Any small business represents a risk. According to government statistics, about a fifth will fail in the first year and around 50% won’t make it more than half a decade.
However, the staffing business might be worth the bet. The industry nearly reached $500 billion in global revenues in 2019, the most in its history. This was up from $280 billion in 2009.
Of course, COVID created a stumbling block. But with companies going to hybrid work structures and more flexible staffing policies, the need for recruiters will only grow over time. You just need to know how best to capture the opportunity.
With that in mind, here are eight development tips for starting your own staffing firm:
Research the Market
Before launching your business (and certainly before spending any money), do as much research as possible. Understand the staffing situation in the areas you want to attack. Here are some items to keep in mind
- Your potential competition
- The environment for your target industry
- The conditions in your geographical market
- The general economy
- Labor market dynamics
Find Your Niche
Every business needs a competitive edge. What’s yours? What will you bring to the staffing industry that doesn’t exist already?
Discovering this niche will give you a good basis for building your staffing firm. Over time, you can grow beyond this starting point. But for a new venture, having a well-defined purpose will increase your chance for survival.
Make a Business Plan
Don’t go into your venture unprepared. Sure, you’ll need a fair amount of improvisation to overcome the unexpected challenges that pop up. But this will get easier if you have a solid foundation in a business plan.
Use Your Network
Networking is crucial in any job search. It also helps in the process of starting a business, especially a staffing firm.
Get feedback on your plans. Ask the people in your network to weigh in on your proposed endeavor. This will help you tweak your process and get off on the right foot.
Sweat the Details
Starting a business involves many steps. It also requires contact with a lot of regulatory agencies. It’s important to get all the paperwork filed and stay on top of the details.
Build a Killer Team
You won’t succeed alone. You’ll need a stellar staff to achieve your dreams. This is particularly important in the early going. Carefully choose the perfect team to launch your business.
Master the Art of Marketing
Out of the gate, your new venture will have zero brand recognition. Change that as fast as possible. Leverage every outlet to get your name out there. This can include:
- Keep networking
- Build a website
- Send out press releases
- Social networking
- Hire a marketing firm (if you can afford it)
Have Funding Options
You’ll need cash to start your staffing company. And, as operations ramp up, you’ll require additional sources of funds to smooth out your cash flows and protect against unexpected problems.
Looking to Develop Your Startup Staffing Firm? Frontline Funding Can Help!
Build a relationship with a funding company, so you’ll have access to cash when you need it. Frontline Funding can give you the security and flexibility you need to get your new staffing venture off the ground.
Contact Frontline Funding today to learn more.