The ability to find clients is an important part of running a staffing agency. There is fierce competition in the staffing market. The same contracts are often offered by multiple agencies. If you want to succeed, you need to know where to find these opportunities, and how to take advantage of them.
So how can you go about finding clients for your business? One way is to start by identifying companies in your industry that are likely to have a high turnover rate. These companies will frequently need to staff new positions, making them ideal clients for your staffing agency.
You can also reach out to companies that are expanding their operations or relocating to a new area. These businesses may need assistance with their hiring needs, and they may be willing to use a staffing agency to help them find qualified candidates.
How to Find Clients for a Staffing Agency
Starting a staffing agency can be a great way to help businesses find the talent they need. However, one of the biggest challenges faced by staffing agencies is finding clients. Here are a few tips for finding clients for your staffing agency:
1. Get involved in your local business community. Attend Chamber of Commerce events, trade shows, and networking events. This will help you meet potential clients and build relationships.
2. Use social media to connect with potential clients. LinkedIn is a great platform for connecting with businesses that may need your services.
3. Keep your website up to date and informative. Potential clients will likely visit your website before contacting you, so make sure it makes a good impression.
4. Have a strong sales pitch ready. When you do meet with potential clients, be prepared to sell them on your services. Explain how your staffing agency can help them save time and money while finding the best talent for their needs.
By following these tips, you can start building a client base for your staffing agency and grow your business.
What makes you better than the competition?
Before you start seeking clients, you should figure out why they should buy from you. Bottom line: What sets you apart from your competitors? How and why are you better than them?
Answering this question is as simple as saying “you provide great service.” However, that’s not good enough. In addition to everybody saying that, it is expected to be part of your service. Companies that don’t provide quality services are weeded out by the market. You need to be better.
Perhaps you provide better employees? Or offer superior training programs? Or access to a large pool of staffers? The best way to find clients is to get a clear idea of your sales proposition.
How to discover clients and land contracts
It takes effort and dedication to obtain a contract in this industry due to its competitive nature. It is important to identify your target clients, their needs, match those needs with your value proposition, and, ultimately, make the sale. Stick to the following 13 tips to increase your client retention.
- Become an expert of the market you operate in
As an expert in your industry, you should be able to fulfil the staffing needs of that industry. Building a great reputation takes time, but it is the most efficient way to gain clients in the long run. Any other strategy for gaining clients will be more effective if your company becomes an expert in your target market.
Become as familiar as possible with the needs of clients in your industry. For example:
- What skills are in high demand?
- What skills are in short supply?
- Where do they usually look for candidates?
- Are they affected by seasonality? If so, how?
- How are they affected by economic downturns and upturns?
Developing this expertise allows you to anticipate your clients’ needs and better serve them. Clients will be motivated to contact your agency whenever they need staffing help because of your level of expertise.
- Identify your ideal target clients
Prior to placing staff with clients, identify your target clients. There are generally three buying groups in the industry. A client can be classified as a “volume buyer,” a “boutique buyer,” or “everyone else.”
A volume buyer is a large company with a large staffing requirement. This is great in theory. Unfortunately, they generally shop for the best deal. Would your pricing be low enough to compete with a large national competitor? What if you couldn’t price as low as you wanted? Would you really want that?
Companies that require specialised talent from boutique buyers are called boutique buyers. Boutique buyers pay close attention to quality. If a staffer is not qualified, it could negatively impact the company. In addition, boutique buyers can deliver solid margins because they are less sensitive to price.
Last but not least is everyone else. The buyers in this category aren’t necessarily boutique buyers or large buyers.
- Gather referrals
Any business can be built through referrals. Customers or employees can refer you. In addition to providing valuable information, they can also assist in making new connections with buyers.
It’s tough to get referrals when you’re starting out and don’t have a solid track record, especially if you’re new. Think about implementing a referral system. However, don’t expect it to produce results right away.
- Increase your level of networking
Many agencies get most of their clients through networking. Networking is hard work and requires effort. It is unlikely that you will see results right away unless you have prior experience in the industry. Networking, however, is an excellent way to gradually build a reliable pipeline.
- Go to trade shows
You can meet potential clients at trade shows. They bring everyone in your target market together. A national trade show may be overkill for many small agencies. Travel and accommodations can make it expensive to attend. Getting a booth adds to the expense.
A local trade show, however, can be extremely useful. They are usually reasonably priced and provide great value.
- Frequent industry associations
You can take advantage of the resources provided by industry associations in your target industry to grow your business. Local chapters of most associations meet regularly. Meeting potential clients and getting sales meetings can be a great benefit of these events.
- Utilise LinkedIn frequently
LinkedIn is the most popular method recruiters use for finding employees (it’s crowded, by the way). LinkedIn can also be useful for finding clients. To contact clients, search through the client list and use the messaging feature.
The most valuable use of LinkedIn is as a tool for gathering intelligence. You can use it to learn about the background of executives you are interested in connecting with. You can learn about their latest endeavours from their profiles, likes, or posts. Staffing may be required for these kinds of projects.
Here’s a tip that’s important. Do your research before contacting a prospect or company. A pitch from a person who hasn’t bothered to do a little research is off-putting to any executive.
- Try cold calling
Cold calling is hated by everyone. Executives dislike receiving calls. Salespeople dislike making calls. Most calls end in hang-ups or no-goes, but some do not and eventually lead to sales. Cold calling, for better or worse, works for some companies.
It is relatively cheap to make cold calls. A telephone line is all you need. Using Google and LinkedIn, you can build a client list. Cold calling can be a good (albeit difficult) way to build up a client base.
- Investigate government staffing opportunities
Among the big employers that most small staffing firms overlook is the federal government. There are many government agencies that require temporary staffing from time to time. Government contracts can be found on Contracts Finder.
Contracting with the government has its drawbacks, however. Identifying government opportunities and applying for them, as well as qualifying for them, can be time-consuming processes. Searching for government contracts can take up most of your time.
State, county, and city governments also hire temporary employees. Purchasing can be a complex process. Nonetheless, it can be worth it.
As a last resort, you can also seek contracts as a subcontractor. It is common for small businesses to use this approach to gain access to government contracts.
- Be clear about your rates
Costs and fees should always be transparent. Hidden (surprise) fees kill relationships faster than anything else.
- Develop a proper follow up process
There is a good chance you will contact a prospective client when they are not in need of your services. Create a system for communicating regularly with prospective clients. Keep your follow-ups exciting by varying your communication style/venue. For instance, follow up with a phone call the first time. After that, send an email. Schedule a third coffee date, and so on.
- Not all clients are good for business
A client is not always a good client. It may happen that they do not pay on time or do not pay well. They may harass or mistreat your employees. This list could go on and on.
Consider firing a client if you cannot fix the situation. Be professional and adhere to your contracts. Even if a client is bad, you must never mistreat them. That’s how you can end up with negative online reviews.
- The importance of payment terms must be understood
We have previously mentioned that not all clients pay well. Many large companies, especially those that deal with government contracts, require net 30- or net 60-day terms. This requirement can cause cash flow problems if you cannot wait. Consider staffing payroll finance, a type of factoring aimed at staffing companies. It provides funds for payroll and growth by paying slow invoices.
Seasoned professional with a strong passion for the world of business finance. With over twenty years of dedicated experience in the field, my journey into the world of business finance began with a relentless curiosity for understanding the intricate workings of financial systems.