Purchasing a staffing business for sale is an exciting entrepreneurial journey. Evaluating companies based on certain criteria is essential in making the right choice. This blog post outlines the key factors to consider when searching for a staffing agency for sale.
Prospective buyers should begin by reviewing the agency’s financial statements and performances over the past few years. A strong history of profitability and growth is crucial, so buyers should look for agencies with steady revenue growth, consistent profits, and a healthy client base.
For example, the staffing franchise, AtWork, shows consistent growth after being open for two or more years.
|Average Gross Revenue*
|Two to Three Years
|Three to Four Years
|Four to Five Years
|Five or More Years
|Average of All Stores Operating in 2022
*Based on Item 19 in AtWork’s latest FDD. This is only a financial representation and not a guarantee.
Any red flags in the financial data should prompt further investigation. Additionally, assessing how the agency can leverage emerging trends in the staffing industry is essential.
Instead of purchasing an existing staffing agency for sale, consider AtWork, a staffing franchise that pays for itself. Here’s how that works: AtWork’s royalty fee is 7%, and the marketing fund contribution is 1% of the franchisee’s revenue. Those fees give franchisees access to AtWork’s full suite of support, including payroll funding and processing. When operating an independent staffing agency, owners will spend up to 15.5% of their revenue on just payroll funding and tax processing.
A solid reputation is the backbone of a successful staffing agency and takes time to build. To evaluate the company’s reputation, read online reviews, testimonials, and client feedback. Contacting existing clients provides insight into their satisfaction levels and the strength of their relationships with the agency.
Instead of buying a staffing agency for sale, prospective buyers should consider investing in a staffing franchise like AtWork, which comes with an established national reputation and customer trust. This allows franchisees to attract new clients more easily from the beginning.
Market Size, Presence, and Scalability
Analyzing the presence of different agencies in the staffing market is crucial. A strong market presence indicatesbrand recognition and a competitive edge. Identifying the industries that the agencies specialize in can help in finding a niche market that sets them apart from competitors. Additionally, assessing scalability is vital for long-term success and maximizing returns on investment.
When checking out staffing agency franchises, understand their territories. Are they protected, meaning the franchise usually won’t sell other locations within your territory? AtWork offers protected territories based on zip codes, typically with a population of 200,000.
Technology and Systems
Efficiency plays a pivotal role in the staffing industry. Evaluating the agency’s technology, systems, and processes ensures they are up-to-date and capable of handling current demands. Opting for a franchise like AtWork offers the advantage of receiving a proven business model with established processes. From accounting to risk management, staffing franchises have experts to guide new owners through the various aspects of business operations.
Management and Employees
The competency and experience of the management team are key for navigating challenges and driving growth. Furthermore, evaluating employee turnover rates provides insights into the stability and skill level of the agency’s workforce. A high turnover could indicate underlying issues that a prospective buyer should investigate before buying a staffing agency for sale.
Franchising provides the benefit of comprehensive training and support for both management and staff, ensuring they’re equipped for success. For example, AtWork franchisees receive assistance with internal hiring through recruiting resources, interview guides, performing secondary interviews, and compensation plans. Staff can also attend live training with the franchise owner before opening. Plus, prior to opening, an AtWork field operations team will visit the new office to ensure that all items covered during live training are understood and practiced.
Legal and Compliance Issues
Verifying the agency’s compliance with labor laws and industry regulations is essential during the search for a staffing business for sale. This includes looking into the agency’s workers’ compensation filings history or any open cases. Legal troubles can severely impact an agency’s reputation and financial standing.
AtWork backs its owners with an entire risk management department that handles the client safety review process to ensure only the safest light-industrial clients become partners. They also help in the unfortunate case of a claim and perform mock OSHA audits and courses.
Go to Work With AtWork
Starting a staffing agency from scratch or taking over an existing one can be daunting. Exploring staffing franchises like AtWork offers the perfect compromise, allowing prospective buyers to benefit from an established brand and proven business model, increasing their chances of success in the growing staffing industry.
With more than 30 years of experience, AtWork is one of the country’s leading providers of contingent and permanent workforce solutions. AtWork places talented professionals into administrative, light-industrial, accounting and finance, hospitality, IT, and management-level positions at some of the nation’s largest and most recognizable companies. Owners also partner with businesses to help them find workforce solutions.
Get started with AtWork today.