How to Finance Your Temp Staffing Company
If you have made it this far then I can say for certain that you are probably serious about starting your medical staffing business. You either have money or you do not have money to start your medical staffing business. I believe in “OPM” when starting a business or “Other Peoples Money”. Before I begin discussing “OPM” lets first see how much money you will actually need to get started.Starting a medical staffing agency requires more money than other types of businesses. Mainly because you have to pay your employees many months before you actually get paid. The speed of your projected growth will help you determine how much money you think you will need.After you discover how much money you will need to start your medical staffing agency you will then double that figure.How big will your medical staffing agency be? Will you hire office employees part time or full time? Will you have part time employees working in the facilities? Will you pay for there workers compensation or require them to have there own insurance? This is important because if they carry there own insurance, they may be classified as 1099 and not W2. The difference is significant in terms of what you pay and what you don’t pay. Each state has different rules when it comes to this designation and you should contact your state to get more information concerning the designation between a 1099 and W2 Employee.What services are you planning on offering? Depending on the service you are planning on offering will determine the costs. A Physician based medical staffing agency will require more start-up money than say a respiratory therapist staffing agency. You start-up capital will be much higher if you are not specialized in the initial niche you are targeting as apposed to being able to cover the initial shifts within your niche.Depending on the competition and the costs within your region will determine how much money is required in sales and marketing. Employee pay will vary depending on your location or state. Tax rates are different in each state as well as expectations of employees and clients.
