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When a corporation has an open, high-level position, it usually expects to locate the ideal candidate. However, many firms struggle to discover a good match and seek assistance from seasoned employment services. Demand for recruiting services is currently at an all-time high, which explains why the US employment and staffing business is worth almost $24 billion and is expected to increase steadily in the next years. 

Staffing agencies do all of the heavy labor, such as sourcing individuals, scheduling interviews, and extending job offers. But, before you start going through your virtual rolodex, it’s critical to learn the foundations of beginning and maintaining a business. 

You’re in luck since this step-by-step guide has all of the knowledge and insight you’ll need to get started on the path to staffing success.

Step 1: Find Out if this is the Right Business for You?

Positives Vs Negatives

Flexibility – Work from home and set your own hours.
Low Overhead – Low initial and continuing expenditures.
Helping folks discover their ideal employment is a rewarding experience!
Extensive Networking – Creating a network of applicants and clients takes time.
Clients might be difficult to work with when it comes to hiring for available positions.

  • Industry size and previous growth – The US employment and recruiting agency industry is expected to be valued $23.2 billion in 2022, up 2.3% from 2017.
  • Forecasted growth – The worldwide recruiting and staffing sector is predicted to increase at a 2% annual rate through 2028.
  • As of 2022, there will be 10,950 job and recruitment agencies in the United States.

Cost of Starting a Staffing Agency Business

Starting a staffing business might cost between $4,600 and $10,400. Your expenses will be heavily influenced by how much you spend on promoting your services and posting job openings for your clients on job boards.

Investment Items:

  • Computer
  • Website
  • Staffing Agency Application
  • Branding and logo design

Is Staffing Agency Business Profitable?

Permanent employment companies charge an average of 20% of the recruited individual’s first-year compensation. Aside from advertising and job posting, your continuing costs will be minimal. Profit margins should be about 90%. 

You may manage your firm from home for the first year or two and fill one position every two months. Assuming each job pays $100,000 per year and your commission is 20%, you’d make $120,000 per year. Assuming a 90% profit margin, you’d make $108,000. As your company expands, you may recruit more employees and rent an office space, lowering your profit margin to 65%. If you raised your annual income to $240,000, you’d generate a whopping $156,000 profit. 

Entry Barriers

  • Financing (in terms of both time and money) the establishment of a robust network 
  • Clients are being drawn away from traditional hiring agencies.

Step 2: Create a Strategy

Identify a Gap

Examine the services, pricing, and customer bases of local staffing firms. You’re aiming to fill a market void. For example, if the local market lacks a temporary staffing agency.  This might kickstart your word-of-mouth marketing and immediately attract clients. 


  • You’ll be providing recruiting and staffing services to businesses who need to fill available positions. Many agencies specialize in a particular sector, which helps to filter down potential applicants and consumers. Some employment firms may also specialize on temporary or seasonal employees.


Staffing firms normally charge 10-35% of the employee’s yearly pay when hiring full-time personnel. Rates are determined by the reputation of the agency as well as the position being filled. 

Once you’ve determined your expenses, you can use this profit margin calculator to figure out your mark-up and final pricing points. Keep in mind that the pricing you use at launch should be subject to modify if the market warrants it.

Target Market

Companies who want assistance in filling available positions will be your target clientele. Advertising your staffing firm on LinkedIn will assist you in expanding your network of potential clients and job seekers. You might also use social media networks like Facebook, Instagram, and TikTok to promote your recruitment services.


To cut costs in the early stages, you may choose to manage your business from home. However, if your company expands, you will most likely need to hire employees for various tasks and may need to rent an office space. Commercial space for rent in your region may be found on sites like Craigslist, Crexi, and Instant Offices.

When selecting a business facility, you should consider the following guidelines:

  • A central position that is easily accessible by public transportation
  • Natural light and ventilation
  • Lease that is flexible and may be extended as your business grows
  • Ready-to-use area that requires no substantial upgrades or repairs.

Step 3: Write a Business Plan

Every company need a strategy. This will serve as a manual to help your business through the launch process while keeping you focused on your primary objectives. A business plan also helps potential partners and investors understand your company’s mission and vision:

  • Executive Summary: A brief summary of the full business plan that should be produced when the plan is completed.
  • Business Overview: A description of the organization, including its vision, mission, ownership, and corporate goals.
  • Product and Services: Provide detailed descriptions of your offers.
  • Market Analysis: Conduct a SWOT analysis to evaluate market trends such as variances in demand and development potential.
  • Analyze your top rivals’ strengths and shortcomings, then produce a list of the benefits of your services.
  • Sales and marketing: Investigate your company’s unique selling propositions (USPs) and create sales, marketing, and promotional plans.
  • Management Team: A summary of the management team’s functions and professional backgrounds, as well as a corporate hierarchy.
  • Procurement, office location, critical assets and equipment, and other logistical aspects are all part of your company’s operating strategy.
  • Financial Plan: A three-year financial plan that includes initial expenses, a break-even analysis, profit and loss predictions, cash flow, and a balance sheet.
  • Include any extra financial or business-related papers as an appendix.

Step 3: Create a Marketing Plan

While some of your business will come from existing contacts or word of mouth, you should still engage in digital marketing! It is extremely vital for new businesses to spread the word since it increases consumer and brand recognition. 

After you’ve launched your website, connect it to your social media profiles and vice versa. Because you can generate compelling posts that sell your items on social media, it is an excellent tool for promoting your business: 

  • Facebook: A fantastic paid advertising network that allows you to target certain demographics, such as males under the age of 50 in the Cleveland region. 
  • Instagram has the same advantages as Facebook, but with a different target demographic.
  • Website: SEO will help your website rank higher in relevant search results, which is critical for driving sales. Make certain that your website’s calls to action are optimized. Experiment with the language, color, size, and location of calls to action like “Book a Consultation.” This can significantly boost business.
  • Google and Yelp: Getting listed on Yelp and Google My Business can be critical to creating awareness and consumers for businesses that rely on local clients.

Kickstart Marketing

Increase awareness of your services and promote your brand by utilizing your website, social media presence, and in-person events. Here are some ideas: 

  • Distribute fliers in your area and at industry gatherings. 
  • Make a video about your staffing firm. Use humour, and it may go viral!
  • Send out frequent emails to consumers and prospects. Make them unique to you. 
  • Start a blog and post regularly. Change up your content and distribute it across numerous platforms.
  • Seek recommendations – Provide incentives for customers to refer new clients. 
  • Create a podcast to interact with your consumers on a more personal level.
  • Do a webinar – Use a video presentation to share your staffing skills online.
  • To capture emails, provide a free download.
  • Testimonials – Display client testimonials regarding how your staffing firm assisted them.