Even having the simple thought of starting a franchise is the beginning of a world of opportunity. Franchises are emblematic of the American entrepreneurial work ethic, packaged and filtered through modern times; they give passionate, business-minded people an established system to guide and support their business’s progress and success.
For a certain type of modern entrepreneur, a staffing franchise may just be the right fit for their passions and practical needs. The initial start-up costs are typically much less than starting a restaurant franchise, the maintenance and equipment costs are low, the work environment is clean and pleasant, and the industry is growing. For those interested, here are 3 main things needed to start a staffing franchise:
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Business-Mindedness
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Passion About Jobs, Careers, and Industries
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Franchise Financing and Net Worth Requirement
Business-Mindedness
Even with established systems to guide business processes, ongoing support, and training – franchisees need to be business-mined and not just get-rich-minded. Franchises do fail at times, but mostly because of the lack of business-mindedness from the owners. This is a business, which means consistent efforts have to be made to supervise and manage every aspect of its operation and growth.
There’s another aspect to being business-minded that’s important, especially for staffing business owners. The day-to-day work environment of a staffing agency is in the offices of businesses, either your own or a clients. Some people are business-minded, yet can’t see themselves working in an office-type business environment, exclusively (except for remote capabilities). A prospective staffing franchise owner needs to like the day-to-day workflow of running an office and a business.
Passion About Jobs, Careers, and Industries
The meat on the bone of a staffing business is: jobs, careers, and industries. Their main function is to recruit and employ employees for employer clients, meeting each of their employment needs through the staffing franchise’s services, including:
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Payroll and tax
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Benefits administration
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Compensation
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Hiring
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Recruiting
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Risk Management
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Human Resources
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Compliance
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Separation
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Consultation on workforce strategies
Putting all these specific services aside, an intrinsic passion for helping people find jobs and careers is a necessary component for long-term sustainability and satisfaction (despite how much profit is made or not). Part of the job is, simply, enjoying the process of listening and understanding the desires of employees and employers, then using the business’s resources to find suitable workforce solutions for these desired objectives — whether long-term, temporary, and/or project based.
Another thing prospective owners need to start a staffing franchise is passion about certain industries, which the business specializes in. Having a professional understanding of all industries is good, yet an expert understanding of the industries catering to the most, is also an important element of a staffing franchise’s growth.
Franchise Financing and Net Worth Requirements
Once an entrepreneur decides they have what’s needed to start a staffing franchise, then they have to find financing and have the net worth requirements met. For instance, a Nextaff Staffing Services franchise’s initial investment is from: $60,000 – $135,000, according to Entrepreneur.com. This is a relatively inexpensive franchise opportunity to invest into, which makes financing easier to acquire and make payments on.
Generally, franchises will have a net worth requirement, which is the sum of the totality of a person’s assets minus any debts and liabilities. The net worth requirement for Nextaff, for instance, is $150,000. This includes: vehicles, boats, cash, savings, investments, real-estate, and other valuable assets.
Finding the financing for a franchise and having the net worth requirements met, are the biggest obstacles for the prospective business owner to overcome. After these two things are achieved, the established system guides and supports the owner into a rewarding future.
Summary
These 3 things needed to start a staffing franchise are both objective and subjective; if a person has these things, a staffing franchise business will give them an expression for their passions and a rewarding, long-term business opportunity in a growing industry. The low initial investment and net worth requirements (half of a restaurant franchise) make starting a staffing franchise a more feasible option for more people.
There are many reasons why entrepreneurs may be interested in starting a staffing franchise. The low maintenance, no inventory, no food, office environment – is appealing to many business-minded people, with a passion for industry and helping people find great career opportunities. Once the net worth requirements are met and financing is found, the established system and market demand are sure to bring business growth. Please contact us today to learn more about starting a staffing franchise.