How to Start a Staffing Agency ($480K a Year)

How to Start a Staffing Company and make $480K! There is a MASSIVE opportunity in Staffing because small to mid-sized employers do not have the time go out and find talent.

What do staffing companies do? They place workers at companies. There are numerous types of workers you can place. Clerical, Construction, Factory Workers, Manufacturing, Healthcare, etc.

Staffing companies usually charge 25%-100% of the hired employees wage. Example: employee earns $10 an hour, the employer is paying staffing company $15 an hour. Staffing comapny makes $5 an hour.
This would be a good clerical example.

How much does it Cost:
Run it virtually with little costs
HR Software: $5,000 a year.
Job board advertising: $30,000 (Indeed,
insurance $5K
TOTAL COSTS: $40,000 = $3,333 month

How much can we Make:
20 clerical workers = 40 hours a week
$15/hour - pay worker $10/hour = we make $5/hour
20 * 40 hr = 800 hours * $5 = $4,000 a week = $16,000/month = $192K
50 clerical * 40 hr = 2,000 hours * $5 = $10,000/week = $40,000/month = $480K
TOTAL REVENUE: $480K

CASHFLOW:
Monthly: $40,000 - $3,333 = $36,667 Profit
REVENUE: $480,000/year - $40,000/year = $440,000 Profit

Scale:
The nice thing is that you can continue to hire more people.

Think of ways it will fail:
No jobs to place. Network with companies. Cold call companies HR department,
No workers to place. Work with job boards, hiring marketing agencies, etc.
Failure to screen workers: Legal Compliance. Make sure workers are elgible.
Failure to scale: Hire people to help on board employees.
Failing to be organized.

Legal Up
LLC
Insurance
Contract with employers

Commit to Starting
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