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Employment Recruiting Biz

by dro102886, Window Shopper

  • Created: May 18, 2010, 3:15 pm
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2 comments

I thought of starting a business where, I charge a potential employee a small fee to connect him with an employer.

Like a staffing agency, but I make my money upfront, from the potential employee and not the employer.

Do I need any licensing, or just registering a business should do?

I am in Texas, that's where I will establish it.

The fee will be just a couple of dollars, not hundreds.

I will not do the interview, the employer will, but I could probably do it myself, to pre-qualify the potential employee.

I have no background education in HR, but I'm willing to read, but not really study or take a course.

I would do it in a office, from a friend of mine. Focus with individual employers, not real big Corps, at least not at first.

 

Any tips or ideas welcomed thanks Community!!!!

 

 

 

Tags: Discuss Popular Topics, Starting & Registering a Business
‹ Business Name coffee / tattoo shop ›

davef | Creator | 5/21/2010 - 1:10 pm

Do you have access to a pool of employers who are looking for applicants?  If not, why would I pay you to help me? You say you're not going to interview anyone and you have no HR background:  once again, if I'm looking for a job, why would I pay you to help me?   There's big money in executive placement - but you have to be working for the affluent companies who are doing the hiring, not the people looking.    Is the local market where you live different?  I don't know,  I'm not in Texas.   One thing I can suggest:  if you're charging 'just a couple of dollars,' you're going to have a hard time finding enough unemployeed people willing to part with their tight dollars, to make any money at it.  have you figured out how many people you're going to have to work with every day?  And how many people are prospects for you?    What I'm getting at is this:   If you live in a town of 10000 people, assume two thirds are in the job market (not retired or in school).  Out of those 6600 people, assume 10% unemployment.  That means 660 prospective customers for you.   Of those 660 people, how many can you contact, talk to, and ultimately convince to hire you?  A tenth of them?  That would be pretty good if you could get a tenth of the unemployeed in your region to pay you to help them find a job.   Assuming a tenth is the answer, and I honestly think that's a very liberal assumption, you could count on having 66 customers.  If you charged them $100 each, you could make $6660 a year.  Then subtract your advertising costs, phone, and other business expenses.  Then subtract your taxes.  Are you left with enough money to make it worth your while?   I'm not saying your idea is good or bad, I'm just asking a few questions that might help you sharpen your plan.

BizResearcher | Window Shopper | 5/19/2010 - 8:30 am

This seems like a lot of work. You would first need to contact businesses to obtain information about open positions. Then, you would need to find a suitable match fairly quickly. If you are not pre-screening applicants in some manner, how would your service differ from the business owner posting an ad on Craig's List? Anyone looking for a job can find free job postings in numerous places. You would need to bring something to the table to make your service more attractive to the unemployed and get them to pay for it.