Staffing agencies are responsible for helping organization recruit staff to fill vacant position in their organization and also help applicants / those in between jobs secure employment; offer a wide range of recruitment -related services, largely temporary and contract staffing. They also recruit employees for permanent placements. Some staffing agencies offer services beyond just recruiting employees for its clients, but also help in training and preparing the employees to fit into the role that they are being recruited for. Usually such staffing agencies charge more than those who just recruit employees for their clients. There are some steps on how to start a staffing agency with no money.

1. Steps on How to Start a
Staffing Agency with No
Money
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2. Table of Contents
• Conduct Market Research
• Memorable Business Name ideas for Staffing Agency
• Register Your Business
• Cost Analysis and Budgeting
• Write a Business Plan
• Marketing Plan
• Financial Projection
• Set Up your Shop/Office
• Hire Employees
• Launch the Business Prope

3. 1. Conduct Market Research

4. The first step in the market research
process for a staffing agency is to develop
a market-based research question in line
with your overall business goal and
objective. In this regard, you should source
information that will help you maximize
your business, information that will help
you structure, equip and operate your
staffing agency with less stress, and that
will also help you gain a fair share of the
available market share in your city.

5. a) Who is the Target Market of Staffing Agency?
• Job Applicants
• Corporate
Organizations
• Hospitals
• Hotels
• Business Facilities
• Households

6. b) Is Staffing Agency a Profitable Business?
Yes, a staffing agency is a profitable business and statistics show that the
industry generates an average of $22 billion annually in the United States of
America

7. c) Are There Existing Niches in the Industry?
Yes. These are some of the niches within the employment and recruiting
industry that an aspiring investor can choose from;
• Permanent placement services
• Executive search services
• Temporary staffing services
• Independent contractor placement services

8. d) Who are the Major Competitors?
• Randstad Holding NV
• LinkedIn Corp.
• Adecco
• Kelly Services
• EmployBridge
• PEAK Technical Staffing USA
• Specialized Recruiting Group
• Crawford Thomas Recruiting
• F&C Executive Search and Recruiting
• Accent Professional Recruiting
• Staff America
• I.M. Recruiters
• i4 Search Group
• FirstLight Home Care
• Griswold Home Care
• BrightStar Care®
• Express Employment Professionals
• Lead Staffing
• Interim HealthCare
• A Place at Home

9. e) Are There County or State Regulations or
Zoning Laws for Staffing Agency?
No, there are no county or state regulations and zoning laws for
staffing agencies, but players in this industry are expected to work with
the existing regulations governing such business in the county or state
where their staffing agency is domiciled.

10. f) Is There a Franchise for a Staffing Agency
Yes, there are franchise opportunities for the staffing agency. Here
are some of them;
• i4 Search Group.
• FirstLight Home Care.
• Griswold Home Care.
• BrightStar Care®
• Express Employment Professionals.
• Lead Staffing.
• Interim HealthCare.
• A Place at Home.

11. g) What Do You Need to Start a Staffing
Agency?
• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• An Office Facility
• Database of Applicants
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Employees
• Startup Capital

12. 2. Memorable Business Name ideas for
Staffing Agency

13. • Prime Rose® Staffing Agency Service, Inc.
• Excel Professionals® Staffing Agency Services, LLC
• White Collar® Staffing Agency Services, LLC
• Blue Ribbon© Staffing Agency Services, Inc.
• Kings Court® Staffing Agency, Inc.
• Monica Granville™ Staffing Agency Services, Inc.
• Theresa Brown® Staffing Agency Services, Inc.
• Clear Whyte© Staffing Agency Services, Inc.
• Click ‘A’ Clock® Staffing Agency Services, LLC
• Fidel Dwayne© Staffing Agency Services, Inc.
• Rolland Atkinson™ Staffing Agency Service, Inc.
• The Deal® Staffing Agency Service, Inc.
• Headway® Staffing Agency Service, Inc.
• Hallmark® Staffing Agency Service, Inc.
• Joan Valley® Staffing Agency Service, Inc.
• Andrew Dickson and Co® Staffing Agency Service, Inc.
• Spot On® Staffing Agency Service, Inc.
• Victoria Modena® Staffing Agency Service, Inc.
• Safe Hands© Employment Services, Inc.

14. 3. Register Your
Business

15. a) What Type of Business Structure is Best for
Staffing Agency?
Even though there are several options when it comes to the business structure of a staffing agency, the
one that most players in this line of business consider is LLC. It is common to consider LLC because
providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise
tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to
obtain an EIN.

16. b) Steps to Form an
LLC
• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

17. c) What Type of License is Needed to Open a
Staffing Agency?
• General Business License
• Zonal Permits (Applicable in some
cities)
• Signage Permit

18. d) What Type of Certification is Needed to Open a
Staffing Agency?
These are some of the certifications you can work towards achieving if
you want to open a staffing agency in the United States of America;
• Certified Recruiting Specialist (CRS)
• Recruitment Consultant Certification
(RCC)
• Physician Recruiting Consultant (PRC)

19. e) What Documents are
Needed to Open a Staffing
Agency?
These are some of the basic legal
documents you are expected to
have if you want to legally run a
staffing agency in the United
States of America;
• DBA
• EIN
• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Non – disclosure Agreement
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding
(MoU)

20. f) Do You Need a Trademark, Copyright, or
Patent?
If you are considering starting a staffing agency, you may not need to file for
intellectual property protection, copyright, patent, or trademark. This is
because staffing agencies do not require one except on rare occasions.

21. 4. Cost Analysis and
Budgeting

22. a) How Much Does It Cost to Start a Staffing
Agency?
The cost of starting a staffing agency is dependent upon size and a host of
other factors. Start-up costs can range from $10,000 to $100,000 and above.

23. b) What are the Costs
Involved in Starting a
Staffing Agency
• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting
services (software, P.O.S machines, and other software) – $3,300.
• Marketing promotion expenses – $3,500, and as well as flyer printing (2,000 flyers
at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring a business consultant – $2,500.
• Insurance (general liability, workers’ compensation, and property-casualty)
coverage at a total premium – $2,400.
• The cost for renting and furnishing an office facility – $25,000
• Other start-up expenses including phone and utility deposits ($5,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills
et al) – $35,000
• The cost for equipping the office (HR and recruiting software apps,
computers/laptops, internet facility, telephone, fax machine, and office
furniture(chairs, tables, and shelves): $25,000
• The cost of launching a website: $600
• Miscellaneous: $5,000

24. c) What Factors
Determine the Cost of
Opening a Staffing
Agency?
• The size of the staffing agency
• The choice of location
• The required licenses and permits
• The cost of equipping and furnishing the office
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing
• The cost for the purchase of office equipment and furniture
• The cost for insurance
• The cost for registering the business
• Cost of recruiting and training your staff

25. d) Do You Need to Build a Facility? If YES, How
Much Will It Cost?
No, you don’t need to build a facility for your recruitment agency. As a matter
of fact, you can operate from a shared office space.

26. e) What are the Ongoing
Expenses of a Staffing
Agency
• Office supplies.
• Utility bills – (internet subscriptions, phone bills,
signage and software renewal fees et al)
• Salaries of employees

27. f) What is the Average
Salary of Your Staff?
• Chief Executive Officer/Lead Consultant – $68,000 Per Year
• Recruitment Specialist – $40,000 Per Year
• Training and Development Executive – $40,000 Per Year
• Legal Secretary – $40,000 Per Year
• Human Resources and Admin Manager – $42,000 Per Year
• Business Developer (Marketing and Sales Executive) – $28,000
Per Year
• Accountant – $32,000 Per Year
• Customer Service Executive – $28,000 Per Year
• Front Desk Officer – $26,800 Per Yea

28. g) How Do You Get
Funding to Start a
Staffing Agency
• Raise money from personal savings and sale of personal
stocks and properties
• Raise money from investors and business partners
• Sell shares to interested investors
• Apply for a loan from your bank/banks
• Apply for business grants and seed funding from the
government, donor organizations, and angel investors
• Source for soft loans from your family members and your
friends.

29. 5. Write a Business Plan

30. a) Executive Summary
Brick House Staffing and Training Company, LCC is a Human Resource firm cum
staffing agency that will be located in New York City, New York. The company will
operate as a standard human resources consulting firm with bias in recruitment
and trainings.

31. b) Products and
Servics
• Recruitment and Training Consulting
• Staffing for the IT industry
• Staffing for the Oil and Gas Industry
• Staffing for the Health Sector (Nurses, Doctors et al)
• Staffing for the Banking, Insurance and the Financial Sector
• Recruitment, Human Resource, and Capital Development Consulting
• Highly Skilled Staffing Consulting
• Unskilled Staffing (Maid supply, Nannies, Gardeners, Security Guards
and Drivers et al)
• Permanent Staffing Consulting
• Temporary/Contract Staffing

32. c) Mission Statement
Our mission is to provide professional and trusted staffing and training services that
will assist businesses and non-profit organizations in operating sustainably.

33. d) Vision Statement
Our vision is to become the number one staffing agency in the United
States of America.

34. e) Goals and Objectives
The goals and objectives of the staffing agency is to help businesses hire
great employees.

35. f) Organizational
Structure
• Chief Executive Officer /Lead Consultant
• Recruitment Specialist
• Training and Development Executive
• Legal Secretary
• Admin and HR Manager
• Business Developer (Marketing and Sales
Executive
• Accountant
• Customer Service Executive
• Front Desk Officer

36. 6. Marketing Plan

37. a) SWOT Analysis
Strength:
Our core strength lies in the power of our team; our workforce. We have a
team that are considered experts in the industry, a team with excellent
qualifications and experience in recruiting and training.
Weakness:
As a new business consulting firm, it might take some time for our
organization to break into the market; that is perhaps our major
weakness.
Opportunities:
No doubt, the opportunities in the consulting industry are quite massive
because, in the United States, there are vast employment opportunities,
and of course there are people who are ready to fill up those positions.
Threat:
One of the threats that is likely going to confront us is unfavorable
government policies, downturn in the economy, and perhaps the
emergence of new staffing agencies (competitors) within the same
location where our staffing agency is located.

38. b) How Do Staffing
Agencies Make
Money?
Staffing agencies make money
by offering the following
services;
• Recruitment and Training Consulting
• Staffing for the IT industry
• Staffing for the Oil and Gas Industry
• Staffing for the Health Sector (Nurses, Doctors et al)
• Staffing for the Banking, Insurance and the Financial Sector
• Recruitment, Human Resource, and Capital Development Consulting
• Highly Skilled Staffing Consulting
• Unskilled Staffing (Maid supply, Nannies, Gardeners, Security
Guards and Drivers et al)
• Permanent Staffing Consulting
• Temporary/Contract Staffing

39. c) Payment Options
• Payment via bank transfer
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

40. d) Sales & Advertising Strategies
Introduce your staffing agency by sending introductory letters alongside your brochure to
corporate organizations, hospitals, businesses, and key stakeholders within and outside the
location where your staffing agency is located
• Advertise your staffing agency in community-based newspapers, local TV and radio stations
• List your staffing agency on online directories and yellow page ads (local directories)
• Leverage on the internet to promote your staffing agency
• Attend recruitment/HR expos, seminars, and business fairs et al
• Engage in direct marketing and sales
• Encourage the use of word of mouth marketing (referrals)
• Leverage on the internet to promote your business (when you blog regularly on key issues as it relates to your business,
people who consider you an expert in the field)
• Join local chambers of commerce and industries around you with the main aim of networking and marketing your staffing
services; you are likely going to get referrals from such networks.
• Engage the services of marketing executives and business developers to carry out direct marketing for you.

41. 7. Financial Projection

42. a) How Much Should You Charge for your
Product/Service?
The standard recruiting fee for agencies is between 15 and 20 percent
of the first-year salary for a permanent job the recruiter is filling. Some
agencies may charge as much as 25 percent for hard-to-fill roles. Fees
can vary significantly across industries, market conditions, and
specialization of the position.

43. b) How Much Profit Do Staffing Agency
Owners Make a Year?
Staffing agencies make a profit by paying employees less than what they
charge their clients. Margins vary, but can range from 30 percent to 70
percent, depending on industry, supply, demand, and location.

44. c) What Factors
Determine the
Amount of Profit to
Be Made?
• The capacity of the staffing agency
• The niche idea or industry that the staffing agency recruits for
• The location of the staffing agency is covering
• The management style of the staffing agency
• The business approach of the staffing agency
• The advertising and marketing strategies adopted by the
staffing agency.
• The number of years the staffing agency is in business

45. d) What is the
Profit Margin of a
Staffing Agency?
The profit margin of a staffing agency is not fixed; to a large extent, it will
depend on some factors that are unique to your location and the type of
staffing agency. It can range from 30 to 70 percent depending on the
occupancy rate of the staffing agency.
• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $400,000
• Third Fiscal Year (FY3): $550,00
Below is the sales forecast of a staffing agency based on the location of
the business and other factors as it relates to such startups in the United
States;
e) What is the Sales
Forecast?

46. 8. Set Up your Shop/Office

47. a) How Do You Choose a Perfect Location for
a Staffing Agency?
If you are looking for a location for your staffing agency, ensure that it
is located in the hub of business in your city, a place that is visible and
easily accessible. You would not want to locate this type of business
in the outskirts of town. Your clients should be able to locate your
office with little or no difficulty. Applicants should also be able to
locate your office when they come to submit their CVs, documents, or
for background checks et al.

48. b) What State and
City are Best to Open
a Staffing Agency?
• New York City, New York
• Boston, Massachusetts
• Las Vegas Nevada
• Los Angeles, California
• Chicago, Illinois
• Miami Beach, Florida
• Silver Spring, Maryland
• Orlando, Florida
• Houston, Texas
• Dallas, Texas

49. c) What Equipment is Needed to Operate a
Staffing Agency?
You will need the following start-up inventory and equipment; HR and
recruiting software apps, computers/laptops, internet facility,
telephone, fax machine, and office furniture (chairs, tables, and
shelves.

50. 9. Hire Employees

51. When it comes to hiring employees for a standard staffing
agency, you should make plans to hire a competent chief
executive officer/lead consultant, recruitment specialist,
training and development executive, legal secretary, HR
manager, business developer (marketing and sales
executive), accountant, customer service executive, and
front desk officer.

52. 10. Launch the Business Proper
No staffing agency opens its door for business without first opening it officially. You can choose to do
a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the staffing agency, you will be able to officially
inform people in your city that your staffing agency is open for business.

53. No staffing agency opens its door for business
without first opening it officially. You can choose
to do a soft opening if you are operating on a low
budget or you can go for a grand opening party.
The bottom line is that with a proper launching of
the staffing agency, you will be able to officially
inform people in your city that your staffing
agency is open for business.

54. a) What Makes a
Staffing Agency
Successful?
• Use CRM Software to Streamline your recruiting process.
• Create a ‘follow-up’ system.
• Optimize for mobile.
• Share success stories.
• Respond to client feedback on social media.
• Collect client feedback.
• Understand your client’s industry
• Adopt efficient collaboration tools
• Accepting and learning from feedback
• Never giving up.

55. b) What Happens
During a Typical Day
at a Staffing Agency?
• The staffing agency is open for the day’s work
• The staff carry out their daily responsibility (conducting
technical phone screens, resume reviewing, scheduling
interviews, preparing candidates for interviews,
collaborating with hiring managers, and extending offers)
• The office is closed for the day.
• Please note that staffing agencies have a robust CV
bank so that whenever an organization demands
employees from them, they can quickly produce
qualified candidates without putting up any vacancy.
Staffing agencies also prepare applicants to take on
some job roles before the opening even surfaces; it puts
them ahead of their competitors in the industry.

56. c) What Skills and
Experience Do You
Need to Build a
Staffing Agency?
• Excellent customer services skills
• Good managerial and human development skills
• Ability to train new hires
• Ability to spot talents
• Team-building & Interpersonal Skills.
• Excellent communication and negotiation skills.
• Organizational skills.
• A strong understanding of the staffing agency industry
• Ability to pay attention to detail
• Good supervisory skills
• Familiarity with all aspects of the staffing agency and
employment industry
• Experience in working as a staffing agency manager
• Experience in managing people
• Experience in business administration

57. Thank you!
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