Would Like Advice..

[SustainDan]

Hey Guys,

I would like some good advice if possible. I recently quit my last job, I was doing technical recruiting for software and hardware engineers. Im starting my own staffing agency up now. Aside from creating a business plan and showing it to Angel Investors and Venture Capitalists, what are some routes I can take in order to get about 20-30k in starting this business. I already have a network, and plan for the company to start before years end (January is when lots of openings come out).

Any suggestions as to where to look?

Also does anyone know if staffing agencies need any permits or licenses? Where can I go to find this info out?

Thanks Guys

[TwoTonTony]

Hey Guys,

I would like some good advice if possible. I recently quit my last job, I was doing technical recruiting for software and hardware engineers. Im starting my own staffing agency up now. Aside from creating a business plan and showing it to Angel Investors and Venture Capitalists, what are some routes I can take in order to get about 20-30k in starting this business. I already have a network, and plan for the company to start before years end (January is when lots of openings come out).

Any suggestions as to where to look?

Also does anyone know if staffing agencies need any permits or licenses? Where can I go to find this info out?

Thanks Guys

State of Florida has a website for all govt licenses required......I needed it for my commercial and biz brokerage license....


Also vc and angel investors want no part of a 20-30k investment.....borrow from friends and family.......or credit cards....(if you believe in yourself)......this way you keep your company......

VC's are looking for unique ideas and a chunk of the company....


I presented to VC's a concept (and i had a 2 million dollar biz) for www.trophy.com on line awards.....i sent my biz plan out on an engraved plaque to 50 vcs.....got 3 meetings.....and then the Nasda crashed and all VC money dried up....

I believe the organaztion in Florida you need to contact is the
FREC

[SustainDan]

Thanks so much Tony..what about bank loans (honestly my credit isnt great) is there a way to get a bank loan of that portion with not great credit?

[Steortex]

You might want to look into Nevada or Delaware to incorporate. usually the cheapest. Hey when ever you try to do something like this you have to have to have cash flow to make this work. Me and my brother use to do this you have to float payroll most company pay out at least 90 days so we really struggled with pay roll. So just remember your first 45 to 90 days no checks will come in but your worker will usually only go 2 weeks with out pay. so you will need to have cash for the first 2 or 3 months. Just something to think about.

[SustainDan]

I actually have unemployment checks coming in...and the guys that are working for me are working at the old job still until I get up and running, thats a large reason for my growing network.

[Steortex]

I actually have unemployment checks coming in...and the guys that are working for me are working at the old job still until I get up and running, thats a large reason for my growing network.

But say you fill 3 jobs in jan and these guys are making say 50hr and you are billing the company 70hr for these guys to work? the company most big company pay you 45 to 90 days after you bill them. so you will need to pay this i employee probly 200 hrs before the company pays you. thats $10,000 an employee. Cash flow is the biggest problem for the first 3 or 4 months. unless you are not going to recruit Hr employees. Maybe you will do full-time and just get a cut of there salary. We did this for years its just something to think about

[shoeman530]

If you have some collateral, you could apply for a line of credit for 20-30k with a local bank. You will need to have an organized business plan put together that you can strongly sell to the bank.

[SustainDan]

Thanks guys...any good names come across your head for a staffing company??

[TwoTonTony]

If you have some collateral, you could apply for a line of credit for 20-30k with a local bank. You will need to have an organized business plan put together that you can strongly sell to the bank.

a bank will NOT give a new start-up with bad (or good) credit a LC.......It is a bad bet for them as a bank.....regardless of your biz plan.....

I suggest working your ass off for a yr so you can be properly capitalized.....

Most buisiness's do not fail due to lack of sales....It is cash flow....and not having enough working capital


Here is a rule of thumb i used whenever i opened a business (i have owned 7)

whatever you project for sales (cut that in half) you are probably not being realistic

whatever you project start up costs to be (double those)...budgets always get blown up.....I always do most construction myself and buy used furniture.....etc....

Do not even waste your time with a biz plan for a bank.....if you are going to seek outside money and you were coming to me I would want to know WHY i should invest in you? what have you done to show that you can run a successful business? what guarantees will i have to get my money back? what Rate will you being paid out? will you set up investors as limited partners? will i get a chunk of the company?

the best way to do this is not have to rely on outside funds...

My first venture i saved 10K and had zero employees.....13 years later i had 16 employees and sold it for over 500K....

if there is a will there is a way......

last thing you should worry about the name....

concept first
systems second (all businesses regardless of size) should be run from the beginning as if they were a franchise.....all systems should be documented

[Kaptain]

small business loan---US Government

[jcindaville]

Thanks guys...any good names come across your head for a staffing company??

Ramen time staffing

[TwoTonTony]

small business loan---US Government

won't happen with no experience....bad credit.....no collateral