Staffing Agency Business Plan Template
If you want to start a Staffing Agency, Recruitment Agency, Employment Agency or expand your current Staffing Agency, you need a business plan.
The following Staffing Agency business plan template gives you the key elements to include in a winning staffing agency business plan, employment agency business plan or a recruitment agency business plan.
Below is an outline of each of the key sections of a staffing agency business plan.
I. Executive Summary
Business Overview
Located at the heart of [City], [Company Name] is a recruiting and staffing agency that helps local businesses to find talented staff across different fields like accounting, banking and finance, administration, marketing, and information technology. It specializes in talent pooling and acquisition and provides assistance with hiring new employees for temporary and long-term positions.
[Company Name] was founded by [Founder’s Name] in [Year] when he decided that he needed to take a break from just enforcing company policies and practices as an assistant Human Resource Manager for a known company in [Location]. He realized that there is a growing need for an agency that would help more job seekers find the companies that would maximize their potential and benefit from their expertise.
Putting the best interest of both the employers and job seekers, [Company Name] performs extensive background checks to make sure that they have a network of competent and highly qualified job seekers that matches the needs of companies in different industries.
Products Served
[Company Name] will be able to provide clients with the following services:
- General recruitment
- IT Recruitment
- Business and Finance recruitment
- Contract Staffing
- Manpower Outsourcing
- Staff Augmentation
- Executive Search and Selection (ESS)
Customer Focus
[Company Name] will primarily serve the residents who live within a 15-mile radius. The demographics of these customers are as follows:
- 78,827 residents
- 2,500 workers
- Average income of $65,000
- 41% married
- 49% in Mgt./Professional occupations
- Median age: 26 years
Management Team
The most valuable asset of [Company Name] is the expertise and experience of its founder, [Founder’s Name]. He has been working in the human resource management field since [year] and was one of [Other Company Name]’s top employees. He also has a degree in Human Resource Management and is SHRM-certified. Thus, he is highly qualified and credible to manage the staffing agency.
The team also includes a his highly-skilled and professional assistant manager who will help manage the company’s operations. He will be trained in all the important company processes and operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that there is indeed a need for reliable staffing agencies in the area.
- Majority of our location’s residents and workers are job seekers who are either fresh graduates or professionals who are looking for a new work environment.
- The management team has a track record of success in the human resource and staffing industry.
- The staffing agency business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is seeking a total funding of $200,000 of debt capital to open its staffing agency. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Location design/build: $100,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
II. Company Overview
Who is [Company Name]?
[Company Name] is a recruiting and staffing agency located at the heart of [City] that helps local businesses to find talented staff across different fields like accounting, banking and finance, administration, marketing, and information technology. It specializes in talent pooling and acquisition and provides assistance with hiring new employees for temporary and long-term positions.
Putting the best interest of both the employers and job seekers, [Company Name] performs extensive background checks to make sure that they have a network of competent and highly qualified job seekers that matches the needs of companies in different industries.
[Company Name]’s History
[Company Name] was founded by [Founder’s Name] in [Year] when he decided that he needed to take a break from just enforcing company policies and practices as an assistant Human Resource Manager for a known company in [Location]. He realized that there is a growing need for a staffing agency that would help more job seekers find the companies that would maximize their potential and benefit from their expertise. With the connections that he built through his years of experience in human resource management, and his passion for promoting career development, he was able to start [Company Name]. It didn’t take long before the company was able to gain the trust of [x] companies and [x] job seekers.
Since incorporation, the Company has achieved the following milestones:
- Found office space and signed Letter of Intent to lease it
- Established their company as a limited liability company (LLC)
- Developed the company’s name, logo and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting excellent job seekers from different fields.
[Company Name]’s Products/Services
[Company Name] will be able to provide clients with the following services:
- General recruitment
- IT Recruitment
- Business and Finance recruitment
- Contract Staffing
- Manpower Outsourcing
- Staff Augmentation
- Executive Search and Selection (ESS)
III. Industry Analysis
Over the past five years the Staffing Agency industry has recorded growth due to a growing US labor market and overall economic improvements. Unemployment rates had dropped to historical lows. As a result, industry revenue increased rapidly as the national unemployment rate declined 14.2%. The number of temporary employees increased throughout the current period, bolstering demand for industry services. Overall, industry revenue is projected to increase an annualized 1.6% over the next five years.
Corporate profit is anticipated to grow an annualized 10.4% over the next five years, driving businesses to expand operations. Corporations will look to preserve their profit and look to temporary employees. Workers looking to rejoin the labor force will likely continue to present an opportunity for industry operators, since they will remain open to temporary roles in hopes of securing a permanent position in the future. Overall, industry revenue is expected to increase an annualized 2.3% to $201.7 billion. Similarly, industry profit is expected to increase slightly to 5.6%.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas in a 15-mile radius. The area is populated mostly by several startup companies and expanding businesses in need of highly-skilled labor force; as a result, they have the budget to spend for a staffing agency.
The precise demographics of the town in which our location resides is as follows:
San Antonio | Fort Worth | |
---|---|---|
Total Population | 1,526,097 | 890,725 |
Square Miles | 505 | 355 |
Population Density | 3,789 | 2,710 |
Forecasted Population Change by 2014 | -0.02% | -3.76% |
Population Male | 48.04% | 48.84% |
Population Female | 51.96% | 51.16% |
Target Population by Age Group | ||
Age 18-24 | 3.68% | 3.52% |
Age 25-34 | 5.22% | 4.50% |
Age 35-44 | 13.80% | 13.91% |
Age 45-54 | 18.09% | 18.22% |
Target Population by Income | ||
Income $50,000 to $74,999 | 11.16% | 6.00% |
Income $75,000 to $99,999 | 10.91% | 4.41% |
Income $100,000 to $124,999 | 9.07% | 6.40% |
Income $125,000 to $149,999 | 9.95% | 8.02% |
Income $150,000 to $199,999 | 12.20% | 11.11% |
Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Job seekers: These are individuals with extensive and reliable work experience who are looking for either short-term or long-term employment.
- Offices: These are workplaces that are in need of administrative employees, accountants, IT personnel, maintenance personnel, and other skilled workers.
- Businesses: These are establishments in need of manpower services for their daily business operations.
V. Competitive Analysis
Direct & Indirect Competitors
The staffing agency’s competitors will be other staffing & recruitment agencies, such as:
Rand Corporation
Rand is an HR consulting and staffing business. Founded in 1960, the company has over 4,000 offices across 38 countries. They also placed more than 649,00 people in temporary or permanent employment, with about 318,500 workers placed into temporary positions last year. The company provides services through three key business divisions: staffing, professionals and in-house solutions. It screens temporary employees for the industrial and administrative sectors.
Express Staffing
Express Staffing is a staffing company that provides work for some 566,000 employees each year. It operates on a franchise business model from a network of more than 800 employment agency offices across the US and Canada. It helps fill full-time, temporary, and part-time positions in a range of sectors that span Professional, Light Industrial, and Office Services. Professional employment includes accounting, engineering, IT, sales and marketing, HR, and legal sector positions, while Light Industrial covers assignments such as assembly, maintenance, and warehousing. Bob Funk and Bill Stoller founded the firm in 1983. Since its founding, Express Employment Professionals has put more than 7.7 million people to work. M
Woodly Personnel Services
Established in 1988, Wood Personnel Services (WPS) is a staffing and employment agency serving the southern states. It works to tailor staffing solutions to its clients’ and candidates’ unique needs. WPS operates two divisions: Professional Staffing Services, IT Placement and Executive search.
Competitive Advantage
[Company Name] enjoys several advantages over other staffing agencies. These advantages include:
- Client-oriented service: [Company Name] will have full-time professional consultants always ready to keep in contact with its clients and answer their questions.
- Detail Oriented: The company attends to the smallest details of both the job seekers and the companies to make sure that their needs are met and delays and unnecessary stress are avoided.
- Efficient online service: With the use of its online tracking system, [Company Name] assures that it will deliver its services on a timely basis and keep its clients up-to-date of their application status. This also promotes transparency and trust.
- Management: [Founder’s Name] has been extremely successful working in human resource management and will be able to use his previous experience to assure clients of the care that [Company Name] will take to do the job right. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: Having lived in the community for 10 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
VI. Marketing Plan
The [Company Name] Brand
The [Company name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Client-focused documentation, recruitment, and deployment services, that treat each client according to their needs.
- Well-trained staff that prioritizes customer satisfaction and excellent results
- Service built on long-term relationships
- Comfortable, customer-focused environment
Promotions Strategy
[Company Name]’s market analysis shows that its target market will be individuals working and/or living within a 15-mile radius of its location, as well as businesses. [The Company’s] promotions strategy to reach these individuals includes:
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, sports programs, and similar channels will be a major promotion effort.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
Commuter Advertising
We will drive attention to [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Internet
[Company Name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy staffing agency that it is.
VII. Operations Plan
Functional Roles
The Company intends to employ [X] working staff and [A] recruitment consultants. [Company name] anticipates having [Z] customers on a monthly basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles.
Service Functions
- Finding clients in need of qualified staffing
- Recruiting and vetting individuals looking for employment
Administrative Functions
- General & administrative functions including marketing, bookkeeping, documentation, etc.
- Human Resource functions- Hiring and training staff
Milestones
[Company Name]’s long term goal is to revolutionize the staffing agency industry and become the best in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.
The following are a series of steps that will lead to this long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
Date | Milestone |
---|---|
[Date 1] | Finalize lease agreement |
[Date 2] | Design and build out [Company Name] |
[Date 3] | Hire and train initial staff |
[Date 4] | Kickoff of promotional campaign |
[Date 5] | Launch [Company Name] |
[Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. He has been in the human resource management and staffing industry since [year] and was one of [Other Company Name]’s top employees. He also has a degree in Human Resource Management and is SHRM-certified. Thus, he is highly qualified and credible to manage [Company Name].
[Company name] will also employ an experienced assistant manager to manage the company’s operations and help with the business planning process. He will be trained in all the important company processes and operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].
Hiring Plan
In order to launch the business, we will hire the following employees:
- Recruitment consultants: 3 full-time employees to manage the day to day job application and consultations
- Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the general recruitment and consultations.
The major costs of [Company Name] include:
- Salaries
- Lease on business location
Moreover, ongoing marketing expenditures are also notable cost mechanics for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $200,000 of debt capital to open its staffing agency. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses, other startup costs and working capital.
Specifically, these funds will be used as follows:
- Location design/build: $100,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
Number of clients per month | Per location |
---|---|
Year 1 | 10 |
Year 2 | 15 |
Year 3 | 20 |
Year 4 | 25 |
Year 5 | 30 |
Annual Lease ( per location) | $50,000 |
5 Year Annual Income Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
Expenses & Costs | ||||||
Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
LIABILITIES & EQUITY | ||||||
Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | |||||
Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
CASH FLOW FROM INVESTMENTS | |||||
Investment | ($246,450) | $0 | $0 | $0 | $0 |
Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
CASH FLOW FROM FINANCING | |||||
Cash from equity | $0 | $0 | $0 | $0 | $0 |
Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
SUMMARY | |||||
Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |