The staffing industry is growing at a rapid pace, with $147 billion in industry sales only two years ago -- and this number represents a trend that is projected to continue. With the American workforce projected to reach over 163 million by 2022, staffing agencies are positioned to become more and more relevant as a new generation of workers enters the labor force. If you are hoping to open a staffing agency, there is a good chance that starting your own will be more overwhelming than you would expect. Take a look at these six reasons to buy a staffing franchise instead.
1. The Up-Front Investment may be less
Starting a staffing agency -- or any business -- takes a significant initial investment. And in the staffing industry, that initial investment can easily run into the hundreds of thousands of dollars. A staffing franchise comes with significant up-front costs as well, but these are almost always lower than the cost of starting your own temp staffing agency since the franchisor most likely has negotiated pricing among vendors.
2. Statistics Say the Risk is Lower with a Franchise
With such a heavy initial investment, you want to be sure that your investment will pay off. When less than 30% of new businesses are still open after ten years, your risk of going out of business is very real. With a well-run franchise and a supportive franchisor, your risk can be substantially lower than if you had to operate without the support of an established brand. You will also have the benefit of your franchisor's name and history from the moment you open.
3. You May Have Access to Financing
Few staffing franchisors will offer financing for your entire purchase, but many will help finance some aspects of your new business. Payroll financing, for example, can dramatically cut your costs and headaches for the first few months after your staffing branch opens. Franchisors can also direct you to recommended lenders who have experience working with franchisees -- and often, lenders will be more willing to work with franchisees than would-be small business owners.
4. You Don't Have to Fool with Marketing
Marketing a new business takes a tremendous effort. There are marketing professionals to hire, data to collect, demographics to study, blogs to write, emails to send out, potential clients to contact... the list goes on. When you operate as part of a staffing franchise network, you don't have to worry about it. A small marketing fee goes to your franchisor, and in return, all the marketing material you could need is delivered to your door -- you just have to use it.
5. The Process is Already There
As any business owner who has done the hiring process himself knows, finding just the right employee for the job is a huge task. As a staffing agency, your business will have to accomplish that process every day, viewing applications and conducting interviews for candidates you have only talked to on the phone. Having an efficient process is crucial to the growth of the company and your clients' satisfaction. When you buy into a franchise, the process is already laid out for you.
6. You Get Support From the Industry Experts
Even with all these perks, you can sometimes need a little help with your new franchise. Employee training, support with tax and insurance documentation, management support services, and a local directory of companies who frequently hire temps are just some of the advantages you could get with a franchise. As an entrepreneur, you would have to outsource these tasks, or do them yourself.
From investment savings to back-system support, there are many reasons to invest into a staffing franchise. Just make sure you are starting a franchise who is committed to helping your franchise thrive. Sign up for free information and downloads about the staffing industry and the Nextaff staffing franchise. Click the video below to watch our 2 minute intro video.