First things first – I tend to speak in the now and the know. Meaning, if you’re reading this blog post, you are here for a reason. So, read the article and create your vision and see how this could work. Oh, you may also be here to share with someone you know. Well, Dionne Warwick and Friends said it best, “That’s What Friends Are For”. LOL!
The biggest question asked when starting a staffing agency is, “How do I start a staffing agency business WITHOUT needing to have a huge investment upfront?” or “How much money will I need upfront to cover payroll?” And that’s a great question because there was a time where having a huge upfront investment to start a recruiting and staffing agency business was necessary but not today. This may come as a surprise, but the cash flow problem of the staffing agency is no longer a problem.
Using payroll funding allows you start growing your cash balance from day one.
Yes, that means
you have the ability
to take the knowledge that you’ve gained
on your current & past job, hobbies and experiences
and become your own boss.
If you have the knowledge, network and ability – YOU CAN GET THE FUNDING and become a Staffingpreneur!
Since this is a “How To” blog, I’m going to explain how you can use payroll funding and get access to the capital you need to jump-start your new staffing agency business.
Okay, so the general rule is that the more capital you have to invest, the faster you can grow your staffing agency. However, you can use payroll funding and get access to the capital you need immediately.
Now, you do have the option of using other people’s capital to grow your start-up staffing agency business like friends and family, credit cards, bank loans or a mortgage on your house. All of these funding resources will come with personal liability of PAYBACK, so you’ll need to decide if one of these options are for you.
Now on the other hand, payroll funding is an option that allows you to sell your invoices to cover payroll expenses and such for your employees. It’s like instant cash! Here’s how it works:
The payroll funding company buy’s the invoices that you send to your clients at its face value the moment you send it to your client. This will ensure you receive your money immediately, which also eliminates the gap between payroll and client payments (that’s always a huge problem). The payroll funding company will then collect payments for your invoices, keep their service charge of 1% – 4% of the invoice value, and direct deposit the difference into your account. Here’s the perfect opportunity for me to stress that the exact terms of a payroll funding agreement differ widely between each payroll funding company. Most funding companies offer a variety of services to support your needs including employer of record, unlimited payroll funding, worker’s comp coverage, direct deposit and so much more. So, do your due diligence and ask for referrals.
You can lean more about the idea of this business here:
You can also visit us here at: www.staffingpreneursfunding.com to ask questions and learn more.
Before I go, let me ask you a question…what do you believe to be the biggest challenge you would face in starting your very own niche staffing agency business?