QUESTION ON Starting a Staffing Agency
I have worked for a staffing agency and have done all aspects of the job. For some strange reason, I seem to be good in the sales department. Knowing that the entire success of the business depends on sales in particular I feel I could do it well. I feel I could pretty much figure out how to start and even get going, I’m just absolutely not sure about whether I need a license to do it and most importantly, would want to operate within the letter of the law in every aspect. I don’t know where to begin or who to ask – asking the most knowledgeable people in town would be a “no-no” as I’d be their competition. Any Staffing Services professionals out there that wouldn’t be threatened by giving me advice as to what they know I should know right up front? Your willingness to help would be greatly appreciated. I have three sons who depend on me!
Advice by Tammy Harrison
You are moving towards your first step in setting up your own business and that is super! Research, research, research.
First, did you have to sign a contract with the agency you work for? If not, you should be fine. If you did, check it over real closely for a “non-compete clause” or something that may bar you from competing with them for a certain amount of time.
Second, what areas of staffing are you most interested in. I do not mean what part of the business but what type of employers and employees do you want to focus on? I personally hire and train advertising representatives for companies as that is my niche. I recommend starting with a certain group of employers and once you are successful, open up to more.
As for a mentor, there are numerous resources on the internet regarding staffing but it will take some time and patience to conduct searches for all of the information you will need. Do you have another town or city close by that has a staffing agency? Is it possible they would be interested in you managing a second office for them? That would give you the opportunity to learn the business from the ground up as well as give them an shot at the competition. You could structure your business arrangement so that you use their name and resources and then you have a “right of first refusal” to buy them out at some point in the future (and change the name to suit you).
I am not an attorney. You MUST consult a legal professional for licensing a business in your city and state. There are licensing fees, taxes, etc. forms that you must fill out and file before opening your doors. Additionally, you will probably need to incorporate to protect you personally from liability and insurance to obtain.
Keep your goal in mind and your dreams alive. If this is truly something you are interested in, make it happen!
Best to you.
Recommended Resources on Starting A Staffing Agency
- How to Open & Operate a Financially Successful Staffing Service Business: With Companion CD-ROM (How to Open and Operate a Financially Successful…)
- Our System for Starting and Running a Medical Staffing Agency
- Co-Employment: Employer Liability Issues in Third-Party Staffing Arrangements
- Start Your Own Staffing Service
Tammy Harrison is a successful home-based working mom for over five years. She holds a degree from Mizzou in Consumer Economics. Her business focuses on Marketing and Creativity for Small Businesses as well as numerous other small businesses.
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