Staffing agencies are the ones associated with the recruitment process. These focuses on specific industry niche like recruitment of executives or nurses. For starting a successful staffing or recruitment agency it involves a perfect business plan , a properly set recruitment agency involves a solid business plan, knowledge on law about licensing, hiring and taxes and a proper marketing plan for getting clients.
Basics to make money with staffing agencies
In the temporary staffing agencies their lease employees to the companies that need staffs. These make profit by paying the employees less than what they charge their clients. What matters is the margin which varies but can range from 30% to 70% depending on the kind of industry, supply, demand and location. Those leased employees require minimal overhead and can be dismissed when it is not needed. The employees also like temporary staffing agencies and these provide with new opportunities and a perfect flexible work environment. They can be stepping stones to permanent position.
Starting and growing the business
In this section you can discuss the basic steps for starting and growing successful staffing agencies.
Take an adequate evaluation of your skill set
It is necessary to try out specific skills to be successful in the industry. At the same time it is important to know how to:-
- Find employees.
- Find clients.
- Match making the clients and employees.
- Managing personnel and employees.
These skills are equally important and if you don’t have one then there might be a chance of your company’s failure. It is important at the same time to examine your skill set and determine if there is any gap. Try to fill those gaps by hiring an appropriate employee.
Supporting a right industry
For this one need to examine the market needs and ensure that the company fulfills them. So also you must understand the supply or demand cycles of the selected industry. Mostly the staffing industry includes segments like office or clerical, industrial, professional or technical strategies. Focusing on an industry segment is not enough. So also to develop a very specific niche within your selected industry category. It’s easier for starting within a small sub specialty and grows from there.
Determining a proper startup costs
For a startup it’s necessary to look forward to a proper cost. This can be divided into two categories. The establishment one and the operational one. In the establishment costs the costs needed is to setup the basic business. It does happen that many of these are for just one time investment and need to be paid before you can start dealing with your first client. These include legal setup expenses, computers, software, office and insurance. The other one is the operational costs which are the costs that you pay for finding employees, clients and for delivering the first month of the services. These generally take on higher skilled job assignments that require higher startup costs because of the salaries are higher, testing needs are quite complex and you must present a polished image.
Extra effort
It is important that apart from the above one must understand the agency’s cash flow and analyze it weekly. Determine where to find the employees. Find out proper clients for marketing and sales strategy. Get appropriate payroll services and proper insurances.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin