Do you want to know exactly how much it cost to start a staffing agency? If YES, here is a detailed cost analysis for starting a staffing agency and raising finance.

The consulting industry in the United States of America, United Kingdom, Canada and Australia is indeed a big and thriving industry and staffing agency is a subset of the industry. Those who run staffing agencies are classified as Human Resource consultants or recruitment consultants.

Having provided you with a:

  1. Industry Overview
  2. Market Research and Feasibility
  3. Staffing Agency Business Plan
  4. Staffing Agency Name ideas
  5. Licenses and Permits
  6. Staffing Agency Marketing Plan
  7. Cost of Starting a Staffing Agency
  8. Marketing ideas & Strategies

Industry Overview

Staffing agencies are responsible for helping organizations recruit staff to fill vacant positions in their organization and also help applicants, and those in between jobs secure employment. They also offer a wide range of recruitment-related services and contract staffing, as well as recruit employees for permanent placements.

Some staffing agencies offer services beyond just recruiting employees for its clients, but also help in training and preparing the employees to fit into the role that they are being recruited for. Usually such staffing agencies charge more than those who just recruit employees for their clients.

When it comes to getting paid, some staffing agencies charge their clients applicant administrative fees so as to enable them process their application, match them with employers and help them to successfully secure the jobs. Processing the application of an applicant includes helping them restructure their CV and cover letters so as to fit the expectation of the recruiter (the organization they want to work for).

In essence, it is the practice for staffing agencies to earn their money by charging their clients (employers of labor) for the amount of work the employees undertake. In most cases, the staffing agency receives the same amount as the employee. Staffing agencies make more money when they help organizations recruit highly skilled staff on a permanent basis.

Although some recruitment agencies still enter into personal contract agreement with applicants -such that they will collect a percentage of their salary for a period of 3 months or more if they help the applicant secure a job. Note that most states in the U.S. have outlawed this type of arrangement.

Records have it that 17 staffing agencies generated more than $1 billion in staffing revenue in 2014 and these staffing agencies represented over a third (36.4%) of the market. Each staffing agency on the list generated more than $100 million in U.S. staffing revenue in 2014. No doubt, the $1 billion in staffing revenue generated by these staffing agencies give emphasis to the health of the staffing industry.

Generally, if you are looking towards starting a staffing agency, then it will pay you to start with recruiting temporary employees for organizations who are looking for a workforce to help execute a contract/project which usually has a time frame. With that, you can easily make your cut and move on simply because there are loads of such temporary jobs in the United States especially on construction sites.

One good thing about staffing agencies is that there are readily available markets for their services. This is simply because organizations naturally would want to hire staff from time to time to fill in available roles. Employees would naturally source for better paying jobs, and no employer would want to allow a vacuum to exist in their organization.

How Much Does It Cost to Start a Staffing Agency?

If you are looking for a business that requires less stress and perhaps minimal start–up capital, you can consider starting a staffing consulting business. The cost of launching and running a staffing consulting firm when compared to the turnover you get can be poles apart (this is applicable when you have been able to establish your feet in the industry).

Entrepreneurs who venture into staffing business can as a matter of fact start the business from their home and still make headway in the business. One thing is certain when it comes to staffing business, you are sure of making profits when you successfully recruit an employee for an organization.

The cost of running the recruitment process from start to finish could be restricted to the cost of making phone calls, transportation and internet subscriptions. With that, it is easier to place a projection on the profits you are likely going to make if you are able to successfully seal a staffing deal.

One good thing about starting a staffing agency business is that you have the options of starting it on a small scale from your home or from a virtual or shared office space with minimal overhead and running cost. Over and above, the cost analysis as it relates to starting a standard staffing agency business in the United States of America, Canada, United Kingdom, and Australia can be said to be almost the same except for few variations.

Other factors that may be slightly different in terms of costing when it comes to starting a standard staffing agency business in any of the countries listed above are cost of labor, cost of transportation and logistics, local tax, insurance policies, business incorporation fee, rent/leasing amongst other factors.

How Much Does It Cost to Start a Staffing Agency in the United States?

These are the key expenses you are expected to make when starting a medium scale but standard staffing business in the United States of America;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $8,300.
  • Marketing promotion expenses for the grand opening of the staffing agency in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general insurance, health insurance, liability insurance, workers’ compensation, overhead expense disability insurance, and business owner’s policy group insurance) coverage at a total premium – $5,400.
  • The cost for leasing an office facility in a centralized business district – $70,000.
  • The cost for remodeling the facility – $10,000.
  • Other start-up expenses including stationery ($500) and phone and utility (gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000.
  • The cost for start-up inventory (writing materials, files/folders, stick–on papers, notice board, office pins and printing ink et al) – $5,000.
  • The cost for store equipment (cash register, security, ventilation, signage) – $8,750.
  • The cost for the purchase of furniture and gadgets (Fax machines, photocopy machine, telephone, printing machines, filling cabin, computers, tables and chairs et al) – $14,000.
  • The cost of purchase and installation of CCTVs: $3,500.
  • The cost for building and hosting a website: $600.
  • The cost for opening party: $5,000.
  • Miscellaneous: $5,000.

You will need an estimate of two hundred and fifty thousand dollars ($250,000) to successfully set up a medium scale but standard staffing agency in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a business with at least three staff members and more.

Starting a small scale but standard staffing agency business (from home, shared office space or virtual office space and with less than 3 employees in the United States of America will cost about five thousand dollars to fifteen thousand dollars ($5,000 to $15,000).

When it comes to starting a standard and large scale staffing agency with several offices and training centers in key cities in the United States of America, a staffing agency with the intention of selling franchise, then you should look towards budgeting well over one million, five hundred thousand dollars ($1.5 million).

How Much Does It Cost to Start a Staffing Agency in the UK?

These are the key expenses you are expected to make when starting a medium scale but standard staffing agency business in the United Kingdom;

  • The cost for remodeling the office facility – £8,000.
  • The cost for leasing an office facility in a centralized business district- £45,000.
  • The cost for insurance (general insurance, health insurance, liability insurance, kitchen Insurance, workers’ compensation, overhead expense, disability insurance, and business owner’s policy group insurance) coverage at a total premium – £4,400.
  • The cost for hiring business consultant (including writing business plan) – £2,500.
  • Marketing promotion expenses for the grand opening of the staffing agency in the amount of £3,500 and as well as flyer printing (2,000 flyers at £0.04 per copy) for the total amount of £3,580.
  • Legal expenses for obtaining licenses and permits as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – £6,300.
  • In the United Kingdom, online applications are usually registered within 24 hours and cost £12 (paid by debit or credit card or PayPal). Postal applications take 8 to 10 days and cost £40 (paid by check made out to ‘Companies House’). There’s a same day service costing £100.
  • Other start-up expenses including stationery (£300), phone and utility (gas, sewer, water and electric) deposits (£1,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – £60,000.
  • The cost for start-up inventory (writing materials, files/folders, stick–on papers, notice board, office pins and printing ink et al)- £4,500.
  • The cost for store equipment (cash register, security, ventilation, signage) – £4,000.
  • The cost of purchase and installation of CCTVs: £4,500.
  • The cost for the purchase of furniture and gadgets (Fax machines, photocopy machine, telephone, printing machines, filling cabin, computers, tables and chairs et al): £2,500.
  • The cost for building and hosting a website: £600
  • The cost for opening party – £4,300
  • Miscellaneous: £4,000

You will need an estimate of two hundred and twenty thousand Pounds Sterling (£220,000) to successfully set up a medium scale but standard staffing agency in the United Kingdom. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a business with at least three staff members and more.

Starting a small scale but standard staffing agency business (from home, shared office space or virtual office space and less than 3 employees in the United Kingdom will cost about four thousand five hundred Pounds Sterling to fourteen thousand five hundred Pounds Sterling (£4,500 to £14,500).

When it comes to starting a standard and large scale staffing agency with several offices and training centers in key cities in the United Kingdom, a staffing agency with the intention of selling franchise, then you should look towards budgeting well over one million, three hundred thousand Pounds Sterling (£1.3 million).

How Much Does It Cost to Start a Staffing Agency in Canada?

These are the key expenses you are expected to make when starting a medium scale but standard staffing agency business in Canada;

  • For federal incorporation of business in Canada, the cost to incorporate is $200 if filed online through Corporations Canada’s online Filing Centre (CAD$250 if filed through other means).
  • Legal expenses for obtaining licenses and permits as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $8,300.
  • Marketing promotion expenses for the grand opening of the staffing agency in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general insurance, health insurance, liability insurance, workers’ compensation, overhead expense disability insurance, and business owner’s policy group insurance) coverage at a total premium – $5,400.
  • The cost for leasing an office facility in a centralized business district – $70,000
  • The cost for remodeling the facility – $10,000.
  • Other start-up expenses including stationery ($500), phone and utility (gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000.
  • The cost for start-up inventory (writing materials, files/folders, stick–on papers, notice board, office pins and printing ink et al) – $5,000.
  • The cost for store equipment (cash register, security, ventilation, signage) – $8,750.
  • The cost for the purchase of furniture and gadgets (Fax machines, photocopy machine, telephone, printing machines, filling cabin, computers, tables and chairs et al) – $14,000.
  • The cost of purchase and installation of CCTVs: $3,500.
  • The cost for building and hosting a website: $600.
  • The cost for opening party: $5,000.
  • Miscellaneous: $5,000.

You will need an estimate of two hundred and fifty thousand dollars (CAD$250,000) to successfully set up a medium scale but standard staffing agency in Canada. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a business with at least three staff members and more.

Starting a small scale but standard staffing agency business (from home, shared office space or virtual office space and less than 3 employees in the Canada will cost about five thousand dollars to fifteen thousand dollars (CAD$5,000 to CAD$15,000).

When it comes to starting a standard and large scale staffing agency with several offices and training centers in key cities in Canada, a staffing agency with the intention of selling franchise, then you should look towards budgeting well over one million, five hundred thousand dollars (CAD$1.5 million).

How Much Does It Cost to Start a Staffing Agency in Australia?

These are the key expenses you are expected to make when starting a medium scale but standard staffing agency business in Australia;

  • In Australia, the fees to register your business name with ASIC include: $34 for 1 year. $80 for 3 years.
  • Legal expenses for obtaining licenses and permits as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $8,300.
  • Marketing promotion expenses for the grand opening of the staffing agency in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general insurance, health insurance, liability insurance, workers’ compensation, overhead expense disability insurance, and business owner’s policy group insurance) coverage at a total premium – $5,400.
  • The cost for leasing an office facility in a centralized business district – $70,000.
  • The cost for remodeling the facility – $10,000.
  • Other start-up expenses including stationery ($500), phone and utility(gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000.
  • The cost for start-up inventory (writing materials, files/folders, stick–on papers, notice board, office pins and printing ink et al) – $5,000.
  • The cost for store equipment (cash register, security, ventilation, signage) – $8,750
  • The cost for the purchase of furniture and gadgets (Fax machines, photocopy machine, telephone, printing machines, filling cabin, computers, tables and chairs et al) – $14,000.
  • The cost of purchase and installation of CCTVs: $3,500.
  • The cost for building and hosting a website: $600.
  • The cost for opening party: $5,000.
  • Miscellaneous: $5,000.

You will need an estimate of two hundred and fifty thousand dollars (AUD$250,000) to successfully set up a medium scale but standard staffing agency in Australia. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a business with at least three staff members and more.

Starting a small scale but standard staffing agency business (from the home, shared office space or virtual office space and less than 3 employees in Australia will cost about five thousand dollars to fifteen thousand dollars (AUD$5,000 to AUD$15,000).

When it comes to starting a standard and large-scale staffing agency with several offices and training centers in key cities in Australia, a staffing agency with the intention of selling franchise, then you should look towards budgeting well over one million, five hundred thousand dollars (AUD$1.5 million).

Estimating Start Up Cost for Staffing Agency Business Based on the following factors;

  • Staff/Manpower

When it comes to starting a standard staffing agency business on a large scale, you would need the services of the following professionals;

  • Chief Executive Officer or President
  • Admin and Human Resource Manager
  • Accounting Office/Cashier
  • Consultants and Associates (Different areas of specializations as it applies to your business)
  • Business Development Executive/marketing and Sales Executive
  • Customer Service Officer or Front Desk Officer

Can a Staffing Agency be Bootstrapped on a Lean Budget Right from Home?

Staffing agency service business can indeed be bootstrapped on a lean budget right from home. This is possible because of the nature of the services offered by a staffing agency. In some cases, a staffing agency might not necessarily meet physically with an applicant and employer of labor before sealing a recruitment deal. The deal can be concluded via phone calls, emails and fax et al.

These are activities that can be carried out even in the bedroom. All you need to do to bootstrap your staffing agency on a lean budget from your home is to ensure that you create a small office space within your apartment and also make provision for business meetings venue outside your house. It could be a shared office space or a virtual office space.

How Much Does It Cost to Buy a Staffing Agency Franchise?

In the United States of America, the Average Cost of Purchasing a Staffing Agency Franchise is $35,000. Examples of 3 Well – Known Staffing Agency Franchising Companies in the United States of America are;

  • PrideStaff Franchises
  • AtWork Franchise
  • Link Staffing Services Franchise

In the United Kingdom, the Average Cost of Purchasing a Staffing Agency Franchise is £35,000. Examples of 3 Well – Known Staffing Agency Franchising Companies in the United Kingdom are;

  • The Antal International Group of Companies
  • MRINetwork Worldwide
  • The bluemonday RECRUITMENT franchise

In Canada, the Average Cost of Purchasing a Staffing Agency Franchise is $40,000 (Canadian Dollar). Examples of 3 Well – Known Staffing Agency Franchising Companies in Canada are;

  • Recruiting in Motion
  • Labor Force
  • Link Staffing Services Franchise

In Australia, the Average Cost of Purchasing a Staffing Agency Franchise is AUD$40,000. Examples of 3 Well – Known Staffing Agency Franchising Companies in Australia are;

  • Frontline Recruitment Group
  • Retail recruiters The Mondo Search
  • Greenstaff Franchise