business plan staffing agency

Staffing Agency Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Staffing Agency Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Staffing Agency Plan Here

You’ve come to the right place to create your staffing agency business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their staffing agencies.

Below are links to each section of your staffing agency business plan template:

Next Section: Executive Summary >

Staffing Agency Business Plan FAQs

What is a staffing agency business plan.

A staffing agency business plan is a plan to start and/or grow your staffing agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your staffing agency business plan using our Staffing Agency Business Plan Template here .

What Are the Main Types of Staffing Agency Companies?

There are many types of staffing agency companies. Some staffing agencies will focus on a particular industry, such as clerical jobs. Other staffing agencies focus on executive job placement, while others will offer a wide range of services across all industries. Some even offer human resource functions, such as payroll, benefits administration and risk management.

What Are the Main Sources of Revenue and Expenses for a Staffing Agency Business?

The primary source of revenue for staffing agencies are the fees it charges clients to place them in a job and the revenue it receives from businesses that hire them to find and recruit suitable staff for their business.

The key expenses for a staffing agency business are the costs to market the business, as well as payroll for the support staff. Other expenses will be the rent, utilities, and overhead costs for the physical office space.

How Do You Get Funding for Your Staffing Agency Business Plan?

Staffing agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources. This is true for an employment agency business plan and specialities like a healthcare staffing agency business plan.

What are the Steps To Start a Staffing Agency Business?

Starting a staffing agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Staffing Agency Business Plan - The first step in starting a business is to create a detailed staffing agency business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your staffing agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your staffing agency business is in compliance with local laws.

3. Register Your Staffing Agency Business - Once you have chosen a legal structure, the next step is to register your staffing agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your staffing agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Staffing Agency Equipment & Supplies - In order to start your staffing agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your staffing agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful staffing agency business:

• How to Start a Staffing Agency Business
• How to Open a Staffing Agency Business

Where Can I Get a Staffing Agency Business Plan PDF?

You can download our staffing agency business plan  PDF template here . This is a business plan template you can use in PDF format.

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

• Sample Business Plans
• IT, Staffing & Customer Service

Staffing Agency Business Plan

As the job market becomes increasingly competitive, businesses are looking for innovative ways to attract and retain top talent. It is where your staffing agency will become profitable.

Are you looking to start writing a business plan for your staffing company? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a staffing agency business plan template for you to help in start writing yours.

Free Staffing Agency Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How To Write A Staffing Agency Business Plan?

Writing a staffing agency business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the whole business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon..

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview, But there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of the staffing agency and the type of agency you want for example are you writing it for a nurse staffing agency, medical staffing agency or any direct hiring firm.
• Company structure of your staffing agency whether it is LLC, partnership firm, or some other.
• Location of your staffing company and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your recruitment business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your Recruitment agency business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of a staffing company business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the services:

• Create a list of the services that your staffing agency will offer, which may include all the services for example, will the agency offer temporary staffing, temp-to-perm staffing, direct hire placement, or a combination of these services?
• Describe each service: For each service, provide a detailed description of what it entails, the time required, and the qualifications of the professionals who will provide the service. For instance, do you need a full-time HR or some other personnel specific for interviews?

Screening and Placement Process:

Overall, the product and services section of a recruitment firm business plan should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key points to include in your marketing plan:

The partnership is a blessing:

Have a competitive fee structure:, marketing strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business operations. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, client management:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your staffing business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the staffing agency. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan , it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the staffing industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your employment agency business should only include relevant and important information that supports the main content of your plan.

Download a sample staffing agency business plan

Need help writing your business plan from scratch? Here you go; download our free staffing agency business plan pdf to start.

It’s a modern business plan template specifically designed for your staffing agency business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This staffing agency business plan sample will provide an idea for writing a successful staffing agency business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready staffing business plan to impress your audience, then download our staffing agency business plan pdf.

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Frequently asked questions, why do you need a staffing agency business plan.

A business plan is an essential tool for anyone looking to start or run a successful recruitment business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your staffing agency.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your agency.

How to get funding for your staffing agency business plan?

There are several ways to get funding for your staffing business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria first before you can apply for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your staffing agency, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your staffing agency business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your employment agency business plan and outline your vision as you have in your mind

What is the easiest way to write your staffing agency business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any staffing agency business example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Staffing Agency

Back to All Business Ideas

How to Start a Staffing Agency

Written by: Natalie Fell

Natalie is a business writer with experience in operations, HR, and training & development within the software, healthcare, and financial services sectors.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 26, 2022 Updated on May 23, 2024

Investment range

$4,600-$10,350

Revenue potential

$120,000-$240,000 p.a.

Time to build

Profit potential

$108,000-$156,000 p.a.

Industry trend

A company with an open, high-level position generally hopes to find the perfect applicant. But many organizations struggle to find a good match, and turn to experienced staffing agencies for help. Right now, demand for recruitment services is at an all-time high, which is why the US employment and staffing industry is worth almost $24 billion and set for steady growth in the coming years. 

Staffing firms do all the heavy lifting in terms of sourcing candidates, setting up interviews, and extending job offers. But before you start flipping through that virtual rolodex, it’s important to understand the fundamentals of starting and running a business. 

Lucky for you, this step-by-step guide has all the information and insight you need to put you on the road to staffing success.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Before starting a staffing agency, it’s important to weigh the pros and cons.

• Flexibility – Set your own hours and work from anywhere
• Low Overhead – Low startup costs and ongoing expenses
• Rewarding – Help people find their dream jobs!
• Extensive Networking – It takes time to build a network of candidates and clients
• Tough Customers – Clients can be picky when hiring for open positions

Staffing Agency industry trends

Industry size and growth.

• Industry size and past growth – In 2022, the US employment and recruiting agency market is worth $23.2 billion after 2.3% annual growth since 2017 . (( https://www.ibisworld.com/industry-statistics/market-size/juice-smoothie-bars-united-states/ ))
• Growth forecast – The global recruitment and staffing industry is expected to grow about 2% per year through 2028.(( https://www.verifiedmarketresearch.com/product/recruitment-staffing-market/ ))
• Number of businesses – There are 10,950 employment and recruiting agencies in the US as of 2022.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/employment-recruiting-agencies-united-states/ ))

Trends and challenges

Trends within the staffing industry include:

• New developments in artificial intelligence are changing the way staffing agencies operate. AI enhancements are automating key parts of the recruitment process, like candidate sourcing, reviewing resumes, and scheduling interviews. 
• Employers are making huge commitments to diversity and inclusion . Staffing agencies are also making it a priority to recruit talent of all cultures, genders, and professional backgrounds. 

Challenges within the staffing industry include:

• The recent pandemic has resulted in a shortage of customer-facing workers, especially in the retail, healthcare, and hospitality industries. Jobs in these areas have been tough for companies and staffing agencies to fill.
• Remote work is becoming the norm and many candidates are making it a requirement when looking for a new job. Companies that don’t offer remote work may have trouble attracting talent, making it harder for recruiters.

What kind of people work in staffing and recruiting?

• Gender – 59.9% of all recruiters are women, while 40.1% are men.(( https://www.zippia.com/recruiter-jobs/demographics/ ))
• Average level of education – 69% of recruiters have a bachelor’s degree.
• Average age – The average recruiter in the United States is 40 years old.

How much does it cost to start a staffing agency?

Costs to start a staffing agency range from $4,600 to $10,400. Your costs will greatly depend on how much you spend on advertising your services and posting your client’s positions on job boards .

You’ll need a handful of items to successfully launch your staffing agency, including: 

• Staffing Agency Software
• Logo and branding

How much can you earn from a staffing agency?

The average rate charged by permanent staffing agencies is 20% of the hired individual’s first-year salary. You’ll have very few ongoing expenses, aside from advertising and posting jobs. Expect a profit margin of around 90%. 

In your first year or two, you could run your business from home and fill one position every two months. Assuming each job paid a yearly salary of $100,000 and your commission is 20%, you’d bring in annual revenue of $120,000. Assuming that 90% margin, you’d make a profit of $108,000. As your business grows, you might hire additional staff and rent an office, reducing your profit margin to 65%. If you doubled annual revenue to $240,000, you’d make an impressive profit of $156,000. 

What barriers to entry are there?

There are a few barriers to entry for a staffing agency. Your biggest hurdles will be:

• Financing (time + money) the build-out of a strong network 
• Drawing clients away from established recruiting firms

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Step 2: hone your idea.

Starting a staffing agency requires a good understanding of the job market, strong networking skills, and the ability to quickly adapt to changing client needs. Tailor your services to fill market gaps, and focus on building long-term relationships with both clients and candidates.

Why? Identify an opportunity

To start a staffing agency, first conduct thorough market research to understand the current labor market trends and identify sectors with high demand, like healthcare or IT. Consider specializing in a niche where you have expertise or see a market gap, as this can differentiate your agency from competitors.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as staffing IT or creative professionals.

Also, analyze what existing staffing agencies are doing and look for opportunities they might be missing.

What? Determine your services

You’ll be providing recruitment and staffing services for companies with open jobs to fill. Many agencies specialize in a specific industry, which helps narrow down viable candidates and customers. Some staffing agencies may also focus specifically on temporary or seasonal workers.

Consider offering specialized services like background checks, skill testing, or training programs, which can add value for your clients. Be adaptable and ready to modify your services based on client feedback and market demands.

How much should you charge for staffing services?

Research the market rates to understand what competitors are charging, which can be either per hour or a percentage of the employee’s annual salary. Conduct a cost analysis to ensure your pricing covers operational expenses and allows for a profit margin.

When recruiting full-time employees, staffing firms usually charge 10-35% of the employee’s annual salary. Rates depend on the agency’s reputation and the positon being filled. Offer different pricing models to accommodate diverse client needs and be transparent about your fees to build trust.

Once you know your costs, you can use our profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Identify potential clients who would benefit most from your services, such as businesses in rapidly growing industries or those with seasonal staffing needs. Use networking, both in-person and through platforms like LinkedIn, to connect with potential clients. Develop a marketing strategy targeting your identified client base through appropriate channels, including industry publications and local business events.

Where? Choose your business premises

Consider a location that’s easily accessible and close to business districts or industrial areas. Decide whether to start with a physical office or operate remotely to reduce initial costs. Choose a space that allows for growth; if starting small, co-working spaces or small offices with no long-term commitments can be ideal.

Step 3: Brainstorm a Staffing Agency Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “staffing agency” or “staffing firm”, boosts SEO
• Name should allow for expansion, for ex: “ProHire Solutions” over “TechTalent Connect”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Staffing Agency Business Plan

Here are the key components of a business plan:

• Executive Summary: Summarize your staffing agency’s aim to connect qualified candidates with businesses, highlighting your expertise in specific industries or job types.
• Business Overview: Describe the focus of your staffing agency on providing recruitment and placement services for temporary, permanent, and contract positions.
• Product and Services: Detail the services offered, including candidate sourcing, screening, interviewing, and placement for various industries.
• Market Analysis: Assess the demand for staffing services, identifying target industries and employment trends in your operating region.
• Competitive Analysis: Compare your agency to other staffing firms, emphasizing your unique strengths like specialized industry focus or a superior candidate vetting process.
• Sales and Marketing: Outline your strategy to attract both clients and job seekers, through methods like networking, digital marketing, and participating in industry events.
• Management Team: Highlight the expertise and experience of your team in recruitment, human resources, and industry-specific knowledge.
• Operations Plan: Describe the process of matching candidates with employers, from initial consultation to placement and follow-up.
• Financial Plan: Provide an overview of start-up costs, revenue streams from placement fees, and operational costs.
• Appendix: Include supplementary materials such as detailed market research, client testimonials, or recruitment strategies to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to staffing agencies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your staffing agency will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a staffing company. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Staffing Agency Business Licenses and Permits

Starting a staffing agency requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your staffing agency as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as Bullhorn , Recruiterflow , or Harver , to track candidates, schedule interviews, and post jobs. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Developing a website is crucial for your staffing agency, as it serves as the digital storefront of your business, providing a first impression to potential clients and candidates. Utilizing website builders like Wix or Squarespace is a cost-effective and user-friendly option, especially if you’re starting with a tight budget or prefer a hands-on approach. Alternatively, hiring a professional web designer can provide a more customized and polished look.

Your website should be optimized for search engines (SEO) to increase visibility, incorporating relevant keywords related to staffing and your specific niche. Importantly, include strategic call-to-action (CTA) buttons, such as “Contact Us,” “Submit Resume,” or “Request Staff,” prompting visitors to engage directly and helping convert website traffic into tangible business leads.

Here are some powerful marketing strategies for your future business:

• Build a Strong Online Presence: Regularly update your site with industry-relevant content, like blog posts and case studies, to boost your visibility online.
• Leverage Social Media: Utilize platforms like LinkedIn, Twitter, and Facebook to network with potential clients and candidates. Share industry insights, job postings, and success stories to engage your audience.
• Email Marketing: Develop an email marketing campaign to regularly engage with your contacts. Share updates about your services, new job openings, and market trends. Personalize your emails to increase engagement.
• Networking and Partnerships: Attend industry events, job fairs, and seminars. Building relationships in person can be incredibly effective. Partner with local businesses, educational institutions, and professional associations to widen your reach.
• Referral Programs: Implement a referral program to encourage current clients and candidates to refer others to your agency. This can be a cost-effective way to generate new business.
• Targeted Advertising: Use targeted online advertising to reach specific demographics. Platforms like LinkedIn and Google Ads can help you target businesses and job seekers in your chosen industry or location.
• Content Marketing: Create valuable content like how-to guides, industry reports, and infographics. This establishes your agency as a thought leader and helps attract organic traffic to your website.
• Client and Candidate Testimonials: Showcase positive testimonials from clients and placed candidates. Real success stories can significantly enhance your credibility.
• Local SEO: If you’re focusing on a specific geographic area, optimize your online presence for local search. This includes having your agency listed in local business directories and Google My Business.
• Follow-Up Strategies: Develop a system for following up with both clients and candidates post-placement. This helps in building long-term relationships and encourages repeat business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your staffing agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your staffing agency could be:

• Hit your hiring goals with Five-Star Staffing
• Recruiting solutions for growing businesses
• Nobody finds top talent faster!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a staffing agency, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in staffing for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in recruiting. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a staffing agency include:

• Recruiters – Source qualified candidates, manage client relationships
• Office Manager – Bookkeeping, schedule meetings
• Marketing Lead – Manage social media accounts, generate new business

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Staffing Agency – Start Making Money!

With your own staffing agency you can build long-lasting relationships, help companies find the talent they need and help people carve out fulfilling careers. Staffing can be rewarding work, and you’ll make great money along the way!

After reading this guide you’ve got the requisite business know-how. It’s time to start your entrepreneurial future and launch the staffing agency of your dreams. 

• Staffing Agency FAQs

Yes, a staffing agency can be highly profitable. Make sure you charge competitive rates for your services and spend time building up your network of candidates and clients.

While obtaining certification isn’t mandatory, there are several certifications available for those looking to elevate their staffing skills. Check out the American Staffing Association for more information.

Firstly, create a strong online presence through a professional website and active social media accounts. Utilize digital marketing techniques, such as search engine optimization (SEO) and targeted advertising, to increase visibility and reach your target audience. Additionally, actively engage with job seekers by attending job fairs, hosting networking events, and partnering with educational institutions or professional organizations.

Develop expertise in specific industries or niches to become a go-to resource for specialized talent. Offer additional value-added services such as skills assessments, training programs, or career coaching. Build strong relationships with both clients and job seekers by understanding their unique needs and providing customized solutions.

Ensure the quality and suitability of candidates by conducting thorough interviews, reference checks, and skills assessments. Understand the specific requirements and culture of each client organization to ensure a good fit. Implement background checks and verification procedures, such as verifying education and work experience, to ensure the accuracy of candidate information.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Staffing Agency Name
• Create a Staffing Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Staffing Agency Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Staffing Agency - Start Making Money!

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Employment Agency Business Plan

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All About People

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

All About People (AAP) began out of the desire to contribute to this community, just as communities have fed All About People’s proprietor over the years. Although originally from a larger market, the proprietor realizes the need in the southern Willamette Valley for a personnel agency that fills a void left by other temporary and permanent placement agencies. AAP matches specifically skilled workers with clients, saving businesses time and money, while providing for its employees with honesty and honor. This requires a high level of communication. It means asking open-ended questions and listening, not talking. This means knowing the local market so AAP can really serve each client and employee, not just “sell” them our goods. AAP is quality service.

The long-term vision includes a number of offices throughout the southern Willamette Valley. The proprietor sees the challenge in this vision, not in the growth itself, but in training and encouraging all AAP personnel to treat each client and employee with the same care and with the same level of communication.

Managing our Growth AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan. During the past couple of years the proprietor provided all services. In Year 1, the company will add a part-time office staff person and an employment specialist. In response to this growth, AAP will have a procedures manual for in-house staff to assure that the information is clear. In addition, AAP will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. Year 2 projections include a receptionist, another employment specialist, and a field representative. In Year 3, AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.

The Market AAP is structured like other temporary and permanent placement agencies. However, it will serve clients with needs for select, specialized professionals rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people, but there are none for the Willamette Valley. AAP has five divisions, targeting the following areas of expertise:

• Editors/Writers

Event Planners

Graphic Artists

• Interpreters/Translators.

Services AAP will handle recruiting, including reference checks, skills evaluation, preliminary interviewing,  and screening of all employees for its clients. AAP acts as an extension of the client’s human resource department, assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.

Financials The company’s start-up requirements are $55,464, of which $7,600 will be provided for by the owner’s personal investment. The rest will be obtained through loans.

We expect to be able to charge a 50% markup to our business clients. Thus, if an employee is being paid $10 per hour, we are charging the client $15 per hour. The company predicts that it will be able to produce sales of approximately $300,000 by Year 3. The company does not have any direct cost of sales; we track payments to placed individuals as regular payroll.

1.1 Objectives

AAP is structured like other temporary and permanent placement agencies. However, we serve clients with needs for select specialized professionals, rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people. AAP followed the model of one placement firm described below.

A contract engineering firm places temporary workers who are hardware and software engineers. Employees earn between $80- $100 per hour and approximately seven employees are placed per month. The firm recruits through its website, advertises in newspapers, magazines, and trade publications. Incentives offered to contingent workers include medical, dental, and disability insurance, 401(K), and a reference finder’s fee for placement referrals. They find their employees are 60 percent male, 40 percent female, and ages spread evenly.

AAP serves the business client by locating a professional worker, interviewing and screening that worker, setting up interviews if necessary, and administering all hiring paperwork. The company runs payroll and bills the client bi-monthly. AAP will also manage the professional, staying in close contact with the client and communicating with the worker regarding any personnel issues that may arise.

The professional worker is served with employment opportunities at no cost; pay rates that are within industry standards; and health insurance may be purchased, if a worker becomes eligible, at a group rate starting at $124/mo. AAP will pay $65/mo for any coverage chosen from the group package.

1.2 Mission

All About People’s mission is to contribute to the community by filling a need for specialized, professional, contingent workers. The company will provide workers with a safe and independent environment. It will also provide businesses with a high-caliber of employee available for project or permanent work. All About People listens to individual needs and customizes personnel solutions for both businesses and workers.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

AAP is a temporary and permanent placement personnel agency working solely with skilled, professional workers and Willamette Valley businesses. AAP differs from other temporary and permanent placement agencies because of our skilled workers. The company believes that the temporary industry pays only cursory attention to providing businesses highly qualified workers for permanent and non-permanent positions. AAP has five divisions, targeting the following areas of expertise:

AAP does not provide general clerical, light industrial, engineers, accountants, nurses, or other medical technicians.

AAP does the following for each client:

• Recruiting (reference checking)
• Skills evaluation (preliminary interviewing)

AAP conducts regular evaluations: AAP checks in with the supervisor and the worker during the first week on the assignment. AAP then checks in as agreed with the client. AAP acts as an extension of the client business’ human resource department assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.

Prior to opening our doors, research showed support for the development of a personnel agency working solely with professional contingent workers and Willamette Valley businesses (see topic 7.3 Supporting Research).

According to the Oregon Department of Employment, Lane County has 31 temporary agency firms with 3200 individuals employed. Total employment figures for Lane County are 250,000; therefore, we support between two and four percent of the population.

Through connections in a variety of areas, AAP is able to locate qualified workers not only through advertising, but through a channel of networking. This past year has shown that qualified, willing workers are certainly available as we currently have hundreds on staff willing and able to work.

2.1 Company Ownership

AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan.

The sole proprietor, Sarah Wayland, can be reached at AAP’s office, [contact information omitted in this sample plan].

2.2 Start-up Summary

Projected start-up figures are shown in the chart and table below.

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The company is uniquely positioned to take advantage of this market opportunity because of the management and field expertise of the proprietor. Sarah Wayland worked in the temporary employment industry for three years with ADIA Personnel Services (now ADECCO) as Area Account Manager (in training as a branch manager): building business relationships; hiring employees; handling employee issues; working with clients during the implementation of ADIA; and opening an additional office in Beaverton, Oregon.

For one year the proprietor was a District Sales Manager at Columbia Distributing, showing a 10% increase on $3.5 million in annual sales. Managing a staff of nine in sales and customer service, she had the opportunity to delve further into hiring/firing, reviewing, incentives outside of salary, and personnel issues.

Most recently, she has spent several years as Funds and Contracts Manager at the Oregon University System; managing four grants totaling $1.5 million annually and all personal service and interagency contracts as well.

The proprietor’s most notable success was bringing the second branch of Cellular West located in Portland, Oregon, from running in the red, to breaking even within four months of its opening. She accomplished this by using motivational tools and providing the sales force with extensive training.

3.1 Products and Services Plan

Changing labor market conditions threaten the concept of full-time permanent employment.

AAP provides a complex blend of services to distinct populations. The company serves businesses through connecting them with the professional contingent work force. It also serves the worker by connecting them with businesses, at no charge, and providing benefits not often provided by other employment agencies.

Market Analysis Summary how to do a market analysis for your business plan.">

All About People (AAP) is a local firm that costs less than a consultant or agency, provides for both project and long-term needs, and has an easy, pay and billing rate system that covers employee payroll and worker’s compensation insurance.

There are a variety of reasons why businesses may need AAP’s services:

• Spikes in work load
• Business expands into an area that in-house expertise does not yet match
• Special events
• Pregnancy leave or sabbatical
• Business increases after layoffs
• Smaller business does not yet have staff on-hand to complete extra projects.

According to economic forecasters, employment agencies and financial services are expected to have the largest industry growth over the next 25 years. The trend toward businesses cutting back on employees and their benefits due to high costs creates the demand for AAP’s services.

Just consider the time, energy, and resources an employer may spend trying to employ a person for a 20-hour task.

In addition to the already lucrative temporary industry, several companies in the Portland Metro Area place professional contingent workers, but the southern Willamette Valley is not currently being served.

The company approaches businesses primarily through networking and cold calls. Our intention is to utilize a PR agency for more coverage as soon as possible. AAP is a member of the area Chamber of Commerce and actively participates in as many activities as possible, the proprietor is a member of the Women’s Business Network, the Professional Women’s Organization, and we are in the process of connecting with the Society for Human Resource Management. Prior to start-up, AAP also surveyed several area businesses about their use of contingent workers. The company will use its website and other marketing materials that describe what services we provide and explain how simple it is to work with us.

AAP advertises in local papers and trade magazines when absolutely necessary, but most often uses the Oregon Employment Department, both community college and university campuses, and the networking groups we are members of to search out the right employee. Prior to the sole proprietor start-up, the company started recruiting by administering twenty personnel surveys and advertising locally to create a staff of qualified contingent workers. This staff will be unaffected by AAP’s corporate restructuring.

4.1 Market Segmentation

The market can be broken down into two segments: the business market segment, and the employee market segment. Both of these segments are lucrative.

Business market targets: The company targets the University of Oregon, Lane Community College, the nonprofit organizations, the publishing industry, the advertising industry, and other large businesses.

Employee market targets: Editors/writers, graphic artists, computer specialists, event planners/fundraisers, and language translators/interpreters working in the business target markets listed above, as well as any applicants with unusual skills and talents.

4.2 Service Business Analysis

These charts demonstrate the types of workers employed, the type of qualified professionals on file to work for the company, and the types of businesses who have used AAP’s services. These statistics cover the 15-month sole proprietorship period from July 1, 1998 through September 30, 1999.

Types of workers employed by or signed up with AAP

Types of employers using AAP

Each and every contact is entered into the database-either in the professionals file if they are a potential candidate, or in the contacts file if they are another type of contact. The client and jobs files utilize the contact and client numbers to automatically fill in the information from the contact or client files. This means no duplicate typing. In addition, the contacts, clients, and professional files all have follow-up sheets attached making daily follow-up easy. Simply pull the file up for that day and all calls that need to be made that day will be marked.

Searching is easy. The check boxes within each professionals file allows us to check for singular or multiple skills and experience with a click and a return.

4.2.1 Competition and Buying Patterns

First form filled out from the moment the candidate calls. Three screens constitute one file: Personal Information; Job Information; Skills. The professional and contact files have a conversation record that will allow easy follow-up with a list daily of those records needing a call.

Interview Form

Directly from the employee forms the Employment Specialist can select the appropriate interview form. This form consists of three sheets: Basic Questions; Other Information/Recommendations; and Reference Checks.

Employee Profile Sheet

From the above information, a profile sheet is generated in hard copy for the inside of each file. This is our second backup system (besides the tape drive) in case of a power outage, etc.

4.2.2 Contact Sheet

This form is used for all other contacts. From here, a contact can be turned into a client by merely typing the contact number in on the client sheet, automatically bringing in all of the information.

4.2.3 Client Sheet

The client sheet is easily created by filling in the contact number. All pertinent information is automatically entered. The client sheet has its own contact sheet attached generating a daily follow-up list. The client files can also be pulled into a handy contact list.

Strategy and Implementation Summary

AAP is completely service minded, customizing personnel packages and offering the most it can to both employers and employees. The company brokers professional workers to Willamette Valley businesses. Because we serve two distinct groups of people, both businesses and employees will be considered equally important to AAP.

The company consists of five divisions, targeting the following types of workers and needs in businesses:

Computer Division

• Computer Application Specialists
• Computer Hardware Specialists
• Computer Programmers
• Network Administrators
• Web Specialists

Editor/Writers

• Multi-lingual
• PR/Marketing
• Fundraisers
• Large and Small

Language Interpreters and Translators

• Multiple Languages
• Person-to-Person

Within these categories, we originally set up a system of single sheets on card stock and filed them in binders. Since then, an electronic database has been created by one of our professionals. With the push of a button, AAP can search for a client or an employee needed.

Businesses and employees will be able to communicate with AAP via both new technological and traditional methods. Our Web page provides information about AAP including what professional fields we serve, what clients we are working with, and what services we offer. A second-generation Web page will provide information about employees for businesses through a password-protected area. AAP forwards candidates’ resumes and other information through a variety of methods: phone, fax, personal visit, mail, and the Web page.

In August 1999 we moved the offices to the center of town. Accounting is handled electronically by the proprietor through QuickBooks, with the complex needs handled by our CPA. All payroll is generated through the payroll service, Paychex. The office is furnished with all of the technology needed to operate on a daily basis, increase market share, and serve clients.

5.1 Competitive Edge

When a business is contacted and expresses interest in contingent employees that the company can provide, the following procedures will be followed:

• Consult with client and create a follow-up plan.
• Complete the contact, client, and job sheet in the database.
• Print one of each and forward a copy of the job sheet on yellow paper to the employment specialist.
• File original sheets in the appropriate binders.
• Search for matches in the database and pull each folder that looks like it will work.
• Review that folder to assure a match.
• Call each potential candidate and discuss the job and pay to its fullest.
• Fax, e-mail, or otherwise contact client with information and/or resumes for review.
• Schedule interviews or make a decision on appropriate candidates.

5.2 Sales Strategy

When an employee seeks to work with the company, the following procedures will be followed:

• Complete the professional’s form in the database.
• While completing this sheet, screen the employee for experience levels, requiring professional experience in each arena they wish to work.
• Set up an interview with the employment specialist if the professional is qualified.
• Create a file for each employee and place all paperwork, along with a copy of the professional’s form.
• Keep in touch with the professional quarterly if nothing comes up, more often if at all possible.
• When the professional agrees to a position, they will be supplied with an employee policy manual, pieces of letterhead for invoicing, and will complete the IRS I-9 and W-4 forms prior to beginning work.

5.2.1 Sales Forecast

Our sales forecast projections are presented in the chart and table below. Three years annual projections are shown in the table.  The chart shows first year monthly forecast.  First year monthly table is included in the appendix.

5.2.2 Target Market Segment Strategy

The pay rate data will be determined by changing market factors including business demand.

Our experience shows that the following is true in regards to pay and bill rates. A “good deal” for most temporary agencies is a 50% of pay rate markup. Thus, if the pay is $10, the bill is $15. However, we have traditionally used a flat markup that seemed appropriate. Pay and bill rates generally are outlined as follows:

Editors Most editors require between $25 and $35 per hour, and our history has shown a $10 per hour markup is acceptable. One exception is in the technical arena, garnering between $45 and $55 per hour pay; again a $10 per hour markup is typical.

Writers The only writing we have done is creative for [client name omitted], and we paid $15 with a $10 markup.

Event Planners Event planners often will work for between $12.50 and $25 per hour, depending on the length of the job, requirements, and experience needed. We find a $5 per hour markup on the $12.50-$17.50 is reasonable, and a $10 per hour markup on anything over $17.50 per hour.

Fundraisers Fundraisers can start at $10 per hour (nonprofit) and go up to $20 per hour. This usually depends on client and length of assignment. Bill rate markup for nonprofits is $5 per hour, others between $7.50 and $10 per hour.

Graphic Artists Entry level beginning at $12.50 per hour, intermediate at $15 per hour, and a top of the line professional at $25 per hour. The exception may run about $50 per hour. Bill rates are between $7.50 per hour markup ($12.50-$15), and $10 markup.

Language Interpreters This is a tricky arena. Pricing depends on the language (typical/atypical) and the length of the assignment. Interpreters have been known to work for as little as $15 per hour and for as much as $35 per hour. A $10 per hour markup is acceptable.

Language Translators This division is difficult as each language and situation varies slightly. Translators tend to work by page or by word. Technical translation can be as much as $.30 per word. Other translation can be $10 per hour (an hour a page). We are unsure of markup at this time, but would suggest 50% of pay rate.

Computer Specialists:

• Application-Starting at $12.50 an hour based on Xerox experience. Markup $5 per hour.
• Programmer-Starting at $20 an hour based on AlbertIQ experience. Markup $10 per hour at a minimum. Try for $15.
• Web Designer-Entry level positions can start at $10 per hour with a markup of $5. Project work typically starts at $15 an hour, markup at least $10 per hour.
• Administration-Pay rates range between $50 and $75 per hour, with a preferred markup of $25 per hour.

When determining the bill rate, additional expense factors to remember above the pay rate are 15% employer taxes, advertising, and staff time to fill the position.

5.3 Milestones

The company has an outstanding client list and an incredible number of qualified employees available. AAP has a good reputation for providing qualified people in a timely manner.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

In a variety of settings the proprietor of AAP has strong management experience. The proprietor has the skills to not only listen well, drawing out a person’s needs through open-ended questions, but also has the ability to recognize people’s strengths and weaknesses. She will draw upon this extensive successful experience in addition to the knowledge collected over a period of 18 years working professionally. Much of the “people” skills have been developed during the seven years spent in management roles. This experience, along with a varied background, supports AAP’s goals.

AAP’s objectives are threefold:

• To provide high quality, experienced, professional workers to businesses that are currently relying on the instability of word-of-mouth contacts, and are spending much of their time and resources (and, therefore, money) locating such workers;
• To provide these workers with a path by which to reach the employer without spending their own time, money, and energy finding the work; and
• To use this opportunity to make the contingent work force a better place for both the employer and the employee.

The long-term goal of the company is to franchise and/or to become multi-location, and eventually sell this business.

Management is a style, a belief, and a strategy.

In managing our clients, AAP will communicate regularly with them, setting up a schedule that meets their needs. The company will set goals for retention of clientele and strive to reach those goals by building relationships, listening to the client’s needs, and meeting those needs with a smile on our faces. We will take responsibility for our errors and the outcome.

In managing our workers, AAP will communicate regularly with them, providing them with an employee manual to minimize their confusion, and offer them the best pay and benefits possible. AAP will set goals for retention of employees and strive to reach those goals by treating each employee with respect, provide protection when appropriate, and do everything within our power to assure a healthy working environment.

This is a relationship business. AAP will manage all clients and employees through relationship building.

During 1998-99 the proprietor provided all services. In 2000 the company will add a part-time office staffer and an employment specialist. In response to this growth, we will have a procedures manual for in-house staff assuring that the information is clear. In addition, we will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. 2001 projections include a receptionist, another employment specialist, and a field representative. In 2002 AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.

6.1 Payroll

All About People runs its payroll twice a month. Each professional will be given a check schedule when they work with AAP. Each check covers the previous two weeks.

In order to process payroll; AAP must receive a professional’s signed invoice the Wednesday prior to payday. The invoice, must be on AAP letterhead and include: name, social security number, mailing address, dates of work completed, location worked (at home, at the client’s office), one or two sentences describing what tasks were completed, and how much time was spent each day. At the bottom there must be a place for the client to sign and date in acceptance of the work to date. The original will be submitted to AAP, the client will receive one copy, and the professional will keep a copy.

AAP is unable to provide payroll advances. If a check is lost in the mail, we must wait seven days from the date of mailing, and then if the check has not arrived we will stop the check at the bank and have one reissued.

6.2 Benefits

Because we value our employees, we have employee group health insurance available, and contribute a major portion of the monthly premium. According to the Insurance Pool Governing Board (IPGB) employees must work at least 17.5 hours per week. Employees who work intermittently or who have worked fewer than 90 calendar days are not eligible. IPGB also states that all carriers may decline to offer coverage to the business or to any employee.

Technically, All About People is employer of the professionals we place. This means that we are responsible for covering the worker’s compensation insurance, running payroll, and that we are the ones to whom each employee is responsible. We understand that this can be tricky when employee professionals are working with a client, so we want to describe the expectations of this relationship:

• If the professional doesn’t understand the work or assignment that has been given by the client, then discuss the work with the client.
• If there are issues at work, the employee should inform AAP and then speak with the client.
• If these issues continue, the employee should talk with AAP immediately.
• If the professional feels they are being harassed at work they should let AAP know immediately.
• If the employee should be being asked to perform tasks other than the original assignment, the employee should talk with AAP before beginning any tasks other than the original assignment.
• If the professional is being asked to work overtime (more than 40 hours per week), they should let us know immediately.

AAP does not guarantee either work or wages when you join us to become an AAP employee. We will, of course, strive to keep you as busy as possible. AAP is also not able to guarantee an hourly wage prior to the assignment beginning. If you work on a job, and complete the work successfully, you will be paid at the agreed rate.

This employment relationship differs from others because you, AAP, or the client may end your employment with or without notice and with or without reasons. However, if you accept a job with AAP, we do expect you to finish the assignment.

Marketing Strategy

AAP’s target market is both businesses and professional workers. Phase one of the marketing plan will target the University of Oregon, the technology industry, and the top 500 businesses in Eugene through networking and cold calling. Phase two will target small businesses with less than five employees because smaller businesses may not have the in-house capability to locate, evaluate, and hire potential professional contingent workers through a small PR campaign.

7.1 Businesses

We began marketing the businesses through several personnel surveys. The University of Oregon Alumni Association, University of Oregon Foundation, and University of Oregon Human Resources Department, as well as Symantec’s Human Resources director were approached for information regarding their need for professional temporary and permanent workers. These initial interviewees have all (with the exception of U of O HR Dept) become clients within the first year of business. After these personnel surveys were complete, we adjusted our recruitment of professional workers to meet the demand.

Another tactic was joining multiple business groups. AAP became a member of the Eugene Chamber of Commerce and attends the weekly greeters meetings; the Women’s Business Network and attends the monthly meetings; the Professional Women’s Organization and attend the monthly meetings; as well as the City Club, keeping a pulse on what is happening in the community, attending as the proprietor sees fit.

The next approach is face-to-face cold calls. The tools for these calls are simple-a business card and a brochure. The information collected during the cold call is vital: how many employees does the business have; in what areas have they experienced a need for professional contingent employees; and who is the appropriate contact.

7.2 Professional Workers

Our beginning point in marketing to workers was approximately 30 personnel surveys to professional contingent workers, building the foundation of our database.  AAP intends to recruit workers through advertising in the newspaper and appropriate trade magazines, trade shows, the University of Oregon career center, and by referral. We have found that each division within the company requires a different approach for recruitment. We try not to depend on newspaper advertising as we find the results are moderate. Results are far better with the employment department for some areas, with the U of O for others, and also through a series of developed contacts for the other divisions.

7.2.1 Trust

In order to build trust with both businesses and employees AAP will follow through as promised. We will treat each business, employee, and ourselves, with integrity. AAP will communicate clearly, asking businesses to specify the needs for follow-up service during the time that they employ our contingent worker. We will work with employees to assure that they have a clear understanding of what AAP offers and what we expect of them.

7.3 Supporting Research

“A fading model of employment in the United States envisions a business enterprise with full-time employees who can expect to keep their jobs and perhaps advance so long as they perform satisfactorily and the business continues. Changing labor market conditions threaten the concept of full-time permanent employment. As reported by the Conference Board in September 1995, contingent workers account for at least 10 percent of the workforce at 21 percent of the companies surveyed, or almost double the 12 percent of respondents with that number in 1990. Writing in the Monthly Labor Review in March 1989, Belous estimated that contingent workers constitutes 24 to 29 percent of the labor force in the United States. In August 1995, however, the U.S. Bureau of Labor Statistics (BLS) estimated the size of the contingent labor force at 2 to 5 percent of the total workforce. However, BLS did not count long-term part-time employees, who constitute 90 percent of part-time workers.”       — Society for Human Resource Management, The Contingent Worker: A Human Resource Perspective, by W. Gilmore McKie & Laurence Lipset taken from Chapter 1, What Is a Contingent Worker?

AAP is a service company providing businesses with customized personnel solutions by connecting them with the professional contingent work force. Research suggests that 2000 is an opportune time to be in the Eugene market with this service. Even with all of the evidence that contingent work is the wave of the present, and of the future, the niche of placing contingent workers who are paid $12.50 to $40 per hour is untapped in the Eugene area. However, a few companies place high-end contingent workers in the Portland area.

There are many reasons why businesses are turning to contingent workers. The Economic Policy Institute’s article “ Contingent Work ” by Polly Callaghan and Heidi Harmann explains that:

“Growth in involuntary part-time employment is causing total part-time employment to grow faster than total employment. Another indication of the shift toward part-time workers: hours for part-time workers are growing faster than hours for full-time workers. Temporary employment has grown three times faster than overall employment and temporary workers are being used for more hours. Contingent employment is growing faster than overall employment. Part-timers are disproportionately women, younger, or older workers. There has been a shift away from manufacturing toward trade and services. These structural changes help explain the growth in part-time employment.”

Because of the changing nature of jobs themselves, AAP’s services are desirable to employers of all sizes. Unlike five or ten years ago, many positions are so diversified, or specialized, that it is not financially feasible for an employer to hire a person to fill one position, requiring several areas of expertise. This is not financially wise for the business because of the pay range required to recruit and hire such a talented person (especially in areas such as graphics, design, etc.). The cost of payroll, taxes, benefits, and other miscellaneous staff required to run employees add to the burden of a downsized staff. Contacting AAP and using a professional contingent worker for each portion of a position as needed will solve this dilemma. Currently most businesses locate needed “qualified” workers by word of mouth. With one phone call, e-mail, or connection with our Web page, AAP makes the task easy.

In addition, Oregon’s economy is expected to continue growing, and employment, total personal and per capita income, and population growth rates are expected to exceed the national average (according to the 1997-98 Oregon Blue Book). Although Oregon’s economy is among the best there is an obvious group of contingent workers available to build an employee labor pool. The company draws from a labor pool of qualified contingent workers which consists of people who work at home, retirees, others who wish to work part-time. According to the Oregon University System, approximately 33% of bachelor’s degree graduates will be unable to find jobs in Oregon each year. So, recent college graduates are also a part of AAP’s labor pool.

Research shows that a large percentage of workers who tend to work more than one job are well-educated individuals who have a higher degree of education. According to Oregon Employment Department’s Occupational Outlook Quarterly , Spring 1997, 9.4% have Ph.D.’s; 6.5% a Professional degree; 9.1% a Master’s degree; 7.9% a Bachelor’s degree; 7.9% an Associate degree; and the remaining 15.8% lesser education. According to a Personnel Journal article “ Contingent Staffing Requires Serious Strategy ,” April 1995, there are also many retirees that enjoy doing contingent work.

Financial Plan investor-ready personnel plan .">

The following sections contain the financial information for All About People. Tables show annual projections for three years. Charts show first year monthly figures.  First year monthly tables are included in the appendix.

8.1 Important Assumptions

The financials of this plan are predicated on the following table of assumptions.

8.2 Projected Profit and Loss

Profit and Loss figures are projected in this table.

8.3 Projected Cash Flow

Our cash flow estimates are shown in the chart and table below. The owner expects to invest further amounts in the business over the next two years to finance continued growth.

8.4 Projected Balance Sheet

Three year annual balance sheets estimates appear below.

8.5 Business Ratios

The table below presents important business ratios from the help supply services industry, as determined by the Standard Industry Classification (SIC) Index code 7363, Help Supply Services.

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How to Start a Staffing Agency

How to Start Your Own Staffing Agency

Starting a staffing agency can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful staffing agency.

Importantly the most important step in starting staffing agency is to complete your business plan. To help you out, you should download Growthink’s Ultimate Staffing Agency Business Plan Template here.

Download our Ultimate Staffing Agency Business Plan Template here

15 Steps To Start a Staffing Agency

• Choose the Name for Your Staffing Agency
• Develop Your Staffing Agency Business Plan
• Choose the Legal Structure for Your Staffing Agency
• Secure Startup Funding for Your Staffing Agency (If Needed)
• Secure a Location for Your Business
• Register Your Staffing Agency With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Staffing Agency
• Buy or Lease the Right Staffing Agency Business Equipment
• Develop Your Staffing Agency Marketing Materials
• Purchase and Setup the Software Needed to Run Your Staffing Agency
• Hire Employees
• Open for Business

1. Choose the Name for Your Staffing Agency

The first step to starting a staffing agency is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your staffing business:

• Make Sure the Name Is Available – Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep It Simple – The best names are usually ones that are easy to remember, pronounce and spell.
• Think About Marketing – Come up with a name that reflects the desired brand and/or focus of your staffing business.

2. Develop Your Staffing Agency Business Plan

One of the most important steps in starting a staffing agency is to develop your staffing agency business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a  sample staffing agency business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your staffing business.
• Company Overview – this section tells the reader about the history of your staffing agency and what type of staffing agency you operate. For example, are you a temporary staffing agency, contingency employment agency, or executive search firm?
• Industry Analysis – here you will document key information about the staffing industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, are they part of a particular industry? Where do they live? What do they find important when searching for services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your staffing company? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your daily business operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your staffing agency business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Staffing Agency Business Plan Template and complete your plan and financial model in hours.

3. Choose the Legal Structure for Your Staffing Agency

Next you need to choose a legal business structure for your staffing company and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is an entity in which the owner of the staffing agency and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.  

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a staffing company together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.  

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a staffing agency include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a legal business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a staffing agency is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.  

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your staffing agency, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Staffing Agency (If Needed)

In developing your staffing agency business plan, you might have determined that you need to raise funding to pay establishment costs and launch your business.

If so, the main sources of funding for a staffing agency to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a staffing agency that they believe has high potential for growth.

5. Secure a Location for Your Business

You may decide to run your staffing agency from your home or prefer to secure office space.

If you choose the latter, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

6. Register Your Staffing Agency With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN). Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your staffing agency’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your staffing agency to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

• General Business License – You will need to obtain a general business license which is issued by your city or county.
• Employment Agency License – You will need to check with your state’s labor department to find out if you need an employment agency license in order to operate your staffing agency.

Depending on the type of staffing agency you launch, you will have to obtain the necessary state, county and/or city licenses.  

10. Get Business Insurance for Your Staffing Agency

Choosing the right insurance for your staffing company is cricual. Business insurance policies that you should consider include:

• General Liability Insurance – This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ Compensation Insurance – If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents.
• Professional Liability Insurance – This protects your business against claims of professional negligence.
• Business Auto Insurance – This protects your company car and any accidents that occur with the car while being used for company business.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.  

11. Buy or Lease the Right Staffing Agency Business Equipment

Most staffing agencies don’t need much equipment. To start a staffing agency, you probably only need a computer, reliable internet connection, and phone. If you plan to do many virtual interviews or meetings, be sure to invest in a good-quality webcam. You occasionally might also need to have access to a fax machine. If you plan to operate your staffing agency from an office space, you will also need reception furniture, desks, and other office supplies for your employees.

12. Develop Your Staffing Agency Marketing Materials

Marketing materials will be required to attract and retain customers to your staffing firm.

The key marketing materials you will need are as follows:

• Website – Likewise, a professional staffing agency website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how your target market perceives you.
• Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your staffing agency.
• Logo – Spend some time developing a good logo for your staffing agency. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.

13. Purchase and Setup the Software Needed to Run Your Staffing Agency

A staffing agency will need software to help manage their operations. This can include software for tracking employee hours, managing payroll, and creating invoices. There are a number of different software options that cater to the needs of staffing agencies, and it is important to find one that fits your specific needs.

Research the software that best suits your needs, purchase it, and set it up.

14. Hire Employees

If you’re looking to start a staffing company, you’ll need to hire employees to help you run it. You can post openings on local job boards or with online services. There are a few different job titles you can fill depending on the type of staffing firm you want to create. Here are some of the most common positions:

• Recruiter – Recruiters are responsible for finding qualified candidates for open positions at the company. They typically use databases and other resources to identify potential candidates, and then screen them to make sure they meet the requirements specified by the employer.
• Account Manager – Account managers are responsible for maintaining relationships with clients and ensuring that they are satisfied with the services provided by the staffing agency. They may also be responsible for negotiating contracts and pricing agreements.
• Staffing Coordinator – Staffing coordinators work with both employers and employees to match them with appropriate job openings. They may also be responsible for conducting interviews and providing feedback to both parties.

15. Open for Business

You now know everything about how to open a temp agency and are ready to open your own staffing agency. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Start a Staffing Agency Infographic

How to Start a Staffing Agency FAQs

Is it hard to start a staffing agency.

No, it is not hard to start a staffing agency, but there are some key steps you need to take in order to make your business successful. Your biggest challenges as a new staffing agency will most likely be finding clients and paying initial costs. Running your own business in any industry also comes with problems to navigate. Just follow the strategies we have outlined above and you will be on your way to owning a successful staffing agency.

How Can I Start a Staffing Agency With No Experience?

Starting a staffing company can be a lucrative business venture, but it’s important to do your homework before jumping in. Make sure you research the industry and understand the important aspects of how staffing agencies operate. You might also consider speaking with staffing professionals who can offer insights into their work and how other staffing agencies are run. As you work to open a staffing agency, one of the most important things you can do is effectively market your services and build a great team to support you.

What Type of Staffing Agency Is Most Profitable?

The most profitable type of staffing agency is typically a professional placement agency. This type of staffing agency specializes in finding jobs for highly skilled workers, such as accountants, engineers, and nurses. Professional placement agencies often charge a higher fee than other types of staffing agencies and have a higher success rate in finding jobs for their candidates.

How Much Does It Cost To Start a Staffing Agency?

The cost of starting a staffing agency will vary depending on the state in which you reside and the size of the agency. Startup costs for staffing firms can range from $58,000 to $127,000, and you should have a suggested operating capital of between $80,000 to $135,000 in the bank.

What Are the Ongoing Expenses For a Staffing Agency?

There are a few ongoing expenses that staffing companies need to budget for. One is payroll. This includes the costs of hiring and paying employees, as well as any payroll taxes. Agencies also need to budget for marketing and advertising, office supplies, software, and insurance. It's important to remember that these are just some of the ongoing expenses - there may be others depending on the specific agency's operations.

How Does a Staffing Agency Make Money?

A staffing agency makes money by charging the client company a fee for every employee that the staffing agency provides. In this business model, the fee is typically a percentage of the employee's wages, and it is paid by the client company regardless of whether or not the employee is hired permanently. Sometimes, the staffing agency will also charge the client company for supplying temporary workers.

Is Owning a Staffing Agency Profitable?

Owning a staffing agency can be profitable, but it also depends on a lot of factors, such as the market and the competition. 

Ways to improve your profitability include:

• Focusing on quality service
• Building a good reputation
• Keeping up with industry changes
• Offering competitive rates
• Managing Your expenses
• Screening potential employees thoroughly
• Marketing your business effectively

How Much Do Staffing Agency Operators Make?

Staffing agency operators and its employees receive varied pay amounts based on the success of their company. According to Payscale, the national average salary for a Branch Manager of a staffing agency is $46,000.

Why Do Staffing Agencies Fail?

There are many reasons staffing agencies may fail, but some of the most common reasons include not having the right team or leadership in place, not enough capital to sustain the business, and failing to keep up with industry changes.

How Big Is the Staffing Agency Industry?

According to IbisWorld, there are 41,461 staffing agencies in the U.S., that generated $151.2 billion in revenue last year. This represents an annual growth rate of 2.4% over the past 5 years.

What Are the Key Segments of the Staffing Agency Industry?

The Staffing agency industry provides temporary staff to a range of sectors.The two largest segments of the staffing agency industry are Industrial staffing and Office, clerical and administrative staffing. The remaining key segments of the industry include:

• Professional and managerial staffing
• Healthcare staffing
• Information technology staffing
• Engineering and scientific staffing

What External Factors Affect the Staffing Agency Industry?

A number of factors affect the performance of the staffing agency industry. These drivers include:

• Number of Temporary Employees – An increase in the number of temporary employees is beneficial to industry operators because they receive greater demand from businesses for these types of staff. The number of temporary employees is expected to increase, presenting a potential opportunity for the industry.
• National Unemployment Rate – As unemployment increases, the industry is less likely to be able to source temporary staff for companies, causing revenue to decline.
• Corporate Profit – Corporate profit refers to the profit earned by businesses across all industries. An increase in corporate profit will have a positive effect on demand for office staffing and temp agencies because clients will be more likely to invest in their workforce when they have funds available.
• Demand From Construction – Construction companies are a major market for temporary workers and represent an important source of industry demand. The construction sector is expected to improve in recent years.
• Demand From Professional, Scientific and Technical Services – Professional service providers are one of this industry’s largest markets.

What Are the Key Customer Segments in the Staffing Agency Industry?

At about 40%, the industrial segment is the largest customer segment for the industry, followed by retail and other service-related businesses. Other professional markets, healthcare and technology make up the remaining customer segments.

What are the Key Costs of the Staffing Agency Industry?

Wages – IBISWorld estimates that wages will account for 69.8% of industry revenue in the recent years, up from 63.6% in the past five years. Labor costs are also high for the permanent staff employed by operators due to the need to provide personal, face-to-face service to clients and job applicants

Other Costs – As a labor-intensive service industry, temporary staffing has a very low capital intensity. Depreciation and Marketing costs are also low for temporary agencies.

Total purchase costs, which primarily include purchases of standard office and desk equipment, account for an estimated 14.9% of industry revenue. Other industry expenses include insurance premiums, interest and traveling, accommodation and entertainment expenses.

Where Can I Download a Staffing Agency Business Plan PDF?

You can download our staffing agency business plan PDF template here. This is a business plan template you can use in PDF format.

Additional Resources in the Staffing Industry

For additional information on the staffing agency industry, consider these industry resources:

• American Staffing Association: www.americanstaffing.net
• National Association of Personnel Services: www.naps360.org
• Advanced Staffing Associates: www.advstaff.net
• Staffing Agency Mavericks: www.staffingagencymavericks.com

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Other Helpful Business Plan Articles & Templates

Business Plan Template for Staffing Agency

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting a staffing agency can be an exciting and profitable venture, but it requires careful planning and strategic execution. That's where ClickUp's Business Plan Template for Staffing Agency comes in handy!

Our template is designed specifically for entrepreneurs and business owners looking to launch a successful staffing agency. It provides a comprehensive framework to outline your goals, strategies, and financial projections, ensuring a strong foundation and clear roadmap for your business.

With ClickUp's Business Plan Template for Staffing Agency, you'll be able to:

• Define your target market and create a compelling value proposition
• Develop effective marketing and sales strategies to attract clients and candidates
• Outline your staffing agency's organizational structure and staffing needs
• Create financial projections and budgets to ensure profitability

Get started on your journey to staffing agency success with ClickUp's Business Plan Template today!

Business Plan Template for Staffing Agency Benefits

With the Business Plan Template for Staffing Agency, you'll be able to:

• Define your staffing agency's mission, vision, and target market, setting the stage for success
• Outline your unique value proposition and competitive advantage, ensuring your agency stands out in the market
• Develop a comprehensive marketing and sales strategy to attract clients and candidates
• Create a detailed financial plan, including revenue projections and expense forecasts, for a clear understanding of your agency's financial health
• Establish goals and milestones to track progress and stay on track towards achieving your business objectives

Main Elements of Staffing Agency Business Plan Template

When starting a staffing agency, it's crucial to have a solid business plan in place. ClickUp's Business Plan Template for Staffing Agency includes:

• Custom Statuses: Keep track of the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add additional details and categorize different aspects of your business plan.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to visualize and manage your business plan in various ways.
• Collaboration: Collaborate with your team in real-time, assign tasks, set due dates, and leave comments to ensure everyone is on the same page.
• Document Management: Store and organize all your business plan documents in one central location using ClickUp's Docs feature.

With ClickUp's Business Plan Template for Staffing Agency, you can build a comprehensive and professional business plan to set your staffing agency up for success.

How To Use Business Plan Template for Staffing Agency

Are you ready to create a solid business plan for your staffing agency? Follow these 6 steps using the Business Plan Template in ClickUp:

1. Define your mission and vision

Start by clarifying the purpose and goals of your staffing agency. What is your mission? What do you want to achieve? Having a clear mission and vision will guide your decision-making and help you stay focused on your objectives.

Use a Doc in ClickUp to outline your mission and vision for your staffing agency.

2. Research your target market

To create a successful staffing agency, you need to understand your target market. Who are your ideal clients? What industries do you want to serve? What are their specific hiring needs? Conduct thorough research to identify market trends, competitor analysis, and potential opportunities.

Use the Table view in ClickUp to analyze and organize your market research data.

3. Develop your services and offerings

Based on your target market research, determine the services and offerings you will provide. Will you focus on temporary staffing, permanent placements, or both? Will you specialize in specific industries or offer a wide range of staffing solutions? Clearly define your services to differentiate yourself from competitors.

Create tasks in ClickUp to outline and organize your staffing agency's service offerings.

4. Build a financial plan

A solid financial plan is crucial for the success of your staffing agency. Determine your startup costs, projected revenue, and expenses. Consider factors like employee salaries, marketing expenses, and office rent. Don't forget to include a contingency plan for unexpected expenses.

Use custom fields in ClickUp to track and calculate your financial projections.

5. Create a marketing strategy

Develop a comprehensive marketing strategy to attract clients and candidates to your staffing agency. Consider both online and offline marketing channels. Will you focus on social media advertising, email marketing, or networking events? Tailor your strategy to reach your target market effectively.

Use the Calendar view in ClickUp to plan and schedule your marketing activities.

6. Set goals and milestones

Set achievable goals and milestones for your staffing agency. These can include revenue targets, client acquisition goals, and employee retention rates. Break down your goals into smaller milestones to track your progress and celebrate achievements along the way.

Use Milestones in ClickUp to set and track your staffing agency's goals and milestones.

By following these 6 steps using the Business Plan Template in ClickUp, you'll be well on your way to creating a solid business plan for your staffing agency and setting yourself up for success in the industry.

Get Started with ClickUp’s Business Plan Template for Staffing Agency

Entrepreneurs or business owners looking to start a staffing agency can use the ClickUp Business Plan Template to outline their goals, strategies, and financial projections, ensuring a strong foundation and clear roadmap for their staffing agency business.

Here are the steps to use the template effectively:

Hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Designate the Space or location in your Workspace where you want this template applied.

Invite relevant members or guests to your Workspace to start collaborating.

Take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize your business plan into different sections and topics for easy navigation.
• The Status View will help you track the progress of each section, whether it's Complete, In Progress, Needs Revision, or To Do.
• The Timeline View allows you to set deadlines and visualize the timeline of your business plan.
• Use the Business Plan View to have a holistic view of your entire plan, including goals, strategies, and financial projections.
• The Getting Started Guide View will provide step-by-step instructions and tips to help you get started with your staffing agency.

Customize the template by adding the custom fields: Reference, Approved, and Section. These fields will help you track references, approval status, and the section of the business plan each task belongs to.

Update task statuses as you progress through your business plan to keep team members informed of progress.

Monitor and analyze tasks to ensure maximum productivity and alignment with your staffing agency goals.

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How to Start a Staffing Agency: A Comprehensive 2024 Guide

In this guide, we will walk you through everything you need to know before launching your own staffing agency, even from a tech perspective. From establishing your business framework to integrating technological tools that streamline your operations, we’ve got you covered. Together, we’ll navigate through the essentials, ensuring that you’re well-equipped to start your own successful staffing agency, adeptly connecting employers and prospective employees.

What is a staffing agency?

How do staffing agencies work, starting your own staffing business, key statistics on staffing agencies in 2024.

• Types of staffing agencies

Business benefit of starting your own staffing agency

How to start a staffing agency in 10 steps, how much does it cost to start a staffing agency, key metrics to track when starting an online staffing agency, staffing agencies vs. talent acquisition platforms, building a new application or extending your development team.

🚀 We're here to assist you in accelerating and scaling your business. Send us your inquiry, and we'll schedule a free estimation call .

A staffing agency is a business that specializes in connecting jobseekers with employers looking to fill specific roles.

When a company has a vacancy, instead of advertising the position themselves, they may engage a staffing agency to manage the hiring process.

The agency will source candidates, handle applications, and often conduct initial interviews, presenting the company with a shortlist of potential hires.

For candidates, a staffing agency provides assistance in finding positions that match their skills and career aspirations. They can submit their resume to the agency, which will seek out suitable job openings on their behalf.

Their primary role is to match the right candidate with the right role. They ensure that the needs of both parties are effectively met.

The process of acquiring an employee through a staffing agency typically involves several key steps.

Note that different industries or role may need additional steps.

Here’s a general overview of a staffing agency process in 10 steps:

1. Client requirement analysis:

• Understanding needs : The agency works with the client company to understand the specific requirements for the open position, including skills, experience, and other relevant attributes.
• Contract agreement : The agency and the client agree on terms, including fees, responsibilities, and other particulars related to the hiring process.

2. Job posting and promotion:

• Creating job listings : The agency creates detailed job listings based on the client’s requirements.
• Promotion : The job listing is promoted through various channels, such as job boards, social media, and the agency’s own network to attract potential candidates.

3. Candidate sourcing and screening:

• Sourcing candidates : The agency identifies potential candidates through various sources like databases, networks, and job platforms.
• Screening : Applications are reviewed, and candidates are screened based on their skills, experience, and fit for the role.

4. Initial interviews and assessment:

• Conducting interviews : The agency conducts initial interviews to further assess the candidates’ suitability.
• Skill assessment : Depending on the role, candidates might undergo skill assessments or technical tests.

5. Shortlisting and client review:

• Creating a shortlist : The agency selects the most suitable candidates and creates a shortlist.
• Client review : The shortlisted candidates are presented to the client for review and further evaluation.

6. Client interviews and selection:

• Further interviews : The client conducts their own interviews with the shortlisted candidates.
• Selection : The client selects a candidate and communicates their choice to the staffing agency.

7. Job offer and onboarding:

• Job Offer : The agency extends a job offer to the selected candidate on behalf of the client.
• Onboarding assistance : The agency, depending on the company, may assist with the onboarding process, ensuring a smooth transition for the candidate into their new role.

8. Follow-up and feedback:

• Performance check : The agency may conduct follow-up checks with both the client and the candidate to ensure satisfaction on both ends.
• Feedback : The agency collects feedback to understand the efficacy of the recruitment process and make any necessary adjustments in the future.

9. Payment and Billing:

• Invoicing : The agency sends an invoice to the client for the recruitment services provided.
• Payment : Upon successful placement and depending on the agreement, the client pays the agency based on the agreed-upon fee structure.

10. Ongoing relationship management:

• Maintaining relationships : The agency maintains relationships with both the client and the candidate for future opportunities and placements.
• Continuous support : The agency may provide ongoing support to ensure the placement is successful and address any issues or concerns.

If you’re considering starting your own staffing agency, you’ll be stepping into a role that bridges the gap between employers and potential employees.

Your business will involve identifying skilled candidates, understanding their career goals, and matching them with companies that have corresponding needs.

It’s a business that requires strong networking, effective communication, and a keen understanding of various industries and job markets.

Your revenue will typically come from the employers, who pay a fee once a candidate you provided is successfully hired.

Thus, your dual role in a staffing company involves supporting individuals in their career journey and aiding companies in finding the right talent efficiently.

[Read also: How to Start Real Estate Business in 2023 ]

Global Expenditure on Digital Transformation

Projected Growth in Investment : By 2026, it’s expected that global investment in digital transformation technologies and services will reach a staggering $3.4 trillion USD, highlighting the increasing importance of digital innovation for business competitiveness.

Rankings in Digital Competitiveness

• Denmark’s Digital Leadership : Currently, Denmark is recognized as the leading country in digital competitiveness, demonstrating the benefits of early and strategic adoption of digital technologies.
• Global Adoption of Cloud Technologies : Cloud extensions are a popular method for digital transformation worldwide, offering businesses enhanced flexibility and growth potential.

Evolution of the Workplace

Significant Market Expansion : The marketplace for transforming workplaces is predicted to grow considerably by 2030, reflecting the shift towards more digitally integrated and flexible work environments.

Focus on Artificial Intelligence Investment

Growing Budgets for AI : In recent years, a significant portion of businesses have been allocating more than 5% of their digital budgets to AI, with many planning to increase this investment in the coming years.

Economic Contributions of Digital Transformation

Impact on Global GDP : Digitally transformed businesses are expected to constitute over half of the global GDP by 2023, totaling approximately $53.3 trillion, with the majority of the world’s GDP becoming digitized.

The Increasing Need for Digital Skills

Rising Demand in the Job Market : Jobs requiring digital skills are becoming more prevalent, accounting for a significant percentage of online job postings in various countries.

Future Projections for 2024

Emphasis on Augmented Intelligence : Predictions for 2024 emphasize the growing influence of augmented intelligence (GenAI) in areas such as personalization, automation, and data-driven strategies.

Source: Staffing Industry Analysts , American Staffing Association .

9 types of staffing agencies

The staffing agency industry is a very broad one.

Therefore, as you plan to establish your own staffing firm, it’s crucial to examine various types of staffing companies. This will enable you to select the one that promises the highest profitability.

Later in this article, we will guide you through the essential steps to take when starting a staffing agency. But first, let’s take a closer look at the different types of staffing industry to help you navigate in the right direction.

1. Traditional employment agency

Traditional staffing firms serve multiple sectors and provide candidates for a variety of roles without specialising in a particular niche. They manage large databases of candidates and employers, facilitating cross-industry matches.

Pros : A broad client base and a wide range of job openings can provide steady business and revenue.

Cons : The lack of specialization may result in facing competition from niche agencies that offer specialized talent.

2. Contingency employment agencies

Operating on a “no win, no fee” model, these agencies are compensated only when a candidate they propose is successfully hired. They often manage multiple client assignments at once, presenting candidates to numerous employers.

Pros : The payment-on-success model can be attractive to clients, and working with multiple clients simultaneously can diversify revenue streams.

Cons : The pressure to fill positions quickly to secure payment may sometimes compromise the quality of placements.

3. Temporary staffing agency

These agencies supply temporary staff for short-term assignments, covering roles during employee absences, peak seasons, or specific projects. They manage contracts and payroll for temporary staff.

Pros : Consistent demand for temporary staff and the ability to place the same candidate in multiple assignments can ensure steady income.

Cons : Managing high turnover and ensuring a constant supply of available temporary workers can be challenging.

4. Direct hire employment agency

These agencies focus on sourcing candidates for permanent roles, often involving a thorough recruitment and selection process to ensure long-term fit.

Pros : Typically, direct hires involve higher placement fees and the potential for stable, long-term client relationships.

Cons : The recruitment process can be lengthy and resource-intensive, requiring thorough vetting and assessment.

5. Permanent placement employment agency

These agencies specialize in securing candidates for permanent positions, ensuring that both the employer’s and candidate’s long-term goals align.

Pros : Establishing successful long-term placements can build a strong reputation and foster ongoing client relationships.

Cons : The extensive vetting and matching process requires significant time and resources.

6. Recruitment process outsourcing (RPO)

RPO agencies manage the entire recruitment process on behalf of a client, acting as an extension of the client’s HR department.

Pros : Offering a comprehensive service can secure long-term contracts and consistent revenue.

Cons : Requires a substantial operational setup and expertise in managing end-to-end recruitment processes.

7. Specialized staffing agency

These agencies focus on a specific industry or role, offering deep expertise and a specialized talent pool.

Pros : Niche focus can attract specific clients and command higher fees.

Cons : Dependence on the health and demand of a specific sector.

8. International staffing agency

Facilitates placements across countries, navigating various international employment laws and practices.

Pros : Access to a global talent pool and international markets.

Cons : Complexity in managing varied employment laws and cultural practices.

9. Remote staffing agency

Specializes in placing remote workers, catering to the growing demand for remote positions across various sectors.

Pros : Meeting the rising demand for remote work and accessing a wide candidate pool.

Cons : Ensuring effective remote recruitment, onboarding, and management processes can be challenging.

Starting a staffing agency can offer a range of business benefits, especially if you have expertise in a particular industry or sector.

We created a list of potential benefits for you when starting a staffing agency.

High demand for staffing services

• Market relevance: Various industries require temporary or permanent staff, ensuring that staffing agencies are always in demand.
• Diverse clientele: You can serve multiple sectors, such as IT, healthcare , and finance , providing a wide range of opportunities.

Profitability

• Revenue streams: You can have multiple revenue streams, including earning commissions from placed candidates and charging clients for your services.
• Low overhead costs: Once established, staffing agencies can operate with relatively low overhead, potentially increasing profit margins.

Flexibility

• Business model adaptability: The ability to adapt your business model to cater to different industries and market changes.
• Remote possibilities: The possibility to manage many aspects of the business remotely or through virtual platforms.

Building networks

• Expanding connections: Establishing relationships with various businesses and professionals.
• Industry influence: The potential to become an influential player in the industries you serve by connecting businesses with top talent.

Contributing to career growth

• Enabling careers: Playing a pivotal role in helping individuals find jobs and build their careers.
• Skill development: Assisting individuals in identifying and developing their skills to meet market demands.

Economic contribution

• Supporting economies: Contributing to the economy by facilitating employment and supporting businesses in their growth.
• Reducing unemployment: Actively participating in reducing unemployment rates by connecting job seekers with relevant opportunities.

Technological advancements

• Leveraging technology: Utilizing advanced technologies like AI and data analytics to streamline recruitment processes and enhance service delivery.
• Digital presence: Establishing a strong online presence, making it easier to connect with clients and candidates globally.

Creating employment

• Job creation: Your agency will not only help others find jobs but also create employment within your own organization.
• Team development: Building a team that can contribute to the growth and success of your agency.

Step 1: Craft a solid business plan

Developing a comprehensive business plan plan is pivotal. Identify your niche, conduct thorough market analysis, and establish a clear financial plan. Define your services, competitors, target market, and unique selling propositions to position your agency effectively in the market.

Step 2: Navigate legal and compliance requirements

Ensure your agency is set up as a legal business entity by registering your own business and adhering to employment laws. Creating comprehensive contracts for clients and candidates from the outset will safeguard your agency from potential future legal challenges.

Step 3: Build a marketing strategy and a strong brand identity

Your agency’s name, logo, and overall branding should resonate with your target market and marketing strategy. Develop a professional website and employ a strategic marketing plan to enhance visibility and attract your initial set of clients and candidates.

Step 4: Choose the right staffing agency software

Selecting appropriate staffing software is crucial. Ensure it meets your agency’s needs and can scale as your business grows. Also, evaluate options based on features like candidate tracking, job order management, and reporting capabilities.

Choosing the right software is a challenging task. You can select from out-of-the-box tools and custom solutions . Each scenario has its pros and cons. Out-of-the-box solutions requires a quick implementation and are cost-effective since they usually have user-based pricing and are ready to use. However, ready-made solutions impose some limitations when it comes to personalization , which is crucial for this kind of business.

On the other hand, custom software solutions take more time to develop but are tailored to your specific needs , scale as your business grows and give you full control and ownership of the software , including data management .

There is a third option to consider, which combines the advantages of ready-made solutions and custom software development .

You can build custom staffing agency software with a fast development service offered by some custom development companies. Thanks to low-code elements , you can speed up the development process , which also means saving money.

The biggest benefits of this solution are:

• Unlimited personalization features;
• Standing out and gaining a huge competitive advantage;
• Code ownership;
• Cost-effectiveness;
• A fast development process.

Learn more about the potential of rapid software development. Schedule your free consultation call today and let us navigate you through our innovative fast software development services.

Here are the key features to look for when choosing staffing agency software:

Customization

Allows staffing agencies to tailor the software according to their unique needs and operational workflows. This adaptability not only enhances user experience but also ensures that dashboards, reports, and interfaces are tailored to provide maximum usability and efficiency for your team.

AI-driven features

In 2023, introducing a layer of intelligent functionality is a must for every kind of application. AI can, for example, enable the software to adeptly match candidates with suitable job opportunities and utilize predictive analytics to forecast hiring and HR trends .

This AI integration not only streamlines the recruitment process but also provides valuable insights to inform strategic decision-making.

High-performance

In staffing agency software ensures that operations are conducted swiftly and reliably, enhancing user experience and ensuring operational efficiency.

The emphasis is on ensuring that the software consistently performs optimally , minimizing downtime and avoiding disruptions in agency workflows.

Automation and custom workflow

Capabilities enable the staffing agency to automate repetitive tasks, such as communication and scheduling, while also allowing the customization of workflows.

This ensures a streamlined approach to recruitment and client management processes, saving time and reducing the scope for error.

Reporting and analytics

Features provide data-driven insights by generating advanced reports that analyze various metrics, including performance and client retention. These analytical data not only serve as a performance review but also act as a guide to enhance strategic and operational decisions.

Integration capabilities

Ensure that the software can seamlessly connect with various platforms, such as job boards and social media, thereby streamlining operations. Furthermore, API utilization allows the software to integrate with other tools and systems, providing a cohesive technological ecosystem within your agency.

Compliance management

It is vital to ensure that the software supports compliance with employment legislation and industry standards. It also ensures that detailed audit trails are maintained, providing a transparent record of actions and changes within the software to ensure accountability and compliance.

Data security

It is important to ensure that sensitive data, such as candidate and client information, is safeguarded through robust security protocols. Additionally, ensuring that data transmitted across networks is encrypted protects it from unauthorized access and potential breaches.

Project and task management

Make sure your software has features that help with effective management and assignment of tasks. With this funciontality, you will be able to monitor project progress, allocate resources appropriately, and ensure that delivery aligns with client expectations, thereby ensuring project success.

Step 5: Develop a strategic recruitment approach

Formulate a recruitment strategy that encompasses effective candidate sourcing , screening, and management. Utilize your staffing software to maintain a dynamic database of job candidates, ensuring you can quickly match talent with client needs.

Step 6: Acquire clients through targeted efforts

Identify and reach out to potential clients, offering tailored staffing solutions. Engage in networking, create compelling proposals, and leverage testimonials and case studies to showcase your agency’s capabilities and build credibility.

Step 7: Set up operational infrastructure

Establish your office space, whether physical or virtual, and build a team that aligns with your agency’s mission and services. Ensure your management setup is efficient for your daily business operations, with clear roles and responsibilities defined for your team members.

Step 8: Ensure excellence in service delivery

Implement structured client onboarding processes and utilize your staffing software to efficiently fulfill staffing needs. Use staffing software to gather and address feedback, ensuring continuous improvement in service delivery.

Step 9: Implement continuous improvement mechanisms

Regularly analyze your agency’s performance, identifying areas for improvement. Utilize data from your staffing software to make informed decisions and enhance your services, ensuring they consistently meet client and candidate expectations.

Step 10: Manage and enhance client relationships

Focus on client retention through excellent service, regular communication, and value-added services. Utilize your staffing software to manage client information, ensuring personalized and timely interactions.

Starting a staffing agency involves various financial aspects, including initial investments, ongoing expenses, and operational costs, each playing a crucial role in shaping the agency’s financial health and sustainability.

Initial investment

The initial investment to start a staffing agency can vary widely depending on the scale, location, and niche of the agency. This encompasses costs related to:

• Office space (rent or purchase)
• Equipment (computers, phones, furniture, etc.)
• Employment agency license and registration fees
• Professional liability insurance / general liability insurance premiums
• Marketing and branding (website, promotional materials, etc.)

Ongoing expenses

Recurrent costs that the agency will incur to maintain its operations include:

• Monthly rent and utility bills
• Salaries of internal staff
• Marketing and advertising costs
• Technology and software subscriptions
• Travel and transportation expenses
• Office supplies and miscellaneous costs

Operational costs

Expenses related to the core operations of the staffing agency, such as:

• Candidate sourcing (job boards subscriptions, recruitment marketing, etc.)
• Background checks and verification processes
• Training and development programs for internal staff and candidates
• Networking and relationship-building activities (events, memberships, etc.)

Payroll financing

Payroll financing is a critical aspect, especially considering that staffing agencies often need to pay temporary workers before clients make payments. This involves:

• Ensuring that candidates are paid on time, regardless of client payment schedules
• Potentially utilizing payroll financing services or credit to manage cash flow
• Managing taxes, benefits, and other payroll-related expenses

Fees and commissions

In the staffing industry, fees and commissions are crucial revenue streams and involve:

• Client fees: Staffing agencies typically charge employers a fee, which can be a flat rate or a percentage of the hired candidate’s annual salary.
• Candidate commissions: Some agencies might charge candidates a fee, often a percentage of their salary, especially in certain niches like entertainment or modeling.
• Markup rates: Agencies providing temporary staff usually add a markup to the hourly rate paid to the temporary staff, which is then billed to the client.

Additional considerations

• Legal and compliance costs: Ensuring adherence to employment laws and industry regulations, which might involve legal consultations and compliance management expenses.
• Technology investments: Implementing staffing agency software and other technological tools to streamline operations and enhance service delivery.

Starting an online staffing agency involves keeping a keen eye on various metrics to ensure the business is moving in the right direction. Here are some key metrics that are pivotal to track:

Candidate acquisition metrics

• Application rate: Number of applications received per job posting.
• Source of hire: Identifying which platforms (job boards, social media, etc.) are bringing in the most candidates.
• Time to hire: The duration between posting a job and hiring a candidate.

Client acquisition metrics

• Client conversion rate: The ratio of leads that convert into paying clients.
• Client acquisition cost: The total cost involved in acquiring a new client, including marketing and sales expenses.
• Client retention rate: The percentage of clients who continue to use your services over a specific time period.

Financial metrics

• Revenue: Total income generated from client fees and commissions.
• Profit margin: The net profit of the agency after deducting all expenses.
• Return on investment (ROI): Evaluating the profitability of investments made in marketing, technology, etc.

Operational efficiency metrics

• Job order to placement ratio: The number of job orders compared to successful placements.
• Submission to hire ratio: The number of candidate submissions compared to successful hires.
• Fill rate: The percentage of job orders that the agency successfully fills.

Candidate and client satisfaction

• Net promoter score (NPS): Measuring the willingness of clients and candidates to recommend your agency to others.
• Feedback and reviews: Analyzing feedback from clients and candidates to gauge satisfaction and identify areas for improvement.
• Quality of hire: Evaluating the performance and retention of placed candidates.

Technology and online presence metrics

• Website traffic: Monitoring the number of visitors and interactions on your agency’s website.
• Engagement on social media: Tracking likes, shares, and comments on your social media posts.
• Email marketing performance: Analyzing open rates, click-through rates, and conversion from email campaigns.

Compliance and legal metrics

• Compliance rate: Ensuring that the agency adheres to industry regulations and employment laws.
• Legal disputes: Tracking any legal challenges or disputes involving the agency.

Employee performance metrics

• Recruiter efficiency: Measuring the number of placements made by each recruiter.
• Employee satisfaction: Gauging the job satisfaction and engagement levels of your internal staff.
• Employee turnover rate: Monitoring the rate at which internal staff leave and are replaced.

Market trends and analysis

• Industry demand: Keeping track of the demand for staffing services in your specialized sectors.
• Market share: Understanding your agency’s position and share in the staffing market.

Monitoring these metrics provides a comprehensive overview of the agency’s performance, highlighting areas of success and pinpointing aspects that may require attention or improvement.

Utilizing a robust staffing agency software can assist in tracking and analyzing these metrics effectively, thereby supporting informed decision-making and strategic planning.

What makes a staffing agency different from popular online hiring platforms?

It can get a bit tricky!

So, we’re here to help make things clear.

First, we’ll give you a quick and easy explanation of each type of hiring service. And don’t miss our handy table below—it breaks down the main differences to help you figure out which option might be best for your next hiring adventure.

• Staffing Agency : Traditional model, provides candidates for permanent or temporary roles. High control over hiring.
• Freelance Marketplaces : Platforms like Upwork, focus on connecting freelancers with businesses for short-term projects.
• Professional Networking & Job Boards : LinkedIn and Indeed focus on professional connections and job postings, respectively.
• Gig Economy & Specialized Staffing : Platforms like Uber or Toptal provide short-term work or specialized talent.
• Remote Work Platforms : Platforms like Remote.co focus on listing remote work opportunities.
• Project-based Collaboration : Guru is an example where businesses and freelancers collaborate on specific projects.
• Virtual Assistant Platforms : Belay and similar platforms connect businesses with virtual assistants for administrative tasks.
• Recruitment Process Outsourcing (RPO) : Outsourcing of all or part of the recruitment processes to an external service provider.

Each platform type has its unique features and is suitable for different hiring needs and structures. The choice between them would depend on the specific requirements, budget, and scale of the hiring entity.

Today, we’ve learned key steps to start a staffing agency. This guide emphasizes understanding the staffing industry, picking a niche, and ensuring legal compliance right from the start. It stresses the need to create a detailed business plan covering finance, operations, marketing, and risk management. Developing a strong brand and using digital platforms for marketing and acquiring clients are also highlighted. We have also discussed the importance of using staffing software to streamline operations and focused on how to build relationships with clients and candidates, providing quality service, and sticking to ethical and legal standards for sustainable growth.

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Michał Głomba

CEO at Stratoflow

Growthink's Ultimate Business Plan Template

The world's #1 business plan template.

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Staffing Agency Business Plan Template

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You can finally create a professional Staffing Agency business plan in less than 1 day thanks to these powerful features of Growthink’s Ultimate Staffing Agency Business Plan Template:

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Staffing Agency Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2B Sector

Are you about starting a staffing agency ? If YES, here is a complete sample staffing agency business plan template & feasibility study you can use for FREE .

Staffing agencies are responsible for helping organization recruit staff to fill vacant position in their organization and also help applicants / those in between jobs secure employment; offer a wide range of recruitment -related services, largely temporary and contract staffing.

They also recruit employees for permanent placements. Some staffing agencies offer services beyond just recruiting employees for its clients, but also help in training and preparing the employees to fit into the role that they are being recruited for. Usually such staffing agencies charge more than those who just recruit employees for their clients.

When it comes to getting paid, some staffing agencies charge their clients; applicant administrative fees so as to enable them process their application, match them with employers and successfully help in securing jobs. Processing the application of an applicant includes helping them restructure their CVs and cover letters so as to fit into the expectation of the recruiter (the organization they want to work for).

In essence, it is the practice for staffing agency to earn their money by charging their clients (employers of labor) for the amount of work the employee undertakes. In most cases, the staffing agency receives the same amount as the employee. Staffing agencies make more money when they help organizations recruit highly skilled staff on a permanent basis.

Although some recruitment agencies still enter into personal contract agreement with applicants -such that they will collect a percentage of their salary for a period of 3 months or more if they help the applicant secure a job; most states in the U.S. have outlawed this type of arrangement.

A Sample Staffing Agency Business Plan Template

1. industry overview.

It is on record that the staffing, recruiting, and workforce solutions industry makes a huge contribution to the economy of the United States of America, and they provide jobs and career opportunities for about 14 million employees annually. Despite the fact that staffing industry growth has outpaced the overall economic and employment growth in the U.S., it employs only about 2% of the U.S. non – farm workforce.

Statistics has it that in the united states of America, there are about 17,000 staffing and recruiting agencies and they operate around 35,000 offices scattered all around the U.S. Statistics also has it that the top 122 staffing agencies generates a combined sum of $69.4 billion in U.S. representing 55.9% of the market..

Records has it that 17 staffing agencies generated more than $1 billion in staffing revenue in 2014 and these staffing agencies represented over a third (36.4%) of the market. Each staffing agency on the list generated more than $100 million in U.S. staffing revenue in 2014.

No doubt, the $69 billion in staffing revenue generated by these staffing agencies give emphasis to the health of the staffing industry.

The staffing agency industry will continue to blossom because more and more organizations are beginning to realize that somehow they need the services of employment consulting firms to help them take aware the stress of recruiting workforce for their business which sometimes goes beyond recruiting to proving trainings and other Human Resources related services.

From all available statistics, it is safer to say the recruitment consulting industry is growing steadily despite the competitive nature of the industry. One thing is certain if you are well positioned, and have the required business skills, network.

Plus a robust CV bank, you may likely not have to struggle to compete favorable in the staffing industry. Another reason why people prefer to start a staffing consulting business is that, consultants have the monopoly to charge a fee as it suits them -especially if they are have been able to pay their dues in the industry over the years.

Other factors that encourage entrepreneurs to start their own staffing agencies or consulting firms could be that the business is easy to set up and the start – capital is indeed affordable; you can actually start your own staffing consulting business from the comfort of your house.

All you need to do is to create an office somewhere in your house. People usually pay you for the staff you can help them recruit and train.

2. Executive Summary

Brick House Staffing and Training Company, LCC is a Human Resource firm cum staffing agency that will be located in New York City, New York. The company will operate as a standard human resources consulting firm with bias in recruitment and trainings.

Our services will cover areas such as; Recruitment and Training Consulting, Highly Skilled Staffing Consulting, Unskilled Staffing (Maid supply, Nannies, Gardeners, Security Guards and Drivers et al), Permanent Staffing Consulting, Temporary / Contract Staffing and any other related human resources services.

We are aware that businesses these days require diverse and sophisticated approaches. This is why we will position our staffing agency to offer a wide range of related consulting services as requested by our clients. Brick House Staffing and Training Company, LLC is a client-focused and result driven staffing agency that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer a complete range of human resources consulting services to our local, state, national, and multi-national clients and we will ensure that we work hard to provide the required consulting services and staffing solutions needed by our clients to accomplish their business goals and objectives.

At Brick House Staffing and Training Company, LLC, our client’s best interest come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire consultants cum recruiters who are well experienced in a wide variety of human resources consulting and trainings et al.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Brick House Staffing and Training Company, LCC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

Brick House Staffing and Training Company, LLC is founded by Dr. John Powel and his son Blaise Powel. The organization will be managed by Dr. John Powel; he graduated from University of California – Berkley (First Degree in Personnel Management), Brock School of Business at Stamford University (MBA), and University of Harvard (PhD.).

Dr. Powel is a Certified Recruiting Specialist (CRS), a Certified Personnel Consultant (CPC) amongst other certifications in Human Resources.

Aside from his core area of strength i.e. recruiting and trainings, Dr. Powel has extensive experience in a diverse range of business consulting, and his consulting practice is concentrated in the areas of helping both big corporations and start – ups position their business for growth, sustainability and expansion.

3. Our Products and Services

Brick House Staffing and Training Company, LCC is going to offer varieties of related staffing and training services within the scope of the consulting industry in the United States of America. Our intention of starting our staffing agency is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offering are listed below;

• Recruitment and Training Consulting
• Staffing for the IT industry
• Staffing for the Oil and Gas Industry
• Staffing for the Health Sector (Nurses, Doctors et al)
• Staffing for the Banking, Insurance and the Financial Sector
• Recruitment, Human Resource and Capital Development Consulting
• Highly Skilled Staffing Consulting
• Unskilled Staffing (Maid supply, Nannies, Gardeners, Security Guards and Drivers et al)
• Permanent Staffing Consulting
• Temporary / Contract Staffing

4. Our Mission and Vision Statement

• Our vision is to provide our clients with skilled staffing consulting and training solutions in a timely and efficient manner.
• We strive to handle each client with accountability and responsiveness, as if we were recruiting and training staff for our own business.
• We focus our attention on the providing workable business solutions as it relates to staffing for our clients so that our clients can focus their attention on the success of their business.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to provide professional and trusted staffing and training consulting services that assist businesses and non-profit organizations in operating sustainably.
• We provide workable staffing and training solutions in combination with our own business backgrounds, and deliver valuable services in a timely and cost-effective way.

Our Business Structure

Ordinarily we would have settled for two or three staff members, but as part of our plans to build a standard staffing agency business in New York City – New York, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, qualified, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of staffing agency business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around New York City – New York as long as they are willing and ready to work with us to achieve our business goals and objectives.

Below is the business structure that we will build Brick House Staffing and Training Company, LCC;

• Chief Executive Officer / Lead Consultant

Recruitment Specialist

• Training and Development Executive

Legal Secretary

Admin and HR Manager

• Business Developer (Marketing and Sales Executive
• Customer Service Executive

Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office / Lead Consultant:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for drawing up contracts and other legal documents for the company
• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
• Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
• Responsible for handling staffing contracts for the IT industry
• Responsible for handling staffing contracts for the Oil and Gas Industry
• Responsible for handling staffing contracts for the Health Sector (Nurses, Doctors et al)
• Responsible for handling staffing contracts for the Banking, Insurance and the Financial Sector
• Handles Recruitment, Human Resource and Capital Development Contract for our clients
• Handles Highly Skilled Staffing Contracts
• Supervise unskilled staffing contracts (Maid supply, Nannies, Gardeners, Security Guards and Drivers et al)
• Handles Permanent Staffing contracts for our clients
• Supervise temporary / contract staffing contracts
• Work with the Training and Development Consultant to develop training solutions for clients
• Track hours and bill to clients.
• Handle any other responsibility as assigned by the Lead Consultant

Training and Development Consultant

• Coordinates training programs facilitated by Brick House Staffing and Training Company, LCC
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Identifies training and development needs for staff through job analysis, appraisals and consultation
• Collects briefs from clients in respect of Recruitment exercise, Learning and Development and Advisory services
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Facilitates and coordinates strategic sessions.
• Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
• Responsible for handling all trainings both internal and external trainings
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Business Developer (Marketing and Sales Executive)

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distribute mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Brick House Staffing and Training Company, LLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a solid consulting firm that can favorably compete in the highly competitive consulting industry.

Part of what the team of business consultant did was to work with the management of the firm in conducting a SWOT analysis for Brick House Staffing and Training Company, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Brick House Staffing and Training Company, LLC;

Our core strength lies in the power of our team; our workforce. We have a team that are considered experts in the industry, a team with excellent qualifications and experience in recruiting and training.

Aside from the synergy that exist in our carefully selected workforce and our strong online presence, Brick House Staffing and Training Company, LLC is well positioned in a business district with the right demography and we know we will attract loads of corporate clients from the first day we open our doors for business.

As a new business consulting firm, it might take some time for our organization to break into the market; that is perhaps our major weakness.

• Opportunities:

No doubt, the opportunities in the consulting industry of which recruiting and training is a part of is indeed massive and we are ready to take advantage of any opportunity that comes our way.

Every business faces a threat or challenge at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the business.

Some of the threats that we are likely going to face as a staffing operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power.

There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

Quite a number of distinct trends have emerged in recent time in the consulting industry which is why staffing agencies and consulting firms alike are positioning their organizations to survive the peaks and troughs of an ailing economy.

As a matter of fact, most of these trends aid staffing agencies cum consulting firms and organizations to become more creative, competitive, efficient, and productive in a global market. Some other trends in the consulting industry could be attributed to changing demographics, attitudes and work styles.

No doubt, as the cost of consulting services continues to increase and as corporate spending falls, new consulting delivery methods will continue to emerge and gain momentum going forward. In addition, the market for consulting services has shifted from a sellers’ market to a buyers’ market. A market where consultants provide software solutions that will make it easier for their clients to run their businesses.

Lastly, it is now becoming trendy in the consulting industry for smaller staffing agencies or consulting firms to merge with bigger consulting firms and for bigger consulting firms to acquire smaller consulting firms / staffing agencies; mergers and acquisitions. Many consulting firms all over the United States are coming to the conclusion that the bigger the better for them.

8. Our Target Market

We do not want to leave any stone unturned in seeing that we attract all those who may be in need of our business. Although Brick House Staffing and Training Company, LLC will initially serve small to medium sized business, from new ventures to well established businesses.

But that does not in any way stop us from growing to be able to compete with the leading consulting firms cum staffing agencies in the United States. We hope to someday merge or acquire other smaller consulting firms and expand our staffing agency cum consulting services beyond the shores of the United States of America.

As a full service and standard staffing agency cum consulting firm, Brick House Staffing and Training Company, LLC have a variety of practice areas to help startups grow especially as it relates to staffing and training.

While we works with a variety of organizations and industries, Brick House Staffing and Training Company, LLC will also specialize in working with startups, real estate investors, and contractors, manufacturers and distributors, banks, lending and financial institutions.

Our target market cuts across people of different class and people from all walks of life, local and international organizations as well. We are coming into the industry with a business concept that will enable us work with the highly placed people and companies in the country and at the same with the lowly placed people and smaller businesses.

In other words, our target market is the whole of the United States of America and subsequently other parts of the world. Below is a list of the people and organizations that we have specifically design our products and services for;

• Banks, Insurance Companies and other related Financial Institutions
• Businesses and Entrepreneurs
• Blue Chips Companies
• Corporate Organizations
• Manufacturers and Distributors
• Real Estate Owners, Developers, and Contractors
• Research and Development Companies
• The Government (Public Sector)
• Households and families
• Schools (High Schools, Colleges and Universities)
• Sport Organizations
• Entrepreneurs and Start – Ups

Our Competitive Advantage

One of the things that make one sit up in business is competition. The level of competitions in the staffing consulting industry depends largely on the location of the business and of course the niche of your staffing consulting business. If you can successfully create a unique niche for your staffing consulting agency, you are likely going to experience little or no competition.

For instance; if you are the only staffing agency that recruits nurses for organizations and homes in your location, you are sure of monopolizing that aspect of staffing. Brick House Staffing and Training Company, LLC might be a new entrant into the staffing and training consulting industry in the United States of America, but the management staffs and board members are considered gurus.

They are people who are core professionals and licensed and highly qualified consultants in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups staffing agencies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

We are very aware of the role that money plays in every business and that is why we are doing all we can to see that we source for income in the right places.

Brick House Staffing and Training Company, LCC is established with the aim of maximizing profits in the consulting industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign ‘ retainer – ship’ contract with most of our clients.

Brick House Staffing and Training Company, LCC will generate income by offering the following staffing and training consulting services for individuals and for organizations;

10. Sales Forecast

As long as there are people living in the United States of America and business starting and growing in the U.S., the services of staffing agencies will always be needed.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City, New York to other states in the U.S. and even the global market.

We have been able to critically examine the staffing agency market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York.

Below is the sales projection for Brick House Staffing and Training Company, LCC, it is based on the location of our business and the wide range of recruiting cum consulting services that we will be offering;

• First Year-: $100,000
• Second Year-: $500,000
• Third Year-: $1,000,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst staffing agencies in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing. Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job deliveries speaks for us in the marketplace; we want to build a standard staffing agency cum consulting business that will leverage on word of mouth advertisement from satisfied clients (both individuals and organizations).

Our goal is to grow our staffing agency to become one of the top 20 staffing agencies in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Brick House Staffing and Training Company, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in New York and other parts of the U.S.
• Promptness in bidding for staffing and training consulting contracts from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver quality staffing and training consulting services to them
• Leverage on the internet to promote our business
• Engage in direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house consultants and other brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the consulting industry by storm which is why we have made provisions for effective publicity and advertisement of our consulting firm.

Below are the platforms we intend to leverage on to promote and advertise our staffing agency business;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around New York and major cities in the United States of America
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting clients to start patronizing our services.
• Ensure that all our staff members wear our customized clothes, and all our official cars are customized and well branded.

12. Our Pricing Strategy

Hourly billing for consulting services is a long – time tradition in the industry. However, for some types of consultancy services especially staffing and training services, flat fees or per head billings make more sense because they allow clients to better predict consultancy costs.

As a result of this, Brick House Staffing and Training Company, LLC will charge our clients a flat fee or per head for many basic services such as staffing and trainings et al.

At Brick House Staffing and Training Company, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients that would need regular access to consultancy and advisory services as it relates to staffing and performance management, we will offer flat rate (commission / percentage) for such services that will be tailored to take care of such clients’ needs.

• Payment Options

Brick House Staffing and Training Company, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

Starting a staffing agency cum consulting firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment.

Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.

Basically, these are the area we are looking towards spending our start – up capital on;

• The Total Fee for incorporating the Business in New York – $750.
• The budget for Liability insurance, permits and license – $2,500
• The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
• The Cost of launching our official Website – $600
• Budget for paying at least two employees for 3 months and utility bills – $30,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about $150,000 to set up a small scale but standard staffing agency business in the United States of America.

Generating Funding / Startup Capital for Brick House Staffing and Training Company, LLC

Brick House Staffing and Training Company, LLC is going to start as a private business that will be solely owned by Dr. John Powel and family. The family will be the sole financial of the firm, but may likely welcome partners later which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Brick House Staffing and Training Company, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer nothing short of excellent services.

Brick House Staffing and Training Company, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In progress
• Creating Awareness for the business (Business PR): In progress
• Health and Safety and Fire Safety Arrangement: In progress
• Establishing business relationship with key players in the industry: In progress

Frequently Asked Questions

What are the responsibilities of a staffing agency.

The responsibilities of a staffing agency are as follows;

• A staffing agency can provide end-to-end staffing solutions to a business
• Understanding the workload needs of the company
• Determining the workforce required to meet the same
• Conducting interviews and shortlisting candidates
• Vetting potential candidates through background checks and employment history
• Drawing contracts and looking at legal issues
• Imparting training in case of gaps
• Follow-ups on the performance of the temp workers to see if the requirements are met
• So also, if the worker is not the right fit, then it’s the responsibility of the staffing agency to terminate the hire and compensate, as needed.

What Is A Staffing Agency And What Does It Do?

A staffing agency is an agency that is responsible for helping organization recruit staff to fill vacant position in their organization and also help applicants/those in between jobs secure employment. They also offer a wide range of recruitment-related services, largely temporary and contract staffing.

Some staffing agencies offer services beyond just recruiting employees for its clients, but also help in training and preparing the employees to fit into the role that they are being recruited for. Usually, such staffing agencies charge more than those who just recruit employees for their clients.

How Does A Staffing Agency Get Paid?

When it comes to getting paid, some staffing agencies charge their clients administrative fees so as to enable them process their application, match them with employers and successfully help in securing jobs.

In essence, staffing agencies make more money when they help organizations recruit highly skilled staff on a permanent basis.

What Are The Benefits Of A Staffing Agency?

Here are some of the benefits of a staffing agency;

• Staffing agencies have specialists to identify the right talent.
• Staffing agencies maintain a talent pool.
• Staffing agencies can hire faster and more accurately.
• Staffing agencies offer tailor-made solutions.
• Staffing agencies let you focus solely on your growth.

When Should You Opt For A Staffing Agency?

• You should opt for a staffing agency when you want to quickly fill a position in your organization
• You should opt for a staffing agency when you need tailor made solutions to your recruitment process in your organization.
• You should opt for a staffing agency when you are finding it difficult to access pool of talents to fit into your organization.

What Can A Staffing Company Do For You?

A staffing agency is an organization that matches companies and job candidates. By registering with a staffing agency, you have the potential to make connections with multiple hiring managers looking to find the right people for their job openings.

What Is It Like To Work For A Staffing Agency?

Working for a staffing agency can be exciting, challenging and of course rewarding.

What Are The Different Types Of Staffing Agencies?

These agencies are divided into three categories namely (I) Line Agencies (II) Staff Agencies, and (III) Auxiliary Agencies, depending on the nature of work performed by them.

What Are The Benefits Of Working With A Staffing Agency?

The benefits of working for a staffing agency are enormous and some of them are;

• You will be in a position of influence
• You will earn an above-average salary
• You will have the chance to change lives
• You will have the opportunity to meet with different people
• You can help develop the people around you.
• You will feel gratification from solving problems.

What’s The Difference Between A Staffing Agency And A Temp Agency?

Even though temp agencies and staffing agencies offer temporary workers to their clients, but temp agencies only offer temporary work, staffing agencies focus on the long term needs of their clients as well as placing candidates in what can turn out to be full time employment with major corporations.

How Much Does A Staffing Agency Charge?

Staffing agencies typically charge 25 percent to 100 percent of the hired employee’s wages. So, for example, if you and the staffing agency have agreed on a markup of 50 percent, and the new employee earns an hourly wage of $10, you will pay the agency $15 per hour for their work.

What Kind Of Roles Do Staffing Or Placement Agencies Offer?

Staffing agencies help fill temporary positions, temp-to-hire positions and direct-hire positions.

How Can A PEO Assist With Employee Training?

A PEO can assist you with employee training in a variety of ways. This might include giving your employees access to internet-based learning sites, offering custom training with an outside expert, or even creating new seminars just for your employees.

What Is Contract Staffing And Permanent Staffing?

Contractual staffing refers to the recruitment of employees for short-term employment contracts as opposed to full-time permanent workers, while permanent staffing is the process of providing required candidates for long-term employment based on specified candidate factors.

Should I Use A Temp Agency To Find A Job?

Working with a staffing agency to find your next career will only help you expand your options. Employers are using staffing agencies and you should be too.

What Are PEO Companies And What Do You Do?

PEO stands for professional employer organization. This is how PEO works; once a client company contracts with a PEO, the PEO will then co-employ the client’s worksite employees. The PEO typically remits wages and withholdings of the worksite employees and reports, collects and deposits employment taxes with local, state and federal authorities.

How Do Employees Benefit From A PEO Arrangement?

Through a PEO, the employees of small businesses gain access to big-business employee benefits such as: 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits they might not typically receive as employees of a small company.

What Are The Benefits Of Using A Temp Agency?

• Reduced overhead costs.
• Reduced overtime pay.
• Save on training, time, and reduce hiring risks.
• Saves time and increases ROI.
• Access to talent networks.
• The ability to hire quickly
• Industry market knowledge
• The ability to try out an employee before extending a full-time offer

How Long Can You Hire A Temporary Employee For?

A period of temporary employment should last no longer than one year and have a clearly specified end date. Federal law also dictates that you cannot hire the same temp employee for more than two consecutive years.

Do You Have To Offer A Temporary Employee Benefits?

You don’t have to offer a temporary employee benefit. Please note that while it may not be a requirement to provide health insurance to your temporary and seasonal workers, you are still obligated to provide a safe and healthy work environment. You can offer them voluntary benefits which they can pay for at low group rates.

What Is The Difference Between PEO And ASO?

PEO – stands for Professional Employer Organization. ASO – stands for Administrative Services Organization and the most important difference between an ASO and a PEO is that the service provided through an ASO does not establish a co-employer relationship.

What Is The Difference Between A PEO And A Staffing Company?

Both staffing agencies and PEOs are focused on workforce HR tasks, but with a staffing agency you are outsourcing your hiring process and the associated tasks. With a PEO, you are doing the hiring on your own and only outsourcing the administrative tasks, payroll, and compliance associated with your workforce.

How Much Do Agencies Take Off Your Wage?

Standard recruitment costs tend to range between 15 percent and 20 percent of a candidate’s first annual salary, but this can go as high as 30 percent for hard to fill positions.

Can You Just Leave A Temp Job?

Some contracts stipulate a mandatory notice period you may have to work through before leaving your job. The temp agency representative may want to inform your current employer of your intention to leave, since you are still technically an employee of the agency.

Is It Bad To Get A Job Through A Staffing Agency?

Staffing firms play a critical role in helping companies find talent. Unlike corporate recruiters, recruiters at staffing agencies have access to jobs at multiple companies covering a wide spectrum of industries and positions. If companies and your competition are using them, you should be too.

What Are The Differences Between A PEO And A Broker?

Generally speaking, a health insurance broker is an expert at insurance, whereas a PEO can provide expertise and assistance in a number of HR and compliance issues, in addition to providing access to health coverage

Should You Outsource HR Or Keep It Inside Your Business?

In my opinion, I will advise that you outsource HR as against keeping it inside, especially if you are just starting out. As a matter of fact, even the smallest companies can benefit from small business HR outsourcing. In reality, the smaller your business is, the more beneficial it is to outsource human resources.

What Are Common Misconceptions About Staffing Agencies?

Here are the top five common misconceptions of staffing agencies.

• Temporary Work Only (With No Stability)
• Take a Cut From Your Pay
• Don’t Pay Well
• Low-Level Jobs
• Only Offer Jobs at Small Companies

How Can You Get Out Of Temp Agency Contract?

If you found your current job through a temp agency, the first step you should take is to contact your agency representative and inform them of your decision to leave, especially if it is prior to the agreed date.

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Creating a Business Plan for Your Staffing Agency

Last Updated March 29, 2024

If you want to be a successful staffing agency owner, you need a blueprint that can put you on the path toward that success. For most, this blueprint lies in the form of a business plan.

Studies show that prospective business owners who create a business plan are 152% more likely to launch their business than those who fail to do so. Brainstorming a business plan is one thing, but actually putting in the work to start your business is another.

Prospective staffing firm owners will quickly learn that organization is one of the keys to success. Plus, there are plenty of requirements to start a staffing agency . You’ll need somewhere to note all these requirements, along with a point of reference that maps out how your business will be structured, your short- and long-term goals, revenue projections, potential financial needs, and more.

You can accomplish all of this through a single document: a business plan.

With that being said, let’s talk about how you can model your staffing agency all by simply drafting a business plan.

Before Devising Your Business Plan

Before getting started with your business plan, ensure you’re ready to handle the demands that come with running your own business by learning how to start a staffing agency . There are several federal and state documents required for opening an employment agency. These include:

• IRS Form 941
• Applying for an Employee Identification Number (EIN)
• Articles of Incorporation
• State Tax ID Number
• Business License and Certification

How to Create a Business Plan for Your Staffing Agency

Once you understand what you’ll need to start your staffing agency, you can get to crafting your business plan.

The nine steps below will help walk you through the process.

Identify Your Niche

The first real step of a staffing agency business plan is to consider some of the broader elements of your company, such as what (if any) niche industry you plan to prioritize staffing. You may choose an industry that you’re particularly passionate about, you have experience working in, or one that you believe could lead to a lucrative business.

While not every staffing agency outwardly advertises their niche in their name, the vast majority have an industry they specialize in above all others. Honing in on a single industry to staff can simplify your job as a business owner. An agency that recruits for all industries can still find success, but it will make it more challenging to stand out amongst your competition – think “small fish, big pond.” Agencies that focus on a single industry cast a smaller net but in a much smaller pond. This can make running a staffing agency far more manageable.

Create a Mission Statement and Executive Summary

Your mission statement and summary of your future company should be on the first page of your staffing agency business plan, as this is the first step for any business plan. This mission statement should highlight the purpose of your staffing agency – something more specific than “helping companies find top candidates.”

Make sure to answer the question, “Why?” in your mission statement. Why is matching candidates with ideal roles important to you and your business? Why is your business different?

A mission statement is crucial because it tells potential business partners (and potentially your own future employees) who you are and what you value. It will also serve as a constant reminder to yourself, especially on the most challenging days, of why you’re passionate about running a staffing agency.

Along with your company mission, include a general summary that describes your business in a few paragraphs. Think of this as an “About Us” page you’d see on a typical company website. This should include a “Product and Services” section, outlining aspects of your agency such as your niche, the services you offer, how you stand out from the competition, and how you expect to handle and work with new clients.

Collect Market Research

Conducting market research is a well-known, can’t-miss undertaking when establishing a startup. It involves analyzing market trends, industry trends, your target audience, your target clients, and your competition.

However, it’s not so simple to figure out where to start when it comes to market research .

A few ways to begin your market research journey include:

• Discovering industry experts and discussing topics with them
• Reading market reports and exploring public market data
• Subscribing to newsletters
• Utilizing market research tools, such as GoogleTrends, BuzzSumo, and SEMRush
• Interviewing or surveying your target audience
• Building buyer personas

As a staffing agency owner, a few simple examples include subscribing to newsletters such as Staffing Industry Analysts and reaching out to existing agency owners on LinkedIn.

Identify Your Competitors

Identifying competitors is what many perceive as the final, yet arguably most important, type of market research practice.

But, how do you figure out who your competitors are?

If you’re starting a nursing staffing business , for instance, the easiest way would be to search for medical staffing-related terms on Google and see which sources or agencies are consistently ranking at the top. SEMRush can greatly aid this keyword research process, as you’re granted access to a plethora of information relating to your potential competitors.

To identify your competitors, you can also ask for customer feedback and browse online forums or social media sites. When marketing your staffing agency to potential clients, you can also make note of any other companies that are routinely mentioned. If another employment firm is regularly being referred to by your leads, they’re likely a competitor.

Project Finances and Revenue by Completing a Financial Breakdown

Financial projections are a pivotal component of any business plan. You’ll first want to set an operating budget. Then, denote every significant expected startup cost and operating cost into two separate tables, as shown below:

Once you’ve done so, you’ll want to learn about and consider the following business metrics:

• Income (Profit – Loss)
• Balance Sheet

The best way to familiarize yourself with these metrics is by looking at, and eventually creating, all three of the major financial statements : a profit and loss statement , a business balance sheet , and a cash flow statement .

Then, you can begin forecasting sales, estimating figures – such as target monthly profits – and devising a three- to five-year financial projection. These longer-term projections should include monthly to yearly increments showcasing how you’re going to achieve your target numbers. Map out how you plan to attack these projections by setting realistic yet ambitious and quantifiable goals.

Related: How Are the Three Essential Financial Statements Linked?

Explore Staffing Agency Funding Options

Prior to working on securing your first contract, you need to ensure you have the funding to support your staffing agency.

If you’re a first-time business owner, it likely won’t be as simple as securing a traditional bank loan because of the stringent credit score requirements needed to qualify. And asking friends and family can be awkward and intimidating.

Therefore, leaning on alternative financing solutions might be your best option. But don’t worry! Many of these alternative lending options have proven highly effective at aiding small business growth.

A few alternative financing options include:

• Invoice factoring
• AR financing
• Crowdfunding
• Peer-to-peer lending

Invoice factoring has a reputation as particularly useful for staffing and recruiting agency owners. Reason being, most staffing companies typically don’t have the tangible collateral that banks like to see when offering significant loans.

If you’re unfamiliar with factoring, the process is relatively simple. It involves businesses selling outstanding accounts receivable to a third-party factoring company, or factor, which immediately advances the business 80-99% of the value of each invoice. The factor then assumes collections responsibilities for all of the factored invoices.

Once the business’s customer(s) submits payment to the factoring company, the factor releases the remaining value of each invoice to the business, minus a small factoring fee. As a result, staffing agencies that utilize factoring see an immediate boost in working capital and improved cash flow.

Regardless of how you choose to finance your business, it’s important to prioritize positive cash flow and ensure you have reliable working capital to fund operations and, eventually, business expansion.

Devise a Staffing Agency Marketing Plan

Knowing how to market your staffing agency will go a long way to determining your success.

Tips for creating a marketing strategy include:

• Define your audience
• Build relationships through local events
• Network with industry leaders or experts online, particularly LinkedIn
• Invest time and money into building a professional, visually appealing, informational website
• Prioritize feedback and reviews from clients, and advertise your positive feedback
• Establish your staffing agency as an industry expert by creating a blog and writing guest posts on other websites with your target audience
• Build keyword authority through your written content
• Advertise your staffing agency on social media sites and consider Google Ads

Seek Advice From Mentors, Investors, and Industry Experts

Before finalizing your business plan, it’s good practice to consult with personal business mentors, investors in your staffing agency, and industry experts to ensure you’ve covered all of the necessities.

Update and Revise Your Business Plan

Once you’ve completed your business plan, store it somewhere readily accessible because that’s not the final time you’re going to touch it. You’re likely going to refer back to your document once you’ve gotten the ball rolling with your business. After your first year in operation, you should compare your financial projections and goals with your actual finances to measure performance. You’ll then be able to make alterations to both your future projections and overall business strategy to better fit your position.

How Staffing Agencies Get Contracts

While creating a staffing agency business plan is an essential first step in starting your business venture, the work only continues from there.

Ultimately, winning clients is the most essential element of growing a business.

With that said, here are five tips for finding clients for your staffing business :

• Optimize your website and ensure it is captivating and inviting for new visitors
• Create a detailed client persona to help you understand who you’re marketing your business to
• Provide value for free through hosting webinars and workshops and writing blog posts
• Develop a referral program and ask connections (including existing clients) for referrals
• Personalize the experience by giving each lead individual attention and being flexible with contracts

In Summary: Creating a Business Plan for Your Staffing Agency

No two business plans will look the same. Your operational and growth plans might differ slightly from the blueprint laid out in this article or from the entrepreneur next to you.

What’s more important to remember is that a business plan isn’t just a document you put together and store away. It needs to be revisited and analyzed on a quarterly basis. Tracking goal progress, comparing actuals vs. forecast, and reviewing strategies will prove highly useful as you continuously strive to reach new heights with your staffing company.

Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.

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• The 7 Step Business Plan for a Medical Staffing Agency

By Adam Day

• Uncategorized

April 22, 2021

A strong business plan can make or break a new startup. Therefore, if you’re looking to open a healthcare staffing agency, a solid business plan should be your first port of call.

Not only does it provide a clear road map for getting your business up and running, it’s also the first step in applying for a business loan. Furthermore, with so much to handle from financing to legal protection, the act of writing it all down with actionable steps can take a huge load off your mind and make that mountain ahead seem a lot easier to climb 

To help you in your journey, we’ve outlined below in seven easy steps how you can create a business plan for a medical staffing agency.

1. Outline Your Business Goals and Purpose

Start by writing out in clear terms what your business goals are for starting a healthcare staffing agency.

It should be concise and easy to understand. Furthemore, If you’re going to be applying for a business loan, this is your chance to lay out why you’ll need the funds and what your growth targets are. 

2. Decide on the Type of Business You’ll Be Running

Every staffing agency must decide on the type of ownership structure it will operate under. You have a few options, and each have their own pros and cons. Take some time to decide which one might work best for you depending on your personal and business goals. 

• Sole Proprietorship – This is where one person owns the entire business under their own name. Any debts or liabilities that the business takes on are the sole personal responsibility of the owner.
• Joint Partnership – When two or more people open a business together, they enter into a partnership. Depending on the arrangement, each owner may hold an equal or different share in the business. All debts and liabilities are still considered personal. 
• A Limited Liability Company – An LLC comes with significant tax benefits and can be opened under sole proprietorship or joint partnership. Another benefit to this arrangement is that it offers the legal protection of being a corporation. 
• A Corporation – Functions much the same as an LLC, with the important difference that it is owned by its shareholders, whereas an LLC is owned by one or more individuals. 

Whatever type of business you decide on, keeping track of employee time and attendance will make your life a whole lot easier. Learn more about our staffing agency software here . 

3. Ensure Liability Protection

As a nurse staffing agency, you’re in a rather unique position regarding legal protection. Your staff will be working in several different locations, some safer than others and you need to ensure that both they and you have proper protection.

Outline the type of liability insurance you’ll need and how it will protect your company from any damages caused. Since you’re operating in the medical industry, it’s advisable that you go with premium liability insurance. 

You’ll also need proper worker’s compensation in case one of your employees suffers an injury on the job. Your insurance program should cover both medical costs and rehabilitation. As an added bonus, it may also be worth getting short or long-term disability insurance on top of the base package. 

4. Investigate Funding Options

Whatever agency you operate within, when you first get started, you’ll likely be operating out of a spare room.

Furthermore, for the first few months, as you try to hire staff and find clients, your business will probably be in the red, financially speaking.

This is perfectly normal. That being said, eventually you’re going to have to find extra funding before your business can really take off. Employees will have to be paid before you even have clients and you’ll have advertising, recruiting, and operating costs to cover. 

To get yourself through these first early months, outline a plan for how you will fund your business venture. Some of it can come from your own personal savings, but in all likelihood, you’re going to need a business loan to cover the rest. Research what loan options are available and what the requirements are to be approved.

5. Make Revenue Projections

Key to the success of any business venture is an accurate revenue projection. This will be crucial when it comes time to apply for a business loan, so lay out your expected earnings for each month and yearly quarter for the first 2-3 years. It should be properly cited with market reports and financial statements to back up your projections. Be aggressive in your goals, but also realistic. Your loan officer will want to see clear evidence that you can cover your monthly loan payments and any other debts or liabilities you may have taken on.

This is also a good time to think about how you can achieve critical mass, the point at which you have enough staff and clients that your business becomes self-sustaining. When you first get started, you’ll be operating on a shoestring budget and largely dependent on whatever funding you could get.

Try to get a clear sense of how much you’ll need to grow before you can compete in the medical market effectively and remain competitive. Your point of critical mass will be an ever-changing target, so be aware that you’ll need to revise it over time. The revenue projections you make will have a direct impact on the balance between your medical staffing agency’s bill rate vs pay rate .

Revenue projections and medical staffing analysis is made easier by using our staffing agency software . Learn more here. 

6. Develop a Marketing Plan

This is where you will lay out your marketing plans and how you intend to achieve them. You’ll need to outline two marketing plans, one for attracting medical employees and another for clients.

For your medical employees, brainstorm a bunch of ideas for how you can draw talent. For instance, reach out to local schools that specialize in nursing and medical care. You could even try teaming up with a local faculty to encourage new graduates to join your agency. Other methods for finding staff include reaching out on social media or asking medical staff you already have on the books to reach out through their connections and pitch job offers.

As for clients, draw up a list of all the nearby hospitals, health clinics, and anywhere else that needs medical staff. These will be the targets for your marketing campaign, and you should have a clear idea for how you can attract their business.

If you have a unique selling proposition (USP), this is your chance to showcase it and explain how you will compete with other staffing agencies. You should also research any educational events in your area. Medical personnel are always in need of continuing education credits to maintain their professional licenses, and these events can be a great place to find both new recruits and new business clients.

7. Bring It All Together

Type out everything in a single document with each area categorized and properly indexed. It should be easy to present to lenders and provide a clear blueprint for how your business will operate and grow in the future. A basic business plan should include the following:

• An executive summary
• Company ownership structure and financing
• Market analysis and business plan
• Pricing model and marketing plan
• An appendix section listing supporting information

Bottom Line

There you have it! While there is no blueprint for how to open a healthcare staffing agency, if you follow these 7 steps your chance of success will drastically increase. 

Once you’re up and running, make sure you finalize your temp agency markup rates to ensure you’re profitable but don’t price yourself out of the market.

Furthermore, to offer unique value and attract the best medical professionals, invest in staffing agency software in order to streamline your time and attendance, payroll and HR.

Want to learn more about how Timerack can benefit your medical staffing agency? Book a personalized demo here . 

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Crafting a Sample Healthcare Staffing Agency Business Plan

Understanding the Healthcare Staffing Industry

Conducting market research for your business plan, defining your agency's mission and vision, identifying target customers and tailoring services to meet their needs, developing a marketing strategy to promote your agency, creating a financial plan and setting realistic goals, determining staffing needs and recruitment strategies.

• Developing a Training Program for Your Staff

Establishing Quality Control Measures to Ensure Client Satisfaction

Managing legal and regulatory requirements for healthcare staffing agencies, evaluating risks and implementing risk management strategies, measuring success and tracking key performance indicators (kpis).

Starting a healthcare staffing agency is a challenging but rewarding endeavor, and requires careful planning and preparation to be successful. In this article, we will discuss the key considerations and steps involved in crafting a sample healthcare staffing agency business plan.

Before you start developing your business plan, it's important to have a solid understanding of the healthcare staffing industry. This includes understanding the current demand for healthcare workers, the types of positions that are in high demand, and the trends in the industry.

It's also important to understand the competition in the healthcare staffing industry, including the key players, their strengths and weaknesses, and any potential gaps in the market that your agency may be able to fill. This will help you determine your agency's unique value proposition and positioning in the market.

Another important aspect to consider when understanding the healthcare staffing industry is the regulatory environment. Healthcare staffing agencies must comply with various federal and state regulations, such as licensing requirements, background checks, and healthcare industry standards. It's crucial to have a thorough understanding of these regulations to ensure your agency operates legally and ethically.

In order to develop a successful business plan, you need to conduct thorough market research. This includes analyzing industry trends and demand for healthcare workers, identifying your target customers and their needs, and analyzing your competition.

You should also conduct a SWOT analysis to identify your agency's strengths, weaknesses, opportunities, and threats. This will help you develop a plan that capitalizes on your strengths while addressing your weaknesses and mitigating potential risks.

Another important aspect of market research is understanding the regulatory environment in which your agency will operate. This includes understanding the licensing and certification requirements for healthcare workers, as well as any relevant state and federal regulations that may impact your business operations.

Your agency's mission and vision provide the guiding principles for your business. Your mission statement should define your agency's purpose and core values, while your vision statement should describe your agency's long-term goals and aspirations.

Having a clearly defined mission and vision will help you stay focused on your objectives and make strategic decisions that align with your goals.

It is important to regularly review and update your agency's mission and vision to ensure they remain relevant and aligned with your business goals. As your agency grows and evolves, your mission and vision may need to be adjusted to reflect changes in the industry or shifts in your target market. By regularly revisiting and refining your mission and vision, you can ensure that your agency stays on track and continues to thrive.

To be successful, your agency needs to understand the needs of its target customers and develop services that meet those needs. This requires careful research and analysis of the healthcare industry and your target customers.

You should also consider your agency's unique value proposition and how it can differentiate itself from the competition. This could include offering specialized services or focusing on a particular niche within the healthcare industry.

Once you have identified your target customers and developed services that meet their needs, it is important to continually evaluate and adapt your offerings. The healthcare industry is constantly evolving, and your agency must stay up-to-date with the latest trends and technologies to remain competitive.

Once you have identified your target customers and developed your agency's unique value proposition, you need to develop a marketing strategy to promote your services and attract clients.

This can include developing a brand identity, creating a website and social media presence, networking with potential clients and referral sources, and developing marketing materials such as brochures and flyers.

It is important to regularly evaluate the effectiveness of your marketing strategy and make adjustments as needed. This can involve tracking website traffic and social media engagement, monitoring the success of networking efforts, and soliciting feedback from clients and referral sources.

A financial plan is essential to the success of any business, and is particularly important when starting a healthcare staffing agency. This includes developing a comprehensive budget, projecting revenue and expenses, and setting realistic goals for growth and profitability.

You should also consider financing options for your agency, including loans, grants, and investment capital.

It is important to regularly review and adjust your financial plan as your business grows and changes. This can include reevaluating your budget, revising revenue and expense projections, and adjusting your goals to reflect new opportunities or challenges. By regularly monitoring and updating your financial plan, you can ensure that your healthcare staffing agency remains on track for long-term success.

As a healthcare staffing agency, your success will depend on your ability to recruit and retain qualified healthcare professionals. This requires careful planning and strategy, including developing job descriptions, identifying qualifications and skills required for each position, and developing recruitment strategies that attract top talent.

You should also develop systems for onboarding and training new hires, as well as performance evaluation and retention strategies.

One effective recruitment strategy is to establish partnerships with nursing schools and other healthcare training programs. This allows you to build relationships with students and faculty, and to identify top performers who may be interested in working with your agency after graduation. Additionally, offering internships or other opportunities for students to gain experience with your agency can help to build a pipeline of qualified candidates for future staffing needs.

To be successful in the healthcare staffing industry, your agency needs to prioritize quality control measures that ensure client satisfaction. This includes developing systems for screening and evaluating candidates, verifying credentials and references, and conducting periodic performance evaluations.

You should also establish clear communication channels with your clients, and respond quickly and effectively to any concerns or complaints.

Another important aspect of quality control measures is to regularly gather feedback from clients and use it to improve your services. This can be done through surveys, focus groups, or one-on-one meetings. By actively seeking out and addressing client feedback, you can demonstrate your commitment to providing high-quality staffing solutions and build long-term relationships with your clients.

Starting a healthcare staffing agency involves complying with a variety of legal and regulatory requirements, including licensing, insurance, and compliance with state and federal labor laws.

You should do your research and work with legal and accounting professionals to ensure that your agency is fully compliant with all applicable laws and regulations.

Starting any business involves inherent risks, and healthcare staffing agencies are no exception. It's important to evaluate potential risks and develop strategies for mitigating those risks.

This could include developing contingency plans for unexpected events such as staff shortages or client cancellations, and having proper insurance coverage to protect your agency and its clients.

Finally, it's important to regularly measure and track your agency's performance against key performance indicators (KPIs) such as revenue growth, client satisfaction, and employee retention.

By regularly evaluating your agency's performance and making adjustments as needed, you can ensure that your agency stays on track and continues to thrive in the competitive healthcare staffing industry.

In conclusion, starting a healthcare staffing agency requires careful planning and preparation. By following these key steps and developing a comprehensive business plan, you can increase your chances of success and build a thriving healthcare staffing agency.

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7 Essential Tips For Starting a Staffing Agency

Staffing agencies are essential in our fast-changing economy. You play the role of matching qualified candidates with the staffing needs of businesses. However, this type of service must have certain qualities in order to be successful. Here are the top seven tips to keep in mind if you want your staffing agency to flourish.

Important Steps to Start a Staffing Agency Business

1. create a business plan.

A business plan is a critical first step for starting a business of any kind. A business plan serves several functions. It provides a blueprint for you to follow as you set up your staffing agency. A business plan clarifies your marketing plans, your target audience, and the amount of funding you need. In addition to guiding your actions, a business plan is essential if you apply for financing such as bank loans.

2. Decide How You Will Fund the Business

Decide how much it will cost you to launch your business and how you plan to fund it. The following are some of the most common ways to fund a new business.

• Personal Funds. If you have savings or assets available. Personal credit also fits into this category.
• Loans from family or friends.
• A bank loan.
• Invoice Factoring . With this type of financing, you sell unpaid client invoices to a factoring company.

3. Register Your Business  

When registering your business, you’ll have to decide what type of business structure works best for you. Most businesses fall into one of these categories:

• Sole Proprietorship. This is for solo business owners with no partners.
• Partnership. A business owned by two or more people.
• Limited Liability Company (LLC). Owned by multiple people. This type of structure provides you with a certain amount of liability protection as it creates a legal distinction between the owners and the business.
• Corporation. A company owned by shareholders.

If you aren’t sure what type of business structure is best for you, it’s a good idea to consult with an attorney.

4. Meet Legal Requirements

You want to understand and comply with all essential laws and regulations before opening your business. This includes the following but may vary depending on your location and your business structure.

• Business license.
• Employer Identification Number (EIN).
• Article of Incorporation. This is necessary if you’re starting a corporation.
• IRS Forms. These may include Form 941, W-4, and I-9.
• State Tax ID Number.

5. Get Insurance

A staffing agency will need several types of insurance, including:

• General liability insurance.
• Workers compensation.
• Commercial property insurance. You’ll need this if your agency is situated in a brick and mortar location.
• Vehicle insurance. If you will be using company vehicles, they will need to be insured.
• Professional liability insurance.
• Employment practices liability insurance.
• Cyber insurance. To protect you from cyber attacks and data breaches.

6. Open a Business Bank Account

No matter what type of business structure you have, you should have a business bank account separate from your personal accounts. This prevents personal and business funds from getting mixed up. A business account is also helpful for building business credit.

7. Create a Non-Disclosure Agreement (NDA)

If you have partners or employees, you should create an NDA or non-disclosure agreement. This is a standard contract that prevents people in your company from sharing confidential information.

Create Your Staffing Agency Step By Step

While starting a new business can seem overwhelming, if you take one step at a time, you’ll find that it’s all straightforward. The danger lies in trying to skip steps, which can mean overlooking some essential points. Keep in mind that starting a staffing agency is an ambitious project that requires time and planning.

How Can Riviera Finance Help?

To build a successful staffing company, you need ample and reliable cash flow. Your funding source will need to meet all your financial needs on demand, including:

• Weekly Payroll
• Marketing, Advertising and Sales Expenses
• Administration and Overhead
• Executive Compensation

With Riviera Finance, you can get access to working capital with invoice factoring . This method of alternative financing allows you to turn unpaid invoices into cash. See why more staffing businesses choose to work with Riviera Finance – contact us online to see how our team can serve you. 

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How To Write a Nurse Staffing Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for a nurse staffing agency that wants to improve its strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every nurse staffing agency owner should include in their business plan.

Download the Ultimate Staffing Agency Business Plan Template

What is a Nurse Staffing Agency Business Plan?

A nurse staffing agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, areas of competitive advantage, and information about your team members. Your nurse staffing agency business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Create a Nurse Staffing Agency Business Plan?

A nurse staffing agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs looking to get involved in staffing agencies can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Nurse Staffing Agency Business Plan

The following are the key components of a successful nurse staffing agency business plan:

Executive Summary

The executive summary of a nurse staffing agency business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your nurse staffing agency  
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your healthcare staffing agency. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your nurse staffing agency , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your nurse staffing firm, mention this.

You will also include information about your chosen nurse staffing agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a nurse staffing agency’s business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the healthcare industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a nurse staffing agency business’ customers may include:

• Private practices
• Nursing homes

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or nurse staffing services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Of course, you may also promote your nurse staffing agency business via word-of-mouth or a referral program.

Operations Plan

This part of your nurse staffing agency business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a nurse staffing agency include reaching $X in sales. Other examples include adding new staff, reaching a certain number of customers, maintaining a retention threshold, or launching a new service.

Management Team

List your team members including their names and titles, as well as their expertise and experience relevant to healthcare staffing. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Nurse Staffing Agency

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Nurse Staffing Agency

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• investments

Below is a sample of a projected cash flow statement for a startup nurse staffing agency .

Sample Cash Flow Statement for a Startup Nurse Staffing Agency

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Plan for Success

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your nurse staffing agency company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is an essential tool for any startup nurse staffing agency. It not only lays out your business vision but also provides a step-by-step process of how you are going to accomplish it. The business plan can help to attract investors.  

Finish Your Nurse Staffing Agency Business Plan in 1 Day!

Ukraine-Russia war latest: Putin picks ex-bodyguard for senior role - fuelling succession rumours

The Russian president has brought Alexei Dyumin, 51, closer to the centre of power since his re-election in March. Meanwhile, the leaders of France and Germany have said Ukraine should be allowed to strike targets in Russia - but on certain conditions.

Wednesday 29 May 2024 17:32, UK

• Putin names ex-bodyguard for senior role - fuelling succession rumours  
• French and German leaders say Ukraine allowed to strike inside Russia
• Russia launches drone attack at three regions
• Sean Bell analysis:  Putin is concerned and he's rattling the nuclear sabre
• The big picture : What you need to know about the war right now
• Eyewitness: Russia producing shells three times faster than Ukraine's allies

We're pausing our live coverage of the conflict for the day, but if you're just joining us, here is a recap of the key moments.

• Vladimir Putin appointed Alexei Dyumin, his former bodyguard, as secretary of the advisory State Council, fuelling speculation about his presidential potential;
• France and Germany's leaders said Ukraine should be allowed to hit military sites inside Russia from which missiles were being fired at Ukrainian territory, but not other targets;
• Police searched the office of a European Parliament employee in Brussels over suspected Russian interference;
• Prisoner of war exchanges between Russia and Ukraine have been suspended for several months, Russia's human rights commissioner said.

A Russian airstrike has hit more than 100 houses in an eastern Ukrainian village, local authorities say.

The high-explosive aerial bomb wounded seven people in the Donetsk region, according to the Ukrainian National Police.

The attack took place seven miles from Kramatorsk, a key Ukrainian-held city. 

A four-year-old child was among those injured.

Vladimir Putin has appointed Alexei Dyumin, his former bodyguard, as secretary of the advisory State Council, fuelling speculation about his presidential potential.

The president has brought Mr Dyumin, 51, closer to the centre of power since his re-election in March, having made him an aide overseeing the defence industry this month.

The details of his new role are unknown.

"Russia's elite is abuzz with the appointment of Dyumin," Sergei Markov, a former Kremlin adviser and Putin supporter, said on Telegram.

"This is seen as confirmation that Dyumin is the future president of Russia, Putin's choice," Mr Markov said, adding that this was something that had long been rumoured.

There is no public debate or reliable information about who might eventually succeed Putin, who is 71 and is expected to rule for years, but his appointments are scrutinised for signs of whether he is lining up a potential candidate to one day take over from him.

Being publicly identified as a potential successor carries certain risks attached to being seen as a challenger.

Asked about Dyumin's appointment, the Kremlin said it was part of a rotation - he is taking over the role from Igor Levitin, 72 - and said he would look at how the State Council would function.

A German government spokesperson says agreements on how Ukraine deploys weapons supplied by the West are confidential.

They batted away questions on whether Ukrainian forces could use them to strike into Russian territory. 

The government was pressed on the issue at a news conference after French and German leaders said Kyiv should be allowed to hit military sites inside Russia from which missiles were being fired at Ukrainian territory.

Yesterday, Vladimir Putin tried to frame his invasion across the Kharkiv border, opening up a second front, as a result of the West failing to prevent Kyiv from attacking Russian targets.

Ukrainian drones have the capability of striking a target up to 1,550 miles away, but Moscow has been protected, a senior Russian airforce official has said.

The comments, made by Dmitry Bogdanov, head of the radio-electronic warfare department of the Russian Aerospace Forces, suggest a wide swath of Russian territory bordering Ukraine is vulnerable to attack.

"The enemy is not standing still," Mr Bogdanov was quoted as saying by state news agency Tass. 

"Now unmanned aerial vehicles can traverse an area of up to 2,500 kilometres, and many [Russian] regions are aware of this." 

It comes after a Kyiv source told Reuters on Monday that a Ukrainian drone had attempted its deepest strike yet, targeting a Russian early-warning military radar system in the Orenburg region, almost 1,000 miles away.

Since the start of the year, drone attacks have also struck critical oil refining infrastructure in Russia.

Ukraine does not officially confirm or deny it is attacking refineries inside Russia, but it says such sites are legitimate targets as they aid Moscow's military effort.

A major barrage in May last year saw two drones fly towards the Kremlin complex overlooking Red Square before they were destroyed.

Police have searched the office of a European Parliament employee in Brussels over suspected Russian interference, Belgium's federal prosecutor's office says.

Officers also raided the employee's residence and the EU Parliament's French headquarters.

It comes after an investigation was launched last month by the Belgian prime minister, who said his intelligence service uncovered a network trying to undermine support for Ukraine.

"The searches are part of a case of interference, passive corruption and membership of a criminal organisation and relates to indications of Russian interference, whereby members of the European Parliament were approached and paid to promote Russian propaganda via the Voice of Europe news website," prosecutors said.

Prosecutors said they believe the employee played "a significant role in this".

This comes less than two weeks before polls open on 6-9 June to elect a new EU parliament.

"According to our intelligence service, the objectives of Moscow are very clear," said Belgian leader Alexander De Croo.

"The objective is to help elect more pro-Russian candidates to the European Parliament and to reinforce a certain pro-Russian narrative in that institution."

The Swedish government will donate military aid to Ukraine worth £960m.

It is the largest package of the 16 Sweden has agreed to so far.

"It consists of equipment that is at the top of Ukraine's priority list," deputy prime minister Ebba Busch said. 

This includes air defence, artillery ammunition and armoured vehicles.

Sweden's defence minister Pal Jonsson said the country has ruled out sending any Swedish-built JAS 39 Gripen jets for now, saying Ukrainian is focusing on implementing the F-16 programme. 

Several countries have said they want to donate F-16s, with Belgium pledging 30 yesterday.

Mr Jonsson said Sweden "is still working on possibly being able to contribute with the Gripen system later."

Prisoner of war exchanges between Russia and Ukraine have been suspended for several months, Russia's human rights commissioner says.

Tatyana Moskalova blamed what she called Kyiv's "false demands", the state news agency Tass reported.

It was unclear precisely when swaps ceased. There was no immediate comment from Ukraine. 

Moscow and Kyiv have carried out periodic prisoner swaps via intermediaries since Moscow launched its invasion.

Outside Kyiv, manufacturers have been demonstrating their answer to the challenge of rescuing injured soldiers from the battlefield.

Several remote-controlled stretchers were being tested in these pictures taken by Reuters at an undisclosed location.

Russian guided bombs killed two civilians in the eastern Ukrainian city of Toretsk yesterday, Donetsk's regional governor has said.

They heavily damaged two multistorey apartment buildings, said Vadym Filashkin.

Mr Filashkin said Russian forces attacked the city with three bombs, located north of Russian-held Donetsk.

Rescue teams were on site to determine the extent of casualties.

Sky News cannot independently verify these battlefield reports. 

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China and Russia reaffirm their close ties as Moscow presses its offensive in Ukraine

China’s leader Xi Jinping has welcomed Russia’s President Vladimir Putin at an official ceremony Thursday on his state visit to China. Putin’s visit comes as Russia has become more economically dependent on China following Moscow’s military operation in Ukraine more than two years ago.

Russian President Vladimir Putin expressed gratitude to Xi Jinping for China’s initiatives to resolve the Ukraine conflict at their Beijing summit Thursday where the Chinese leader said China hopes Europe will return to peace and stability soon and that China will play a constructive role.

Russian President Vladimir Putin has landed in Beijing as part of a two-day state visit to China. Putin’s visit comes as Russia has become more economically dependent on China following Moscow’s full-scale invasion of Ukraine more than two years ago. (AP Production Tracy Brown)

Russian President Vladimir Putin held talks with Chinese President Xi Jinping in Beijing on Thursday, in which he stressed the two countries’ strong relations.

Russia’s President Vladimir Putin landed on Thursday in Beijing for a two-day state visit to China. The Kremlin said this will be Putin’s first foreign trip since he was sworn in as president and began his fifth term in office.

Chinese President Xi Jinping, right, and Russian President Vladimir Putin look toward each other as they shake hands prior to their talks in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

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Chinese President Xi Jinping, left, and Russian President Vladimir Putin review the honor guard during an official welcome ceremony in Beijing, China, Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Russian President Vladimir Putin, left, and Chinese President Xi Jinping attend a concert marking the 75th anniversary of the establishment of diplomatic relations between Russia and China and opening of China-Russia Years of Culture at the National Centre for the Performing Arts in Beijing, China, on Thursday, May 16, 2024. (Sergei Guneyev, Sputnik, Kremlin Pool Photo via AP)

Chinese President Xi Jinping, left, and Russian President Vladimir Putin shake hands during their meeting in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Russian President Vladimir Putin attends a wreath laying ceremony at the Monument to the People’s Heroes in Tiananmen Square in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Chinese President Xi Jinping, center right, and Russian President Vladimir Putin walk during an official welcome ceremony in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Chinese President Xi Jinping, right, and Russian President Vladimir Putin walk during an official welcome ceremony in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Chinese President Xi Jinping, right, and Russian President Vladimir Putin pose for a photo prior to their talks in Beijing, China, on Thursday, May 16, 2024. (Sergei Guneyev, Sputnik, Kremlin Pool Photo via AP)

Chinese President Xi Jinping, right, and Russian President Vladimir Putin attend an official welcome ceremony in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Chinese President Xi Jinping, left, and Russian President Vladimir Putin, right, walk during an official welcome ceremony in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Chinese President Xi Jinping, foreground right, and Russian President Vladimir Putin, foreground left, walk past members of Russian cabinet during an official welcome ceremony in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Chinese President Xi Jinping and Russian President Vladimir Putin review the honor guard during an official welcome ceremony in Beijing, China, Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

Russian President Vladimir Putin, left, attends a wreath laying ceremony at the Monument to the People’s Heroes in Tiananmen Square in Beijing, China, on Thursday, May 16, 2024. (Sergei Bobylev, Sputnik, Kremlin Pool Photo via AP)

BEIJING (AP) — Russian President Vladimir Putin and Chinese leader Xi Jinping on Thursday reaffirmed their “no-limits” partnership that has deepened as both countries face rising tensions with the West, and they criticized U.S. military alliances in Asia and the Pacific region.

At their summit in Beijing, Putin thanked Xi for China’s proposals for ending the war in Ukraine , which have been rejected by Ukraine and its Western supporters as largely following the Kremlin’s line.

Putin’s two-day state visit to one of his strongest allies and trading partners comes as Russian forces are pressing an offensive in northeastern Ukraine’s Kharkiv region in the most significant border incursion since the full-scale invasion began on Feb. 24, 2022.

China claims to take a neutral position in the conflict, but it has backed the Kremlin’s contentions that Russia was provoked into attacking Ukraine by the West, and it continues to supply key components needed by Moscow for weapons production.

China, which hasn’t criticized the invasion, proposed a broadly worded peace plan in 2023, calling for a cease-fire and for direct talks between Moscow and Kyiv. The plan was rejected by both Ukraine and the West for failing to call for Russia to leave occupied parts of Ukraine.

AP AUDIO: China and Russia reaffirm their close ties as Moscow presses its offensive in Ukraine

AP correspondent Karen Chammas reports on a summit between the leaders of China and Russia.

China also gave a rhetorical nod to Russia’s narrative about Nazism in Ukraine, with a joint statement Thursday that said Moscow and Beijing should defend the post-World War II order and “severely condemn the glorification of or even attempts to revive Nazism and militarism.”

Putin has cited the “denazification” of Ukraine as a main goal of the military action, falsely describing the government of Ukrainian President Volodymyr Zelenskyy, who is Jewish and lost relatives in the Holocaust, as neo-Nazis.

The largely symbolic and ceremonial visit stressed partnership between two countries who both face challenges in their relationship with the U.S. and Europe.

“Both sides want to show that despite what is happening globally, despite the pressure that both sides are facing from the U.S., both sides are not about to turn their backs on each other anytime soon,” said Hoo Tiang Boon, who researches Chinese foreign policy at Singapore’s Nanyang Technological University.

While Putin and Xi said they were seeking an end to the war, they offered no new proposals in their public remarks.

“China hopes for the early return of Europe to peace and stability and will continue to play a constructive role toward this,” Xi said in prepared remarks to media in Beijing’s Great Hall of the People. His words echoed what China said when it offered a broad plan for peace .

Earlier, Putin was welcomed in Tiananmen Square with military pomp. After a day in Beijing, the Russian leader arrived in Harbin, where he was expected to attend a number of events on Friday.

On the eve of his visit, Putin said China’s proposal could “lay the groundwork for a political and diplomatic process that would take into account Russia’s security concerns and contribute to achieving a long-term and sustainable peace.”

Zelenskyy has said any negotiations must include a restoration of Ukraine’s territorial integrity, the withdrawal of Russian troops, the release of all prisoners, a tribunal for those responsible for the aggression and security guarantees for Ukraine.

After Russia’s latest offensive in Ukraine last week, the war is in a critical stage as Ukraine’s depleted military waits for new supplies of anti-aircraft missiles and artillery shells from the United States after months of delay.

The joint statement from China and Russia also criticized U.S. foreign policy at length, hitting out at U.S.-formed alliances, which the statement called having a “Cold War mentality.”

China and Russia also accused the U.S. of deploying land-based intermediate range missile systems in the Asia-Pacific under the pretext of joint exercises with allies. They said that the U.S. actions in Asia were “changing the balance of power” and “endangering the security of all countries in the region.”

The joint statement demonstrated China’s support to Russia.

China is “falling over themselves to give Russia face and respect without saying anything specific, and without committing themselves to anything,” said Susan Thornton, a former diplomat and a senior fellow at the Paul Tsai China Center at Yale Law School.

The meeting was yet another affirmation of the friendly “no-limits” relationship China and Russia signed in 2022, just before Moscow invaded Ukraine.

Since then, Russia has become increasingly dependent economically on China as Western sanctions cut its access to much of the international trading system. China’s increased trade with Russia, totaling $240 billion last year, has helped the country mitigate some of the worst blowback from sanctions.

Moscow has diverted the bulk of its energy exports to China and relied on Chinese companies for importing high-tech components for Russian military industries to circumvent Western sanctions.

“I and President Putin agree we should actively look for convergence points of the interests of both countries, to develop each’s advantages, and deepen integration of interests, realizing each others’ achievements,” Xi said.

U.S. State Department deputy spokesperson Vedant Patel said that China can’t “have its cake and eat it too.

“You cannot want to have deepened relations with Europe … while simultaneously continuing to fuel the biggest threat to European security in a long time,” Patel said.

Xi congratulated Putin on starting his fifth term in office and celebrated the 75th anniversary of diplomatic relations between the former Soviet Union and the People’s Republic of China, which was established following a civil war in 1949. Putin has eliminated all major political opponents and faced no real challenge in the March election.

“In a famous song of that time, 75 years ago — it is still performed today — there is a phrase that has become a catchphrase: ‘Russians and Chinese are brothers forever,’” Putin said.

Russia-China military ties have strengthened during the war. They have held a series of joint war games in recent years.

China remains a major market for Russian military, while also massively expanding its domestic defensive industries, including building aircraft carriers and nuclear submarines.

Putin has previously said that Russia has been sharing highly sensitive military technologies with China that helped significantly bolster its defense capability.

Huizhong Wu reported from Bangkok. Yu Bing and Wanqing Chen in Beijing, Christopher Bodeen in Taipei, Jim Heintz and Dasha Litvinova in Tallinn, Estonia, and Ellen Knickmeyer in Washington contributed to this report.