Free Employment Agency Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of an employment agency while showcasing the expected financials and operations over the next three years. The Employment Agency, Inc. (“the Company”) is a New York based corporation that will provide job placement for both individuals and businesses seeking new hires in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The Employment Agency is a recruitment firm that seeks to help people (of all business disciplines and career levels) find jobs/careers. The Company will place these people among a number of different sized businesses within the target market. The business is in a good position to capitalize on the fact that many major corporations and medium sized businesses are now outsourcing their sales recruitment and human resources to third parties. The third section of the business plan will further describe the services offered by the Employment Agency.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Employment Agency seeks to provide job placement services in a professional and cost efficient manner to small, medium, and large businesses throughout the target market while concurrently finding jobs/careers that properly suit applicants.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the human resources industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and businesses that are currently hiring within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Employment Agency, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Employment Agency requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Employment Agency, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Employment Agency. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
3.1 Staff Recruiting, Job Placement, and Temporary Employment Services
The purpose of the business is to provide people of all experience and educational levels with the ability to quickly find suitable jobs (both permanent and temporary) from employers within the target market. Within the target market there are a number of businesses that operate among a number of industries that have a continued demand for new hires. The Company will accomplish its permanent and temporary candidate placement by contracting small and medium sized businesses to act as their outsourced staff recruitment and temporary employment management department. The business will also provide temporary employment services, which will provide the Company with a recurring stream of income from job candidates that are placed in temporarily needed positions. The business will collect payments from companies that hire Employment Agency candidates. The Employment Agency will then pay the temporary employee directly rather than having the business client directly pay the staff member. This is an extremely important revenue stream for the business as it will generate recurring streams of high margin revenue on a monthly basis. Typically, these positions will pay by the hour (with an average wage of $15). The Company expects to bill the business client $18 to $22. Management expects that 60% of the Company’s revenue will come from this revenue stream while 35% will come from the direct placement of candidates in permanent positions.
3.2 Staff Training
The Company will also provide advisory services that will include resume writing and interview coaching. This aspect of the business will provide an ongoing stream of predictable revenue which will be billed on an hourly basis of $50 per hour. The Employment Agency will also provide generalized training services which may include software familiarity (Microsoft products, QuickBooks, etc).
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the employment agency industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. This may impact top line income as Company’s scale back their hiring until better economic conditions development.
4.2 Industry Analysis
In the United States there are 13,000 companies that specialize in the placement of job candidates and providing temporary labor. Each year, these businesses generate more than $4.7 billion dollars per year, and employ more than 113,000 people. These businesses provide over $2.6 billion dollars of payrolls. The growth trend among these businesses has been extraordinary over the last five years as many small and medium sized businesses have discovered that it is far less expensive to maintain an outsourced HR and recruiting/hiring department rather than to keep these operations in house. This is primarily due to the fact that these companies can quickly screen a potential job pool for the best and most qualified applicants available. The annualized growth rate over the last five years for firms entering this market has been 2.4% per year. However, over the same time period, the revenues collectively generated by these businesses have exceeded 13% per year
4.3 Customer Profile
Among the Employment Agency’s business clients, Management expects that clients will be medium to large sized businesses that have broad job recruitment/temporary staffing needs. If the Company is successful in placing a candidate for the position, the Company will receive fees of 25% of the candidates first year salary made payable by the business client (not the candidate).
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Employment Agency intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the business.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Establish relationships with small, medium, and large scale businesses within the target market.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Employment Agency to easily target job seekers and companies seeking to hire new employees within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. The Employment Agency will also use an internet based strategy. This is very important as many people seeking local services, such as temporary and full time employment agencies, now the Internet to conduct their preliminary searches. Mr. Doe will register the Employment Agency with online portals so that potential job candidates and companies seeking to hire employees can easily reach the business. The Company will also develop its own online website showcasing available positions and contact information for the Company. The business will also regularly attend local job fairs so that it can generate a substantial number of potential candidates for positions that are sought by the Employment Agency’s business clients. Not only will this substantially increase the business’ visibility within the target market, but it will also provide an influx of potential candidates to fill temporary and permanent positions sought by the Company’s business clients.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Employment Agency will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Employment Agency’s revenues are sensitive to the overall condition of the economic markets. In the event of a severe decrease in the general economic climate, staff positions (permanent and temporary) may begin to become eliminated. As such, during times of economic recession, the business may have a significant decrease in revenues. However, this is a high margin business, and Management will always generate enough profit and positive cash flow for the business to meet its financial obligations.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis