As we’ve noted, it’s a great time to be in the staffing business. Employment is up, companies are hiring, and niche industries are booming so much that they may not even qualify as “niche” – i.e., home healthcare.
So if you are thinking about starting a staffing company, you’re in the right place. Here are three areas firms should avoid, to ensure success out of the gate.
Going it Alone
Jobs and Wozniak. Page and Brin. Gates and Allen. You get the idea right? A good partner is crucial. In the best scenario, you find someone who is better skilled at an area you realize you may not be best at; someone who complements your style. How do you do this? It takes some self-evaluation and honesty on your part.
Many entrepreneurs are individualists and self-motivated, which is a great thing. But that doesn’t mean they don’t need someone to rein them in, bounce ideas off of, and help them manage through the tough times.
Who is the ideal partner, and how do you find them? Maybe there’s a trusted friend or business colleague, or somebody in your circle of friends and acquaintances you respect. Other times, the partner is an organization that can help fill the gaps – the areas that are not your expertise. Just make sure that at the end of the day, whatever your different styles, you are aligned on the company’s ultimate goal and mission.
One other note here: Family members can be great partners, or they can be disasters. This is an area where you are the best judge.
Starting Without a Business Plan
This seems like a no-brainer, many startups (not just staffing firms) fail because they don’t have a business plan, or try to do it on the fly. Having a solid business plan plays a vital role in determining future success. Some questions you should ask:
- What is the purpose of the company?
- Who are the potential customers?
- What are the mission and values?
- What’s the direction desired for the company?
- What are you hoping to achieve?
- How are you going to find the right people, and market your firm effectively?
- Who are your potential competitors and what are they doing?
- How can you measure success?
An effective business plan determines every aspect of the startup. And keep in mind that the plan should be dynamic, not put in a drawer or a folder on your laptop.
Whenever a new venture is considered, refer to the business plan.
Failing to Choose the Right Location
Let’s face it: Even these days with everyone working on their laptops at a Starbucks, a physical location still matters. The type of market you’re after dictates your location. For example, if you’re considering a light industrial startup, you want to be in the right area of town, and for recruiting purposes, you want a place that’s easy to get to via public transportation.
There’s a reason Silicon Valley is Silicon Valley. Decide what business you’re after and go for a location that suits your needs. Starting a business correctly is one of the most important decisions you’ll make.
These are three mistakes to avoid, and allow you to launch out of the gate with the right momentum. If you have any questions, please contact us…we’re here for you.