Make sure you prepare for the difficulties ahead.
As the owner of a new staffing agency in Canada, you’re going to run into some common issues that many others like yourself will be facing, as well. Starting up ANY new business venture comes with a great deal of responsibility, effort and decision-making that could all play a role in making or breaking your company.
Thankfully, being informed on how to make the right choices and how to respond to each challenge will help to ensure long-term success for your first-year staffing firm. With that said, below are four common difficulties that new staffing firms face, and how to deal with them appropriately:
1. Trouble bringing on the right employees
Building a competent team of professionals for your new independent staffing firm is going to take some strategic effort. You need to be asking the right questions during the interview process, and keep your candidate search broad – otherwise you could be overlooking true talent that would make the perfect fit for your company. In addition to conducting enough interviews, you should also perform background checks on your prospective new hires for preventive measure. You wouldn’t want to be putting your new agency at risk because of a potential criminal or otherwise fraudulent new employee.
2. Difficulty building a steady client base
All first-year staffing firms will have to work extra hard to secure a group of clients – and not just any clients: talented and qualified recruiters and candidates. Thankfully, investing in a targeted marketing campaign, such as search engine marketing (Ad Words) is an excellent way to reach your customers – and is in fact a crucial step to foster success in today’s modern and competitive staffing world. As part of your marketing strategy, really push what sets you apart from your competitors and promote what you can offer that they don’t (e.g. the HR niche that you specialize in, being a smaller, independent agency, etc).
3. Issues making payroll
Making payroll can be a huge stress factor for every staffing agency in its first year. You’re brand-new, and the funds just aren’t there yet – and on top of that, the clients you do have are taking what feels like ages to pay up. Well, you certainly aren’t alone.
Fortunately the solution would be to take advantage of payroll funding provided by a back office solutions team that will pose no risk of debt accumulation or funding limitations (risks that do come with a bank loan). There are also other time-consuming and stressful back office responsibilities that must always be managed, and luckily, a back office solutions provider like The Agency Support Partners provides back office support and payroll funding all under one roof.
4. Trouble with staying legally compliant amidst ever-changing laws
Legal compliance, that includes properly classifying workers and making all payments in full and on time, is critical for every staffing agency. But when you begin to take on more clients and things start getting hectic, it’ll become even more challenging to ensure you’re closely following legislation to a T. Again, a back office support team can help with this by handling all of your legal responsibilities for you. This is something that every smart staffing agency doesn’t even think twice about in order to stay safe from a potential lawsuit and/or avoidable fines that can lead to the overall failure of your new business venture.
How you respond to these difficulties is key.
By having the right plan of action in response to all of these common problems that new staffing firm owners like yourself face, you’ll be on the right track to success. And, best of all, you’ll prevail over all of the newer agencies that didn’t do their part to prepare.