A staffing agency can be a difficult thing for your clients to start as there are many potential roadblocks and avenues to take. Employment services are invaluable partners to many corporations because it takes on the general liability associated with employees. If managed correctly, it can also be lucrative for its owners. Creating staffing agencies can bring up some questions.
The 9 Things Your Clients Must Know About Starting a Staffing Agency
If your clients are wondering how to start up a staffing agency of their own, here are nine steps they can follow.
Investigate General Liability Insurance
Remind clients that the first thing to consider is how they will manage their liability for all the workers they hire. Unlike businesses that have a set number of employees, they will be hiring as many people as possible. Therefore, they need to be shopping for an insurance policy from day one.
Choose a Name
Don’t underestimate the importance of a unique business name. Most states have a searchable database where entrepreneurs can discover if someone has already claimed their first choice. They should also search the U.S. Patent and Trademark Office to make sure the name is not already a registered trademark.
Register With the State Government
All states require that new businesses register with them. People can check their state’s official website for a Business Bureau or Secretary of State’s office. Some allow customers to register online, while others require mailing in paper applications.
Select a Niche Market
Building a successful staffing agency depends on fulfilling a hiring need. However, if a niche is too specific, then there will not be enough job candidates. Here are some niche occupations for your clients to consider:
- Temporary holiday retail workers
- Cybersecurity specialists
- School bus drivers
- Factory workers
- Electronic medical record technicians
Build a Team
Entrepreneurs must realize that some aspects of running their businesses require expertise they don’t have. An insurance agent, a lawyer, an accountant, and a financial advisor are all indispensable team members that should be in place before hiring any other staff.
Determine a Fair Rate
Staffing agencies make money from the wage markups they charge when hiring on behalf of clients. The amount depends on the going rate in the area and what the owners think is fair.
Develop a Process for Hiring
Providing staffing agency solutions to an employer’s personnel needs requires a smooth and efficient process. Here are the basic steps to follow:
- Sign a contract with a client
- Write job descriptions
- Vet candidates
- Allow the client to decide whom to hire
- Take care of all paperwork
Be Prepared Not To Make a Profit
Most new businesses do not make a profit during the first year. During this time, owners must have a backup plan for keeping themselves afloat financially.
Protect Your Business With General Liability Insurance
When their business plans are finally in place, be sure your clients have purchased sufficient general liability insurance. They will need it not just to cover the employees they hire, but also to prevent losing everything they have worked for to the expense of lawsuits.
Following these nine steps is a great way for those who are interested to start their staffing agencies. With general liability insurance and a plan for doing business both in place, they will set themselves up for success.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.