stick, with confidence, to your route, as written on the page. If reconsideration is called for, ensure you go about this with the proper checks, balances and reviews of a professionally controlled project management procedure.
When should you make the call?
Only when you have fully calculated the cost/benefit of the opportunity should you then proceed, without doubting. Once made, hold nothing back, no pulling away nor regret, but simply making the most of what you now have before you in order to move forward with your business plans.
What about the winter?
Winter is traditionally a bleak time for the marquee hire industry in the UK and requires serious thought as to how you might squeeze out some profits using your permanent staff during this time.
Diversifying business operations in the off-peak might further mitigate risk and therefore make the taking on of permanent staff more profitable all-round.
Categorised in: A Guide To Event Business Management
This post was written by selmore