If you are in the Human Resource industry and your intention is to someday become your own boss, then you should consider starting your own Professional Employer Organization – P E O. It is one of businesses that a HR person can successfully launch. Professional Employer Organization which is popular called by its initial P E O is an organization that provides back up human resources consultancy services to both big and smaller organizations.
They provide services such as; Human Resources auditing, manage payroll, responsible for selection, recruitment and training, employee’s benefits, talent hunts, risk management and all other Human resources related task that can be comfortably outsourced to a third party provider.
Some organizations prefer to outsource all their HR functions to a consultant (professional employer organization) because in the real sense it helps them save cost and also it gives them the opportunity to concentrate on their core responsibility. For example; it is cost effective and convenient for a construction company to outsource their HR responsibility to a Professional Employer Organization as against handling it themselves. It will provide them with the opportunity to concentrate on their core job description – construction.
Now let us consider some of the surefire tips that will help you start your own Professional Employer Organization (P E O) from the scratch and build it to a global brand;
Starting a PEO Company – Sample Business Plan Template
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In other to successfully launch your own professional employer organization, it is important that you conduct a market survey to be sure that the organizations around your area and even beyond are ready to welcome the idea of a third part Human Resources provider. You can achieve this by sending out questionnaire and request for honest feedback from your potential clients.
The information you get from your survey will go a long way to determine whether the area you intend launching your professional employer organization is ready for such services or not. If the responses you get are positive, good for you, but if it is negative, and then you should relocate to a more receptive community or state to launch the business.
2. Acquire Relevant Experience and Certifications
The truth is that for you to be able to successfully start and run this type of business, you must have acquired relevant Human Resources experience from reputable organizations and also professional HR certifications. Organizations will only take you seriously when they know that you have what it takes to help them handle their Human Resource responsibility.
As a matter of fact, your professional profile must be rich if you want to be competitive with this type of business; it is a consultancy service. You can check online to find out the HR related professional exams you can write in your area and how you can become chartered et al. Part of what you need to do if you live in the united states is to join the National Association of Professional Employer Organization (NAPEO); you can leverage on the organization to build your business.
Once you have been able to conduct your market survey and also to acquire the relevant professional experience and certification, then the step to follow is to write your business plan. You business plan is the professional document that will guide you to effectively manage and expand the business.
You should be able to clearly outline your business strategies, business goal and profit projections et al. The truth is that if you have a workable business plan in place before officially launching your business, you are likely going to be well prepared to properly run the business; challenges won’t deter you.
4. Register Your Company
It is very important that you register your company before opening shop for business. The truth is that; no organization will take you seriously if they realize that you are operating an illegal business (unregistered business). You can visit the corporate affairs commissions of your country to enquire on how to get your business registered.
Once you have been able to successfully register your company, you can then visit the nearest tax office to obtain your Tax payer’s ID. It is also important to state that you would have to open a corporate account from any bank of your choice; to facilitate easy payment for your organization’s service.
5. Rent / Lease an Office Space
Despite the fact that you would have to work in same facility with your client, you still need your own private office; a place where you are expected to operate from especially when you have not been able to secure a contract. Your office should be decent and well equipped with the basic office equipments. You can hire one or more staff to help you man the office.
There are some contracts that you can’t handle alone and there are times when you will have more than one organization to handle at the same time which is why it is important to ensure that you have competent employees – core HR professionals in your payroll. The truth is that part of what you need to boost your company’s profile is the quality of staff under your payroll.
There are several organizations out there who will appreciate contracting their HR jobs to a HR consultant. So, what you need to do is to make a list of the organizations you want to work for, and then send comprehensive business proposals to them.
Just ensure that you are well prepared to clinch the job once you are given the opportunity to do a business presentation. You can also make use of the conventional advertizing medium to advertise and promote your professional employer organization.
There you have it; the 7 surefire tips you need to follow to be able to start your Professional Employer Organization from the scratch and the build the business to a world renowned brand within record time.