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Starting a Staffing
or Recruiting Business



Written on September 18th, 2017 by in Blog

When you enter the Staffing and Recruiting Profession, you have five options:

  1. Invest in a Franchise ($75,000+)
  2. Purchase an existing Staffing Firm (Depends on value of the Firm)
  3. Work for someone else, learn the profession and then go out on your own (starting from scratch due to non-compete agreements)
  4. Open your business and learn as you go (high failure rate)
  5. Invest in our Start Up Tutor (Under $5,000 investment)

Let’s discuss the pros and cons of buying an existing staffing firm:


  • You can determine if the business is profitable by reviewing financial statements
  • Established location, reputation, clients and candidates
  • Trained Team
  • Training
  • Reputation is established
  • Niche or Area of Specialization is Determined


  • You don’t know the “reputation” of the firm or the word of mouth in the market
  • You will pay much more if you buy an existing business than if you start out on your own
  • There is no guarantee that one person will stay after the sale
  • Their margins may be low and if you buy this business, clients will expect the same pricing
  • Often clients are loyal to a person – not a firm.  There is no guarantee the current clients will do business with you.
  • Often there is not a structured training program – so you end up learning OTJ
  • There is little or no movement to “sell” staffing firms right now – so make sure you do a thorough due diligence process.
  • You have instant overhead that must be met each month

Depending on the niche you select, you don’t need to necessarily have an office and a high overhead when you begin. You can work from home until you are profitable.   Much depends on which choice will help you achieve your short and long-term goals.