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Growing a Business

X-Ray Temps is a professional search firm providing radiology professionals to the medical imaging community. The mission of X-Ray Temps is to provide outstanding medical imaging professionals who will deliver excellent diagnostic studies.

Ms. Marshall, a radiology technician, founded the firm in July 2000. Prior to founding X-Ray Temps, Marshall worked in a number of hospitals and imaging centers in addition to teaching. In the course of working as a radiology technologist, Marshall recognized the need for high quality temporary staffing and recruiting services which could fill temporary and permanent radiology positions. Using her personal network of contacts with imaging professionals and imaging centers, she began to offer staffing services under the name of X-Ray Temps.

At this time, Marshall is interested in growing her business. She believes she can make more money if she brings in more business and clients. However, she has a few problems that need to be resolved in order to increase the size of her business.

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Think About It

This case is about basic business management, and yet it is a very complex case. Operating a small entrepreneurial business takes a strong sense of purpose, total focus, optimism and belief in one's self. On average 50 percent of small businesses fail in the first year, usually due to undercapitalization. X-Ray Temps has been operating successfully for three years but has suddenly taken a downward turn. Over the past year X-Ray Temps has experienced a 30 percent decline in placements.

Consider what you would do to in the case of X-Ray Temps. What ideas do you have for how to grow the business? Make it more profitable? Increase the client base? Spread overhead over more clients?

Pay attention to the size of the business, the customer base, and the age of the business, the tax implications, and the number of employees.

· Define the problem. How would you describe the situation at X-Ray Temps?

· Is this a situation that needs immediate attention or do you have time?

· What additional information must you have to resolve this issue?

· Who else must you involve in the decision-making process?

· What are the options for increasing the business?

· How would you prioritize the options?

· Are there risks associated with these options? What are they?

· What action would you recommend?

· How would you measure the success or progress of the chosen option?

· What would be an exit strategy if the chosen actions do not work?

Formulate your own response before you read what really happened. Remember, the actual steps that were taken might not have been the best. See if you can come up with a better solution.

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Week 3 Summary

This week, you learned about quantitative analysis. It not only shows more clearly the current situation, but also allows you to make estimates about the future.

Finally, you learned about bottom-line management, which goes beyond profit and loss.

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