Running a small business can be a relentless grind, especially when you’re pouring every ounce of energy into keeping it afloat. For Anne-Marie Jenkins and her husband Darryl, owners of iStaffing Services in Batesville, Mississippi, the stress was so overwhelming that they found themselves on their knees, praying for a miracle.

“We were working 24/7, and it was taking a toll on our relationship and our family,” Anne-Marie recalled. “We were at the point of giving up.”

As they faced the imminent closure of their business, the Jenkins family sought outside consulting for one final attempt to save it. They approached several organizations, including the Tennessee Small Business Development Center and the Memphis Medical District. Both recommended that iStaffing Services collaborate with the Entrepreneurship Team at Communities Unlimited (CU) and Area Director Marnell Love.

On May 10, 2024, the owners of iStaffing Services, a company specializing in recruitment, staffing, and consulting solutions for the manufacturing, supply chain, and logistics industries, contacted Love. The business struggled with significant financial losses and had already shut down its transportation services due to continued operational losses.

Desperate to save their company, they turned to CU’s Entrepreneurship Team to determine why they were losing money and to develop a plan for profitability before it was too late. When iStaffing Services started the engagement process with CU on May 14, they did not fully understand why their business was hemorrhaging funds and depleting resources.

Love began a thorough review of iStaffing’s business model, financial documents, and operating data, to identify the root causes of their financial distress, including laying out a comprehensive plan to turn the business around. Love, Anne-Marie, and Darryl began by reviewing iStaffing’s business model and operations in comparison to the staffing industry averages over a three-year period. The analysis identified anomalies in the pricing model, cost control imbalance, determine the breakeven per employee and in customers required for the business to become sustainable and profitable in six months. iStaffing and their CU consultant developed a strategic plan to address urgent and future financial issues.

They implemented the new business model and set up key performance indicators (KPIs) to monitor progress. The team identified new contracting opportunities and will help iStaffing obtain valuable small business, minority, and woman-owned certifications. They also created a five-year financial projection for the new business model to manage the business via financial goals and introduced a cash flow management tool to ensure long-term stability and effective resource management.

Through a detailed financial analysis, Love found that iStaffing’s pricing was well below industry standards. Their bill rate was 134%, much lower than the industry average of 145% to 175%. It was also found the bill rate only allowed iStaffing to fully cover its direct costs but left only $0.48 per hour per employee to cover operating costs and salaries. This meant iStaffing was losing $1.71 per hour per employee for each customer agreement.

To fix this, iStaffing needed to bill new contracts at a minimum of 160% of the pay rate and renegotiate current contracts to at least 145%, ideally 150%. iStaffing quickly adopted the new pricing policy. By May 31, they had signed a new contract at 206% of the pay rate and started renegotiating with existing clients.

Their dedication was clear as they swiftly provided all requested information and diligently implemented the necessary changes.

iStaffing is now on the path to sustainability and profitability. The new pricing strategy has already shown promising results, significantly improving their financial outlook.

Anne-Marie Jenkins expressed deep gratitude for CU’s support. She shared that Love lived nearby, so he quickly arranged to meet with them. When he sat down with her and her husband, it felt like a fresh start. Jenkins described it as the best meeting ever and was amazed by his arrival.

Love restored Jenkins’ hope and faith in continuing to provide community services and create more jobs. He called them daily, ensuring they stayed on track and providing the necessary accountability.

“If Marnell had not shown up, we would have closed our doors by now,” Jenkins said. “He was God-sent. The timing was perfect. We didn’t understand the rates or how to price our services properly, which almost led to our shutdown. But Marnell stepped in, analyzed our numbers, and quickly turned things around.”

With the immediate crisis averted, Love explained that CU is continuing to work with iStaffing on rebuilding their organization. One of the key aspects iStaffing had to cut due to financial losses was their unique approach of recruiting young people from underserved communities, bringing them to their facilities for training, and then placing them in jobs. They even had a church van and a bus donated by Mississippi State University to transport these individuals.

The process involved picking people up from disadvantaged areas, training them, and then taking them home. Once they secured jobs, iStaffing provided transportation to and from work, covering three shifts a day. This was a vital part of their operations that set them apart from others.

Love emphasized that their strategic growth plan includes reinstating this essential service. They are working on a five-year plan to not only restore iStaffing to its former status as a million-dollar business but also to address the ongoing demand for employees in Mississippi and the Mid-South area. Many people in rural areas want to work but lack transportation to get to job sites.

By bridging this gap, iStaffing helps both employers who struggle with recruitment due to transportation issues and job seekers who cannot reach work locations. CU fully supports iStaffing in this mission, as it aligns closely with its own goals of community support and development.

iStaffing Services’ story is a testament to the power of dedicated support and strategic intervention. With CU’s guidance, they have not only avoided closure but are now on a path to a stronger, more profitable future.

“I love your commitment to small businesses. You onboarded us quickly, stopped the bleeding, and provided the training. My husband and I are now better equipped to handle our finances. We are deeply appreciative of Communities Unlimited.”