Staffing agencies are essential in our fast-changing economy. You play the role of matching qualified candidates with the staffing needs of businesses. However, this type of service must have certain qualities in order to be successful. Here are the top seven tips to keep in mind if you want your staffing agency to flourish.
Important Steps to Start a Staffing Agency Business
1. Create a Business Plan
A business plan is a critical first step for starting a business of any kind. A business plan serves several functions. It provides a blueprint for you to follow as you set up your staffing agency. A business plan clarifies your marketing plans, your target audience, and the amount of funding you need. In addition to guiding your actions, a business plan is essential if you apply for financing such as bank loans.
2. Decide How You Will Fund the Business
Decide how much it will cost you to launch your business and how you plan to fund it. The following are some of the most common ways to fund a new business.
- Personal Funds. If you have savings or assets available. Personal credit also fits into this category.
- Loans from family or friends.
- A bank loan.
- Invoice Factoring. With this type of financing, you sell unpaid client invoices to a factoring company.
3. Register Your Business
When registering your business, you’ll have to decide what type of business structure works best for you. Most businesses fall into one of these categories:
- Sole Proprietorship. This is for solo business owners with no partners.
- Partnership. A business owned by two or more people.
- Limited Liability Company (LLC). Owned by multiple people. This type of structure provides you with a certain amount of liability protection as it creates a legal distinction between the owners and the business.
- Corporation. A company owned by shareholders.
If you aren’t sure what type of business structure is best for you, it’s a good idea to consult with an attorney.
4. Meet Legal Requirements
You want to understand and comply with all essential laws and regulations before opening your business. This includes the following but may vary depending on your location and your business structure.
- Business license.
- Employer Identification Number (EIN).
- Article of Incorporation. This is necessary if you’re starting a corporation.
- IRS Forms. These may include Form 941, W-4, and I-9.
- State Tax ID Number.
5. Get Insurance
A staffing agency will need several types of insurance, including:
- General liability insurance.
- Workers compensation.
- Commercial property insurance. You’ll need this if your agency is situated in a brick and mortar location.
- Vehicle insurance. If you will be using company vehicles, they will need to be insured.
- Professional liability insurance.
- Employment practices liability insurance.
- Cyber insurance. To protect you from cyber attacks and data breaches.
6. Open a Business Bank Account
No matter what type of business structure you have, you should have a business bank account separate from your personal accounts. This prevents personal and business funds from getting mixed up. A business account is also helpful for building business credit.
7. Create a Non-Disclosure Agreement (NDA)
If you have partners or employees, you should create an NDA or non-disclosure agreement. This is a standard contract that prevents people in your company from sharing confidential information.
Create Your Staffing Agency Step By Step
While starting a new business can seem overwhelming, if you take one step at a time, you’ll find that it’s all straightforward. The danger lies in trying to skip steps, which can mean overlooking some essential points. Keep in mind that starting a staffing agency is an ambitious project that requires time and planning.
How Can Riviera Finance Help?
To build a successful staffing company, you need ample and reliable cash flow. Your funding source will need to meet all your financial needs on demand, including:
- Weekly Payroll
- Marketing, Advertising and Sales Expenses
- Administration and Overhead
- Executive Compensation
With Riviera Finance, you can get access to working capital with invoice factoring. This method of alternative financing allows you to turn unpaid invoices into cash. See why more staffing businesses choose to work with Riviera Finance – contact us online to see how our team can serve you.
