Are you starting a staffing agency, but are unsure if it’s worth the investment? Starting a staffing agency can be an exciting and rewarding experience, but it also involves some risks.
Risks can be managed and even eliminated when important considerations are weighed and placed into action as some of the first steps to building a successful staffing agency. Here are our proven steps to move your staffing agency in exactly the right direction.
Step 1: Consider Important Questions
Before starting your staffing agency, consider the following questions that will partially determine the focus of your agency, the software platforms used within it, and the personnel who will assist in operating it:
- Is the current market for staffing agencies in need of expansion in your area?
- Will there be sufficient potential customers to sustain the agency over the first few years?
- How much startup funding is needed for the first year of business?
- How will the staffing agency offer different or unique services from those of competitors?
- Are there legal requirements to start a staffing agency in your area and have you addressed them, if so?
- What marketing methods will be used to attract potential customers?
- Will hiring experienced staff members be feasible upon startup?
These questions and more can be used to drive the business concept toward a successful start and specify your staffing agency from any competitors. Refer to this list of questions and your answers to them on a regular basis during the first year of business operations.
Step 2: Research The Target Audience For Your Staffing Agency
One of the critical first steps for a staffing agency is to discover the size and scope of your target market. It is essential for understanding how your agency fits into the current landscape. Investigate potential competitors and analyze their strengths and weaknesses, and, more importantly, how your staffing agency can capitalize on them.
Join Our Small Business Community
Get the latest news, resources and tips to help you and your small business succeed.
You’ll want to consider how to offer services that go beyond those of competitors, so your agency will stand out. In addition, consider trends in the industry that can affect your agency, both positively and negatively, and plan accordingly.
Step 3: Develop A Business Plan
Crafting a well-defined business plan is critical for the growth and long-term success of your staffing agency. A business plan includes an overview of your service, marketing and sales strategies, operational plans, financial projections, and other information that will help in making informed decisions during this phase.
If you do not have a business plan, use this business plan for a staffing agency as a comprehensive guide. Your completed document should be reviewed periodically to ensure the plan is still relevant and effective as your business continues growing.
In addition to using your business plan internally, the document can serve as a tool for obtaining financing from lenders, investors, banks, and other financial institutions. Investors and lenders will especially appreciate a well-crafted, realistic business plan when considering funding your staffing agency.
Step 4: Define The Staffing Agency Marketing Strategies
In order to successfully start and maintain a staffing agency, your business must attract both potential executive employers and a variety of candidates for numerous positions. Although much of these efforts can be made via direct conversations, you’ll want to reach the best pool of candidates for a variety of positions and, in order to do so, the marketing strategies employed must fit the needs of both the prospective employee and those of the prospective employer.
Consider using social media via Facebook and Instagram to cast a wide net of potential staffing candidates. In addition, use targeted emails to potential pools of candidates within a certain industry or professional group.
Use direct conversation to engage potential employers who will use your staffing agency to fill positions and encourage relationships with those employers by providing unique services. For example, offer a “new client” basket to executives who sign with your staffing agency and note birthdays and other special occasions for them. Every unique service offered binds your agency to your industry clients, resulting in repeat business.
Step 5: Launch Organizational Plans
As a final step, gather the information gleaned for the business plan and add the defined marketing strategies and the research found for your target market. Use this information to build a roadmap for your organization. Determine operations, staffing within your agency, policies and procedures for employees, and other necessary structural supports for your staffing agency. Put plans into operation before day one of your staffing agency.
Starting a staffing agency can be a rich and rewarding experience, especially when the components necessary to create success are in place. Use the steps in this plan to outline your own roadmap and create the long-term growth and success that comes with your planning and preparation. We wish you the best of success!