business plan for a 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

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customer Success Stories

Business Plan Course

Small Business Tools

Strategic Planning Templates

E-books, Guides & More

• 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..

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

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.

Related Posts

IT Consulting Business Plan

Top 10 AI Business Plan Generators

400+ Sample Business Plan Template

HR Consultancy Business Plan

Top Business Plan Writers

Business Plan Cover Page Templates

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

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Employment Agency Business Plan

Start your own employment agency business plan

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.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

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.

The quickest way to turn a business idea into a business plan

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

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

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.

Testimonials

The developed software product was built from scratch with solid quality. We have had a long-term engagement with Stratoflow for nearly 10 years. We look at them as partners, rather than contractors. I'm impressed by their team culture and cross-team support.

Nathan Pesin

CTO, Legerity Financials

Stratoflow was a great partner, challenging as well as supporting our customer projects for the best outcome. They have a great pool of talent within the business - all very capability technologists, as well as being business-savvy and suitable for consultancy engagements.

Chris Goodall

Managing Consultant, CG Consultancy (UK) Limited

The bespoke metal exchange platform works great, it is easily accessible and richly functional. Stratoflow managed deadlines capably, meticulously documented their progress, and delivered a complex project at an affordable cost.

Bartlomiej Knichnicki

Vice Chairman, Supervisory Board

We are very pleased with our partnership with Stratoflow and, as we continue to grow, we expect to increase the numbers of developers that work with us on our projects. They have proven to be very skilled and flexible. They're extremely reliable, and they have a very good company culture of their own, which gives them a real edge compared to other providers that serve more as production shops rather than thought partners and creative problem solvers.

Andrew Kennedy

Founder & Managing Director, Tier 2 Consulting

Stratoflow successfully customized the system according to the specific functionalities and without bugs reported. The team was commended for their adaptability in the work process and for their responsiveness.

Joshua Blavins

Tech PM, Digital Agency

The features implemented have received overwhelmingly positive feedback from end-users. Stratoflow has an incredible technical expertise and a high degree of flexibility when it comes to changing project requirements.

Chief Technology Officer, Legerity

They have impressively good knowledge of AI issues. Very responsive to any amendments and findings. Very good communication. We received a finished project which could be implemented into production shortly after testing.

CO-Founder & CTO

Circular Fashion Company

They provided superb service with seamless communication and a highly professional, technical approach. The team displays impressive technical expertise and are willing to share information and engage in constructive feedback.

Filip Stachnik

Operations Manager, Otwarte Klatki (part of Anima International)

They're very skilled technically and are also able to see the bigger picture. Stratoflow can actually think about solutions, not just the technical task at hand, which they've been assigned.

Arnd Jan Prause

Chief Operating Officer, musQueteer

Stratoflow delivered the website successfully within the timeframe and budget. They assured that the output met the set requirements. Overall, the team's performance was excellent and recommended for their exceptional technical business expertise. They've been able to deliver all of their work on time and within budget, which has been very impressive.

Lars Andersen

Founder & CEO, My Nametags

Travel sector rebound after the pandemic is complete. We have fantastic global coverage of travel data distribution due to mutual agreements and data exchange between aggregators. Competition for the best price of limited resources degradates margins. How to win? Provide personalized experience and build your own products in the front-office. The missing bits: a traveller golden record collecting past activities and a AI/ML recommendation technology.

Michał Głomba

CEO at Stratoflow

How to write a business plan for a staffing agency?

Putting together a business plan for a staffing agency can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing staffing agency, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a staffing agency?

• What information is needed to create a business plan for a staffing agency?
• How do I build a financial forecast for a staffing agency?

The written part of a staffing agency business plan

• What tool should I use to write my staffing agency business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a staffing agency business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your staffing agency. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your staffing agency to be in the next three to five years.

Once you have a clear destination for your staffing agency, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your staffing agency's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your staffing agency business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your staffing agency's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your staffing agency.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your staffing agency and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your staffing agency's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your staffing agency, let's explore what information is required to create a compelling plan.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Information needed to create a business plan for a staffing agency

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your staffing agency business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a staffing agency

As you consider writing your business plan for a staffing agency, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your staffing agency.

You may find that larger organizations in your area are increasingly looking for staffing services. Additionally, you could discover that more small businesses are starting to consider hiring contractors for short-term projects, potentially creating new opportunities for your staffing agency.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your staffing agency.

Developing the marketing plan for a staffing agency

Before delving into your staffing agency business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a staffing agency

As you embark on starting or expanding your staffing agency, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A staffing agency might incur costs for staffing such as wages to employees, payroll taxes, and employee benefits. Additionally, they might also incur costs for equipment such as computers, office furniture, and other supplies.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your staffing agency's financial forecast?

The objective of the financial forecast of your staffing agency's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a staffing agency are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a staffing agency shows how much revenue and profit your business is expected to make in the future.

A healthy staffing agency's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established staffing agency.

The projected balance sheet of your staffing agency

The balance sheet for a staffing agency is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your staffing agency's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your staffing agency's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a staffing agency is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your staffing agency business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the staffing agency is appropriately funded.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a staffing agency.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the staffing agency, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a staffing agency business plan is understood, let's focus on what goes into the written part of the plan.

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a staffing agency business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your staffing agency's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your staffing agency, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

As you build your staffing agency business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your staffing agency, you may point out the potential of the area, including its access to public transportation, prominent business districts, and vibrant cultural scenes. You could also highlight the potential for growth in the area, with the potential for steady population increases and the potential for increased investment in the local economy. Additionally, you might discuss the potential for the area to become a regional hub for businesses in the staffing industry, as well as the potential access to a wide variety of qualified and experienced workers.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your staffing agency business plan should include a detailed description of what your company sells to its customers. 

For example, your staffing agency might offer temporary staffing solutions, where it provides businesses with temporary staff for short-term projects or work; recruitment services, which help businesses find the best qualified candidates for permanent job openings; and payroll services, which manage payments and deductions for the staffing agency's employees. These services provide businesses with access to quality staff and help them save money on both time and resources.

The reader will want to understand what makes your staffing agency unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When presenting your market analysis in your staffing agency business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your staffing agency, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your staffing agency is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include fast-growing companies with limited staffing resources. These businesses may need to hire quickly and in bulk, but may not have the internal infrastructure or expertize to do so. Additionally, a staffing agency might target large companies that have short-term staffing needs or that need specialized workers.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your staffing agency.

5. The strategy section

When writing the strategy section of a business plan for your staffing agency, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your staffing agency could face financial risks if clients fail to pay their invoices. They may also face legal risks if they do not comply with labor regulations, such as ensuring that employees have the appropriate visas to work in certain countries. Additionally, they could face reputational risks if they do not properly vet their temporary staff and it results in a bad experience for their clients.

6. The operations section

The operations of your staffing agency must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your staffing agency - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You could have key assets such as a client database containing contact information and specific hiring needs for potential employers. Additionally, the staffing agency could also have intellectual property such as the proprietary algorithms used to match employers and job seekers. These algorithms may be regularly updated to ensure that the best matches are being made.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a staffing agency business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my staffing agency's business plan?

In this section, we will be reviewing the two main options for writing a staffing agency business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your staffing agency's business plan

Using online business planning software is the most efficient and modern way to create a staffing agency business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your staffing agency's business plan

Outsourcing your staffing agency business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your staffing agency business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your staffing agency's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a staffing agency business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my staffing agency business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a staffing agency business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your staffing agency and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your staffing agency business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Who needs a business plan?
• Location and facilities in a business plan
• How to write the products and services section of your business plan
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a staffing agency? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Create a convincing business plan

Assess the profitability of your business idea and create a persuasive business plan to pitch to investors

500,000+ entrepreneurs have already tried our solution - why not join them?

Not ready to try our on-line tool? Learn more about our solution here

Need some inspiration for your business plan?

Subscribe to The Business Plan Shop and gain access to our business plan template library.

Need a professional business plan? Discover our solution

Write your business plan with ease!

It's easy to create a professional business plan with The Business Plan Shop

Want to find out more before you try? Learn more about our solution here

How To Write a Staffing Agency Business Plan + Template

Creating a business plan is essential. Still, it can be especially helpful for staffing agency businesses who want to improve their strategy or raise funding.

A well-crafted business plan outlines the vision for your company and documents a step-by-step roadmap of how you are going to accomplish it. To create an effective business plan, you must first understand the essential components of its success.

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

Download the Ultimate Staffing Agency Business Plan Template

What is a Staffing Agency Business Plan?

A staffing agency business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, roadmaps for different functional areas of your company, your areas of competitive advantage, and information about your financial burn rate. 

Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned for sustainable success.

Why Write a Staffing Agency Business Plan?

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

Entrepreneurs 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 Staffing Agency Business Plan

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

Executive Summary

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

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

Company Description

This section should include a brief history of your company. 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 staffing agency business, 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 staffing agency firm, mention this.

You will also include information about your chosen 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 a crucial component of a 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 staffing agency 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 your company’s success)?

You should also include sources for your information, 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 staffing agency business’ customers may include small businesses that need short-term or contract employees to support their operations during busy periods.

You can include information about how your customers decide to buy from you and what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you and those who might be influenced to purchase staffing services with the right marketing.

Competitive Analysis

A competitive analysis helps determine how your product or service is 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. 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 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. Or you may promote your staffing agency business via a combination of these marketing channels.

Operations Plan

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

• How will you deliver your product/service to customers? For example, will you only do it in person or over the phone?
• 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 critical milestone(s) you hope to accomplish each quarter for the next four quarters and then each year for the following four years. 

Examples of milestones for a staffing agency business include reaching $X in sales. Other examples include hiring a certain number of employees or working with a certain number of clients.

Management Team

List your team members, including their names and titles and their expertise and experience relevant to your specific staffing agency industry. Include brief biographies for each key team member.

Particularly if you are seeking funding, this section aims 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 for generating revenue. This includes labor costs and 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 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 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 cash flow from operations, investments, and financing.

Below is a sample of a projected cash flow statement for a startup staffing agency business.

Sample Cash Flow Statement for a Startup 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.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your 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 staffing agency business plan is a valuable tool for any new business owner. It not only outlines your company’s vision but also provides a step-by-step process of how you are going to accomplish it. If you can demonstrate that your staffing agency business is well-thought-out and has a realistic plan for growth, it may entice investors.  

Finish Your Staffing Agency Business Plan in 1 Day!

Other helpful articles.

How To Write a Nurse Staffing Agency Business Plan + Template

Staffing Agency Business Plan Template & Guidebook

Are you in the market for a comprehensive guide to launching and operating a successful staffing agency? Look no further than The #1 Staffing Agency Business Plan Template & Guidebook! From outlining your business vision and setting achievable goals to creating a marketing plan and staying organized, this template and guidebook has all of the information necessary to launch an effective staffing agency. Get ready to take your business venture to the next level with The #1 Staffing Agency Business Plan Template & Guidebook!

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Staffing Agency Business [11 Steps]

How to Write a Staffing Agency Business Plan in 7 Steps:

1. describe the purpose of your staffing agency business..

The first step to writing your business plan is to describe the purpose of your staffing agency business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a staffing agency business:

Our staffing agency is committed to delivering customized staffing solutions to meet the needs of our clients and help them achieve their goals. Our mission is to provide quality service, superior customer service, and customised solutions that meet the needs of our clients while contributing to their success. We will navigate the ever-changing staffing industry by staying abreast of trends in order to provide recruitment strategies that are tailored to our customers’ needs and will help fill the positions with the best talent available. We are dedicated to creating a positive work environment for all employees, providing excellent customer service to clients, and honouring all commitments made in an ethical manner.

2. Products & Services Offered by Your Staffing Agency Business.

The next step is to outline your products and services for your staffing agency business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your staffing agency business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your staffing agency business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your staffing agency business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a staffing agency business?

• Computer, printer and fax machine
• Business license
• Insurance coverage for company liability and worker's compensation
• Recruiting software
• Advertising materials (brochures, business cards, website)
• Staffing or employment agency permit or license

5. Management & Organization of Your Staffing Agency Business.

The second part of your staffing agency business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your staffing agency business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Staffing Agency Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a staffing agency business varies based on many different variables, but below are a few different types of startup costs for a staffing agency business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your staffing agency business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your staffing agency business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your staffing agency business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Staffing Agency Business Plans:

Why do you need a business plan for a staffing agency business.

A business plan is essential for starting any type of business, including a staffing agency. It ensures that the business has a clear plan in place to reach its goals, outlines strategies to achieve success, and provides an accurate assessment of both the financial requirements for market research and success metrics. The business plan also serves as a powerful tool for gaining investors, lenders and partners required for the business to succeed.

Who should you ask for help with your staffing agency business plan?

You should consult an experienced business consultant, accountant, lawyer, or other professional who is knowledgeable about the staffing industry and business planning. They can help you identify your objectives, develop a detailed plan of action, and create financial projections.

Can you write a staffing agency business plan yourself?

While it is possible to write a staffing agency business plan yourself, if you are new to the business planning process and do not have any experience in this area, it may be best to hire a professional business plan writing service. Having an experienced business plan writer take care of the task will ensure that your plan will be comprehensive and well-written, which can greatly increase the chances of your business succeeding.

Related Business Plans

Home Inventory Business Plan Template & Guidebook

Home Inspection Business Plan Template & Guidebook

Home Decor Business Plan Template & Guidebook

Health And Wellness Business Plan Template & Guidebook

Hauling Business Plan Template & Guidebook

Hardware Business Plan Template & Guidebook

Handyman Business Plan Template & Guidebook

Hair Extension Business Plan Template & Guidebook

Handbag Business Plan Template & Guidebook

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Creating a Business Plan for Your Staffing Agency

A business plan is the blueprint you follow to build your company. It outlines all of the major aspects of the business and keeps its architects — you and your business associates — focused and aligned.

But a business plan is also a document you’ll use as you work with other critical stakeholders, including funders, vendors and others, to launch your business. A great deal of forethought is required when creating your business plan, because much like any structure, a solid foundation is a necessary starting point.

According to the U.S. Small Business Administration , there is no right or wrong way to write a business plan, but there are a few more commonly used templates. For example, most people use a traditional business plan format, which includes:

• An executive summary: Describe what your company is and why it will be successful.
• A company description: Detailed information about your company, including a detailed description of the problems your business will solve.
• A market analysis: Competitive research that identifies your target market and dissects your industry competitors.
• Organization and management: The legal structure of your company and its management hierarchy.
• Service: A description of the service you’re offering.
• Marketing and sales: An explanation of how you’ll attract and retain customers.
• Funding request: If you’re asking for funding, this is where you’ll detail how much you’ll need over the next five years and how the money will be used.
• Financial projections: A prospective financial outlook for the next five years, including forecasted income statements and capital expenditure budgets.

John Rampton, in his  Entrepreneur article titled “ 7 Steps to a Perfectly Written Business Plan ,” builds on the SBA’s basics with helpful tips. For example, he notes the importance of documenting all aspects of your business, saying that investors want to make sure that your business is going to make money.

“Because of this expectation, investors want to know everything about your business. To help with this process, document everything from your expenses, cash flow and industry projections,” Rampton writes.

He also advises making the business plan adaptable based on the audience. For example, bankers will be more interested in financial details, while investors might be more interested in the business concept and the management team.

While the plan should be modified to suit the reader, he says make sure that the foundational data, such as financial projections, are consistent.

He also notes that regardless of who’s reading your plan, it should be clear that you’re passionate, dedicated and care about your business. Doing so can create an emotional connection with others that could encourage them to support your new venture.

Building on Rampton’s tips, staffing entrepreneurs should also be prepared to discuss their venture in any social situation by creating an elevator speech that describes your new company to your audience in 30 seconds or less. You can use that elevator speech when you hit the streets to start courting clients and employees. Be prepared to knock on doors and ask where you can post job listings in the area, and talk to businesses about their temporary staffing needs.

And while it’s important to tell your business’s story, also be prepared to tell your story. When talking with lenders, investors and potential partners, introduce yourself, tell them your background and detail your expertise. Tell them what you’ve accomplished in the staffing industry, explain your entrepreneurial strengths and business successes, and highlight the partners you’ve recruited who possess skillsets or experience you lack.

With a lot of planning and careful execution, you can create a business plan that becomes the foundation of your firm’s success.

SOURCE LINKS

Entrepreneur.com

Associations and Affiliations

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.

Turn your outstanding invoices into cash

Rated Top Factoring Company of 2024 Investopedia, TheBalanceSMB, Fundera and more

Lending Options

• Invoice Factoring Services
• Accounts Receivable Financing
• Freight Factoring
• Browse by Location
• How Does Factoring Work?
• Invoice Factoring Rates
• Financial Terms Glossary
• Invoice Factoring Calculator
• Invoice Template
• Disclosures
• Privacy Policy
• Oil & Gas
• Manufacturing
• Commercial Cleaning
• Professional Services
• More Industries
• Customer Login

Staffing Agency Business Plan Template [2024]

Staffing Agency Business Plan Template

If you want to start a Staffing Agency, Recruitment Agency, Employment Agency or expand your current Staffing Agency, you need a business plan.

You can download our Staffing Company Business Plan Template (including a full, customizable financial model) to your computer here.

The following Staffing Agency business plan template gives you the key elements to include in a winning staffing agency business plan, employment agency business plan or a recruitment agency business plan.

Below is an outline of each of the key sections of a staffing agency business plan.

I. Executive Summary

Business overview.

Located at the heart of [City], [Company Name] is a recruiting and staffing agency that helps local businesses to find talented staff across different fields like accounting, banking and finance, administration, marketing, and information technology. It specializes in talent pooling and acquisition and provides assistance with hiring new employees for temporary and long-term positions.

[Company Name] was founded by [Founder’s Name] in [Year] when he decided that he needed to take a break from just enforcing company policies and practices as an assistant Human Resource Manager for a known company in [Location]. He realized that there is a growing need for an agency that would help more job seekers find the companies that would maximize their potential and benefit from their expertise.

Putting the best interest of both the employers and job seekers, [Company Name] performs extensive background checks to make sure that they have a network of competent and highly qualified job seekers that matches the needs of companies in different industries.

Products Served

[Company Name] will be able to provide clients with the following services:

• General recruitment
• IT Recruitment
• Business and Finance recruitment
• Contract Staffing
• Manpower Outsourcing
• Staff Augmentation
• Executive Search and Selection (ESS)

You can download our Staffing Agency Business Plan Template (including a full, customizable financial model) to your computer here.

Customer Focus

[Company Name] will primarily serve the residents who live within a 15-mile radius. The demographics of these customers are as follows:

• 78,827 residents
• 2,500 workers
• Average income of $65,000
• 41% married
• 49% in Mgt./Professional occupations
• Median age: 26 years

Management Team

The most valuable asset of [Company Name] is the expertise and experience of its founder, [Founder’s Name]. He has been working in the human resource management field since [year] and was one of [Other Company Name]’s top employees. He also has a degree in Human Resource Management and is SHRM-certified. Thus, he is highly qualified and credible to manage the staffing agency.

The team also includes a his highly-skilled and professional assistant manager who will help manage the company’s operations. He will be trained in all the important company processes and operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that there is indeed a need for reliable staffing agencies in the area.
• Majority of our location’s residents and workers are job seekers who are either fresh graduates or professionals who are looking for a new work environment.
• The management team has a track record of success in the human resource and staffing industry.
• The staffing agency business has proven to be a successful business in the United States.

Financial Highlights

[Company Name] is seeking a total funding of $200,000 of debt capital to open its staffing agency. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Location design/build: $100,000
• Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

II. Company Overview

Who is [company name].

[Company Name] is a recruiting and staffing agency located at the heart of [City] that helps local businesses to find talented staff across different fields like accounting, banking and finance, administration, marketing, and information technology. It specializes in talent pooling and acquisition and provides assistance with hiring new employees for temporary and long-term positions.

[Company Name]’s History

[Company Name] was founded by [Founder’s Name] in [Year] when he decided that he needed to take a break from just enforcing company policies and practices as an assistant Human Resource Manager for a known company in [Location]. He realized that there is a growing need for a staffing agency that would help more job seekers find the companies that would maximize their potential and benefit from their expertise. With the connections that he built through his years of experience in human resource management, and his passion for promoting career development, he was able to start [Company Name]. It didn’t take long before the company was able to gain the trust of [x] companies and [x] job seekers.

Since incorporation, the Company has achieved the following milestones:

• Found office space and signed Letter of Intent to lease it
• Established their company as a limited liability company (LLC)
• Developed the company’s name, logo and website located at [website]
• Determined equipment and fixture requirements
• Began recruiting excellent job seekers from different fields.

[Company Name]’s Products/Services

Iii. industry analysis.

Over the past five years the Staffing Agency industry has recorded growth due to a growing US labor market and overall economic improvements. Unemployment rates had dropped to historical lows. As a result, industry revenue increased rapidly as the national unemployment rate declined 14.2%. The number of temporary employees increased throughout the current period, bolstering demand for industry services. Overall, industry revenue is projected to increase an annualized 1.6% over the next five years.

Corporate profit is anticipated to grow an annualized 10.4% over the next five years, driving businesses to expand operations. Corporations will look to preserve their profit and look to temporary employees. Workers looking to rejoin the labor force will likely continue to present an opportunity for industry operators, since they will remain open to temporary roles in hopes of securing a permanent position in the future. Overall, industry revenue is expected to increase an annualized 2.3% to $201.7 billion. Similarly, industry profit is expected to increase slightly to 5.6%.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents of [company location] and the immediately surrounding areas in a 15-mile radius. The area is populated mostly by several startup companies and expanding businesses in need of highly-skilled labor force; as a result, they have the budget to spend for a staffing agency.

Customer Segmentation

The Company will primarily target the following customer segments:

• Job seekers: These are individuals with extensive and reliable work experience who are looking for either short-term or long-term employment.
• Offices: These are workplaces that are in need of administrative employees, accountants, IT personnel, maintenance personnel, and other skilled workers.
• Businesses: These are establishments in need of manpower services for their daily business operations.

V. Competitive Analysis

Direct & indirect competitors.

The staffing agency’s competitors will be other staffing & recruitment agencies, such as: Rand Corporation Rand is an HR consulting and staffing business. Founded in 1960, the company has over 4,000 offices across 38 countries. They also placed more than 649,00 people in temporary or permanent employment, with about 318,500 workers placed into temporary positions last year. The company provides services through three key business divisions: staffing, professionals and in-house solutions. It screens temporary employees for the industrial and administrative sectors.

Express Staffing Express Staffing is a staffing company that provides work for some 566,000 employees each year. It operates on a franchise business model from a network of more than 800 employment agency offices across the US and Canada. It helps fill full-time, temporary, and part-time positions in a range of sectors that span Professional, Light Industrial, and Office Services. Professional employment includes accounting, engineering, IT, sales and marketing, HR, and legal sector positions, while Light Industrial covers assignments such as assembly, maintenance, and warehousing. Bob Funk and Bill Stoller founded the firm in 1983. Since its founding, Express Employment Professionals has put more than 7.7 million people to work. M

Woodly Personnel Services Established in 1988, Wood Personnel Services (WPS) is a staffing and employment agency serving the southern states. It works to tailor staffing solutions to its clients’ and candidates’ unique needs. WPS operates two divisions: Professional Staffing Services, IT Placement and Executive search.

Competitive Advantage

[Company Name] enjoys several advantages over other staffing agencies. These advantages include:

• Client-oriented service: [Company Name] will have full-time professional consultants always ready to keep in contact with its clients and answer their questions.
• Detail Oriented: The company attends to the smallest details of both the job seekers and the companies to make sure that their needs are met and delays and unnecessary stress are avoided.
• Efficient online service: With the use of its online tracking system, [Company Name] assures that it will deliver its services on a timely basis and keep its clients up-to-date of their application status. This also promotes transparency and trust.
• Management: [Founder’s Name] has been extremely successful working in human resource management and will be able to use his previous experience to assure clients of the care that [Company Name] will take to do the job right. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
• Relationships: Having lived in the community for 10 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.

VI. Marketing Plan

The [company name] brand.

The [Company name] brand will focus on the Company’s unique value proposition:

• Convenient location
• Client-focused documentation, recruitment, and deployment services, that treat each client according to their needs.
• Well-trained staff that prioritizes customer satisfaction and excellent results
• Service built on long-term relationships
• Comfortable, customer-focused environment

Promotions Strategy

[Company Name]’s market analysis shows that its target market will be individuals working and/or living within a 15-mile radius of its location, as well as businesses. [The Company’s] promotions strategy to reach these individuals includes:

Local Publications [Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, sports programs, and similar channels will be a major promotion effort.

Community Events/Organizations [Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.

Commuter Advertising We will drive attention to [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.

Internet [Company Name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy staffing agency that it is.

VII. Operations Plan

Functional roles.

The Company intends to employ [X] working staff and [A] recruitment consultants. [Company name] anticipates having [Z] customers on a monthly basis.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles.

Service Functions

• Finding clients in need of qualified staffing
• Recruiting and vetting individuals looking for employment

Administrative Functions

• General & administrative functions including marketing, bookkeeping, documentation, etc.
• Human Resource functions- Hiring and training staff

[Company Name]’s long term goal is to revolutionize the staffing agency industry and become the best in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.

VIII. Management Team

Management team members.

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. He has been in the human resource management and staffing industry since [year] and was one of [Other Company Name]’s top employees. He also has a degree in Human Resource Management and is SHRM-certified. Thus, he is highly qualified and credible to manage [Company Name].

[Company name] will also employ an experienced assistant manager to manage the company’s operations and help with the business planning process. He will be trained in all the important company processes and operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].

Hiring Plan

In order to launch the business, we will hire the following employees:

• Recruitment consultants: 3 full-time employees to manage the day to day job application and consultations
• Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come primarily from the general recruitment and consultations.

The major costs of [Company Name] include:

• Lease on business location

Moreover, ongoing marketing expenditures are also notable cost mechanics for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $200,000 of debt capital to open its staffing agency. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses, other startup costs and working capital.

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

Click below to see each section of our free staffing agency business plan template. You can also click here to get our staffing agency business plan pdf .

Comments are closed.

(951) 284-1500

• 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 . 

Recent Posts

• Your Complete Guide to CA Break Laws in 2024
• We’re Bringing Sexy Back to Middle-Office Integrations
• 4 Ways to Combat Buddy Punching
• Enter the Era of Timekeeping Innovation with the New Timerack Mobile App
• Overcoming Staffing Struggles in 2024: 7 Priorities for Employment Staffing Agencies

We assist with more than Time and Attendance challenge. Let's talk.

Request a personalized demo by filling out the form.

Looking for our logo?

Download a zipped file with our logo in EPS, AI, SVG, JPG, PNG and PDF formats.

Staffing Agency Business Plan Template

Staffing agency executive summary.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the type of staffing agency you are operating and the status; for example, are you a startup, do you have a staffing agency that you would like to grow, or are you operating a chain of staffing agencies.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the staffing agency industry. Discuss the type of staffing agency you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

STAFFING AGENCY 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
• 10. Appendix
• Staffing Agency Business Plan Summary

Other Helpful Business Plan Articles & Templates

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.

Related Articles

Creating a Professional Staffing Website with a Template

• Why Use a Template to Create Your Staffing Website
• Choosing the Right Template for Your Staffing Website
• Customizing Your Template to Match Your Brand Identity

Finding the Right Graphic Design Staffing Agency for Your Business

• Why You Need a Graphic Design Staffing Agency
• Understanding the Benefits of Outsourcing Your Graphic Design Needs
• Evaluating Your Business's Graphic Design...

We earn commissions if you shop through the links below.  Read more

Nurse Staffing Agency

Back to All Business Ideas

How to Start a Nurse Staffing Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

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 April 11, 2022 Updated on May 8, 2024

Investment range

$3,550 - $10,100

Revenue potential

$80,000 - $400,000 p.a.

Time to build

1 – 3 months

Profit potential

$56,000 - $120,000 p.a.

Industry trend

Have you heard about the shortage of nurses in the US? It’s now reached record levels and become a full-blown crisis, as severely under-staffed hospitals continue to struggle with Covid hospitalizations. But you can be part of the solution by starting your own nursing agency and making a good living while providing reliable, much-needed nurses to area hospitals and clinics. The healthcare recruitment industry has nearly doubled in the last decade as a result of staff shortages, which means the opportunity is there. Whether you have a medical background or not, you could operate your agency from home for a small investment and start helping save lives. 

But before you start making calls, it’s crucial that you understand how to start a business. Fortunately, you can do all your homework by reading this step-by-step guide, which will put you on the road to running a successful nurse staffing agency. 

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.

Starting a nurse staffing agency has pros and cons to consider before deciding if it’s right for you. 

• Rewarding – Help save lives and fix a serious social crisis
• Flexibility – No office necessary, work from home
• Good Money – Make a nice living on commission
• Time to Start – It will take time and work to build a reputation
• Crowded Market – Compete with large, established staffing agencies

Nurse staffing industry trends

Industry size and growth.

• Industry size and past growth – The US healthcare recruitment agency industry is worth $25.8 billion in 2022 after steady 4.4% growth the last five years. The industry has nearly doubled in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/healthcare-staff-recruitment-agencies-united-states/ )) 
• Growth forecast – The US healthcare recruitment agency industry is expected to grow more than 6% in 2022. 
• Number of businesses – In 2022, 3,182 healthcare recruitment agencies were operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/healthcare-staff-recruitment-agencies-united-states/ ))
• Number of people employed – In 2022, the US healthcare recruitment agency industry employs 347,403 people.(( https://www.ibisworld.com/united-states/market-research-reports/healthcare-staff-recruitment-agencies-industry/ )) 

Trends and challenges

Trends in the nurse staffing agency industry include:

• Most healthcare staffing agencies have begun technology and automation to improve process efficiencies, such as database mining to find nursing candidates, which is obviously faster than a manual process. 
• Pre-credentialing is an increasingly common practice that aims to quickly narrow down fields of candidates and speed up the recruiting process.

Challenges in the nurse staffing agency industry include:

• Driven by the pandemic, nurse burnout is causing many nurses to seek other professions , making nurse shortages even larger.
• The rising cost of skilled nurses may drive some healthcare facilities to move away from staffing agencies to eliminate the extra cost. They will instead go back to handling the recruiting process internally, which is likely to take longer and result in inferior health care.

Demand hotspots

• Most popular states – The most popular states for nurse recruiters are Washington, California, and Pennsylvania.(( https://www.zippia.com/nurse-recruiter-jobs/best-states/ ))
• Least popular states – The least popular states for nurse recruiters are Ohio, Mississippi, and Kentucky. 

What kind of people work in nurse staffing agencies?

• Gender – 73.7% of nurse recruiters are female, while 22.1% are male.(( https://www.zippia.com/nurse-recruiter-jobs/demographics/ ))
• Average level of education – The average nurse recruiter has a bachelor’s degree.
• Average age – The average nurse recruiter in the US is 41 years old.

How much does it cost to start a nurse staffing agency business?

Startup costs for a nurse staffing agency range from $3,500 to $10,000. Costs include a website, software, and nurse and healthcare facility databases. 

How much can you earn from a nurse staffing agency business?

Generally, the nurse staffing agency fee is 25% of the nurse’s first-year salary. Your profit margin when you’re working at home should be about 70%.

In your first year or two, you could work from home and place 8 nurses in a year, each with a $40,000 contract, you’ll be bringing in $80,000 in annual revenue. This would mean $56,000 in profit, assuming that 70% margin. As you increase your networking and contacts, you could do 40 placements a year. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to 30%. With annual revenue of $400,000, you’d make an impressive profit of $120,000.

What barriers to entry are there?

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

• The networking and sales skills necessary to get contracts
• The competition from established agencies

Related Business Ideas

How to Start a Home Health Care Business

How to Start a Home Health Agency

How to Start a Medical Courier Business

Step 2: hone your idea.

Now that you know what’s involved in starting a nurse staffing agency, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research nurse staffing agencies in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a travel nurse staffing agency, an agency that recruits certified nursing assistants, or a temporary nursing agency. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as travel nursing or home nursing.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Your services will be very straightforward. You’ll connect nursing candidates with health care facilities. You can specialize in certain types of nursing or work with all types. 

How much should you charge for nurse staffing agency services?

Generally, the fee is 25% of the nurse’s first-year salary. Your profit margin when working by yourself should be about 70%.

Once you know your costs, you can use this Step By Step 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

Your target market will be nurses, hospitals and clinics, and healthcare organizations. You can find all of these on LinkedIn, and you can also find many nursing groups to connect with on Facebook. It’s also a good idea to buy access to the leading nurse and healthcare facility databases and reach out to those in your area. NurseRecuiter is a good place to start.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

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 “nurse staffing” or “healthcare staffing”, boosts SEO
• Name should allow for expansion, for ex: “Synergy Staffing Solutions” over “TechTalent Solutions”
• 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

Powered by GoDaddy.com

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 Nurse Staffing Agency Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief summary of the nurse staffing agency business plan, highlighting its key points and objectives.
• Business Overview: A concise description of the nurse staffing agency, including its mission, vision, and core values.
• Product and Services: An outline of the specific services the agency will provide, such as nurse placement, staffing solutions, and related offerings.
• Market Analysis: An examination of the healthcare industry and the demand for nurse staffing services, including market trends and potential growth.
• Competitive Analysis: An assessment of the agency’s competitors in the nurse staffing market, highlighting their strengths and weaknesses.
• Sales and Marketing: A plan for promoting the agency’s services and acquiring clients, including sales strategies and marketing channels.
• Management Team: An introduction to the key individuals leading the agency, their qualifications, and their roles.
• Operations Plan: Details on how the agency will operate, including staffing procedures, technology systems, and day-to-day activities.
• Financial Plan: Projections of the agency’s financial performance, including income statements, cash flow, and balance sheets.
• Appendix: Supplementary materials, such as resumes, legal documents, and any additional information supporting the 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’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to nurse 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 nurse 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

We recommend ZenBusiness as the Best LLC Service for 2024

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’re 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 nurse staffing agency business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Nurse Staffing Agency Licenses and Permits

Starting a nurse staffing agency business requires obtaining a number of licenses and permits from local, state, and federal governments. Some states require nurse staffing agencies to have a medical agency license. Check with your state for requirements. 

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 nurse staffing agency business 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 ABILITY , Bullhorn , Akken , to manage candidate information, job openings, billings, and payments. 

• 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

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Launching a nurse staffing agency requires strategic marketing to stand out in a competitive healthcare staffing landscape. In addition to creating a website and networking, here are practical marketing strategies to boost your agency’s success:

• Targeted Social Media Advertising: Leverage platforms like LinkedIn and Facebook to run targeted ads that specifically reach healthcare professionals, emphasizing the benefits of working with your agency, such as flexible schedules, competitive pay, and career advancement opportunities.
• Referral Programs: Implement a robust referral program for both nurses and clients, offering incentives for successful placements or bringing in new business. Word-of-mouth recommendations carry significant weight in the healthcare industry.
• Specialized Training Partnerships: Establish partnerships with nursing schools and offer specialized training programs. This not only helps you tap into a fresh pool of talent but also positions your agency as a supporter of ongoing professional development.
• Quality Content Marketing: Develop a content strategy that showcases your agency’s expertise in the healthcare staffing industry. Regularly publish blog posts, whitepapers, or case studies that address industry trends, challenges, and solutions, positioning your agency as a thought leader.
• Community Engagement and Sponsorships: Actively participate in local healthcare events, conferences, and community outreach programs. Sponsorship of relevant events can enhance your agency’s visibility while demonstrating a commitment to the local healthcare community.
• Utilize Online Reviews and Testimonials: Encourage satisfied clients and nurses to leave positive reviews on platforms like Google, Yelp, or industry-specific websites. Positive testimonials build trust and credibility, influencing potential clients and candidates.
• Data-Driven Decision Making: Utilize data analytics to identify trends in the healthcare staffing market. This information can guide your marketing efforts, ensuring you target the right demographics and provide the services in highest demand.
• Mobile-Friendly Campaigns: Optimize your marketing materials for mobile devices, as healthcare professionals often use smartphones and tablets. Ensure that your emails, website, and other content are easily accessible and navigable on mobile platforms.
• Strategic Alliances with Healthcare Facilities: Establish partnerships with healthcare facilities, hospitals, and clinics. Collaborate on solutions to their staffing needs, creating a win-win situation and solidifying your agency as a reliable staffing partner.
• Participate in Industry Associations: Join and actively participate in nursing and healthcare staffing associations. Networking within these communities can lead to valuable connections, insights, and partnerships that can propel your agency forward.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set 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 nurse 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 nurse staffing agency business could be: 

• Skilled nurses for your home healthcare agency
• Reliable travel nurses for short or long-term contracts
• Temporary registered nurses to meet your staffing shortages

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 nurse staffing agency business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in nursing 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 nurse staffing. 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 nurse staffing agency business include:

• Recruiters – recruit nurses for open positions
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

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 Nurse Staffing Agency – Start Making Money!

Nurse staffing agencies can help solve a major social problem, and you can be a part of that solution, and make good money, by starting your own nurse staffing agency. You could get started for a small investment and run the business from home while gaining a real sense of fulfillment from your important work. What could be better than that? 

Now that you understand the business aspects, it’s time to pound the pavement and get your successful nurse staffing agency off the ground!

• Nurse Staffing Agency Business FAQs

A nurse staffing agency can be very profitable. However, your real reward will come from knowing that you’re helping to solve the nurse shortage crisis that the U.S. is experiencing.

Generally, nurse staffing agencies get a fee of about 25% of the job contract that is signed for the nurse. The employer pays the fees.

Effective marketing strategies for a nurse staffing agency include building strong relationships with healthcare facilities, establishing an online presence and utilizing digital marketing, implementing referral programs, targeted advertising, and showcasing thought leadership through content marketing.

To expand a nurse staffing agency and reach more clients and markets, conduct market research to identify new areas of demand, develop strategic partnerships with relevant organizations, offer specialized services, expand recruitment efforts, and actively participate in trade shows and industry events.

To differentiate a nurse staffing agency from competitors, focus on providing exceptional customer service, offer customized staffing solutions, emphasize the quality and qualifications of your nursing staff, highlight unique value propositions such as technology integration or specialized training programs, and gather and showcase positive client testimonials.

A nurse staffing agency’s success is determined by factors such as building strong relationships with healthcare facilities and candidates, maintaining a reliable and qualified pool of nurses, effectively marketing services, providing excellent customer service, adapting to industry changes, having efficient operations and systems, and continuously striving for excellence in fulfilling client staffing needs.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

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

Subscribe to Our Newsletter

Featured resources.

17 Best Healthcare Business Ideas

Carolyn Young

Published on November 4, 2022

The healthcare industry is booming and expected to continue growing as more Americans age and require healthcare services. The emergence of morecoro ...

15 Business Ideas For Empaths

Esther Strauss

Are you able to intuit other people’s feelings? If so, you’re probably an empath and there’s a good chance you’ll find success as anentrepre ...

21 Agency Business Ideas

David Lepeska

Published on August 11, 2022

Dreaming of running your own agency? There are a lot of possibilities out there, from travel to advertising and marketing, to recruiting, SEOconsult ...

No thanks, I don't want to stay up to date on industry trends and news.

Clyde Staffing

Photos & videos, you might also consider.

Media Absolutely

Welcome to Mediaai, your partner in leveraging AI and seamless remote transition for unprecedented success. We specialize in tailoring cutting-edge solutions to significantly reduce overhead costs, setting your business on a… read more

in Marketing, Business Consulting

Prime Worx Partners

Prime worx partners go the extra mile for our clients no task to big or to small read more

in Business Consulting

NSD Enterprise Group

10.8 miles away from Clyde Staffing

Business Consulting Services innovative corporation formation solutions to drive success and growth. read more

Location & Hours

Suggest an edit

Los Angeles, CA 90001

Florence-Firestone

Recommended Reviews

• 1 star rating Not good
• 2 star rating Could’ve been better
• 3 star rating OK
• 4 star rating Good
• 5 star rating Great

Select your rating

Overall rating

TLDR - Ultimately an impersonal, undiplomatic and unresponsive 'staffing' agency with strange business practices. Candidate experience is not equally prioritized and agency does not adhere to their own commitments on feedback provision after asking you prematurely (and in some cases unnecessarily) for quite a few documents & headshot (!?). Despite the few press releases announcing the agency's launch, no thorough reviews can be found anywhere, other than a sprinkling of Reddit and TikTok commentary that also speaks to poor candidate experiences. In a world of Anna Delvey's and Elizabeth Holmes', I am not sure if this is a legitimate agency. ----- Founded by former career assistant to high profile clientele, Meghan Grimm, Clyde Staffing was created with the intention of 'identifying, developing and placing exceptional assistant candidates with top talent, while providing a peer-based community.' The company hopes to execute this by doing the following: -Allowing 3 weeks for the review of your application & resume -Providing feedback to help you improve your candidacy -Offer training tools & resources to qualified candidates, while allowing them mentorship with their assistant community. One would think that because Meghan herself has been through the process of being staffed as a 'sidekick', her company would understand the sensitivity and importance of making the process of the job search/placement for qualified assistants, a streamlined and straight forward one, as I am sure the agency undoubtedly does for it's 'high profile clientele'. Unfortunately, this is not the case. Unlike other staffing agencies, Clyde follows up post resume submission with requests for certain documents prematurely, never even initiating a short screening call with the candidate of supposed interest. After resume submission, you are asked to provide a HEADSHOT, COVER LETTER, REFERENCES and a request to fill out their IN HOUSE APPLICATION, a thrown together Word doc that attempts to get addtl. info on your personal and professional background & preferences. No one introduces themselves or signs their emails, so you don't know who you are talking to or how to address them, which further makes the process incredibly impersonal and strange. The HEADSHOTS are an EXTREMELY bewildering ask and there is no disclosure as to why they need it or why it is relevant to the application process. This ultimately could lend itself to DISCRIMINATORY PRACTICES and should be revised immediately. No legitimate staffing agency asks for headshots. This is NOT a casting agency. While the Clyde Staffing site does not list job opportunities like their competitors, they post opportunities on sites that aggregate entertainment roles looking to be staffed. How they ARE similar to some staffing agencies is, upon application to the role of interest, they make no mention of it, which ultimately leads you to believe that you have fallen victim to the ol' BAIT & SWITCH. Either the role has been 'staffed' or perhaps it did not exist at all. Some tips: -If you are overwhelmed by applicant volume, you should be thoughtfully parsing through applications thoughtfully to organize them in a way to do proper outreach and followup if in fact interested. Candidates don't want to do any unnecessary homework' of providing addtl documentation if you do not plan on moving forward with them as an an applicant. You should be able to tell by the initial resume submission whether the candidate is a good fit for your business. -Do not say you will provide addtl feedback in a month's time if that is not your plan. -If a candidate is respectfully following up with you, there is a diplomatic way of letting them know that you need them to be patient, etc., rather than being unresponsive. It shouldn't need to be said, but it's unprofessional. All in all, perhaps the agency does not have the clientele to keep up with the influx of candidates seeking employment opportunities. Who knows? However, looking for new employment is already sometimes such a demoralizing experience...why add to that.? There is definite room for growth.

I had a similar experience as others reviewing here. Jumped through numerous hoops (I have over 20 years of celebrity PA experience) only to be ghosted by these former "assistants" who if they are who they say they are, should know how to be more professional. This team is as phony as they come.

Very unprofessional. Requiring a headshot for a professional position is grounds for malpractice. Requires so much paperwork without even disclosing the person you are applying for. Appears as a scammy agency and impersonal which is not beneficial for the client or people interviewed.

Brigitte C. said "It is my pleasure to write this enthusiastic review of Evinex. Alexis and the entire Evinex team helped us build our site dflinteriors.com, and they were wonderful partners. Their team of highly skilled professionals went above and…" read more

in Employment Agencies

WebPower USA

5.7 miles away from Clyde Staffing

Ready to outshine your competitors online? Request a Comprehensive free Audit of your business online Marketing NOW! read more

in Marketing

Browse Nearby

Things to Do

Restaurants

Typing Certificate

Other Employment Agencies Nearby

Find more Employment Agencies near Clyde Staffing

Related Cost Guides

Advertising

Office Cleaning

Private Investigation

Product Design

Shredding Services

Software Development

• 5 More Cost Guides

People Also Viewed

Comar Agency

Christopher Baker Staffing

A-Z Staff Solutions

Rose’s Agency

Stivers Staffing Services

Fourth Floor - Career Group Companies

Career Group Companies

Estrin Legal Staffing

The Grapevine Agency

First Call Staffing Services