If you are looking forward to start your own staffing agency from home, you must read this article. Here in this article you will find all the information and step by step guide of starting a staffing agency.
What is Staffing Agency?
A staffing agency or job placement organization matches employers to employees. Placements can be either short term or long term. Staffing agencies are compensated when they find a qualified candidate and the company hires the individual. The agency will be paid a percentage of the hired individual’s salary.
Market Dynamics of Staffing Agency Business
How big is the industry?
The staffing industry generated approximately $117 billion in sales in 2012: $104.8 billion from temporary and contract staffing and $12.2 billion in search and permanent placement services.
How many companies use staffing services?
90% of U.S. companies use temporary help services.
How many staffing companies are there in the U.S.?
According to the most current U.S. Economic Census data available, there were about 17,000 firms that were in business for a year or more during 2007. Those companies operated approximately 35,000 offices.
What accounts for the growth of the industry?
America’s work force is changing as more and more people are looking for the flexibility that temporary work provides.
Sources: American Staffing Association, U.S. Bureau of Labor Statistics
Who Can Start Staffing Agency
Anyone can start a staffing business with little to no experience in the industry. However, people with experience in staffing business operations will have added advantage. People with no experience need to work extra hard and gain experience as fast as possible.
Why You Should Consider Starting Staffing Agency
This is a growing multi billion dollar industry so there is lots of room to earn money.
– You get to work from home or in an office. You have the ability to own your own schedule and don’t have to answer to anyone.
– Low start-up costs and low overhead.
– You can make unlimited good money by just helping companies providing right manpower. Say you find a job for someone “the candidate” who will be making $80,000 per year in salary. You charge the company 20% of the candidate’s $80,000 salary. You receive a check for $16,000 within 30-90 days.
– You are giving back and flourishing the world’s global economic system by being a small business and helping other businesses find employees.
– You get to impact people’s lives everyday by assisting them with finding employment.
How to Start Staffing Agency
Follow these simple guidelines for how to start a staffing agency, and you’ll be well positioned for future success.
1. Selecting the Niche
As you are starting the business with low money from home, you must choose your niche market. There are lot of niche sectors in staffing requirements of an organization like banking, health, security personnel, nursing,etc.
2. Name and Register your business
Find a proper name for your business that reflects what your business is about. If you intend to cater specific industry sector add something about that industry into your business name. For registration of your business visit local registration authority for required permissions. Consult with your attorney on setting up your business for obtaining necessary licences and permits.
3. Develop Financial Plan.
In the first year, staffing firms should do this monthly to plan for cash flow requirements. Don’t forget to include expenses such as workers’ compensation insurance, rent and phone bills. Make a projection of your income and expenses, then calculate cash requirements needed to operate on a day-to-day basis.
4. Set up your Home Office
You have to be professional in your approach in getting success in staffing or recruitment business. Decorate your home office so that when you call candidates for interview they get confidence. Contact your phone company for a business line, and consider leasing or buying office equipment like copy/fax machine, phone system, etc. Office supplies are also necessary to run your business.
5. Insure your Staffing Business
It is advised to find an insurance carrier that understands the staffing industry. A list can be found under insurance providers for the American Staffing Association (www.americanstaffing.net).
6. Market your Staffing Services
Staffing agency business need both clients and employees. Use your existing contacts and let them know your offerings. If you don’t have any, go for cold calls as much as possible. Post job listings in the area and talk to businesses about their temporary staffing needs. To be successful in this business the only mantra is network, network and network.