How To Start A Staffing Agency
A Step-By-Step Guide
Helping people find work and delivering quality help to companies in need can be very rewarding. Yet temporary staffing is a complicated business; getting it all set up and functioning is a lot of work. When economies turn around and grow, demands for temporary staff rise and those capable of delivering the right staff can do very well for themselves.
Step 1. Incorporate or establish your business entity with a unique and memorable name. You’ll need something that will help you stand out and build name recognition down the road. If you intend to serve a specialty industry, consider incorporating something from that industry in your name.
Step 2. Obtain a business license for any city or county in which you operate. If you operate multiple offices, this may mean multiple licenses. Keep your operation legal, as staffing is an industry where litigation can easily happen and you don’t want to be found with anything out of order.
Step 3. Secure sufficient financing to operate without revenues for at least six months. You have to be able to make payroll for your temporary staff as well as any recruiting and sales staff in your office. Clients don’t always pay their invoices as quickly as you would like. You have to be prepared for a significant gap in cash flow. You will also have all your start-up capital and marketing expenditures to consider.
Step 4. Purchase liability insurance for your business including worker’s compensation insurance. Your temporary staff may be performing important functions for your clients. Their mistakes are your mistakes. You don’t have direct supervision of your employees and anything can happen to them when they’re at the worksite. With so many variables beyond your control, you need good insurance.
Step 5. Set up a system allowing for frequent payroll; staffing agencies pay their temporary staff weekly. While you can purchase payroll software or start with manual checks, many start-ups and small businesses choose to outsource to payroll services.
Step 6. Purchase mailing lists and phone directories for the industry or industries you intend to serve. You’ll need materials both for recruiting and for soliciting clients. Consider resources such as professional licensure lists, trade association directories and mailing lists purchased through list brokers.
Step 7. Open accounts with social media sites, as many companies use them as a successful recruiting and marketing tool. Social media — particularly business oriented sites — allow you to seek out recruits who meet your needs as well as connect directly with key decision makers and managers of potential clients. If you can get prospective recruits and clients to link to your account, you have a solid avenue way to disseminate new recruiting needs and staff availabilities.
Step 8. Plan your recruiting and sales strategies. The best methods vary based on your target industry and types of positions you intend to fill. Cold call both clients and recruits. Employ direct mail, advertising in trade publications, advertising in newspapers, sponsoring local or industry events, posting to job boards, “drop-by” visits to potential clients, attending trade association events, email blasts and soliciting referrals from current contacts.
Step 9. Secure office space if you intend to have staff and a place where clients and recruits can come visit.
Step 10. Hire sales and recruiting staff if you plan to be more than a one-person operation. Both recruiting and selling to clients involves good sales talent. Look for someone with a successful track record in staffing or the industries you intend to serve