The best business ideas for 2014 are going to be difficult to start in the current economy; but a temporary staffing agency is one such business that may have excellent potential. Companies looking to cut back on spending or in a fiscal pinch find a temporary employee to be ideal for almost any situation that may arise. The idea of pulling samples of employees from a stock is another appealing factor, as employers are not obligated to keep a temporary employee.
Depending on the particular type of staffing agency, startup costs are on par with many other franchises or small businesses. Expect to need anywhere between $5,000 and $25,000 in capital. This will cover the necessities: small office, computer with software, people who have the prerequisite skills and the like.
Attempting to fund this small business with less money is not recommended as the human resource aspect of the cost can be very high. Most agencies will pay their employees before a client will pay the agency. This is the reason for the high startup costs and fees.
Much like any small business, finding the appropriate niche is necessary. Common staff needs are clerical, light industrial work and product assembly and these are only a start. Other, more specialized and therefore more expensive, options include medical staffing such as nurses, transcriptionists and supporting staff.
The technology industry and in particular data entry is a very large potential field. More and more businesses and industries are moving to online and cloud computing and personnel services. Someone will have to input all of that information into the computer.
The target market is driven by the same factors as any: need and resources. Knowing this information and using it wisely is important.
Office Or Home
Choosing to work from home or an office will come down primarily to the available capital on hand. An office will mean finding one, furnishing it if not already done so, rent, utilities and other overhead-related costs. Working from home means most of the overhead is paid monthly already so there is no need to figure this into the cost, although if there is no one at the home, a land line will be necessary. Once the business becomes profitable, moving to an office may be a good idea.
Permits And Licensing
Labor and assembly work will not require much outside of physical labor, so there is not much need for any special licenses. Clerical positions are about the same, although some competency in typing and computer literacy would be necessary and demonstrated to the agency before hiring a temporary employee.
The more specialized fields, particularly medical, would have to meet the requirements of the state board and licensing services. Nurses and transcriptionists will have to have the prerequisite education and proof as both are necessary to work in the medical field.
The agency itself will have to be licensed by the appropriate state and carry insurance such as worker’s compensation and unemployment insurance. Any business requires each of these for operation and is a part of the overhead cost.
Finding the right niche and maintaining the employee/employer relationship is paramount. A good agency in the right niche could see profits in the tens of thousands within a year or so. International agencies associated with large businesses earn well into the millions per year.
The best idea for a small business in 2014 is one that someone is willing to put the necessary work into making successful. A temporary staffing agency is a good one for the right set of circumstances. The niche is all important in this field because unless the perfect niche is found, the business is doomed to fail. Find the niche and establish the business, on the other hand, and profit is not far away.