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Nurse Staffing Agency

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How to Start a Profitable Nurse Staffing Agency in 13 Steps

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 11, 2022

Investment range

$3,550 - $10,100

Revenue potential

$80,000 - $400,000 p.a.

Time to build

1 – 3 months

Profit potential

$56,000 - $120,000 p.a.

Industry trend

These are the key elements to think about when starting your nurse staffing agency:

• Hire professionals — Develop a strategy for recruiting qualified nurses. Use job boards, social media, networking events, and partnerships with nursing schools to attract candidates. Implement a thorough credentialing process to verify the qualifications, licenses, and background of nurses. Ensure they meet all regulatory and client-specific requirements.
• Range of services — Decide on the range of services you will offer, such as temporary staffing, permanent placement, per diem shifts, travel nursing, and home healthcare staffing.
• Specialized services — Consider offering specialized services like critical care staffing, pediatric nursing, or nurse practitioners to attract a wider range of clients.
• Licenses and permits — Get necessary licenses and permits required by local, state, and federal authorities to operate a staffing agency. This may include a general business license and healthcare staffing-specific licenses .
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Online presence — Create a professional website with detailed information about your services, client testimonials, and contact information. 
• Partnerships — Build relationships with local healthcare facilities, such as hospitals, clinics, and nursing homes, to secure contracts and generate referrals. Join professional associations like the American Staffing Association (ASA) or the National Association of Travel Healthcare Organizations (NATHO) to access resources, training, and networking opportunities.

Interactive Checklist at your fingertips—begin your nurse staffing agency today!

You May Also Wonder:

How profitable is a nurse staffing agency?

A nurse staffing agency can be very profitable. However, your real reward will come from knowing that you’re helping to solve the nurse shortage crisis that the U.S. is experiencing.

How can I expand my nurse staffing agency to reach more clients and markets?

To expand a nurse staffing agency and reach more clients and markets, conduct market research to identify new areas of demand, develop strategic partnerships with relevant organizations, offer specialized services, expand recruitment efforts, and actively participate in trade shows and industry events.

How can I differentiate my nurse staffing agency from competitors in the market?

To differentiate a nurse staffing agency from competitors, focus on providing exceptional customer service, offer customized staffing solutions, emphasize the quality and qualifications of your nursing staff, highlight unique value propositions such as technology integration or specialized training programs, and gather and showcase positive client testimonials.

What makes a nurse staffing agency successful?

A nurse staffing agency’s success is determined by factors such as building strong relationships with healthcare facilities and candidates, maintaining a reliable and qualified pool of nurses, effectively marketing services, providing excellent customer service, adapting to industry changes, having efficient operations and systems, and continuously striving for excellence in fulfilling client staffing needs.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a nurse staffing agency has pros and cons to consider before deciding if it’s right for you. 

• Rewarding – Help save lives and fix a serious social crisis
• Flexibility – No office necessary, work from home
• Good Money – Make a nice living on commission
• Time to Start – It will take time and work to build a reputation
• Crowded Market – Compete with large, established staffing agencies

Nurse staffing industry trends

Industry size and growth.

• Industry size and past growth – The US healthcare recruitment agency industry is worth $25.8 billion in 2022 after steady 4.4% growth the last five years. The industry has nearly doubled in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/healthcare-staff-recruitment-agencies-united-states/ )) 
• Growth forecast – The US healthcare recruitment agency industry is expected to grow more than 6% in 2022. 
• Number of businesses – In 2022, 3,182 healthcare recruitment agencies were operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/healthcare-staff-recruitment-agencies-united-states/ ))
• Number of people employed – In 2022, the US healthcare recruitment agency industry employs 347,403 people.(( https://www.ibisworld.com/united-states/market-research-reports/healthcare-staff-recruitment-agencies-industry/ )) 

Trends and challenges

Trends in the nurse staffing agency industry include:

• Most healthcare staffing agencies have begun technology and automation to improve process efficiencies, such as database mining to find nursing candidates, which is obviously faster than a manual process. 
• Pre-credentialing is an increasingly common practice that aims to quickly narrow down fields of candidates and speed up the recruiting process.

Challenges in the nurse staffing agency industry include:

• Driven by the pandemic, nurse burnout is causing many nurses to seek other professions , making nurse shortages even larger.
• The rising cost of skilled nurses may drive some healthcare facilities to move away from staffing agencies to eliminate the extra cost. They will instead go back to handling the recruiting process internally, which is likely to take longer and result in inferior health care.

Demand hotspots

• Most popular states – The most popular states for nurse recruiters are Washington, California, and Pennsylvania.(( https://www.zippia.com/nurse-recruiter-jobs/best-states/ ))
• Least popular states – The least popular states for nurse recruiters are Ohio, Mississippi, and Kentucky. 

What kind of people work in nurse staffing agencies?

• Gender – 73.7% of nurse recruiters are female, while 22.1% are male.(( https://www.zippia.com/nurse-recruiter-jobs/demographics/ ))
• Average level of education – The average nurse recruiter has a bachelor’s degree.
• Average age – The average nurse recruiter in the US is 41 years old.

How much does it cost to start a nurse staffing agency business?

Startup costs for a nurse staffing agency range from $3,500 to $10,000. Costs include a website, software, and nurse and healthcare facility databases. 

How much can you earn from a nurse staffing agency business?

Generally, the nurse staffing agency fee is 25% of the nurse’s first-year salary. Your profit margin when you’re working at home should be about 70%.

In your first year or two, you could work from home and place 8 nurses in a year, each with a $40,000 contract, you’ll be bringing in $80,000 in annual revenue. This would mean $56,000 in profit, assuming that 70% margin. As you increase your networking and contacts, you could do 40 placements a year. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to 30%. With annual revenue of $400,000, you’d make an impressive profit of $120,000.

What barriers to entry are there?

There are a few barriers to entry for a nurse staffing agency. Your biggest challenges will be:

• The networking and sales skills necessary to get contracts
• The competition from established agencies

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Step 2: hone your idea.

Now that you know what’s involved in starting a nurse staffing agency, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research nurse staffing agencies in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a travel nurse staffing agency, an agency that recruits certified nursing assistants, or a temporary nursing agency. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as travel nursing or home nursing.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

Your services will be very straightforward. You’ll connect nursing candidates with health care facilities. You can specialize in certain types of nursing or work with all types. 

How much should you charge for nurse staffing agency services?

Generally, the fee is 25% of the nurse’s first-year salary. Your profit margin when working by yourself should be about 70%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be nurses, hospitals and clinics, and healthcare organizations. You can find all of these on LinkedIn, and you can also find many nursing groups to connect with on Facebook. It’s also a good idea to buy access to the leading nurse and healthcare facility databases and reach out to those in your area. NurseRecuiter is a good place to start.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Staffing Agency Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “nurse staffing” or “healthcare staffing”, boosts SEO
• Name should allow for expansion, for ex: “Synergy Staffing Solutions” over “TechTalent Solutions”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Nurse Staffing Agency Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief summary of the nurse staffing agency business plan, highlighting its key points and objectives.
• Business Overview: A concise description of the nurse staffing agency, including its mission, vision, and core values.
• Product and Services: An outline of the specific services the agency will provide, such as nurse placement, staffing solutions, and related offerings.
• Market Analysis: An examination of the healthcare industry and the demand for nurse staffing services, including market trends and potential growth.
• Competitive Analysis: An assessment of the agency’s competitors in the nurse staffing market, highlighting their strengths and weaknesses.
• Sales and Marketing: A plan for promoting the agency’s services and acquiring clients, including sales strategies and marketing channels.
• Management Team: An introduction to the key individuals leading the agency, their qualifications, and their roles.
• Operations Plan: Details on how the agency will operate, including staffing procedures, technology systems, and day-to-day activities.
• Financial Plan: Projections of the agency’s financial performance, including income statements, cash flow, and balance sheets.
• Appendix: Supplementary materials, such as resumes, legal documents, and any additional information supporting the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to nurse staffing agencies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your nurse staffing agency will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a  tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a nurse staffing agency business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Nurse Staffing Agency Licenses and Permits

Starting a nurse staffing agency business requires obtaining a number of licenses and permits from local, state, and federal governments. Some states require nurse staffing agencies to have a medical agency license. Check with your state for requirements. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your nurse staffing agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as ABILITY , Bullhorn , Akken , to manage candidate information, job openings, billings, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Targeted Social Media Advertising: Leverage platforms like LinkedIn and Facebook to run targeted ads that specifically reach healthcare professionals, emphasizing the benefits of working with your agency, such as flexible schedules, competitive pay, and career advancement opportunities.
• Referral Programs: Implement a robust referral program for both nurses and clients, offering incentives for successful placements or bringing in new business. Word-of-mouth recommendations carry significant weight in the healthcare industry.
• Specialized Training Partnerships: Establish partnerships with nursing schools and offer specialized training programs. This not only helps you tap into a fresh pool of talent but also positions your agency as a supporter of ongoing professional development.
• Quality Content Marketing: Develop a content strategy that showcases your agency’s expertise in the healthcare staffing industry. Regularly publish blog posts, whitepapers, or case studies that address industry trends, challenges, and solutions, positioning your agency as a thought leader.
• Community Engagement and Sponsorships: Actively participate in local healthcare events, conferences, and community outreach programs. Sponsorship of relevant events can enhance your agency’s visibility while demonstrating a commitment to the local healthcare community.
• Utilize Online Reviews and Testimonials: Encourage satisfied clients and nurses to leave positive reviews on platforms like Google, Yelp, or industry-specific websites. Positive testimonials build trust and credibility, influencing potential clients and candidates.
• Data-Driven Decision Making: Utilize data analytics to identify trends in the healthcare staffing market. This information can guide your marketing efforts, ensuring you target the right demographics and provide the services in highest demand.
• Mobile-Friendly Campaigns: Optimize your marketing materials for mobile devices, as healthcare professionals often use smartphones and tablets. Ensure that your emails, website, and other content are easily accessible and navigable on mobile platforms.
• Strategic Alliances with Healthcare Facilities: Establish partnerships with healthcare facilities, hospitals, and clinics. Collaborate on solutions to their staffing needs, creating a win-win situation and solidifying your agency as a reliable staffing partner.
• Participate in Industry Associations: Join and actively participate in nursing and healthcare staffing associations. Networking within these communities can lead to valuable connections, insights, and partnerships that can propel your agency forward.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your nurse staffing agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your nurse staffing agency business could be: 

• Skilled nurses for your home healthcare agency
• Reliable travel nurses for short or long-term contracts
• Temporary registered nurses to meet your staffing shortages

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a nurse staffing agency business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in nursing for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in nurse staffing. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a nurse staffing agency business include:

• Recruiters – recruit nurses for open positions
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Nurse Staffing Agency – Start Making Money!

Nurse staffing agencies can help solve a major social problem, and you can be a part of that solution, and make good money, by starting your own nurse staffing agency. You could get started for a small investment and run the business from home while gaining a real sense of fulfillment from your important work. What could be better than that? 

Now that you understand the business aspects, it’s time to pound the pavement and get your successful nurse staffing agency off the ground!

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Staffing Agency Name
• Create a Nurse Staffing Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Nurse Staffing Agency Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Nurse Staffing Agency - Start Making Money!

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Staffing Agency Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Staffing Agency Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Staffing Agency Plan Here

You’ve come to the right place to create your staffing agency business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their staffing agencies.

Below are links to each section of your staffing agency business plan template:

Next Section: Executive Summary >

Staffing Agency Business Plan FAQs

What is a staffing agency business plan.

A staffing agency business plan is a plan to start and/or grow your staffing agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your staffing agency business plan using our Staffing Agency Business Plan Template here .

What Are the Main Types of Staffing Agency Companies?

There are many types of staffing agency companies. Some staffing agencies will focus on a particular industry, such as clerical jobs. Other staffing agencies focus on executive job placement, while others will offer a wide range of services across all industries. Some even offer human resource functions, such as payroll, benefits administration and risk management.

What Are the Main Sources of Revenue and Expenses for a Staffing Agency Business?

The primary source of revenue for staffing agencies are the fees it charges clients to place them in a job and the revenue it receives from businesses that hire them to find and recruit suitable staff for their business.

The key expenses for a staffing agency business are the costs to market the business, as well as payroll for the support staff. Other expenses will be the rent, utilities, and overhead costs for the physical office space.

How Do You Get Funding for Your Staffing Agency Business Plan?

Staffing agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources. This is true for an employment agency business plan and specialities like a healthcare staffing agency business plan.

What are the Steps To Start a Staffing Agency Business?

Starting a staffing agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Staffing Agency Business Plan - The first step in starting a business is to create a detailed staffing agency business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your staffing agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your staffing agency business is in compliance with local laws.

3. Register Your Staffing Agency Business - Once you have chosen a legal structure, the next step is to register your staffing agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your staffing agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Staffing Agency Equipment & Supplies - In order to start your staffing agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your staffing agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful staffing agency business:

• How to Start a Staffing Agency Business
• How to Open a Staffing Agency Business

Where Can I Get a Staffing Agency Business Plan PDF?

You can download our staffing agency business plan  PDF template here . This is a business plan template you can use in PDF format.

The 7 Step Business Plan for a Medical Staffing Agency

A strong business plan can make or break a new startup. Therefore, if you’re looking to open a healthcare staffing agency, a solid business plan should be your first port of call.

Not only does it provide a clear road map for getting your business up and running, it’s also the first step in applying for a business loan. Furthermore, with so much to handle from financing to legal protection, the act of writing it all down with actionable steps can take a huge load off your mind and make that mountain ahead seem a lot easier to climb 

To help you in your journey, we’ve outlined below in seven easy steps how you can create a business plan for a medical staffing agency.

1. Outline Your Business Goals and Purpose

Start by writing out in clear terms what your business goals are for starting a healthcare staffing agency.

It should be concise and easy to understand. Furthemore, If you’re going to be applying for a business loan, this is your chance to lay out why you’ll need the funds and what your growth targets are. 

2. Decide on the Type of Business You’ll Be Running

Every staffing agency must decide on the type of ownership structure it will operate under. You have a few options, and each have their own pros and cons. Take some time to decide which one might work best for you depending on your personal and business goals. 

• Sole Proprietorship – This is where one person owns the entire business under their own name. Any debts or liabilities that the business takes on are the sole personal responsibility of the owner.
• Joint Partnership – When two or more people open a business together, they enter into a partnership. Depending on the arrangement, each owner may hold an equal or different share in the business. All debts and liabilities are still considered personal. 
• A Limited Liability Company – An LLC comes with significant tax benefits and can be opened under sole proprietorship or joint partnership. Another benefit to this arrangement is that it offers the legal protection of being a corporation. 
• A Corporation – Functions much the same as an LLC, with the important difference that it is owned by its shareholders, whereas an LLC is owned by one or more individuals. 

Whatever type of business you decide on, keeping track of employee time and attendance will make your life a whole lot easier. Learn more about our staffing agency software here . 

3. Ensure Liability Protection

As a nurse staffing agency, you’re in a rather unique position regarding legal protection. Your staff will be working in several different locations, some safer than others and you need to ensure that both they and you have proper protection.

Outline the type of liability insurance you’ll need and how it will protect your company from any damages caused. Since you’re operating in the medical industry, it’s advisable that you go with premium liability insurance. 

You’ll also need proper worker’s compensation in case one of your employees suffers an injury on the job. Your insurance program should cover both medical costs and rehabilitation. As an added bonus, it may also be worth getting short or long-term disability insurance on top of the base package. 

4. Investigate Funding Options

Whatever agency you operate within, when you first get started, you’ll likely be operating out of a spare room.

Furthermore, for the first few months, as you try to hire staff and find clients, your business will probably be in the red, financially speaking.

This is perfectly normal. That being said, eventually you’re going to have to find extra funding before your business can really take off. Employees will have to be paid before you even have clients and you’ll have advertising, recruiting, and operating costs to cover. 

To get yourself through these first early months, outline a plan for how you will fund your business venture. Some of it can come from your own personal savings, but in all likelihood, you’re going to need a business loan to cover the rest. Research what loan options are available and what the requirements are to be approved.

5. Make Revenue Projections

Key to the success of any business venture is an accurate revenue projection. This will be crucial when it comes time to apply for a business loan, so lay out your expected earnings for each month and yearly quarter for the first 2-3 years. It should be properly cited with market reports and financial statements to back up your projections. Be aggressive in your goals, but also realistic. Your loan officer will want to see clear evidence that you can cover your monthly loan payments and any other debts or liabilities you may have taken on.

This is also a good time to think about how you can achieve critical mass, the point at which you have enough staff and clients that your business becomes self-sustaining. When you first get started, you’ll be operating on a shoestring budget and largely dependent on whatever funding you could get.

Try to get a clear sense of how much you’ll need to grow before you can compete in the medical market effectively and remain competitive. Your point of critical mass will be an ever-changing target, so be aware that you’ll need to revise it over time. The revenue projections you make will have a direct impact on the balance between your medical staffing agency’s bill rate vs pay rate .

Revenue projections and medical staffing analysis is made easier by using our staffing agency software . Learn more here. 

6. Develop a Marketing Plan

This is where you will lay out your marketing plans and how you intend to achieve them. You’ll need to outline two marketing plans, one for attracting medical employees and another for clients.

For your medical employees, brainstorm a bunch of ideas for how you can draw talent. For instance, reach out to local schools that specialize in nursing and medical care. You could even try teaming up with a local faculty to encourage new graduates to join your agency. Other methods for finding staff include reaching out on social media or asking medical staff you already have on the books to reach out through their connections and pitch job offers.

As for clients, draw up a list of all the nearby hospitals, health clinics, and anywhere else that needs medical staff. These will be the targets for your marketing campaign, and you should have a clear idea for how you can attract their business.

If you have a unique selling proposition (USP), this is your chance to showcase it and explain how you will compete with other staffing agencies. You should also research any educational events in your area. Medical personnel are always in need of continuing education credits to maintain their professional licenses, and these events can be a great place to find both new recruits and new business clients.

7. Bring It All Together

Type out everything in a single document with each area categorized and properly indexed. It should be easy to present to lenders and provide a clear blueprint for how your business will operate and grow in the future. A basic business plan should include the following:

• An executive summary
• Company ownership structure and financing
• Market analysis and business plan
• Pricing model and marketing plan
• An appendix section listing supporting information

Bottom Line

There you have it! While there is no blueprint for how to open a healthcare staffing agency, if you follow these 7 steps your chance of success will drastically increase. 

Once you’re up and running, make sure you finalize your temp agency markup rates to ensure you’re profitable but don’t price yourself out of the market.

Furthermore, to offer unique value and attract the best medical professionals, invest in staffing agency software in order to streamline your time and attendance, payroll and HR.

Want to learn more about how Timerack can benefit your medical staffing agency? Book a personalized demo here . 

A Beginner's Guide to Starting a Healthcare Staffing Agency

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Healthcare staffing agencies serve as a critical link between healthcare facilities and healthcare professionals. These agencies address the growing demand for healthcare professionals, which has increased due to population growth, advancements in healthcare tech and legislature. Starting a healthcare staffing agency can be a profitable and meaningful business endeavor for anyone with interest in healthcare and entrepreneurship.

Why Start a Healthcare Staffing Agency?

The healthcare staffing industry is booming, and it is expected to continue to grow in the coming years. The demand for healthcare professionals is high, and hospitals, nursing homes, and other healthcare facilities continually struggle to recruit and retain qualified professionals.

The healthcare sector is currently employing about 22 million professionals . And that's just the start. An aging population around the globe and continuous health issues are one of the main factors that will boost healthcare employment to 13% by 2031. This means around 2 million jobs in the healthcare sector need to be filled per year.

Healthcare staffing agencies come in and solve this issue by providing a pool of qualified healthcare professionals to healthcare facilities. Starting a healthcare staffing agency offers a lucrative business opportunity and a chance to make a positive impact on the healthcare industry.

Moreover, healthcare staffing agencies also provide flexibility for healthcare professionals who may prefer temporary or contract work rather than a full-time position. This allows healthcare professionals to have more control over their work schedules and work-life balance. Additionally, healthcare staffing agencies can offer training and professional development opportunities for their staff, which can lead to increased job satisfaction and retention rates.

Overall, starting a healthcare staffing agency not only benefits healthcare facilities but also provides a valuable service to healthcare professionals and can contribute to the overall improvement of the healthcare industry.

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Understanding the Healthcare Staffing Industry

To start a healthcare staffing agency, it is essential to understand the healthcare staffing industry. Healthcare staffing agencies specialize in recruiting, screening, and placing healthcare professionals in temporary and permanent staffing positions. Healthcare staffing agencies work with a variety of healthcare professionals, such as registered nurses, licensed practical nurses, medical assistants, and nurse practitioners.

One of the biggest challenges in the healthcare staffing industry is the shortage of qualified healthcare professionals. This shortage has led to increased competition among healthcare staffing agencies to attract and retain top talent. To overcome this challenge, healthcare staffing agencies need to offer competitive compensation packages, flexible work schedules, and opportunities for career advancement.

Another important aspect of the healthcare staffing industry is compliance with state and federal regulations. Healthcare staffing agencies must comply with regulations related to background checks, drug testing, and licensing requirements for healthcare professionals. Failure to comply with these regulations can result in legal and financial consequences for the staffing agency.

Identifying Your Niche in the Healthcare Staffing Market

Identifying a niche is crucial when starting a healthcare staffing agency. A niche market allows you to focus your resources and attention on a specific demographic, such as a specific geographic location, specialty, or type of healthcare professional.

By identifying your niche, you can tailor your services and marketing efforts to meet specific needs, which can set you apart from other healthcare staffing agencies.

One way to identify your niche is to conduct market research and analyze the demand for healthcare staffing services in your area. This can help you determine which specialties or types of healthcare professionals are in high demand and where there may be gaps in the market that you can fill.

Another important factor to consider when identifying your niche is your own expertise and experience. If you have a background in a specific area of healthcare, such as nursing or physical therapy, you may be able to leverage that expertise to specialize in staffing for that particular field.

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Developing a Business Plan for Your Healthcare Staffing Agency

Developing a business plan is an essential part of starting a healthcare staffing agency. A business plan outlines your company's goals, target market, marketing strategies, financial projections, and other vital areas of your business. A well-developed business plan is crucial to secure financing and attracting investors.

One important aspect to consider when developing a business plan for your healthcare staffing agency is the competition in the market. Researching your competitors and understanding their strong and weak points can help you identify opportunities for differentiation and growth. Additionally, it is important to consider the regulatory requirements and licensing procedures for healthcare staffing agencies in your state or region.

Another key component of a business plan for a healthcare staffing agency is the recruitment and retention of qualified healthcare professionals. Developing a comprehensive recruitment strategy, including job postings, networking, and referral programs, can help you attract top talent. Additionally, implementing retention strategies, such as competitive compensation and benefits packages, can help you retain your staff and reduce turnover rates.

Choosing a Legal Structure and Registering Your Business

When starting a healthcare staffing agency, you need to choose a legal structure and register your business with the state. Common structures include sole proprietorship, partnership, or corporation . Consider tax implications and liability protection when choosing a structure. You may need licenses and permits depending on the services you offer and the state you operate in. Research and comply with legal requirements to avoid penalties or issues.

LEARN MORE: What is staffing agency?

Creating a Brand Identity for Your Healthcare Staffing Agency

Creating a brand identity is a key component of marketing your healthcare staffing agency. A brand identity includes:

• Your company's name
• Marketing materials

A strong brand identity can help establish credibility and attract potential clients and healthcare professionals.

When creating a brand identity for your healthcare staffing agency, it's important to consider your target audience. Are you primarily targeting hospitals, clinics, or private practices? Understanding your audience can help you tailor your brand identity to better appeal to them. Additionally, consistency is key when it comes to branding. Make sure your logo, website, and other marketing materials all have a cohesive look and feel to help establish a strong brand presence.

Building Your Team: Hiring Employees vs. Contractors

Building a team for your healthcare staffing agency involves deciding whether to hire employees or contractors. Hiring employees can be more expensive but offers more control over your staff. Hiring contractors can be a more cost-effective option but allows fewer opportunities for staffing control.

It's important to consider the legal and tax implications of hiring employees versus contractors. When you hire employees, you are responsible for withholding and paying their taxes, providing benefits, and complying with labor laws. On the other hand, contractors are responsible for their own taxes and benefits, and you are not required to comply with labor laws for them. However, misclassifying employees as contractors can result in legal and financial consequences. It's important to consult with a legal or tax professional to ensure you are making the right decision for your healthcare staffing agency.

PODCAST: EP31: Thoughtworks - Why Recruiting Is a Sales Role (and More) (with Reece Fallon)

Finding and Building Relationships with Clients

Building relationships with clients is crucial to the success of your healthcare staffing agency. Healthcare facilities rely on staffing agencies to provide qualified professionals promptly. Building strong relationships with client facilities requires excellent communication, responsiveness, and service quality.

One effective way to find new clients is through networking and attending industry events . This allows you to meet potential clients face-to-face and showcase your agency's services. Additionally, offering incentives or discounts to clients who refer new business to your agency can also help to build strong relationships and increase your client base.

Finding and Recruiting Qualified Healthcare Professionals

Finding and recruiting qualified healthcare professionals is the primary function of healthcare staffing agencies. Healthcare staffing agencies use various recruitment strategies, such as job postings, referrals, and social media advertising. The recruitment process typically involves screening, interviewing, and verifying candidates' credentials and background checks.

One of the biggest challenges in healthcare staffing is finding candidates with the right combination of skills and experience. Healthcare staffing agencies often work closely with healthcare facilities to understand their specific needs and requirements. This allows them to identify candidates who not only have the necessary qualifications but also possess the right personality traits and work ethic to succeed in the healthcare industry.

Managing Employee Payroll and Benefits

Managing employee payroll and benefits is essential when starting a healthcare staffing agency. Healthcare staffing agencies are responsible for paying their employees and providing benefits such as health insurance, sick leave, and paid time off. Accurate record-keeping is necessary when managing employee payroll and benefits.

It is important to stay up-to-date with the latest laws and regulations regarding employee payroll and benefits. This includes understanding minimum wage requirements, overtime laws, and tax regulations. Healthcare staffing agencies must also ensure that they are providing fair and competitive compensation packages to attract and retain top talent in the industry. By prioritizing employee payroll and benefits management, healthcare staffing agencies can create a positive work environment and maintain a strong team of healthcare professionals.

Advertising and Marketing Your Healthcare Staffing Agency

Advertising and marketing are critical components of starting a healthcare staffing agency. Effective marketing strategies for healthcare staffing agencies include online marketing, networking, print advertisements, SMS marketing and direct mail. Building word-of-mouth referrals is another effective marketing strategy.

One important aspect of advertising and marketing your healthcare staffing agency is to establish a strong online presence. This can be achieved by creating a website that showcases your agency's services, expertise, and testimonials from satisfied clients. Additionally, utilizing social media platforms such as LinkedIn, Twitter, and Facebook can help you reach a wider audience and connect with potential clients and candidates. It is also important to regularly update your online presence with relevant and engaging content to keep your audience interested and informed.

Measuring Success: Key Performance Indicators for Your Healthcare Staffing Agency

Measuring success is essential when starting a healthcare staffing agency. Key performance indicators (KPIs) provide measurable data on your company's performance. KPIs for healthcare staffing agencies include employee retention rates, client satisfaction, financial performance, and the number of successful staffing placements.

Another important KPI for healthcare staffing agencies is the time it takes to fill a staffing request . This metric measures the efficiency of your agency in responding to client needs. A shorter time to fill a request indicates that your agency is able to quickly provide qualified staff to healthcare facilities, which can lead to increased client satisfaction and repeat business.

Metrics to Track for Employee Training and Development:

• Number of training hours provided to employees
• Percentage of employees who have completed required training
• Number of employees who have received promotions or advanced to higher positions within the company

These metrics can help you assess the effectiveness of your training programs and measure your success as a staffing agency.

Common Challenges When Starting a Healthcare Staffing Agency and How to Overcome Them

Starting a healthcare staffing agency has its challenges. Common challenges include competition, staff turnover, and managing financial resources. Remaining flexible and developing contingency plans can help you overcome these challenges.

Another challenge that healthcare staffing agencies face is maintaining compliance with state and federal regulations. These regulations can be complex and constantly changing, making it difficult to stay up-to-date. It is important to have a dedicated compliance team or partner to ensure that your agency is following all necessary regulations and avoiding any legal issues. Additionally, investing in training and education for your staff on compliance can help prevent any mistakes or oversights.

Overcome Challenges in Starting Healthcare Staffing Agency with ATS

There are many ways to overcome challenges when it comes to starting a healthcare staffing agency. One way that would keep you ahead of the game while ensuring that you end up with a better result each campaign is equipping yourself with a tool. A tool designed for recruitment, in particular, like Applicant Tracking System (ATS), can help you get the right start with many innovative features. How? Let us give you an example.

An ATS like Manatal comes with the ability to automate daunting tasks like applicant screening or resume parsing, making the hiring process run faster and more seamlessly. Within one click, you can push out your job advertisements and reach prospective candidates across over 2500 channels, including Indeed, LinkedIn, Monster, CareerJet, JobStreet, and many more.

Once you've set up your talent pool, Manatal's Candidate Enrichment feature grants you the capability to know candidates beyond their CVs. The feature browses the web and extracts candidates' information from their available online profiles into a single database. You'll be able to make more informed decisions when it comes to crafting a strong shortlist.

Also, for a recruitment agency, reinforcing and maintaining good relationships with hiring managers throughout the process is as critical as connecting with candidates. And Manatal has a specific tool that can help you with this. With its Recruitment CRM (Customer Relationship Management), you'll be able to smoothly track and manage the sales funnel from end to end in a single platform.

Moreover, Manatal's Activities & Collaboration allows you to keep the hiring manager up-to-date throughout the hiring process. You can provide access to hiring managers to come in and see candidates' information, as well as leave notes on a certain individual that they'd like to engage further. At the same time, you can easily manage the schedule, ensure no overlap appointments, and offer the smoothest experience to both candidates and hiring managers.

LEARN MORE: What does Manatal’s Recruitment CRM offer?

Opportunities for Growth and Expansion in the Healthcare Staffing Industry

The healthcare staffing industry offers ample opportunities for growth and expansion. Growth opportunities include expanding your service offerings, entering new markets, and acquiring or merging with other healthcare staffing agencies. Continual market analysis and identifying new trends and opportunities can help drive growth and expansion.

Starting a healthcare staffing agency requires careful planning, a deep understanding of the healthcare staffing industry, and a commitment to providing exceptional service. By following these guidelines, you can establish a successful healthcare staffing agency that will make a difference in the healthcare industry.

Start a 14-day free trial with Manatal today, discover its innovative features, and see how its cloud-based recruitment solution can help you get the right start at running a healthcare staffing agency.

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Mastering the Essentials: A Comprehensive 7-Step Business Plan for a Successful Medical Staffing Agency

• akash.kalathil
• January 10, 2024

Launching a medical staffing agency is a journey that intertwines ambition with meticulous planning. In a sector as dynamic and critical as healthcare staffing, a robust business plan isn’t just beneficial—it’s essential. It serves not only as a strategic blueprint for your startup’s success but also as a critical document for securing funding and navigating the complex healthcare industry.

1. executive summary: capturing your vision.

Begin your business plan with a compelling executive summary. This section is your opportunity to make a strong first impression. Clearly articulate your agency’s mission, the specific staffing services you intend to offer, and your unique selling proposition. This summary should not only capture the essence of your business but also ignite interest in potential investors or partners.

2. In-Depth Market Analysis: Knowing Your Arena

Conducting thorough market research is foundational. Understand the nuances of the healthcare staffing market, identify your niche, and analyze your competition. This step is about more than just numbers; it’s about grasping the pulse of the market, understanding the needs of healthcare providers, and aligning your services to fill those gaps.

3. Services and Operational Plan: The Core of Your Agency

Detail the range of staffing services your agency will provide, whether it’s short-term, long-term, or permanent placements, and in what specialties. Describe your operational strategy – how will you source candidates, ensure quality, and handle placements? This section should also address your plans for training, credential verification, and compliance with healthcare regulations.

4. Strategic Marketing and Sales Plan: Building Your Brand

A robust marketing and sales strategy is crucial in a competitive market. Outline how you plan to build your brand and attract clients and healthcare professionals. Consider digital marketing tactics, traditional advertising, attending industry conferences, and building a strong online presence. Your strategy should also include networking with healthcare facilities and leveraging client testimonials and case studies.

5. Financial Projections and Management: Ensuring Viability

Your financial plan should be both realistic and comprehensive. Include detailed projections for startup costs, cash flow, profit and loss, and a break-even analysis. This section is critical, especially if you are seeking funding from investors or banks. Be transparent about your pricing model, including how you will determine temp agency markup rates, and provide a clear plan for financial sustainability and growth.

6. Legal Structure and Compliance: Protecting Your Business

Address the legal structure of your business and your plan for compliance with industry regulations. This includes obtaining necessary licenses, understanding employment laws, and ensuring the protection of both your clients and your workforce. Consider the implications of different legal structures on taxes, liability, and business operations.

7. Technology Integration: Enhancing Operational Efficiency

In today’s digital era, leveraging technology can give your agency a significant edge. Discuss how you plan to implement staffing agency software to optimize processes like scheduling, payroll, time tracking, and HR management. Highlight how technology will improve efficiency, accuracy, and client satisfaction.

Remember, your business plan is a living document that should evolve as your agency grows. It’s not only a roadmap for starting your business but also a guide for its ongoing development. By following these seven steps and continually adapting to the changing healthcare landscape, your medical staffing agency can thrive in a competitive and ever-evolving industry. With dedication and strategic planning, your agency can become a vital link connecting healthcare facilities with the professional staff they need.

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12 Steps to Opening A Medical Staffing Agency

Posted on: may 7th, 2019.

As the demand for qualified professionals in the medical field grows, so too does the need for ways to identity those qualified professionals. Starting a healthcare staffing company allows you to make a meaningful difference by filling positions in hospitals and private practices. Launching yourself into the medical staffing industry is simple with the right connections, tools and knowledge. It’s also a reasonable industry in which to stay afloat independently, or with minimal assistance, and turn a profit. In this post, we’ll discuss how you can start a healthcare staffing company that is positioned for success.

1: Find A Company to Help

What’s the best thing to do before starting a new business venture? Speak to somebody with experience in the industry. Particularly, somebody who has helped others begin this process before.

A resource like this can help you to anticipate upcoming challenges, provide actionable advice, and secure clients early on.

2. Create a Brand Identity

3. Register As a Small Business

Before you begin to take on clients, it’s important to register your business through the appropriate channels. Then, file all of the appropriate paperwork, including (but not limited to) partnership or corporation papers, insurances, and obtain permits (as needed).

4. Build a Functional Website

An aesthetically pleasing and well-organized website goes a long way in impressing prospective clients– especially early ones. Write detailed descriptions of the services you provide, your credentials as a healthcare staffing company, how your practice came to be, and more. This information will persuade clients to use your services, and help search engines to recognize your website.

5. Create Social Media Accounts

Social media helps your medical staffing agency to start a dialogue with prospective clients. Creating Facebook, Twitter and LInkedIn accounts will help people to remember your business, and give your messaging some resonance.

6. Establish a Location, Hire Employees

Like all other new businesses, finding a strategically located office space can make or break the success of your business in the long run. During this phase, you should also look for qualified individuals to add to your team– given that they are compatible with your leadership style and goals. Like any other company, a successful healthcare staffing company has employees with balanced skills.

7. Secure Financial Assistance

At the beginning, most medical staffing entrepreneurs don’t have the capital to fund their business to a profit-turning point. Obtaining a small business loan from a bank or the government will help your business to get off the ground. This is especially true for medical staffing agencies with multiple employees at the outset. For a reasonable cushion, shoot for about six months of operating capital.

8. Educate Yourself (Or Be Educated)

The pace of the medical staffing industry can quickly grow to be quite hectic. To ensure that you can serve your clients and their workplaces effectively, you should receive the proper training. There are plenty of valuable resources that prepare medical staffing agency owners for the tasks ahead– take advantage of them.

Topics generally covered in our training about starting a healthcare staffing company training include, but are not limited to:

• Basic medical staffing agency operation procedures
• Recruiting, sales and marketing strategies
• Exceeding clients’ expectations with stellar customer service
• Medical staffing software that augments day-to-day operation by providing easy ways to recruit and screen healthcare professionals, as well as review potential candidates
• Evaluating and gauging the qualifications of candidates
• Changing recruitment strategies based on the placement (leave replacement vs. permanent placement, etc.)

9. Research Local Competitors

Why would job-seeking medical professionals select your business over an established staffing agency?

Find out what your local competitors are doing, and learn what services you can offer to stand out. This is a key component to success after starting a healthcare staffing company.

10. Obtain Access to Client Directories

Starting a healthcare staffing company in the dark is impossible. Instead, confer with professional associations, mail list agencies, and even state licensure agencies to learn about potential clients. With the right contacts, you can get physical addresses, email addresses, and phone numbers.

11. Execute Your Plan

Only after you have the knowledge, resources and necessary support to operate a healthcare staffing agency should you open your business. With a steady grasp on all of these factors, you can learn how to operate your business in a practical manner.

12. Maintain Contact With Resources

Even after your business gets rolling, it’s important to stay in contact with the contacts who helped you start off.

Experienced healthcare staffing support groups will offer advice that may only be implementable after operations begin. They can also help you to expand your operation beyond its initial scope. Continual support will bolster your medical staffing agency’s performance. Even well-established companies require support throughout this process.

Medical Staffing Consultants Can Provide the Necessary Support

With a combined total of over 30 years of experience, we understand the challenges associated with each phase of running a successful medical staffing company. We can give you unique insights into the medical staffing world that will help you pave the way for long-term success. Learn more about our getting started process here .

Interested in learning more & scheduling a free initial consultation? Call us now at 631-598-5529 or fill out the form below:

You can also email us directly at: [email protected]

Since 2003 Medical Staffing Consultants (MSC) has assisted entrepreneurs in launching, operating and growing successful medical staffing and recruitment companies. We are still the only non-franchise company in the industry, and our network of clients has grown to over 260.

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How to Start a Healthcare Staffing Agency Business

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Healthcare Staffing Agency

Do you want to start a healthcare staffing agency? If YES, here is a complete guide to starting a healthcare staffing agency business with NO money and no experience .

There is hardly anyone who does not have dealings with a hospital. From time to time we all get to go to the hospital for one issue or the other. This is one of the reasons why it is said that a health related business is a money spinning business.

If you are looking to start a business, you may want to consider commencing a healthcare staffing agency. Recruitment agencies are known to make steady income as long as they are able to supply staff to organizations that need their services.

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If you are a trained HR person and you are planning to become your own boss, then you should consider starting your own recruitment agency and concentrate on healthcare staffing for medical and health organizations.

Healthcare staffing agencies support medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al by recruiting trained health staff for them. The healthcare staffing agency requires low startup capital and it is indeed a highly profitable venture.

As a matter of fact, nurses are the most recruited health workers because they are in high demand. So, if you are starting your own healthcare staffing agency, just ensure that you build relationships with the management of nursing schools and health or medical organizations.

You would need some form of training and certification in Human Resources to be able to start and manage your own healthcare staffing agency successfully, so ensure that you do all you can to start the process.

No matter the type of business you choose to start, it is significant to state that before launching the business, you should carry out your market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your healthcare staffing agency business, it will not take you long before you secure enough corporate clients, break even and start smiling to the bank.

If undeniably you want to start your own healthcare staffing agency business, all you need do is to read this article and you will be well informed and adequately equipped.

Steps to Starting a Healthcare Staffing Agency Business

1. understand the industry.

It is on record that the staffing, recruiting and workforce solutions industry that the healthcare staffing agency business is a part of makes a huge contribution to the economy of the United States of America, and they provide jobs and career opportunities for about 14 million employees annually.

Despite the fact that the staffing industry growth has outpaced the overall economic and employment growth in the U.S., it employs only about 2% of the U.S. non – farm workforce.

Statistics has it that in the united states of America, there are about 17,000 staffing and recruiting agencies (healthcare staffing agencies inclusive) and they operate around 35,000 offices scattered all around the U.S. Statistics also has it that the top 122 staffing agencies generate a combined sum of $69.4 billion in U.S. representing 55.9 percent of the market.

Records have it that 17 staffing agencies (healthcare staffing agencies inclusive) generated more than $1 billion in staffing revenue in 2014 and these staffing agencies represented over a third (36.4 percent) of the market. Each staffing agency on the list generated more than $100 million in U.S. staffing revenue in 2014.

No doubt, the $69 billion in staffing revenue generated by these staffing agencies give emphasis to the health of the staffing industry.

The healthcare staffing agencies line of business will continue to blossom because more and more medical and healthcare organizations are beginning to realize that somehow, they would need the services of healthcare staffing agencies to help them take away the stress of recruiting healthcare workforce for their business which sometimes goes beyond recruiting to proving training and other Human Resources related services.

From available statistics, it is safe to say that the healthcare staffing agency is growing steadily despite the competitive nature of the industry. One thing is certain, if you are well positioned, you have the required business skills, networks and you have a robust CV bank, you are likely not going to struggle to compete favorably in the healthcare staffing agency line of business.

Another reason why people prefer to start a healthcare staffing agency business is that consultants have the monopoly to charge fees as it suits them especially if they are have been able to pay their dues in the industry over the years.

Other factors that encourage entrepreneurs to start their own staffing agencies could be that the business is easy to set up and the start–up capital is indeed affordable; you can actually start your own healthcare staffing agency business from the comfort of your house.

All you need to do is to create an office somewhere in your house. People usually pay you for the staff you help them recruit and train.

Over and above, healthcare staffing agency businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market (medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al).

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

The healthcare sector is vast and so the demographic and psychographic composition of those who hire the services of healthcare staffing agencies cut across all medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al both big and small that has the capacity to pay for their services especially as it relates to recruiting and training healthcare workers, hence the demographic composition of a healthcare staffing agency business is all encompassing.

The truth is that when it comes to healthcare agencies services, there is indeed a wide range of available customers. Your target market can’t be restricted to just medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al within your location, but all around the city where you have your business presence and who can afford your services.

So, if you are thinking of opening your own healthcare staffing agency business, then you should make your target demographics all encompassing.

3. Decide Which Niche to Concentrate On

There is no niche area in the healthcare staffing agency business because the healthcare staffing agency is a niche area in the staffing and recruitment agencies services industry, every player in the healthcare staffing agency line of business simply assists their clients in screening, recruiting and in some cases training healthcare staff.

So, if you are looking towards starting your own healthcare staffing agency business, then you should clearly define your market so that you will be able to get a fair share of the available market in the industry.

The Level of Competition in the Industry

There isn’t a single business that does not have to deal with one form of competition or the other. The competitions that exist in the healthcare staffing agency line of business goes beyond competitions amongst healthcare staffing agencies in your location; you are expected to compete with other businesses in the staffing and recruiting services industry who have the capacity to recruit and train health workers.

So, it will be right to say the competition in the healthcare staffing agency line of business is tough. The truth is that no matter the level of competition in an industry, if you promote your services or business properly, you will always make headway in the industry.

Just ensure your workforce can carry out thorough recruitment of health workers, you can deliver excellent customer care services, you know how to attract reliable and competent domestic staff and also how to reach out to your target market.

But over and above, there are several healthcare staffing agencies and other related recruiting agency services businesses scattered all around the United States.

As such, if you choose to start your own healthcare staffing agency in the United States of America, you will definitely meet stiffer competitions amongst them. Besides, there are larger healthcare staffing agencies that determine the trends in the industry and you should be ready to compete with them for customers.

4. Know Your Major Competitors in the Industry

In every industry, there are always brands that perform better or are better regarded by customers and the general public than the others.

Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years. These are some of the leading healthcare staffing agencies in the United States of America and in the globe;

• MedPro Healthcare Staffing
• Medical Staffing Solutions, USA
• NiteLines USA, Incorporated Government Medical Staffing Agency
• Cirrus Medical Staffing International
• Maxim Staffing Solutions
• Avant Healthcare Professionals
• MAS Medical Staffing
• Aureus Medical Group
• MedFirst Staffing
• United Healthcare Staffing Inc
• Randstad Healthcare
• Health Carousel LLC
• Sunbelt Staffing LLC
• O’Grady Peyton International
• Complete Health Care Staffing
• On Assignment Healthcare Staff
• Medical Staffing Network Inc
• Kennedy Healthcare Recruit Inc
• Elite Medical Staffing
• Accountable Healthcare Staffing

Economic Analysis

If you are in the line to successfully launch a business and maximize profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.

Healthcare staffing agency business is not a Green business; as a matter of fact, you will come across several healthcare staffing agencies and other staffing and recruitment related services agencies when you drive through town, search through directories and browse through the internet.

So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey of what is required to rent a space where you are expected to open your healthcare staffing agency business, the amount required to purchase office gadgets and furniture and also the cost to successfully run the business.

Over and above, if you are considering starting a healthcare staffing agency, then your concern should not be limited to the cost of renting an office space and purchasing office gadgets and furniture but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base, you are sure going to maximize profits in the business.

5. Decide Whether to Buy a Franchise or Start from Scratch

If you are looking towards starting a healthcare staffing agency business, you would have to start from the very scratch because even if you get a franchise of a healthcare staffing agency to buy, it might be way off your budget and the brand might not be marketable in your location.

Besides starting a healthcare staffing agency from the scratch is less stressful when compared to other small – scale businesses.

With a healthcare staffing agency business, you should just try as much as possible to get the right employees, tools and equipment, build business relationship with key stakeholders and then leverage on every marketing tool within your disposal especially the internet to market your services.

Please note that most of the big and successful healthcare staffing agencies around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.

6. Know the Possible Threats and Challenges You Will Face

If you have decided to start your own healthcare staffing agency today, one of the major challenges you are likely going to face is the presence of well – established healthcare staffing agencies and other related staffing and recruitment services companies that also supply healthcare workers to medical and healthcare organizations. The only way to avoid this challenge is to create your own market.

Some other challenges and threats that you are likely going to face are economic downturn and unfavorable government policies. There is nothing you can do as regard these threats and challenges other than to stay positive that things will work well for you.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

You have the option of either choosing a general partnership, limited liability Company, or even a sole proprietorship for a business such as healthcare staffing agency services business.

As a matter of fact, if your intention is to grow the business and have offices and corporate clients all across key cities in the United States of America and other countries of the world via franchising, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships.

Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your healthcare staffing agency services business; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.

If you take your time to critically study the various legal entities to use for your healthcare staffing agency services business with the ability to sell franchise and have offices and corporate clients all across the United States of America, you will agree that limited liability company; an LLC is most suitable.

You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.

8. Choose a Catchy Business Name

When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

If you are considering starting your own healthcare staffing agency services business, here are some catchy names that you can choose from;

• Middle Road® Healthcare Staffing Agency, LLC
• Blue Ribbon® Healthcare Staffing Agency, LLC
• Heather Clay© Healthcare Staffing Agency, Inc.
• Kings Court® Healthcare Staffing Agency, Inc.
• Health Pro™ Healthcare Staffing Agency, Inc.
• Theresa Brown® Healthcare Staffing Agency, Inc.
• The Reliable© Healthcare Staffing Agency, Inc.
• Maureen Liverpool® Healthcare Staffing Agency, LLC
• Best Alley© Healthcare Staffing Agency, Inc.
• Safe Hands© Healthcare Staffing Agency, Inc.

9. Discuss with an Agent to Know the Best Insurance Policies for You

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your healthcare staffing agency services business.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your own healthcare staffing agency services business in the United States of America;

• General insurance
• Health/Medical insurance
• Liability insurance
• Workers Compensation
• Overhead expense disability insurance
• Business owner’s policy group insurance
• Payment protection insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

If you are considering starting your own healthcare staffing agency services business, usually you may not have any need to file for intellectual property protection/trademark.

This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties. But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection.

If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.

11. Get the Necessary Professional Certification

Aside from the results you produce as it relates to recruiting/supplying health workers to your clients, professional certification is one of the main reasons why some healthcare staffing agencies stand out. If you want to make an impact in the healthcare staffing agency line of business, you should work towards acquiring all the needed certifications in your area of specialization.

You are strongly encouraged to pursue professional certifications; it will go a long way to show your commitment towards the business. Certification validates your competency and shows that you are highly skilled, committed to your career, and up-to-date in the competitive market.

These are some of the certifications you can work towards achieving if you want to run your own healthcare staffing agency;

• Certified Recruiting Specialist (CRS)
• Recruitment Consultant Certification (RCC)
• Physician Recruiting Consultant (PRC)
• Certified Personnel Consultant (CPC)

Please note that you can successfully run a healthcare staffing agency in the United States and in most countries of the world without necessarily acquiring professional certifications and business license as long as you have adequate experience cum background in the staffing and recruiting services industry.

12. Get the Necessary Legal Documents You Need to Operate

The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own healthcare staffing agency services business in the United States of America;

• Certificate of Incorporation
• Business License
• Tax Payer’s ID/Tax Identification Number
• Health inspection Certificate
• Business Plan
• Contract Document
• Non – disclosure Agreement
• Employee Handbook
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document (basically for online payment portal)
• Company Bylaws
• Memorandum of Understanding (MoU)
• Building License
• Franchise or Trademark License (optional)

13. Raise the Needed Startup Capital

Starting a healthcare staffing agency services business can be cost effective especially if you choose to start on a small scale by running the business from your home or sharing an office space. Securing a standard office space in a business district and purchasing office gadgets and furniture et al are part of what will consume a large chunk of your startup capital.

If you choose to start the business on a large scale, you would need to go source for fund to finance the business because it is expensive to start a standard large – scale healthcare staffing agency services business.

When it comes to financing a business, one of the first things you should consider is to write a good business plan . If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.

Here are some of the options you can explore when sourcing for startup capital for your healthcare staffing agency business;

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell of shares to interested investors
• Applying for loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
• Source for soft loans from your family members and your friends

14. Choose a Suitable Location for your Business

When it comes to choosing a location for your healthcare staffing agency, you can choose to locate the business anywhere especially if you are offering basic healthcare staffing services, services that do not require your clients to come to you regularly except for meetings.

But over and above, the location you chose to open your healthcare staffing agency is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al.

Before choosing a location for your healthcare staffing agency business, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out. Which is why it being very important to gather as much facts and figures before choosing a location to set up your own healthcare staffing agency business.

These are some of the key factors that you should consider before choosing a location for your healthcare staffing agency business;

• The demography of the location
• The demand for healthcare staffing agency services in the location
• The purchasing power of medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al in the location
• Accessibility of the location
• The number of healthcare staffing agencies and other staffing and recruiting services companies that also offer same services in the location
• The local laws and regulations in the community/state
• Traffic, parking and security

15. Hire Employees for your Technical and Manpower Needs

On the average, there are no special technology or equipment needed to run an average healthcare staffing agency except for computers, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

As regards leasing or outright purchase of an office facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short term rent/lease while test running the business in the location. If things work out as planned, then you go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business.

When it comes to hiring employees for a standard healthcare staffing agency business with plans to have corporate clients all across major cities in the United States of America, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Recruitment Specialist, Sales and Marketing Officer, Accounting Clerk, and Customer Service Executive.

These are some of the key employees that you can work with. On the average, you will need a minimum of 5 to 10 key staff members to run a small – scale but standard healthcare staffing agency services.

The Service Delivery Process of the Business

Usually, when a healthcare staffing agency gets a contract from medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al to help them recruit health workers (doctors, pharmacists, nurses, lab technicians, clerks and administrative staff et al), the necessary contract documents are signed, and the required health workers recruited, and trained in some instances before deploying them to the organization they are to work for.

When an organization requests for staff from a healthcare staffing agency, they are expected to sign a contract document that clearly defines the scope of consulting role they want them to play. It could be just recruiting, it could be recruiting and training and it could be handling the human resources role as it relates to staffing for the organization.

It is the practice of healthcare staffing agencies to have a robust CV bank so that whenever an organization demands employees from them, they are able to quickly produce qualified candidates without putting up any vacancy. It is the practice of healthcare staffing agencies to prepare applicants to take on some job roles before the opening even surfaces; it puts them ahead of their competitors in the industry.

It is important to state that a healthcare staffing agency may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated healthcare staffing agency business process is not cast on stone.

16. Write a Marketing Plan Packed with ideas & Strategies

Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a healthcare staffing agency services business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands that determine the market direction for the staffing and recruiting services industry.

As a matter of fact, your marketing strategy will center on reliability, swiftness, safety, pricing, thoroughness, and above all excellent customer service. You should ensure that whenever your customers hire your services (health workers from you), they will get competent workers and excellent service. The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers.

Businesses this days are aware of the power of the internet and which is why they will do all they can to maximize the internet to market their services. In other words, a larger percentage of your marketing effort will be directed to internet users.

These are some of the marketing ideas and strategies that you can adopt for your healthcare staffing agency business;

• Introduce your healthcare staffing agency by sending introductory letters alongside your brochure to medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al and other key stakeholders throughout the city where your healthcare staffing agency is located
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for your business so as to give your business an online presence
• Directly market your services
• Join local healthcare staffing agency services business associations for industry trends and tips
• Join local chambers of commerce and industry with the aim of marketing your services
• Advertise our business in community based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of Word of mouth marketing (referrals)

17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

If your intention of starting a healthcare staffing agency services business is to grow the business beyond the city where you are going to be operating from to become a national and international brand by opening offices all across key cities in the United States and franchising, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your healthcare staffing agency services business;

• Place adverts on both print (newspapers and food magazines) and electronic media platforms
• Sponsor relevant community based events
• Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote your healthcare staffing services business
• Install your Bill Boards in strategic locations all around your city or state
• Distribute your fliers and handbills in target areas
• Contact medical and health organizations like hospitals, nursing homes, mobile health clinics, health outreach organizations et al and other key stakeholders throughout the city where your healthcare staffing agency service is located informing them about your healthcare staffing agency and the services you offer
• List your healthcare staffing agency in local directories
• Advertise your healthcare staffing agency in your official website and employ strategies that will help you pull traffic to the site
• Position your Flexi Banners at strategic positions in the location where your healthcare staffing agency is located.
• Ensure that all your staff members wear your branded shirts and all your vehicles, buses and vans are well branded with your company logo et al.

How To Write a Nurse Staffing Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for a nurse staffing agency that wants to improve its strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every nurse staffing agency owner should include in their business plan.

Download the Ultimate Staffing Agency Business Plan Template

What is a Nurse Staffing Agency Business Plan?

A nurse staffing agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, areas of competitive advantage, and information about your team members. Your nurse staffing agency business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Create a Nurse Staffing Agency Business Plan?

A nurse staffing agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs looking to get involved in staffing agencies can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Nurse Staffing Agency Business Plan

The following are the key components of a successful nurse staffing agency business plan:

Executive Summary

The executive summary of a nurse staffing agency business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your nurse staffing agency  
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your healthcare staffing agency. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your nurse staffing agency , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your nurse staffing firm, mention this.

You will also include information about your chosen nurse staffing agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a nurse staffing agency’s business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the healthcare industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a nurse staffing agency business’ customers may include:

• Private practices
• Nursing homes

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or nurse staffing services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Of course, you may also promote your nurse staffing agency business via word-of-mouth or a referral program.

Operations Plan

This part of your nurse staffing agency business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a nurse staffing agency include reaching $X in sales. Other examples include adding new staff, reaching a certain number of customers, maintaining a retention threshold, or launching a new service.

Management Team

List your team members including their names and titles, as well as their expertise and experience relevant to healthcare staffing. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Nurse Staffing Agency

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Nurse Staffing Agency

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• investments

Below is a sample of a projected cash flow statement for a startup nurse staffing agency .

Sample Cash Flow Statement for a Startup Nurse Staffing Agency

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Plan for Success

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your nurse staffing agency company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is an essential tool for any startup nurse staffing agency. It not only lays out your business vision but also provides a step-by-step process of how you are going to accomplish it. The business plan can help to attract investors.  

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How to Start a Healthcare Staffing Agency

By Colin LaBeau Posted on 04/20/2022

Do you want to start a healthcare staffing agency? Have your friends or colleagues started one recently due to the growing demand for healthcare professionals? Over the past 24 months, the  demand for contract and temporary staffing  in healthcare has boomed. This is mostly due to the COVID-19 pandemic and the growing staffing shortage due to healthcare workers leaving the workforce. Many believe starting an agency is easy, but there are some major keys to success and pitfalls to be aware of before venturing into the healthcare staffing space. Below we will explore those best practices, options, and pitfalls so that you can start your firm with confidence.

Can anyone start a healthcare staffing agency?

The short answer is yes. Many staffing owners are former healthcare professionals themselves, and you do not have to come from the “business world” to be a successful recruiter in the healthcare space. In fact, medical professionals are sometimes the best fit to start firms because they know all the things it takes to work in the field. However, there are some things to be aware of if you plan on starting your firm and you are not a medical professional.

Things you will need:

• Applicant Tracking System
• Payroll funding
• Payroll administration or software
• Workers Compensation insurance
• Professional Liability insurance
• Background check vendor
• Drug screens
• Credentialing vendor
• Immunization vendor
• Invoicing capabilities
• Employee handbook
• Employment contract for workers
• Services contract for clients
• Business license in each state you plan to work
• Nurse Pool license (for states that require them)

Is “do it yourself” the only way?

You do not have to do everything listed above yourself. There are many service providers that can help with some or all of the things mentioned above. However, working with 3,5, or even 7 different vendors may take a lot of your time. Not being able to focus on your candidates and clients may prohibit you from growing your business. Good news is, there are services that handle all of the above for staffing agencies so that recruiters like you can focus on finding candidates and clients. Those types of services are called Employers of Record of “EORs”.

What is an Employer of Record (EOR)?

An  employer of record is an organization that serves as the employer for tax purposes while the employee performs work at a different company. The employer of record takes on the responsibility of traditional employment tasks and liabilities, so that their clients (recruiting and staffing agencies) do not have to carry those responsibilities. Basically they bring to the table almost everything on the above list, so you can focus on finding great talent for clients.

By using an EOR, recruiters and other businesses can free up time. Not having to deal with payroll, insurance, and HR issues can potentially save hours every week. Those hours can be used to find candidates and clients, which is the most important thing when first starting out.

EORs are cost-effective ways to outsource payroll and HR functions. The business pays the employer of record a set rate for every hour the employee works, and the employer of record handles all tasks.

EOR services can be especially helpful when dealing with payroll and employment laws for employees in multiple states. The employer of record stays updated on the state and local laws so you don’t have to worry about learning and complying with laws in multiple places. This also helps small staffing firms compete with the big players by opening up the entire united states for business, and not just their local area.

Major Pitfalls for Healthcare Staffing:

1. 1099 compliance.

Many healthcare staffing firms start out by placing RNs, LPNs, CNAs and more on a 1099 basis. However, this can be a major pitfall that leads to fines and penalties. The government is watching out for non-compliant 1099 workers, especially when they blow the whistle on staffing firms. If they do so, and your firm is found to have violated the Fair Labor Standards Act, you could end up owing a lof of money back to those works, and penalties, like  this firm .

2. Licenses

Many states require licenses for staffing firms to place healthcare professionals. In fact 10+ states have this requirement. Some of these states also require the staffing firm to have an RN or higher level professional on staff to “manage” the temp workers. So for those of you that are not medical professionals, this may be a tough barrier to entry, unless you use an Employer of Record (EOR).

3. Reliable staff

Last but not least many new staffing firms struggle to get reliable staff to work for their clients. This has been a trend among lower level healthcare roles for many years. However, with the demand in healthcare growing, there are so many options for these healthcare workers to choose from. So many are incentivized to jump between different firms and employers in search of the best rate, or “crisis pay”. Be sure to vet each member of your team prior to deploying them at a client in order to avoid wasted time, no-shows, and lost revenues.

Next Steps:

Whether you are just starting out or you’ve been doing healthcare staffing for a while, you need to make sure employees are classified correctly, paid accurately, and employment issues are handled. Otherwise, there can be consequences at the state and federal levels. FoxHire  provides an employer of record back office solution for recruiting agencies and other small businesses. Learn more about FoxHire’s contract staffing services.

Need an Employer of Record (EOR)?

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Crafting a Sample Healthcare Staffing Agency Business Plan

Understanding the healthcare staffing industry, conducting market research for your business plan, defining your agency's mission and vision, identifying target customers and tailoring services to meet their needs, developing a marketing strategy to promote your agency, creating a financial plan and setting realistic goals, determining staffing needs and recruitment strategies.

• Developing a Training Program for Your Staff

Establishing Quality Control Measures to Ensure Client Satisfaction

Managing legal and regulatory requirements for healthcare staffing agencies, evaluating risks and implementing risk management strategies, measuring success and tracking key performance indicators (kpis).

Starting a healthcare staffing agency is a challenging but rewarding endeavor, and requires careful planning and preparation to be successful. In this article, we will discuss the key considerations and steps involved in crafting a sample healthcare staffing agency business plan.

Before you start developing your business plan, it's important to have a solid understanding of the healthcare staffing industry. This includes understanding the current demand for healthcare workers, the types of positions that are in high demand, and the trends in the industry.

It's also important to understand the competition in the healthcare staffing industry, including the key players, their strengths and weaknesses, and any potential gaps in the market that your agency may be able to fill. This will help you determine your agency's unique value proposition and positioning in the market.

Another important aspect to consider when understanding the healthcare staffing industry is the regulatory environment. Healthcare staffing agencies must comply with various federal and state regulations, such as licensing requirements, background checks, and healthcare industry standards. It's crucial to have a thorough understanding of these regulations to ensure your agency operates legally and ethically.

In order to develop a successful business plan, you need to conduct thorough market research. This includes analyzing industry trends and demand for healthcare workers, identifying your target customers and their needs, and analyzing your competition.

You should also conduct a SWOT analysis to identify your agency's strengths, weaknesses, opportunities, and threats. This will help you develop a plan that capitalizes on your strengths while addressing your weaknesses and mitigating potential risks.

Another important aspect of market research is understanding the regulatory environment in which your agency will operate. This includes understanding the licensing and certification requirements for healthcare workers, as well as any relevant state and federal regulations that may impact your business operations.

Your agency's mission and vision provide the guiding principles for your business. Your mission statement should define your agency's purpose and core values, while your vision statement should describe your agency's long-term goals and aspirations.

Having a clearly defined mission and vision will help you stay focused on your objectives and make strategic decisions that align with your goals.

It is important to regularly review and update your agency's mission and vision to ensure they remain relevant and aligned with your business goals. As your agency grows and evolves, your mission and vision may need to be adjusted to reflect changes in the industry or shifts in your target market. By regularly revisiting and refining your mission and vision, you can ensure that your agency stays on track and continues to thrive.

To be successful, your agency needs to understand the needs of its target customers and develop services that meet those needs. This requires careful research and analysis of the healthcare industry and your target customers.

You should also consider your agency's unique value proposition and how it can differentiate itself from the competition. This could include offering specialized services or focusing on a particular niche within the healthcare industry.

Once you have identified your target customers and developed services that meet their needs, it is important to continually evaluate and adapt your offerings. The healthcare industry is constantly evolving, and your agency must stay up-to-date with the latest trends and technologies to remain competitive.

Once you have identified your target customers and developed your agency's unique value proposition, you need to develop a marketing strategy to promote your services and attract clients.

This can include developing a brand identity, creating a website and social media presence, networking with potential clients and referral sources, and developing marketing materials such as brochures and flyers.

It is important to regularly evaluate the effectiveness of your marketing strategy and make adjustments as needed. This can involve tracking website traffic and social media engagement, monitoring the success of networking efforts, and soliciting feedback from clients and referral sources.

A financial plan is essential to the success of any business, and is particularly important when starting a healthcare staffing agency. This includes developing a comprehensive budget, projecting revenue and expenses, and setting realistic goals for growth and profitability.

You should also consider financing options for your agency, including loans, grants, and investment capital.

It is important to regularly review and adjust your financial plan as your business grows and changes. This can include reevaluating your budget, revising revenue and expense projections, and adjusting your goals to reflect new opportunities or challenges. By regularly monitoring and updating your financial plan, you can ensure that your healthcare staffing agency remains on track for long-term success.

As a healthcare staffing agency, your success will depend on your ability to recruit and retain qualified healthcare professionals. This requires careful planning and strategy, including developing job descriptions, identifying qualifications and skills required for each position, and developing recruitment strategies that attract top talent.

You should also develop systems for onboarding and training new hires, as well as performance evaluation and retention strategies.

One effective recruitment strategy is to establish partnerships with nursing schools and other healthcare training programs. This allows you to build relationships with students and faculty, and to identify top performers who may be interested in working with your agency after graduation. Additionally, offering internships or other opportunities for students to gain experience with your agency can help to build a pipeline of qualified candidates for future staffing needs.

To be successful in the healthcare staffing industry, your agency needs to prioritize quality control measures that ensure client satisfaction. This includes developing systems for screening and evaluating candidates, verifying credentials and references, and conducting periodic performance evaluations.

You should also establish clear communication channels with your clients, and respond quickly and effectively to any concerns or complaints.

Another important aspect of quality control measures is to regularly gather feedback from clients and use it to improve your services. This can be done through surveys, focus groups, or one-on-one meetings. By actively seeking out and addressing client feedback, you can demonstrate your commitment to providing high-quality staffing solutions and build long-term relationships with your clients.

Starting a healthcare staffing agency involves complying with a variety of legal and regulatory requirements, including licensing, insurance, and compliance with state and federal labor laws.

You should do your research and work with legal and accounting professionals to ensure that your agency is fully compliant with all applicable laws and regulations.

Starting any business involves inherent risks, and healthcare staffing agencies are no exception. It's important to evaluate potential risks and develop strategies for mitigating those risks.

This could include developing contingency plans for unexpected events such as staff shortages or client cancellations, and having proper insurance coverage to protect your agency and its clients.

Finally, it's important to regularly measure and track your agency's performance against key performance indicators (KPIs) such as revenue growth, client satisfaction, and employee retention.

By regularly evaluating your agency's performance and making adjustments as needed, you can ensure that your agency stays on track and continues to thrive in the competitive healthcare staffing industry.

In conclusion, starting a healthcare staffing agency requires careful planning and preparation. By following these key steps and developing a comprehensive business plan, you can increase your chances of success and build a thriving healthcare staffing agency.

Abe Rubarts

As a digital marketing strategist and top-rated consultant with over 15 years of experience, Abe Rubarts is on a mission to make the internet more fun for everyone. With his background in tech, sales, customer service, and advertising, this personal growth expert Knows What You're Going Through! Abe loves helping busy people like YOU figure out your next step forward - whether that's building an audience or making money online. And he does it all through strategic planning; providing guidance while keeping things fresh & exciting so you stay motivated every day.

Stay In The Loop

The CEO a.k.a. cat herder of Locus Digital, a digital marketing agency in Austin, Texas. He’s been in the industry for over 10 years. He’s great at herding cats, but it doesn’t come without his fair share of scratches - to which you don’t have to experience when you need his help.

He’s an expert on all things internet, including but not limited to: SEO/SEM, content creation, 2D/3D Animation, PPC and more! He has led dozens of successful projects for clients like Graham Holdings, Forney, Mitel, Indigo Workplace, and and more.

Most healthcare entrepreneurs aren’t self-taught, and that’s good news for you. It means you’ll have access to a wealth of resources and people to help you along the way. One of the biggest advantages is networking, which is exactly what healthcare staffing businesses do. Without networking, you wouldn’t have referrals, the lifeline of any growing staffing agency.

1. Research different business models

2. Choose a specific target demographic

3. Select areas of improvement

4. Create a fee structure

Business plans are one of the most important documents that a start up or growing business possesses. Business plans are a roadmap for achieving the goals of the business. Business plans should include the objectives, strategies and tactics that a business will use to achieve them. The goals and strategies of a business plan should be expressed in terms of financial targets. A business plan describes the business’s objectives, its intended strategies and tactics, and its overall organizational design.

The healthcare industry is evolving rapidly. As a result, health care entrepreneurs are redefining public and professional views of healthcare business. They are developing and applying new ways of solving common problems in the health care industry. They are redesigning the health care system, creating new ventures, or implementing new technology.

To many, a career in healthcare staffing is a no-brainer.

With all the work that’s available and the steady income, many healthcare professionals are turning to staffing agencies for help. But for those new to the staffing business, a business plan serves as an important guide to help set both long- and short-term goals. Companies need a business plan if they’re going to navigate the complex political, legal and regulatory environments in which staffing agencies operate.

In conclusion, healthcare staffing business plans are needed for those who want to start successfully. Healthcare staffing businesses are only successful when executed by an experienced and knowledgeable business professional.

Do you want to start your own healthcare staffing company?

Enroll in my new course, for 50% off.

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Adella Pasos is an entrepreneur and marketing expert who makes a difference. She has grown brands from scratch, worked with startups and small businesses, and Fortune 500 corporations too. She has revealed to her clients the ability to access their niche market via online, social media, mobile, merchandising, and events.

Another of her popular shows is the “What’s Your Game Plan TV” show, which features free expert advice, growth strategies, free tips and trends, and tools to make a business succeed. She can be found on IMDB, Instagram, YouTube and her official website.

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