Business Idea

Start A Staffing Agency

About

Starting a staffing agency requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell staffing, or selling staffing online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a staffing agency ➜

Key stats

market size
$427B
revenue (monthly)
$245K
starting costs
$27.9K
gross margin
60%
avg product price
$48
time to build
9 months
growth
Direct sales
business model
Brick & Mortar
time investment
Full time

About

Starting a staffing agency requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell staffing, or selling staffing online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a staffing agency ➜

Key stats

market size
$427B
revenue (monthly)
$245K
starting costs
$27.9K
gross margin
60%
avg product price
$48

 

time to build
9 months
growth
Direct sales
business model
Brick & Mortar
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $550 $6,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Advertising & Marketing Costs $75 $4,036
Software Expenses $150 $2,944
Other Expenses $0 $500
Total Startup Costs $6,642 $49,130

Successful Businesses

Business URL Rank
Medical Technology, Services, and Solutions Global Leader medtronic.com #23,956
Ethiopian Business Portal 2merkato.com #38,010
Australia's leading recruitment agency roberthalf.com.au #48,267
Hays Specialist Recruitment job employment agency hays.com.au #66,625
Randstad randstad.com #78,016
Apex Systems Home apexsystems.com #102,092
Randstad randstad.com.au #103,570
Allegis Group allegisgroup.com #119,041
Corporate Staffing Services corporatestaffing.co.ke #146,043
Petroplan petroplan.com #163,756
PeopleReady peopleready.com #214,308

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Rewarding work Starting a staffing agency can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a staffing agency. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your staffing agency are typically around 60%, which is considerably high and allows you to grow your business and manage costs easily.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
High employee turnover In the staffing agency, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
High overhead expenses With starting a staffing agency, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
Time commitment With starting a staffing agency, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Difficult to build trust with your customer With starting a staffing agency, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

Marketing Ideas

  • 1

    Direct sales

    You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process. Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    The most tried and true way to grow a staffing agency is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to staffing agency.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜