Starting a staffing agency can be a lucrative business venture, but it’s important to ensure you have a clear understanding of what’s involved in the process. This article will explore the step-by-step of how to start a staffing agency and examples of what to expect.
Here are the steps you can take to build a healthcare staffing agency.
10 Steps to Launching a New Healthcare Staffing Agency
1. Choose Your Type of Healthcare Staffing Agency
The first step in launching a healthcare staffing agency is to identify the type of healthcare staffing agency business you want to launch. You might choose from the following types among others:
- Contingency: This type of healthcare staffing agency is paid by the client only when a placement is made.
- Retained: In this type of healthcare staffing agency, the client pays an upfront fee in addition to a percentage of the placed candidate’s first-year salary.
- Contract: A contract healthcare staffing agency provides candidates to fill temporary positions at a client company.
- In-house: This type of healthcare staffing agency is owned by the client company and provides candidates only to that company.
2. Name Your Healthcare Staffing Agency
Give your healthcare staffing agency an identity so people will think of it as a well-known and respected brand. You can take the name of your healthcare staffing agency from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your healthcare staffing agency is to make it sound appealing and trustworthy so that clients will be confident in your ability to provide them with high-quality candidates.
3. Determine Your Healthcare Staffing Agency Business Model
There are several possible types of business models for a healthcare staffing agencies including:
- Full-service: A full-service staffing agency provides end-to-end solutions including candidate sourcing, screening, interviewing, and placement.
- Boutique: A boutique staffing agency focuses on a specific niche or industry and provides personalized services to clients in that area.
- Recruitment process outsourcing (RPO): An RPO staffing agency manages the entire recruitment process for a client company including candidate sourcing, screening, and interviewing.
- Master vendor: A master vendor staffing agency acts as a single point of contact for all of a client company’s staffing needs and manages a team of subcontractors to provide the required services.
No matter which model you choose, make sure that it aligns with your business goals and the services you offer.
4. Choose a Legal Form for Your Firm
By incorporating your healthcare staffing agency, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your healthcare staffing agency will determine the amount of taxes you pay and which state or federal tax forms you need to file.
5. Write a Healthcare Staffing Agency Business Plan
All healthcare staffing agency owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your healthcare staffing agency.
For example, many states require healthcare staffing agencies to have a surety bond in order to operate. A surety bond is a type of insurance that protects the client company from losses caused by fraudulent or dishonest acts of the healthcare staffing agency. The amount of the bond will vary depending on the state but is typically 1-2% of the estimated annual payroll of the workers you will place.
Other common licenses and permits for healthcare staffing agencies include a business license, an employment agency license, and a professional employer organization (PEO) license.
You must also register your healthcare staffing agency as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website if you plan to hire employees.
7. Determine Your Budget & Apply for Funding as Needed
In developing your healthcare staffing agency business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your healthcare staffing agency, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your healthcare staffing agency business include traditional bank loans, SBA loans, credit cards, angel investors, and family and friends.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your healthcare staffing agency, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access and accounting software for tracking expenses and revenue.
You may also want to invest in a customer relationship management (CRM) system to help you track your clients, candidates, and job openings. A CRM system can automate many of the tasks associated with healthcare staffing agencies such as sending emails, scheduling appointments, and creating reports.
There are a number of different CRM systems available for healthcare staffing agencies. Some popular options include Bullhorn, Jobvite, and Zoho Recruit.
You may also want to consider using an applicant tracking system (ATS) to help you manage job postings and applications. An ATS can help you post jobs to multiple job boards with the click of a button, as well as track which candidates have applied for which positions.
9. Market Your Healthcare Staffing Agency to Potential Clients
Before you start selling your services, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn, and Twitter. Consider networking with other people in the healthcare staffing industry through social media and blogs so you can identify mutually beneficial ways to partner.
You also need to start preparing for your promotions strategy — your strategy for attracting new customers. Healthcare staffing agencies should consider:
- Creating an SEO website
- Promoting your website through social media and educational blogs
- Networking with other healthcare professionals and potential clients
- Creating informative and persuasive sales materials, such as brochures, presentations, and proposals
- Developing targeted marketing campaigns to reach specific industries
- Attending industry trade shows and events
10. Get New Clients & Grow Your Business
When you promote your services, you’ll start to get interest from potential clients. Make sure you’re ready to serve these clients. If you let down on guarantees early on, you’ll start to lost trust within the industry.
Establish systems to ensure consistency and reduce costs from the beginning. Document what you do in a day, any training procedures, and projects you solve. When you go to do the same action again, you can refine your process and your documentation accordingly. Each time you’ll be able to improve, and you’ll have a solid foundation to pass on as you begin delegating.
Finally, if you want to scale, you must hire and train the right people to take on different areas of your business, like servicing specific industries.
Starting a Healthcare Staffing Agency FAQs
There are a number of reasons why you might want to start a healthcare staffing agency. It’s a great way to be your own boss and have control over your career. Second, healthcare staffing agencies can be very profitable businesses. Finally, you can make a difference in people’s lives by helping them find gainful employment.
To start a successful healthcare staffing agency, you need to have the right technology in place, a strong marketing strategy, and the right people to help you grow your firm.
You can start a healthcare staffing agency from home by investing in the right technology, developing a strong marketing strategy, and networking with other people in the healthcare staffing industry.
You can start a healthcare staffing agency online by developing a strong website and promoting it through social media and blogs. You should also consider networking with other people in the healthcare staffing industry so they can help share your business.
For example, you can start a job board or online job-matching website.
Here are some tips for starting a healthcare staffing agency:
- Invest in the right technology
- Develop a strong marketing strategy
- Network with other healthcare professionals
- Create informative and persuasive sales materials
- Attend industry trade shows and events
- Get new clients and grow your business
- Find and train the right people to help you grow your firm
- Establish systems to ensure consistency and reduce costs
- Promote your healthcare staffing agency through social media and blogs
- Consider starting a job board or online job-matching website
A simple checklist to use when starting a healthcare staffing agency is as follows:
- Choose Your Type of Healthcare Staffing Agency Firm: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
- Name Your Healthcare Staffing Agency: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Healthcare Staffing Agency Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Healthcare Staffing Agency Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Healthcare Staffing Services to Potential Clients: A solid marketing plan is crucial to your success. It should focus on attracting the right customers to provide them with the services they truly need.
- Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services.
Start a Healthcare Staffing Agency
Starting a healthcare staffing agency can be a great way to help businesses find the right employees, and it can also be a great way to make money. To start a healthcare staffing agency, you’ll need to invest in the right technology, develop a strong marketing strategy, network with other people in the industry, create persuasive sales materials, and attend industry trade shows.