Starting a staffing agency is exciting, challenging and surprising at every turn. A staffing agency includes all the essential elements for a successful business: employees who are enthusiastic about the services they perform, job candidates who are eager for new opportunities, and clients who rely on the staffing agency to provide the very best candidates for each position. However, your staffing agency needs more than a great start; it needs to grow to become profitable and remain profitable. Read on to discover the ways we’ve discovered to position a staffing agency for profitability and long-term growth.
Startup Phase to Profitability
Initially, almost all staffing agencies operate at a loss. The funding required to start a staffing agency and the monthly costs for personnel, location costs, office equipment and insurance can eat up every bit of available funding. At this point, you’ll want to move to profitability quickly and efficiently, as this will minimize the loss of funds and move the company expeditiously toward profitability. What steps can you take to move quickly toward profitability?
- Arrange to speak at a conference or exhibit at a trade show on behalf of your company. This will greatly increase the visibility of the employees of the staffing agency.
- Hold breakfast or lunch meetings with interested clients.
- Offer a limited-time discount or themed special to generate interest and secure new clients.
- Engage in local community events, such as street fairs and county forums..
- Offer assistance to companies holding hiring fairs.
- Offer incentives to current customers who refer potential customers to your agency.
A strategic marketing plan is essential for every startup staffing agency and is the primary tool you’ll use to build profitability. If you haven’t yet created strategies for your staffing agency, there are several from which to choose. The methods you select should be based on the preferred styles of communication that your clients choose. For example, if clients respond to email communication, you’ll want to create regular email newsletters and a blog to discuss topics of interest and announce upcoming changes.
One of the most effective ways to interact with your clients is to use social media to stay in contact and create new relationships. This method is effective if your clients respond to short, or humorous marketing content. Post no more than once a week, lest your target audience become over-saturated with information.
Be persistent in efforts to move your startup to profitability, as it takes time and consistency to bring new clients into a staffing agency.
Profitability to Expansion
As you consider expansion, it is crucial for your staffing agency to move toward the goals of your business plan. If you do not yet have a business plan, use this staffing agency business plan template for a comprehensive guide to building a business plan. Your completed business plan will include the goals and objectives of your staffing agency, funding and financial projections, marketing strategies, operational plans and other important components. When completed, present the plan to interested investors or lenders, banks, or financial institutions if funding is required to grow your company to the expansion stage.
Expansion to Growth
After your staffing agency has achieved profitability, you’ll want to consider expanding your staffing agency. For example, you may choose to franchise the model used for your staffing agency, or opt to open additional locations for your agency. As profitability continues, this is the time to expand by targeting new models for business. You’ll want to consider partnerships that present new opportunities and other potential offers, as well. While it is extremely tempting to look ahead rather than at the present stage of growth and stability in your staffing agency, keep both the present and the future in mind while considering changes internally and externally. A balanced look at both stages will assist in maintaining profitability during the expansion and growth stages.
Stability to Long-term Growth
Finally, the long-term growth of your staffing agency will occur as profitability becomes a reality, expansion has occurred systemically, and the company is stable overall. This is a good time to consider further expansion on a limited basis, or adopt internal changes if new technology could be advantageous to growth. Long-term secured contracts can be factored into the business plan as clients continue to provide success for the staffing agency and personal wealth for the stakeholders of the company.
Throughout each stage of your staffing agency, you’ll be challenged by change. Consider changes carefully and use the thoughtful advice of others whom you trust, including members of your executive team. Look for new ideas in surprising places and gravitate toward digital marketing and advanced technology for streamlined processes within your agency. We wish you the best of success!