Business Idea: Starting Your Own Staffing Agency

A staffing agency can be a very successful venture because it requires neither large investments nor licensing. All you need to work as a recruiter is an office, a phone, and enough time. Initially, you can work from home instead of an office, using your mobile phone as a work phone. Of course, your workspace should also include a computer connected to the internet. With its help, you will create a database of clients and employers. The most significant amount of money will need to be invested in advertising.

Types of Staffing Agencies

The most common type of company that bridges the gap between employers and job candidates is an employment agency. The revenue of such an enterprise comes from fees paid by job-seeking clients. Typically, these agencies charge a fee upon successful employment, equivalent to the client's monthly salary. The duties of the staff of this service include researching information about companies in the city looking for employees.

A recruitment agency operates on a slightly different principle: its services are used by companies that want to quickly find professionals for specific positions. The fee for assistance in finding employees usually also amounts to the hired worker's monthly salary.

A headhunting agency, a subtype of a recruitment agency, focuses on finding only the best professionals and poaching them from other companies.

The job market for staffing agencies is highly competitive. Therefore, many companies narrow their focus to specific areas of operation. Others, conversely, aim to cover as many industries as possible. Each of these tactics has its pros and cons.

A recruiter's job involves the following steps:

• Receiving an order specifying the desired characteristics of the future employee.
• Selecting candidates from the agency's database. If the search yields limited results or none at all, consider placing ads offering jobs in specialized publications.
• Interviewing candidates at the agency, selecting several for an interview with the employer.
• Interviewing with the employer. Choosing one candidate and facilitating their subsequent employment.
• Receiving payment from the agency.

Ensure that your company office is easy to find: rent a space in the business district of the city, closer to public transport stops. The success of this business largely depends on the quality of advertising: place ads in specialized publications. Your agency should have an impressive database of companies that can hire employees. The job vacancies database must be constantly updated. You will also need to hire at least two people whose task will be to work with clients.

The most challenging part for your new business will be the first year of existence. You will have to work hard to attract clients and earn a good reputation. The profitability of a firmly established enterprise in the market starts from $10,000. A business started in this field will not pay off sooner than within 4 years.