SMBs should cut where necessary, look for new opportunities, says staffing CEO

Kip Hollister, founder and CEO of the leading staffing company Hollister, Inc., knows a thing or two about staffing a successful company. She recently provided some advice about managing employees and business financing during difficult economic times, encouraging small business owners to scrutinize their current business model and look for new business opportunities.

In a recent column in the Boston Herald, Hollister told small business owners that they should focus on increasing marketing and meeting clients' needs, as well as increasing networking and face-to-face interactions.

She also told small business owners to scrutinize spending reports from the past five years to see where cuts can be made, advising them to negotiate with suppliers if necessary.

Downsizing may also be necessary in departments that are not contributing to the company's growth, though it should be done with advanced warning and all at once.

For the employees that do stay on, Hollister advised small businesses to provide praise and performance-based compensation to boost employee retention and satisfaction.

In addition, with the overflowing talent pool caused by high job losses, companies may also want to consider hiring new talent to keep their company fresh.

Although the June job losses marked a 26-year high at 9.5 percent, small business hiring has actually increased by 1.5 percent this year, according to the June SurePayroll Small Business Scorecard.