Friday, October 31, 2014 11:22:45 AM
From my discussions with the company, during their initial start-up they were very hungry for business and were willing to take lower margin business in lieu of volume. This high volume business worked fine in the beginning but also came with considerable risk because of the amount of receivables they were occurring.
Because the company has done such a stellar job with the exponential growth of their clientele, the company took a proactive approach by culling their client accounts in order to do away with their higher risk/low margin accounts and focused on increasing their exposure with lower risk/higher margin accounts.
This move was incorporated in their original business model and had been planned all along, once they achieved a diversified clientele and enough revenue stream to warrant the move.
One of the most positive aspects of this company is their corporate infrastructure. It's obvious that their moves are very similar to Labor Ready when they were in their "aggressive growth" phase. The significant difference is the scaled down learning curve because LTNC's executive management has been to this rodeo before and know the best strategic moves to make and when to make them.
Certainly having the previous COO of Labor Ready/True Blue on their Advisory Board overlooking their growth doesn't hurt either!
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