Do you need help starting a staffing agency? If YES, here is a sample recruitment agency business plan template.
A recruitment agency provides a vital service to businesses that need to hire qualified personnel. Are you interested in setting up one? If you are, we will help you.
This recruitment agency business plan sample has been written with aspiring entrepreneurs in mind.
Although it is summarised, it highlights the essence of a plan. By going through this sample, you will be able to avoid the most common mistakes made by many entrepreneurs.
As always, our advice to new entrepreneurs is to never have zeal without knowledge. By adhering to this advice, it saves them from making costly mistakes.
There are several service industry businesses you can start if you have the skill.
However, the purpose of this article is not to dwell on the many available opportunities. We seek to focus on one; a staffing agency business.
Thousands of job seekers stream aimlessly to different offices and business settings just to find a place to work. How do you think such ones will feel if you’re doing the work of matching them to their preferred work? A staffing agency is all about doing the survey for them and matching employees to employers. This is easier said than done.
I present to you all that is needed to start a staffing agency, and in the end, you should be equipped enough to start your own staffing agency. In this article, we will also provide a staffing agency business plan sample. This is targeted at aspiring entrepreneurs who are interested in this area of business. All you need to do is follow to the end to have a better understanding of how plans are written.
With the rise in the unemployment sector, you will realize that a lot of people are looking to venture into various businesses to improve their standard of living. In contemporary times recruitment agencies are created to curb the rising rate of unemployment in society.
RECRUITMENT AGENCY BUSINESS PLAN GUIDE
Starting up a recruitment firm business can guarantee a source of second income for you, and by connecting companies that have vacancies with job seekers. To ensure that you build a cordial relationship and continuous partnership, you will have to scrutinize and thoroughly examine employment seekers to ensure that they meet the requirements of your clients.
If the need is, you will need to register with them as a recruiting agency and they, in turn, inform you when there is a need to hire. In this post, I will be giving a few tips on how you can start a recruitment agency of your own to help curb the unemployment problem
Here is a sample business plan for starting a recruitment firm.
- Pick your Niche
To start up an employment agency business or staffing franchise like Adecco and AtWork first you need to pick a field that you think would work for you, you can decide by observing your interest and building upon it, it could be Agriculture or Banking and finance.
Whichever you decide to venture into, you must realize that every industry has its staffing needs and these needs should be a consultant’s number one priority when developing your business proposal and objectives.
- Experience
In this part of the world, no one is taught how to start up a recruiting agency in school. This is the reason why it is a necessity to first learn all there is to know about recruitment agencies.
The information you will gather most importantly would be, what recruitment agencies do, how they work, how to build a customer line, how to make a profit or should I say, the employment plans available that make for certain that there is profit in this sector of business.
- Skill development
One requirement to run a recruiting agency is to have the ability to identify raw talents when you see them, and different people with different expertise from diverse places are the people you will be dealing with. Therefore you on your part will need to be sound in mind and understand to succeed in this sector
- Capital
This is a venture that is capital intensive, and to be able to run the recruiting company successfully, there has to be reserve money for payment of your staff, having enough cash to cover business expenses, and advertisement of your business. This is to say, you need to be financially prepared before venturing into any employment business model.
- Study and Comprehend What Is Legal for the Business
What are the documents needed to start a recruitment agency?
• Find out if a business license is required. Consult your local government agency for requirements.
• Find out about laws related to advertising for employees.
• Learn about taxes and the rates required. Get to know the amount and due dates of payroll and income taxes.
• Research on the legal requirement related to insurance.
- Register your Business
For employees and employers to agree that your business is legal or that you are in a valid business setting, you need to have registered your business with the required agency. Registering your business will help you become informed about all that is needed to run a successful business.
Depending on your location or where you reside, many companies offer registration of business. To find a reputable company and register your business, is very essential.
- Get an Employment Agency Business Plan
To set up and run a successful business, one needs to get a well-scripted business plan. A business plan will help a staffing agency know what they will need to survive in the business.
The plan will clearly state their unique business name also called a niche, their mission and visions, it will contain their financial plans, the services they want to render, the SWOT analysis. A good business plan will give dimension and help your business have a clear purpose.
- Location
Location is one major factor for your business and this will be determined by the branch or field you want to venture into and this on the other hand is dependent on your target market. While choosing a location but into consideration how profitable it would be to open up this business at whatever location you’re considering,
- Create a Marketing Plan
You need to create a recruitment company business marketing plan and strategy, you need to make a list of clients and prospective clients, and this selection can be done based on the industry your online recruiting firm focuses on.
You can create contact by making calls, writing and sending emails to prospective companies, placing adverts in newspapers, magazines, and online job sites.
You need to design a good logo to show how serious and sincere your job agency is, a website is also required to help with marketing, business cards, and provide newsletters that would be able to send to your clients to help them have enough information about your placement agency and what you do generally.
- Employ Recruitment Staff
This business cannot be run by just one person handling every department, which is why employing the service of others who are specialists in the field should be one area you have to also work on in the business.
To run a recruitment consulting agency successfully, you should look out for individuals who would in their departments help you build your business and have a tremendous increase in profits and also a boost with clients.
You would need staff that specialized in administrative work, staff that has superb communication skills, also staff in accounts. All of these are necessary to help build your business and guarantee its success.
- Get a Lawyer or Legal Practitioner
Situations might arise where applicants might need to be cautioned, in this situation a lawyer will be the best person to accomplish this.
There must be terms and conditions, rights, and responsibilities that applicants must fulfill so far you will be getting them their required job, to prevent stories that touch or cases of not honoring agreements you need a legal practitioner to make everything official and valid under the law.
- Secure Insurance
A reasonable level of insurance is needed for your business to be termed original. Most clients will want to be assured that there is a measure of insurance in case one of your clients damages their properties while on site.
So getting an insurance company that understands your business and ready to offer help in covering those expenses incurred by your clients at any time is very important.
- Setup Payroll Processing System
Having filled an order, you need to plan how you will pay your employees, weekly, semi-weekly or monthly. Rules are guiding the payroll system that you must understand as long as you want to be successful in the business, these may include plans for overtime payment, vacation pay amongst other payments.
You need to also sort out their taxes and remit them to the required governmental body or agencies. Most time hiring payroll administrator personnel is the best option.
- Start Your Business
Having done all the above, it is time for you to start the business, by now you must have secured a good location, you must have purchased all the needed tools and equipment for the office, at least the basic. Your business must be registered at this point and all financial calculations must also be done and ready for carrying out.
Starting a staffing agency is just as easy as starting any business when you get those points right, and if only you wish to become successful in the field, but failure to understand and adopt those points might be catastrophic.
RECRUITMENT AGENCY BUSINESS PLAN EXAMPLE
To start an employment agency you will need to understand how it works as well as your market size. Your feasibility study should take care of that.
- Executive Summary
Best Hire® is a new Human Resource agency business that seeks to contribute to the development of a reliable database for businesses and companies looking for competent and qualified manpower. As a small start-up, our size doesn’t matter as we are well placed to penetrate the market through the deployment of industry best practices. The quality of our workforce counts in our favor.
The proprietor has been engaged at the highest levels of human resource recruitment for major multinational companies. His experience will be crucial to providing world-class recruitment services to our clients.
- Our Services
We will be involved in all types of employee matching services to our clients who will include major corporate entities and small businesses. We consult with each client with the view to finding the right kind of employees. We do the hard work while our clients concentrate on running their business. We have a deep understanding of Ohio’s local market and seek to allocate human resources where they would perform best.
- Vision Statement
At Best Hire® we are driven by a vision to contribute to the development of Ohio’s business landscape. This we seek to achieve through matching the right type of employees to businesses. These include both skilled and unskilled. In the next 5 years, we see ourselves among the top 5 most preferred recruitment agencies in Ohio.
- Mission Statement
Our mission is driven by the provision of unbeatable services to all types of businesses. We are satisfying a growing demand for capable and skilled hands. Our recruitment agency will make the sourcing of the best hand easier, thereby allowing our clients to commit to the growth of their business.
- Financing
We are a sole proprietorship business that will be sourcing for start-up capital through the application for a bank loan. The sum of $900,000.00 is required and we have met the necessary conditions. The loan will attract an interested rate of 9% monthly with the principal sum due for payment in 4 years.
- SWOT Analysis
A test of our strengths, weaknesses, opportunities, and threats has been conducted. The company contracted for this job is a reputable business solutions provider. The study has allowed us to reorganize our business to enable us to achieve the most impact and growth. It has also helped us to take advantage of the opportunities available as well as developing a contingency plan for threats.
For a better understanding of our findings, the results are included below;
- Strengths
This recruitment agency business was conceived out of the desire to serve a market in dire need of a competent human resources database. Our ability to easily connect businesses to the right type of employees is a strength we have. The proprietor is well experienced and knowledgeable in handling all types of labor issues for businesses.
- Weakness
Our weakness arises from our current size. Our small size will limit our ability to get across to major clients. These types of clients usually look out for long-established and big recruitment agency businesses. This is a weakness we are currently faced with as a small and new firm.
- Opportunities
Opportunities abound in the form of an increasing number of businesses that need our services. We are well adapted to providing the solutions they need. A great part of this opportunity is that our clients recommend other businesses due to our commitment to the provision of excellent services.
- Threats
When there is an economic recession, businesses no longer hire but downsize their workforce. This is bad for our business and will lead to a total halt in demand for our services. This threat is real. However, the good news is that economic recessions do not happen all the time.
- Sales Projection
We can project the demand for our services through a study of the current situation in the recruitment market. There is clear growth potential. This has enabled us to draw a sales projection covering a period of 3 years as reflected in the table below;
- First Financial Year $300,000.00
- Second Financial Year $550,000.00
- Third Financial Year $800,000.00
- Competitive Advantage
Our competitive advantage can be attributed to the extensive network with businesses our proprietor has established during his active years of service. This includes those with big businesses as well as with small business owners. We are using this advantage to leverage our capacity to deliver quality services.
- Marketing Strategies
To get across to the business community, we need to use the most effective channels of information dissemination.
This will include visiting our target clients to discuss our services and what we can offer. We will also advertise in newspapers, distribute fliers, and mount billboards that advertise our services.
This recruitment agency business plan sample has been summarized to show you the most relevant information at a glance. You can follow this plan to write your comprehensive staffing agency business plan.
You should avoid trying to hasten things up. Going slowly and getting it right is much better than speed.
STAFFING AGENCY BUSINESS PLAN EXAMPLE
You can consider this a guide or template against which you can make comparisons when writing your plan. It must be stated that no matter how useful you find this sample, it will be of little value to you if you have not done a proper feasibility study of your business.
- Executive Summary
Corporate Resource LLC is a company located in Atlanta, Georgia. We are a staffing agency that provides businesses and corporate entities with manpower. We offer consulting and training, therefore helping businesses find a suitably qualified workforce. Whatever the staffing needs of our clients, we are up to the task.
We will offer consultancy services for highly skilled, semi-skilled, and unskilled labor. We seek to offer the best solutions to our esteemed clients. We understand that our clients do not have the luxury of time to get into the nitty-gritty of staff employment.
We handle the difficult aspect of the job by identifying and categorizing our human resource pool. These are provided with added job-specific training to increase efficiency. To enable us to get the job done are highly experienced personnel with many years of experience as recruiters. Our clients will include both domestic and foreign corporate entities.
- Products and Services
Consulting entails a whole lot of processes aimed at matching vacancies with the right type of people. Given this, our staffing agency will be involved in staffing for all types of businesses and industries.
These include the provision of staffing for the health care sector, the oil and gas, provision of training services for certain positions, and the provision of temporary or contract-based staffing services.
- Vision Statement
Having the right crop of staff is important to any business. We understand this and are fully equipped to providing such services to our clients. We are focused on eliminating the difficulties faced by businesses in getting the right type of labor.
This will enable them to concentrate on the task of running their businesses efficiently while we get the job done.
- Mission Statement
Our staffing agency seeks to provide highly professional services which will be second to none in the industry. Our reputation means the world to us. Hence we are committed to building a reputation hinged on excellence. This will be achieved by performing beyond our clients’ expectations.
- Financing
We will need adequate financing to ensure a smooth take-off. We have done the necessary analysis on the capital required; this is more than $800,000.00. We will be applying for a $1,200,000.00 bank credit. We are hoping to obtain such loans at single-digit interest rates. However, our negotiations will determine the outcome.
- SWOT Analysis
For a smooth take-off of our staffing agency, we have analyzed our state of competitiveness. This focuses on vital areas that include our strengths, weaknesses, opportunities, and threats. The following are results obtained;
- Strengths
We have been careful in choosing our staff. As a staffing agency business that seeks to make a positive impression, we have sought to become an example of the services we will offer. We have selected professionals with the right experience. Some of these have served in major staffing agencies as recruiters, while others have the skill required.
These will work in various capacities that include our recruiting department, training, marketing, and customer service providers among others.
- Weakness
We are a new entrant into the industry. This means that it will take some time before we begin to attract clients and build a steady flow of clientele.
- Opportunities
In addition to the provision of staffing services to businesses, we have included training. This allows us to work closely with businesses to provide the right type of training.
By outsourcing their training, our clients can focus on their business by allowing us to handle one of the most difficult aspects of hiring.
- Threats
Competitors are a steady threat to this type of business. These are made up of other staffing agencies which will compete for our clients. Another threat is in the form of unfavorable government policies. Such situations are harmful to doing business. The biggest threat among these is a global economic meltdown.
This will lead to businesses shedding off their workforce thereby creating an unfavorable employment climate. This will have a direct impact on our business as businesses will no longer be looking to hire, but to survive.
- Sales Projection
Over the years, economic growth in the United States has influenced a rising employment rate. This is good for staffing agency businesses like ours. Using this, we have done a sales projection for our business. This has revealed a positive outcome over a 3-year period as shown below;
- First Financial Year $310,000.00
- Second Financial Year $500,000.00
- Third Financial Year $855,000.00
- Competitive Advantage
We welcome competition as it enables us to innovate on better ways of serving our clients. Our pride lies in the quality of our management staff. These are composed of thoroughbred professionals who have contributed in no small measure to making the employment industry what it presently is.
Their impressive experience puts us at a greater advantage in excelling over our peers.
- Target Market
In providing high-value staffing services, we have identified several businesses and industries as potential targets.
These include the public sector, blue-chip companies, the real estate sector, financial institutions, the manufacturing industry, the health care industry, small start-ups, and the educational sector among others.
- Marketing and Sales Strategies
As a new staffing agency business, marketing is crucial to attracting a steady stream of clients. We are adopting several effective marketing strategies. These include placement of ads in newspapers and business magazines, bidding for all types of staffing agency contracts, using the internet in making our business more visible, and providing staffing services for all categories of businesses.
This staffing agency business plan sample has been written with the aspiring entrepreneur in mind. You can go through its content and get a greater understanding of how your plan should be organized. We have summarized this to allow you to grasp its general structure in the shortest time possible.
