Do you want to start a healthcare staffing agency? If YES, here is a complete guide to starting a healthcare staffing agency business with NO money and no experience.
There is hardly anyone who does not have dealings with a hospital. From time to time we all get to go to the hospital for one issue or the other. This is one of the reasons why it is said that a health related business is a money spinning business.
If you are looking to start a business, you may want to consider commencing a healthcare staffing agency. Recruitment agencies are known to make steady income as long as they are able to supply staff to organizations that need their services.
If you are a trained HR person and you are planning to become your own boss, then you should consider starting your own recruitment agency and concentrate on healthcare staffing for medical and health organizations.
Healthcare staffing agencies support medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al by recruiting trained health staff for them. The healthcare staffing agency requires low startup capital and it is indeed a highly profitable venture.
As a matter of fact, nurses are the most recruited health workers because they are in high demand. So, if you are starting your own healthcare staffing agency, just ensure that you build relationships with the management of nursing schools and health or medical organizations.
You would need some form of training and certification in Human Resources to be able to start and manage your own healthcare staffing agency successfully, so ensure that you do all you can to start the process.
No matter the type of business you choose to start, it is significant to state that before launching the business, you should carry out your market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your healthcare staffing agency business, it will not take you long before you secure enough corporate clients, break even and start smiling to the bank.
If undeniably you want to start your own healthcare staffing agency business, all you need do is to read this article and you will be well informed and adequately equipped.
Steps to Starting a Healthcare Staffing Agency Business
Table of Content
- 2. Conduct Market Research and Feasibility Studies
- 3. Decide Which Niche to Concentrate On
- 4. Know Your Major Competitors in the Industry
- 5. Decide Whether to Buy a Franchise or Start from Scratch
- 9. Discuss with an Agent to Know the Best Insurance Policies for You
- 10. Protect your Intellectual Property With Trademark, Copyrights, Patents
- 11. Get the Necessary Professional Certification
- 12. Get the Necessary Legal Documents You Need to Operate
- 13. Raise the Needed Startup Capital
- 14. Choose a Suitable Location for your Business
- 15. Hire Employees for your Technical and Manpower Needs
- 16. Write a Marketing Plan Packed with ideas & Strategies
- 17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
1. Understand the Industry
It is on record that the staffing, recruiting and workforce solutions industry that the healthcare staffing agency business is a part of makes a huge contribution to the economy of the United States of America, and they provide jobs and career opportunities for about 14 million employees annually.
Despite the fact that the staffing industry growth has outpaced the overall economic and employment growth in the U.S., it employs only about 2% of the U.S. non – farm workforce.
Statistics has it that in the united states of America, there are about 17,000 staffing and recruiting agencies (healthcare staffing agencies inclusive) and they operate around 35,000 offices scattered all around the U.S. Statistics also has it that the top 122 staffing agencies generate a combined sum of $69.4 billion in U.S. representing 55.9 percent of the market.
Records have it that 17 staffing agencies (healthcare staffing agencies inclusive) generated more than $1 billion in staffing revenue in 2014 and these staffing agencies represented over a third (36.4 percent) of the market. Each staffing agency on the list generated more than $100 million in U.S. staffing revenue in 2014.
No doubt, the $69 billion in staffing revenue generated by these staffing agencies give emphasis to the health of the staffing industry.
The healthcare staffing agencies line of business will continue to blossom because more and more medical and healthcare organizations are beginning to realize that somehow, they would need the services of healthcare staffing agencies to help them take away the stress of recruiting healthcare workforce for their business which sometimes goes beyond recruiting to proving training and other Human Resources related services.
From available statistics, it is safe to say that the healthcare staffing agency is growing steadily despite the competitive nature of the industry. One thing is certain, if you are well positioned, you have the required business skills, networks and you have a robust CV bank, you are likely not going to struggle to compete favorably in the healthcare staffing agency line of business.
Another reason why people prefer to start a healthcare staffing agency business is that consultants have the monopoly to charge fees as it suits them especially if they are have been able to pay their dues in the industry over the years.
Other factors that encourage entrepreneurs to start their own staffing agencies could be that the business is easy to set up and the start–up capital is indeed affordable; you can actually start your own healthcare staffing agency business from the comfort of your house.
All you need to do is to create an office somewhere in your house. People usually pay you for the staff you help them recruit and train.
Over and above, healthcare staffing agency businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market (medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al).
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
The healthcare sector is vast and so the demographic and psychographic composition of those who hire the services of healthcare staffing agencies cut across all medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al both big and small that has the capacity to pay for their services especially as it relates to recruiting and training healthcare workers, hence the demographic composition of a healthcare staffing agency business is all encompassing.
The truth is that when it comes to healthcare agencies services, there is indeed a wide range of available customers. Your target market can’t be restricted to just medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al within your location, but all around the city where you have your business presence and who can afford your services.
So, if you are thinking of opening your own healthcare staffing agency business, then you should make your target demographics all encompassing.
3. Decide Which Niche to Concentrate On
There is no niche area in the healthcare staffing agency business because the healthcare staffing agency is a niche area in the staffing and recruitment agencies services industry, every player in the healthcare staffing agency line of business simply assists their clients in screening, recruiting and in some cases training healthcare staff.
So, if you are looking towards starting your own healthcare staffing agency business, then you should clearly define your market so that you will be able to get a fair share of the available market in the industry.
The Level of Competition in the Industry
There isn’t a single business that does not have to deal with one form of competition or the other. The competitions that exist in the healthcare staffing agency line of business goes beyond competitions amongst healthcare staffing agencies in your location; you are expected to compete with other businesses in the staffing and recruiting services industry who have the capacity to recruit and train health workers.
So, it will be right to say the competition in the healthcare staffing agency line of business is tough. The truth is that no matter the level of competition in an industry, if you promote your services or business properly, you will always make headway in the industry.
Just ensure your workforce can carry out thorough recruitment of health workers, you can deliver excellent customer care services, you know how to attract reliable and competent domestic staff and also how to reach out to your target market.
But over and above, there are several healthcare staffing agencies and other related recruiting agency services businesses scattered all around the United States.
As such, if you choose to start your own healthcare staffing agency in the United States of America, you will definitely meet stiffer competitions amongst them. Besides, there are larger healthcare staffing agencies that determine the trends in the industry and you should be ready to compete with them for customers.
4. Know Your Major Competitors in the Industry
In every industry, there are always brands that perform better or are better regarded by customers and the general public than the others.
Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years. These are some of the leading healthcare staffing agencies in the United States of America and in the globe;
- MedPro Healthcare Staffing
- Medical Staffing Solutions, USA
- NiteLines USA, Incorporated Government Medical Staffing Agency
- Cirrus Medical Staffing International
- Maxim Staffing Solutions
- Avant Healthcare Professionals
- MAS Medical Staffing
- Aureus Medical Group
- MedFirst Staffing
- United Healthcare Staffing Inc
- Randstad Healthcare
- Health Carousel LLC
- Sunbelt Staffing LLC
- O’Grady Peyton International
- Complete Health Care Staffing
- On Assignment Healthcare Staff
- Medical Staffing Network Inc
- Kennedy Healthcare Recruit Inc
- Elite Medical Staffing
- Accountable Healthcare Staffing
If you are in the line to successfully launch a business and maximize profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.
Healthcare staffing agency business is not a Green business; as a matter of fact, you will come across several healthcare staffing agencies and other staffing and recruitment related services agencies when you drive through town, search through directories and browse through the internet.
So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey of what is required to rent a space where you are expected to open your healthcare staffing agency business, the amount required to purchase office gadgets and furniture and also the cost to successfully run the business.
Over and above, if you are considering starting a healthcare staffing agency, then your concern should not be limited to the cost of renting an office space and purchasing office gadgets and furniture but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base, you are sure going to maximize profits in the business.
5. Decide Whether to Buy a Franchise or Start from Scratch
If you are looking towards starting a healthcare staffing agency business, you would have to start from the very scratch because even if you get a franchise of a healthcare staffing agency to buy, it might be way off your budget and the brand might not be marketable in your location.
Besides starting a healthcare staffing agency from the scratch is less stressful when compared to other small – scale businesses.
With a healthcare staffing agency business, you should just try as much as possible to get the right employees, tools and equipment, build business relationship with key stakeholders and then leverage on every marketing tool within your disposal especially the internet to market your services.
Please note that most of the big and successful healthcare staffing agencies around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.
6. Know the Possible Threats and Challenges You Will Face
If you have decided to start your own healthcare staffing agency today, one of the major challenges you are likely going to face is the presence of well – established healthcare staffing agencies and other related staffing and recruitment services companies that also supply healthcare workers to medical and healthcare organizations. The only way to avoid this challenge is to create your own market.
Some other challenges and threats that you are likely going to face are economic downturn and unfavorable government policies. There is nothing you can do as regard these threats and challenges other than to stay positive that things will work well for you.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
You have the option of either choosing a general partnership, limited liability Company, or even a sole proprietorship for a business such as healthcare staffing agency services business.
As a matter of fact, if your intention is to grow the business and have offices and corporate clients all across key cities in the United States of America and other countries of the world via franchising, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.
Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships.
Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for your healthcare staffing agency services business; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.
If you take your time to critically study the various legal entities to use for your healthcare staffing agency services business with the ability to sell franchise and have offices and corporate clients all across the United States of America, you will agree that limited liability company; an LLC is most suitable.
You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.
8. Choose a Catchy Business Name
When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
If you are considering starting your own healthcare staffing agency services business, here are some catchy names that you can choose from;
- Middle Road® Healthcare Staffing Agency, LLC
- Blue Ribbon® Healthcare Staffing Agency, LLC
- Heather Clay© Healthcare Staffing Agency, Inc.
- Kings Court® Healthcare Staffing Agency, Inc.
- Health Pro™ Healthcare Staffing Agency, Inc.
- Theresa Brown® Healthcare Staffing Agency, Inc.
- The Reliable© Healthcare Staffing Agency, Inc.
- Maureen Liverpool® Healthcare Staffing Agency, LLC
- Best Alley© Healthcare Staffing Agency, Inc.
- Safe Hands© Healthcare Staffing Agency, Inc.
9. Discuss with an Agent to Know the Best Insurance Policies for You
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your healthcare staffing agency services business.
Here are some of the basic insurance covers that you should consider purchasing if you want to start your own healthcare staffing agency services business in the United States of America;
- General insurance
- Health/Medical insurance
- Liability insurance
- Workers Compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
If you are considering starting your own healthcare staffing agency services business, usually you may not have any need to file for intellectual property protection/trademark.
This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties. But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection.
If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.
11. Get the Necessary Professional Certification
Aside from the results you produce as it relates to recruiting/supplying health workers to your clients, professional certification is one of the main reasons why some healthcare staffing agencies stand out. If you want to make an impact in the healthcare staffing agency line of business, you should work towards acquiring all the needed certifications in your area of specialization.
You are strongly encouraged to pursue professional certifications; it will go a long way to show your commitment towards the business. Certification validates your competency and shows that you are highly skilled, committed to your career, and up-to-date in the competitive market.
These are some of the certifications you can work towards achieving if you want to run your own healthcare staffing agency;
- Certified Recruiting Specialist (CRS)
- Recruitment Consultant Certification (RCC)
- Physician Recruiting Consultant (PRC)
- Certified Personnel Consultant (CPC)
Please note that you can successfully run a healthcare staffing agency in the United States and in most countries of the world without necessarily acquiring professional certifications and business license as long as you have adequate experience cum background in the staffing and recruiting services industry.
12. Get the Necessary Legal Documents You Need to Operate
The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you.
These are some of the basic legal documents that you are expected to have in place if you want to legally run your own healthcare staffing agency services business in the United States of America;
- Certificate of Incorporation
- Business License
- Tax Payer’s ID/Tax Identification Number
- Health inspection Certificate
- Business Plan
- Contract Document
- Non – disclosure Agreement
- Employee Handbook
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
- Building License
- Franchise or Trademark License (optional)
13. Raise the Needed Startup Capital
Starting a healthcare staffing agency services business can be cost effective especially if you choose to start on a small scale by running the business from your home or sharing an office space. Securing a standard office space in a business district and purchasing office gadgets and furniture et al are part of what will consume a large chunk of your startup capital.
If you choose to start the business on a large scale, you would need to go source for fund to finance the business because it is expensive to start a standard large – scale healthcare staffing agency services business.
When it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for startup capital for your healthcare staffing agency business;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell of shares to interested investors
- Applying for loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends
14. Choose a Suitable Location for your Business
When it comes to choosing a location for your healthcare staffing agency, you can choose to locate the business anywhere especially if you are offering basic healthcare staffing services, services that do not require your clients to come to you regularly except for meetings.
But over and above, the location you chose to open your healthcare staffing agency is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al.
Before choosing a location for your healthcare staffing agency business, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out. Which is why it being very important to gather as much facts and figures before choosing a location to set up your own healthcare staffing agency business.
These are some of the key factors that you should consider before choosing a location for your healthcare staffing agency business;
- The demography of the location
- The demand for healthcare staffing agency services in the location
- The purchasing power of medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al in the location
- Accessibility of the location
- The number of healthcare staffing agencies and other staffing and recruiting services companies that also offer same services in the location
- The local laws and regulations in the community/state
- Traffic, parking and security
15. Hire Employees for your Technical and Manpower Needs
On the average, there are no special technology or equipment needed to run an average healthcare staffing agency except for computers, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
As regards leasing or outright purchase of an office facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short term rent/lease while test running the business in the location. If things work out as planned, then you go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business.
When it comes to hiring employees for a standard healthcare staffing agency business with plans to have corporate clients all across major cities in the United States of America, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Recruitment Specialist, Sales and Marketing Officer, Accounting Clerk, and Customer Service Executive.
These are some of the key employees that you can work with. On the average, you will need a minimum of 5 to 10 key staff members to run a small – scale but standard healthcare staffing agency services.
The Service Delivery Process of the Business
Usually, when a healthcare staffing agency gets a contract from medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al to help them recruit health workers (doctors, pharmacists, nurses, lab technicians, clerks and administrative staff et al), the necessary contract documents are signed, and the required health workers recruited, and trained in some instances before deploying them to the organization they are to work for.
When an organization requests for staff from a healthcare staffing agency, they are expected to sign a contract document that clearly defines the scope of consulting role they want them to play. It could be just recruiting, it could be recruiting and training and it could be handling the human resources role as it relates to staffing for the organization.
It is the practice of healthcare staffing agencies to have a robust CV bank so that whenever an organization demands employees from them, they are able to quickly produce qualified candidates without putting up any vacancy. It is the practice of healthcare staffing agencies to prepare applicants to take on some job roles before the opening even surfaces; it puts them ahead of their competitors in the industry.
It is important to state that a healthcare staffing agency may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated healthcare staffing agency business process is not cast on stone.
16. Write a Marketing Plan Packed with ideas & Strategies
Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a healthcare staffing agency services business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands that determine the market direction for the staffing and recruiting services industry.
As a matter of fact, your marketing strategy will center on reliability, swiftness, safety, pricing, thoroughness, and above all excellent customer service. You should ensure that whenever your customers hire your services (health workers from you), they will get competent workers and excellent service. The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers.
Businesses this days are aware of the power of the internet and which is why they will do all they can to maximize the internet to market their services. In other words, a larger percentage of your marketing effort will be directed to internet users.
These are some of the marketing ideas and strategies that you can adopt for your healthcare staffing agency business;
- Introduce your healthcare staffing agency by sending introductory letters alongside your brochure to medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al and other key stakeholders throughout the city where your healthcare staffing agency is located
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business so as to give your business an online presence
- Directly market your services
- Join local healthcare staffing agency services business associations for industry trends and tips
- Join local chambers of commerce and industry with the aim of marketing your services
- Advertise our business in community based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of Word of mouth marketing (referrals)
17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
If your intention of starting a healthcare staffing agency services business is to grow the business beyond the city where you are going to be operating from to become a national and international brand by opening offices all across key cities in the United States and franchising, then you must be ready to spend money on promotion and advertisement of your brand.
No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your healthcare staffing agency services business;
- Place adverts on both print (newspapers and food magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote your healthcare staffing services business
- Install your Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills in target areas
- Contact medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al and other key stakeholders throughout the city where your healthcare staffing agency service is located informing them about your healthcare staffing agency and the services you offer
- List your healthcare staffing agency in local directories
- Advertise your healthcare staffing agency in your official website and employ strategies that will help you pull traffic to the site
- Position your Flexi Banners at strategic positions in the location where your healthcare staffing agency is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles, buses and vans are well branded with your company logo et al.