| So you've decided to start up a temporary/contract | | | | funding, your business is going nowhere. Understanding |
| staffing company, and you would like to know what's | | | | that you have to lay out money to incorporate your |
| involved in ensuring success in your new venture. To | | | | business, buy insurance, get an office location, |
| follow are 10 tips for making your new venture a | | | | purchase or lease equipment, purchase office supplies |
| success. | | | | will get you to the point of opening your business. At |
| 1. Define Your Market - Most entrepreneurs that start | | | | that point, now you have to hire employees. They will |
| a staffing company come from within the industry. | | | | be on your payroll and covered by your insurance. |
| Some have worked for other agencies as a branch or | | | | Now you need to place them on assignment and they |
| regional manager, recruiter, or sales professional. | | | | expect to be paid weekly or bi-weekly. Once you bill |
| Others have owned a staffing company, sold their | | | | for your services, it may take 30, 60, up to 90 days to |
| company, then returned to open a new company. | | | | get paid from your clients. You will have to carry that |
| Whatever the background, defining a specialty staffing | | | | payroll for up to 90 days, unless you have a funder |
| area can be the key to your success. Whether it's | | | | who will carry that payroll for you. You may have put |
| concentrating on accounting, finance, admin/clerical, light | | | | up your savings to get the business off the ground, but |
| industrial, healthcare, IT, or professional areas, you must | | | | if it takes off, you may run into a cash crunch fairly |
| define your area of focus. Depending on your crew, it | | | | quickly. There are several options to cover your |
| may be necessary to concentrate on one area first, | | | | payrolling and working capital costs, but again you will |
| then branch out to others as you bring in industry | | | | need to find a funding source that understands your |
| experts from other areas. | | | | business and is able to fund your business based on |
| 2. Define Your Strengths - Everyone has strengths. | | | | the volume of business you generate. Banks these |
| Whether it's in sales/business development, marketing, | | | | days are being very cautious about who they lend |
| operations, financial acumen, or other areas will depend | | | | funds to, so I would recommend your finding a |
| on your role within the organization. You will want to | | | | receivables financing company that specializes in the |
| take over roles matching your strengths, and leave the | | | | staffing industry. If you don't enjoy the administrative |
| other areas to professionals best suited to handle the | | | | functions of running a business, or would like to |
| other functions in your business. For instance, if your | | | | outsource your back office (billing, payroll, payroll tax) |
| specialty is business development, you want to be the | | | | functions, some funders exclusive to staffing will not |
| one calling to get job orders and secure contracts. | | | | only finance your business, but take on the back office |
| You may want to bring in an operations professional to | | | | piece. |
| handle day-to-days tasks of running the agency. | | | | 7. Market Your Services - Once your business is set |
| 3. Define Your Weaknesses - This step goes hand in | | | | up, now is the time to start marketing your services to |
| hand with #2, but can also include specialty areas as | | | | potential clients. Some folks already have target |
| well. If you have a background in healthcare, you will | | | | companies in mind, based on prior business |
| probably want to attack that marketplace as an | | | | relationships. Warm calls and referral business is |
| expert in the industry, versus taking on IT or | | | | always preferred to cold calls, but when you are |
| Accounting clients. Stick with your strengths, and bring | | | | getting started, you have to utilize any methods to pick |
| in experts to handle other specialty areas. | | | | up new business. Joining social networks such as |
| 4. Get The Basics - The first step in opening a | | | | Linkedin, Twitter, Facebook, or others is a great place |
| business is to incorporate in states that you are going | | | | to start. Use your existing contacts to leverage other |
| to conduct business. I would recommend either going | | | | contacts. Let everyone you know that you have a |
| online to your Secretary of State's website, or visiting | | | | started a new business venture that you are excited |
| a local office to incorporate. Whether it's as a | | | | about and want to share. Network, Network, Network. |
| SubChapter C, S, or LLC, you want to make sure that | | | | 8. Find Candidates / Employees - In days past, the only |
| you distance your personal business from your | | | | way to find candidates was to pick up the phone and |
| staffing business. Consult with your attorney on setting | | | | call into companies, or run a newspaper ad. There's |
| up your business as a corporation, but putting a layer | | | | something to be said about those methods, but with |
| of protection from your personal and business assets | | | | the advent of the internet, social networks, job boards, |
| is paramount when starting your business. You may | | | | etc., finding candidates has changed. Posting jobs to |
| want to also consult your Accountant when setting up | | | | Monster, Careerbuilder, Dice, The Ladders, is great, if |
| your business to inquire about setting your business up | | | | you can afford to subscribe to those services. |
| on a cash vs. accrual basis for accounting purposes. | | | | Networking through Linkedin, Twitter, Facebook, and |
| Also, if you are going to have candidates interviewing | | | | other social networks can be as effective, and much |
| for positions, you are going to want to consider having | | | | less expensive. Joining professional organizations such |
| a corporate office location, whether as an executive | | | | as The Amercian Staffing Association, local staffing |
| suite, in a strip center, or in a separate building. | | | | organizations, or attending trade shows / staffing |
| Appearance is everything, and you don't want to be | | | | conferences can bring credibility to your organization, |
| meeting candidates at your local Starbucks for | | | | and provide excellent networking opportunities. |
| interviews. Also, be prepared to contact your phone | | | | 9. Become an Expert - People like to deal with |
| company for a business line, and consider leasing or | | | | professionals they feel comfortable with, view as an |
| buying office equipment (copy/fax machine, phone | | | | expert in their field, and provide value to the |
| system, etc). Office supplies are also necessary to run | | | | relationship. Take the time to learn about the industry, |
| your business. | | | | your specialty recruitment areas, and the clients you |
| 5. Determine Insurance Needs - This is the fun stuff, as | | | | plan to call on. View each sales call as a job interview. |
| they say. Nobody likes to buy insurance, but | | | | Be prepared to discuss your prospective client's |
| unfortunately, it's a requirement for running a temporary | | | | company as if you planned on working there. Know |
| contract staffing business. Minimum insurance | | | | their business, study their history, become familiar with |
| requirements will be for General Liability and Workers | | | | their culture. If you are viewed as an expert in the |
| Comp. You may also want to consider having | | | | industry, especially in your field, then it becomes a |
| E&O and Professional Liability Insurance | | | | matter of finding out if your prospective client can |
| coverages. Find an insurance carrier that understands | | | | afford your bill rate and if you can add value to their |
| the staffing industry! A list can be found under | | | | organization. |
| insurance providers for the American Staffing | | | | 10. Repeat the Process - If you take the proper steps |
| Association ( If you are a start-up, you may have to | | | | to set up your company correctly, then it's a matter of |
| contact your state's Insurance Fund to get your first | | | | building out your company. You may want to start |
| Workers Comp policy. However, once you have an | | | | small, then take on new business slowly. Or, if the |
| established business, you may be able to gain | | | | opportunity presents itself, you may be able to capture |
| insurance from a private insurance carrier. Again, make | | | | unique opportunities to grow your business quickly. |
| sure you are dealing with a broker or agent that | | | | Remember to define your market, know your |
| understands what your company and the staffing | | | | strengths, find an suitable funding source, and network, |
| industry. | | | | network, network. |
| 6. Determine Your Funding Needs - Without proper | | | | |
