Given the current labor market, the recruiting industry looks like an attractive investment for the post-COVID marketplace. But are you ready to launch your own staffing company? Make sure you have the details you need to create the most successful venture you can.
Even beyond the near-term prospects created by the post-pandemic labor market, staffing has shown long-term strength. The industry posted revenue of $497 billion worldwide in 2019, the last year before the pandemic.
2019 marked the fourth consecutive year of gains for this measure. Global revenues expanded from $409 billion from 2015, a gain of nearly 22% over the course of four years.
Can you capture your share of this thriving business? Of course! You just need to get the most out of your investment.
Four Tips for Starting a Successful and Profitable Staffing Company
#1 Leverage Your Expertise
Going into the launch of your staffing agency, you have a vision of what you want to accomplish. At the same time, you’ll have a very specific background — a set of experiences that you bring to the project.
Let this vision and your personal skill set serve as the core of your new business.
Have a medical background? Focus on healthcare staffing. Know the world of finance? Look to place accounting and finance professionals. Let your background inform the niche you’d like to target.
#2 Plan Before You Spend
It’s old wisdom, but it still applies to the modern world: “measure twice, cut once.” That advice could save your burgeoning staffing startup.
As you begin your entrepreneurial adventure, you’ll have extremely limited resources. You can’t waste any of your scarce funds on unnecessary expenses. This puts a premium on patience and planning.
Plot your moves before you act. Make a budget. Create a business plan. Talk everything over with the people around you.
Once you’re ready to invest your time, money, and effort, you’ll be able to make the most efficient decisions possible. You’ll have a blueprint to create your ideal staffing firm.
#3 Build a Killer Team
You aren’t going to succeed on your own. Even in the early stages, you’ll need a support staff to facilitate your growth. Make sure you pick the right people.
Having a tight, talented team will supercharge your staffing firm‘s potential. Especially in the beginning, a flexible, dedicated staff can take a lot of pressure off of you. By relying on competent employees, you can focus on the higher-level activities that will ultimately define your success.
#4 Remember the Business Part of Your Business
Your goal as the owner of a new staffing agency will be to do the best for your clients and your candidates. Day to day, you should focus on matching talent with opportunities.
However, you can’t forget a crucial truth. At its heart, your venture is still a business. You need to consider topics like taxes and cash flow. Otherwise, you won’t be around long enough to fulfill your core mission.
Here are a few specifics to keep in mind:
Think about the Government
Take care of all your government-related paperwork. This includes all tax documentation, as well as any regulatory oversight that applies to your firm.
Watch Your Money
If you don’t have an accounting background, hire someone who does. You need to get a grip on information like cash flow and balance sheets.
You want to go into your new business with optimism. Still, think about what could go wrong and take reasonable steps to protect yourself and your business.
Weigh Your Funding Options
Want to expand? Looking for a safety net? Then you should build a relationship with funding companies and financial institutions.
Need Help Funding Your Staffing Startup? Frontline Funding Can Help!
As you start your new business, financing the effort will become a key decision. Frontline Funding can give you the information and support you need to make your startup a success.
Contact Frontline Funding today to learn more.