How to Start a Staffing Agency

Open a staffing agency and grow a business that helps businesses grow

For many job recruiters, the decision to start a staffing agency begins with one realization: businesses today have to change rapidly to keep up with the competition. The staffing revolution is the single greatest contributor to the growth of this massive industry, which is on target to top $160 billion this year.

Opening a staffing agency enables you to tap into this explosive industry, serve your clients, and make a sound investment in your future. However, opening a staffing agency can be challenging, as well. There are several things to consider about industries and businesses in your market.

Before you jump into a potentially lucrative staffing agency of your own, here are a few points to consider.

The staffing industry is huge

When it came time to find that perfect new associate, corporations and businesses in America turned to staffing agencies last year at a staggering pace, with the industry exceeding more than $160 billion. The secret to the success of the industry is that it flips the paradigm on finding and hiring new employees.

Starting a staffing agency doesn’t mean you’ll be stuck courting the biggest industries in America, either. In fact, more and more small- and mid-sized businesses are tapping into the resources of staffing companies to find employees.

The staffing industry also is no longer restricted to big cities with big industries, either. Look around, and it’s clear this revolutionary industry is primed to change Middle America, too.

Staffing agencies are growing quickly in smaller communities

When you think of staffing services, chances are you’re imagining a big name hanging on top of a big building in a big city. While this may have been true 10 years ago, it’s hardly the case anymore.

Start a staffing agency in a small or mid-sized community, and you’ll quickly discover you’ve become a hero for businesses in the area that are starving for talent.

Businesses of all sizes turn to staffing agencies to find new hires

In bygone years, staffing agencies worked almost exclusively for large companies and industries in their communities. That’s beginning to change, and even small mom-and-pop operations are starting to seek out the help of staffing companies to fill everything from positions waiting tables to manufacturing cabinetry.

One of the fastest-growing segments of the staffing industry serves small- and mid-sized communities and provides personnel for agriculture, administrative and business services, light industrial companies, and light manufacturing facilities. These employers are looking for everything from day labor in fields to skilled workers to complete precision manufacturing tasks.

From front office to loading the trucks, businesses need personnel, and a staffing agency is where they’re turning to find it.

Starting a staffing agency is a calling

When you make the decision to start a staffing agency, you need to understand the mechanics of what makes a staffing agency work for your clients. After all, client businesses and industries are paying your new staffing company to provide a valuable service.

When it comes to opening your new staffing agency, you should bear in mind how the most successful agencies serve their clients. Specifically, starting a new staffing agency means you’ll provide:

  • Qualified employees who are ready eager to go to work
  • Skilled laborers who are ready on day one to do the job they’ve been sent to do
  • Workers who are responsible, on time, and trustworthy
  • Accountability for workers and follow-through with what you say you can provide
  • Accurate and timely reports so that your client knows how much they’re spending and that they’re getting the best value for their money

Providing this kind of peace of mind requires focus, dedication, and understanding. The right individual can successfully grow a staffing agency into a thriving, vital service with potentially high profit margins.

How to start a staffing agency in your community

To start a staffing agency in your community, there are several steps you have to take to position yourself for success. These steps will help guide your progress and set up your business.

  1. Decide on the kinds of businesses you want to serve. Look around your community. Where do you see the biggest market for employees? Consider how you can position your brand to tap into that market. Make a list of potential businesses who might need your services, and then take a look to see where they’re getting employees currently.
  2. Build a brand and marketing to serve your target audience. Once you’ve identified the industries and businesses you hope to target with your new agency, you’ll need a brand identity and marketing materials to get the word out. That means logos, websites, brochures and fliers, and business cards. You’ll want to make sure every aspect of your new brand is top-notch, too. Otherwise, potential clients might not choose your service.
  3. Set up your new business. With a brand and list of potential clients, you now can get started with the paperwork of setting up your business. Check with the local Chamber of Commerce to see what the requirements are in your area before you hang out a shingle. In many communities, even a home-based business requires a license to operate. Also, you may need to secure liability insurance, workers’ compensation insurance, and other legally required protections for your company and your employees. Requirements for staffing agencies vary by state, so you might need to seek the advice of a local business lawyer, as well.
  4. Join professional and business organizations. With your licenses, insurance and new business cards in hand, it’s time to reach out to local organizations that serve your target markets. Join the Chamber of Commerce in your area. This is a great first step to introduce yourself to your potential clients. Also, consider other business groups such as home builders’ associations, agri-business groups, or local service organizations like Rotary International or the Lion’s Club. These organizations are where you’ll meet many business owners who will, eventually, become your clients.
  5. Start recruiting potential employees. If you’re going to provide staff to businesses, you’ll need people to do the work. Run ads in local classifieds, on job boards, and online on sites such as Craigslist and Indeed. Once resumes and applications start rolling in, you’ll have a base of talent to begin screening and placing.
  6. Visit local businesses and start advertising your services. With a pool of potential employees, a selection of potential clients, and a strong brand all in place, now you can get out and start making money with your new staffing agency.

When you set out to open a staffing agency, you’ll have to follow these steps and numerous others to start staffing local businesses with the best talent. One way you can position yourself better in the market is to target the right businesses.

Target the right businesses when you’re starting a staffing agency

What is the biggest industry in your community? Perhaps there are several businesses that frequently run help-wanted ads. These are the kinds of businesses and industries where you’ll be able to carve out a niche in the staffing industry.

The fastest-growing segment of the staffing industry is found in smaller communities with about 25,000 people, where the “big” employers are farms, light manufacturing like that found in cabinet shops or machine shops, and light industry. These businesses also make up the backbone of the economy.

Yet, for many small- and medium-sized businesses, finding staff to do the work is daunting. That’s where you come in. Start a staffing agency, and you can help businesses in your area get to work.

Essential Pros Franchise takes the guesswork out of starting a staffing agency

If you’re ready to jump into the staffing industry and would like to get ahead of the competition, consider opening an Essential Pros franchise instead of going it alone. With an Essential Pros franchise, you’ll have the marketing, business, and operations support you’ll need to thrive in a competitive space.

For information on owning an Essential Pros franchise, visit our research pages. Or if you’re ready to get started, request our free franchise information report.

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