Making deals in tough times: Burnett Staffing Specialists - Nashville Business Journal:

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Opening its doors in 1974, Houston-based staffinv and placement service has maintained its steadg growth in good timesand bad, finding the resources to open offices and acquirew companies in any business climate. That strategy has provenn itself overthe company’zs 35 years and Sue Burnett, companyy president, plans to continuw with it in this downturn. The company has recentlty acquired Houston-based boutique staffing firm Ltd., headed by a long-times friend of Burnett, MK Stalder. “Two of my acquisitionas have been duringrecessionary times,” Burnett “You can grow during a recession by merging smalleer companies into yours.
” Maintaining a solid, debt-free balance sheet when business is good has allowed Burnett to grow her companyy while her competitors have been When the economy turns around after a Burnett Staffing reaps the benefits of its strengthened positionj in the market. Following the recession of theearlgy 2000s, revenue climbed back to $74 million in 2007 from $37 millio n in 2003, while the company grew its stature as one of the top placementt companies in Houston. Poor economivc climates are never easy for business but they can serve asteaching moments, Burnett allowing a company to refocus its strategy. “The recessio of 1982 and 1986 were she says.
“Prior to 1982 we were a direct-hir e placement firm. Afterwards, we changed the direction of the compant and took the focus from direct hire and put it more on the tempworkeer side.” When the mid-1980s downturn hit, Burnettr found the direct-hire model was struggling. Many if they were even still around, weren’t looking for permanent employees, she “We almost lost our Burnett says. “Half our clients went bankrupt.” With a new strategyh in hand, Burnett Staffing opened additional offices throughout Houston in 1986and 1988.
Throughouy the boom of the 1990s, Burnett continuesd to expand the buying an El Paso placement firm in 1996 and openin an office in Dallasin 1999. Durinfg the downturn of the early 2000s, Burnett Staffing scaled back some of its but never lost sight ofits long-term “We cut back costs right at the beginning (of the Burnett says. “We lost a major clieng in 2001. We cut our profit-sharing match, and we cut our raises and downsizeeour staff. That got us (but) we also went out and really aggressivel y hitthe street.” That “hitting the is essential to surviving tough Burnett says.
Trimming costs may be effective in the short butBurnett doesn’t hold any illusionsw about the most effective way to survive a downturn. “In a recessionary time it is very important to sell your way she says. “Every single week we have broughrt innew businesses. You can’t save your way out of a Burnett Staffing remained profitable during the lean years of 2001through 2004. By staying debt-free, the firm was able to self-finance the acquisitio n of Dallas-based TDY Temps in 2001 and open a call center for a largde client in Palestinein 2005.
So when the current downturn hit late last Burnett knew from experience that business would takea hit, but she also knew as the industry consolidated due to the companies such as hers could find an opportunity to strengthen themselves. Burnett Staffing’s deal with MK Personnel, whichg specialized in high-end administration and legalo support, diversifies Burnett’s specialitiesx and brings in top talent, namely MK Stalder, who is one of the top performersdin Houston’s market.
Stalder says she made the decisiohn to join BurnettStaffinbg because, after 28 years in the she wanted to “slow