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temporary staffing company business plan recognizes a truism in
business: when the economy is down, don't hire. Rent. By renting
out employees, you can take full advantage of any economic
climate.
KEY CONSIDERATION
Few companies prosper in
economic downturns. But a startup company in the contract
employee business is hitting it just right as the country begins
an economic downturn. Employees will actually welcome your
services, knowing they will have a hard time getting hired as a
regular employee. And companies will truly welcome you when you
can provide temporary workers to fill their needs.
STRONGEST ADVANTAGE TO A
TEMP AGENCY BUSINESS
Judging by the layoffs that
have already occurred, you will have a strong pool of job
candidates to choose from. Couple that with the fact that
virtually all companies are going to leery of hiring regular
employees, and you've got your niche.
STRONGEST DISADVANTAGE TO A
TEMPORARY EMPLOYEE SERVICE BUSINESS
Because this is a nearly
recession-proof business, you are liable to get pretty strong
competition. The large existing temporary staffing company
business plans no doubt take economic times into account. They
have holding power that you can only dream of.
OVERCOMING THE DISADVANTAGE
WITH YOUR TEMPORARY STAFFING BUSINESS PLAN
Prove that you have the
experience to make the contract employee business successful.
If you have worked in a
managerial capacity in a contract employee company, great. If
you have been a personnel manager charged with hiring lots of
contract workers, great. If you have previously run a successful
small business, great.
Two out of three of the above
qualifications place you in contention for running your own temp
agency. But if you have none of that experience, you will likely
run into trouble looking for financing.
Remember, the temp agency
business plan must demonstrate your knowledge of the laws and
regulations pertinent to your business in your state, and each
state is different.
Prove that you have the
marketing background and skill to make a temp agency successful.
Who will your clients be?
Employees? Not by a long shot. It's the hiring managers who will
pay your bills -- they are your clients. How many hiring
managers do you personally know who will use your service? They
are your lifeline.
Knowing "unemployed" people is
not important. A few good ads in your local paper will bring in
droves.
But you've got to know the
hiring managers, and you've got to know how to market to them.
OTHER PLUSSES IN YOUR
TEMPORARY STAFFING COMPANY BUSINESS PLAN
The quality of your customer's
credit will be every bit as important as the quality of your
credit. If your clients don't pay your bills, you're up a creek
without a paddle. Whenever you have strong clients, really play
it up. Put someone from that company on your Advisory Board if
possible. Get a letter of recommendation if you can.
In fact, having strong
customers can surpass moderate faults in your own background.
FOR ADDITIONAL INFORMATION
FOR YOUR TEMP AGENCY BUSINESS PLAN AND YOUR TEMPORARY STAFFING
MARKETING PLAN
Watch the business demographics
in your area. What industries does your area attract? How strong
are they? How likely are they to survive an economic down turn?
Your local Chamber of Commerce and your local Planning
Department can provide a lot of data for your use. Also, talk
with staffing managers directly and ask them if you can include
their comments in your temp agency business plan.
For marketing information on
the staffing industry, go to
BizMiner.
At the home page, look for the Search Box. Enter "Employment" in
the Search Box. You will have the choice of a number of
different types of employment agencies to choose from:
- Employment Agencies
- Labor contractors
- Employment agencies, motion
picture
- Employment agency:
theatrical, radio and television
- Community service employment
training
You will have both a Financial
Analysis report and a Marketing Research report for each type of
employment agency.
Be sure to look in the left
hand column of that page for VIEW ALL REPORTS, then DEMOGRAPHIC
INFORMATION for your area compiled from US Census statistics.
YOUR LIKELY LENDER/INVESTOR
FOR YOUR TEMP AGENCY BUSINESS PLAN
The
SBA
is a strong lender in the employment agency field.
If, however, you are serving a strong industry niche, don't
discount the possibility that the companies who will be your
clients will help you get into business. Don't laugh -- they
would have a very vested interest in your success!
YOUR ONLINE PRESENCE
You will need an online
presence, both for your clients and for your employees. To
generate the most traffic possible to your site, I recommend
SiteBuildIt, the
company that serves this website.
YOUR TEMP AGENCY BUSINESS
PLAN
There are so many areas you can
focus on -- medical, construction, biotech, administrative
staff, accounting. Choose your niche, focus it well, and target
your clients. This could be the best move you ever make.
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