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Should My Company Name Be My Name?

I’ve noticed that most staffing and recruiting firms are not the name of the owner.  I have hired a business consultant who suggested I utilize my last name as my company name so I can gain name recognition faster.  What are your thoughts on importance of the name of a staffing and recruiting firm?

Your personal name will not automatically improve name recognition since you are a new business.  When selecting a name you should consider if your name could assist in search engine optimization.  Most candidates and many clients will find you online.  If you place only Engineers, obviously using the word engineer or engineering in your name would be a smart decision.  If you only placed Project Managers, you might want to include that in the selection of your name.
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Can I Pay Contractors on a 1099 vs. a W-2

In order to pay someone as an independent contractor in the U.S.A., you must meet all the qualifications that are listed on www.irs.gov.

In most instances, your contractors will not qualify as an independent contractor and must have taxes withheld from their paychecks.  I would suggest that you print out the list on the IRS site, talk to you attorney and accountant and then make your decision.

You don’t want to pay heavy fines and back taxes in the future which could literally put you out of business.

How Long Can I Work From Home?

It is wise to work from home when you start your new business. This keeps your overhead down and limits your financial exposure. There are however some areas of specialization that require an office. These include: light industrial temps, office support placements, customer service and other niches that mandate face-to-face interviews and often the administration of various tests.

If you are placing at higher levels, there is no need to have a physical office. Interviews can be conducted off site, through the utilization of teleconference or Skype technology. Many Staffing and Recruiting Firms, who had offices, now employ a 100% virtual team. It is important to realize however, that a virtual team is harder to train, monitor, manage, track and motivate.

Should I Only Place People In Full Time Jobs?

The most lucrative business model is a blended model. It is best to place people in full-time jobs which generate lucrative fees, but also place temps or contractors which provides a reoccurring revenue model.

If your exit plan is to sell your business, this blended model would provide you with the greatest return on investment. Investors will pay more for the reoccurring revenue model vs. direct placements.

In the staffing and recruiting; temp and contract segments of this profession it is important to build a business that generates and protects a high gross margin of profit.

Should I Find Clients Or Talent First?

If you are new to the Staffing and Recruiting Profession or entering a new niche, it is wise to first identify talent. Individuals in your niche can provide you with extremely valuable information. They can reveal the best companies to target, leads to other talented candidate, job leads and companies who utilize the Staffing and Recruiting Profession.

Once you interview ten individuals with a specific title, you now understand what they do and have information that will greatly assist your client development efforts.