How to Start a New Labor Hire Business

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First-time job seekers are at a disadvantage. They don’t have experience. Even in low-paying jobs, employers prefer someone with experience over someone who’s never had a job. Assist first-time job seekers in finding employers and help employers find workers. Start a new labor-hire business.

New Labor-Hire Business Start-Up Guide

Come up with a unique selling position. For example, promote your business as the employment agency that brings new labor into the workforce prepared. Decide on an operating strategy. Link new hires directly to businesses or hire a labor force yourself and send them to jobs as temporary employees.

Develop a training program. Go through the classified ads of the local newspaper every day. Pick up the local job-hunter publications. Review them and look for patterns in the types of jobs that are available for new hires or people with little experience.

Create a list of the industries that hire unskilled workers the most. Focus on a specialty such as warehousing or shipping agents. Request interviews with managers of companies who hire workers in your area. Ask them what they are looking for in employees and ask for descriptions of job duties.

Develop a training program based on teaching new hires to perform those job functions. Hire a training coach or use people skilled and seasoned in the field to help train new hires part-time. Train labor in the art of interviewing.

Find an office with multiple rooms. Use one of the rooms to train employees. Use another for your office. Use a private room for interviews.

Apply for a business license. Complete the application online if your city has those capabilities. Apply for a federal tax identification number through the IRS.

Find the money to pay employees and to pay the leasing costs for your office. Seek a bank loan. Provide the bank with your detailed business plan, including your profit forecasts and a breakdown of funding needs. Buy worker’s compensation insurance from a state-licensed insurance company.

Write an introductory letter to businesses within your niche industry. Let the managers and human resources professionals know that you can make their jobs easier by sending new hires their way.

Launch an online presence to create an additional revenue stream. In “101 Internet Businesses You Can Start from Home,” Susan Sweeney advises: “You could charge individuals to submit their resumes. You could charge employers to post their employment opportunities.

Fill your database with labor to send to jobs. Schedule an open call for labor. Post a classified ad in the paper with the time to appear and the address.

Promote your labor force to local businesses. In “Entrepreneur Magazine,” Tami Hernandez writes, “In a highly competitive market, you need to stand out with messages that are relevant to the times. Evaluate your messaging to ensure it connects with customers. Keep in mind that their wants, needs and interests may have shifted with the economy.”

Place cold calls to hiring managers and human resource departments in your niche industry. Explain that you have a labor force that is ready to work.

References

Resources

  • Low-wage Workers in the New Economy; Richard Kazis, Marc S. Miller;2001
  • Temporary Agency Work and the Information Society; Roger Blanpain, Ronnie Graham; 2004

About the Author

Sam Williams has been a marketing specialist and ad writer since 1995. He has been published in magazines such as "Reaching Out" and "Spa Search." He served in various sales and marketing positions with major corporations such as American Express, Home Depot and Wells Fargo. Williams studied English at Morehouse College.

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