Any startup represents a risky endeavor. By the end of five years, fully 90% of new ventures have run their course. As you build your staffing startup, do you have the structure in place to avoid this fate?
You’re likely in a better position than most startups. With the rise of the gig economy and a more mobile workforce, the staffing industry is likely to see ongoing growth. One estimate pegged the industry growth rate at 9% this year, following a 21% surge in 2021 (which was coming off the COVID doldrums.)
Still, you can’t just jump into a growing industry and hope for the best. You need to position your firm for success. With that in mind, here are five factors to remember when building a staffing startup:
Five Factors to Make Note of When Forming a Staffing Startup
Know Your Founding Purpose
Let’s face it: you’re not reinventing the wheel here. As you consider a staffing startup, you are entering a crowded field. The American Staffing Association estimates that there are about 25,000 staffing firms in the U.S., with around 49,000 total offices.
Given the competition, your first job is to determine where you fit into that market. To figure that out, think about some of the following considerations:
- What is your staffing niche?
- How do you define your competitive advantage?
- Why would clients choose you over the established competition?
Answering these questions will help focus your efforts. The fact that you face well-established competition shouldn’t scare you from entering the staffing market. However, it should force you to develop a well-focused set of goals meant to set you apart.
Create a Detailed Business Plan
Whether launching a new dating app, making cupcakes, or matching candidates with employers, every startup requires a business plan. Once you’ve established the guiding principles for your staffing firm, it’s time to lay out the nitty-gritty of getting started.
After all, your staffing startup represents an entrepreneurial endeavor. Take that money-making part seriously. That’s the only way you’ll sustain the firm over the long haul.
A strong business plan outlines how you’ll ramp up the business, what the eventual organization will look like, and how you’ll operate it on a sustained basis. Having this documentation in place will help you raise money, hire initial employees, and guide you through the process of developing your staffing firm.
Build a Strong Core Team
You can’t build your staffing firm on your own. Even if you plan on launching as a one-person shop, you’ll need support. You’ll need help with functions like legal, accounting, and tech.
Longer-term, you’ll likely need full-time staff members as well. Finding top talent will take some of the burdens off your shoulders and open the door to innovative solutions to the challenges you’ll face. Luckily, you already have expertise in staffing — you’re a step ahead in building an excellent team to launch your venture.
Connect with Job Seekers
A big part of your startup involves attracting sought-after talent. This will give you the value proposition you need to attract clients. As such, you’ll need to make this process central to your staffing firm’s launch.
Consider what kind of job seekers you want to bring into your firm. From there, you can develop a marketing strategy to connect with them. In addition, think about how you’ll build long-lasting ties, laying a foundation for enduring success.
Develop a Flexible Funding System
You’ll need cash to build your staffing firm. Once you’re running, you can count on incoming payments to fuel operations. However, in the early stages, securing capital will represent a key priority.
Early in the process, consider where you’ll obtain these financial resources. From investors to loans, you’ll have choices.
Want to Build Your Funding Plan to Help Build Your Staffing Startup?
The more diverse your funding plan, the better off you’ll be. As you research your options, fold in as many alternatives as you can. A partner like Frontline Funding can provide the support you need as your staffing venture expands.
Contact Frontline today to get the help your staffing startup needs.
