Thinking About Starting a Staffing Firm? Here’s What No One Tells You.

If you’re launching—or growing—a staffing firm with a team of one (or maybe three), you’re not just wearing all the hats… you’re building the hat rack, too.

You know how to recruit. You’re great with people. But what about all the business stuff that no one explains?

That’s why we created Staffing Industry 101 for Solopreneurs & Startups

A fast, focused training built for founders and lean teams who want to scale smart, not just fast.

But while you're waiting for the course to drop, here are 3 quick truths every new staffing founder should know:

Empower your startup journey: "Start Making Changes" with bold moves and innovation.

Staffing Revenue Isn’t All Yours—Understand the Markup Math

Just because you bill a client $75/hour doesn’t mean you’re raking it in. After you pay your consultant (say $55/hour), you’re left with $20/hour. But then subtract:

• Payroll taxes

• Insurance

• Back-office fees (if you use a platform or EOR)

That $20 drops fast. Many new firms underestimate how slim margins can get—and accidentally price themselves out of profit.

Tip: Aim for a minimum 30% markup just to break even. Learn how to calculate your true Gross Profit early.

Clients Don’t Buy “Recruiting”—They Buy Outcomes

Founders often lead with “we find top talent” or “we match great people with great companies.” But here’s what clients actually care about:

• “I need someone I can trust to run this project.”

• “My board is on me to fill this role by next month.”

• “We’ve had 3 bad hires—I can’t afford another one.”

Tip: Shift your messaging from what you do to what they get. That’s when clients start listening.

Choose a Delivery Model That Matches Your Capacity

Just because other firms offer contract, contract-to-hire, and direct hire doesn’t mean you should do all three out the gate.

Each model has trade-offs:

Model Pros

Model	Pros	Watchouts
Direct Hire	Quick payment, no long-term liability	Feast/famine cash flow
Contract	Recurring revenue, scalable over time	Upfront costs, needs back-office setup
Contract to Hire	Blend of both	Needs strong consultant relationships

Tip: Start with one or two models that align with your cash flow, capacity, and confidence. You can grow from there.

Starting a staffing firm? The Training Drops Soon.

Staffing Industry 101 for Solopreneurs & Startups

→ A fast, practical course covering:

• Industry must-knows

• Delivery models that make sense for small teams

• Pricing, margin, and cash flow basics

• How to sound credible (and close deals) fast

This is the stuff most founders learn the hard way—we're giving it to you upfront.

📣 Launching soon through The Collective. Join the list, follow

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