Business idea rent movers and handymen

What is outsourcing, outstaffing, leasing and rental of staff in simple words.



How to build a business on this

 

Content

     Staff aggregator
     Outsourcing, outstaffing, staff leasing in simple words
     Personnel Outsourcing
     Staff outstaffing
     Staff leasing
     What you need to know before starting your own staff  rental business
     Staff rent franchising
     Franchise Personalized Solution


What is outsourcing, outstaffing, leasing and rental of staff in simple words. How to build a business on this.

Minimizing costs is one of the main tools that a business uses to accelerate its net profit (if the company is a start-up) and make the business more profitable. Usually they are minimized with the help of active work with suppliers, as standard purchases give a good discount on large volumes and frequency. An effective method is also a shortened product path to the final consumer, since the exclusion of “resale points” from the chain cuts off the necessary price increase.

But such opportunities are not given to all types of entrepreneurship. And so many are considering the possibility of saving with the help of their own staff of specialists. The maintenance of staff is a great expense item for any entrepreneur. In addition to wages, it is necessary to pay tax deductions for each employee, to pay sick leave and leave. And often there is a situation when there is no permanent work for a particular specialist. And in such cases, the employer loses even more, because you also have to pay for a downtime.

Therefore, many companies turn to third-party organizations that are ready to provide employees for the performance of certain works. This is not a new business scheme. And she became popular a long time ago.


Staff aggregator

There are several options for working with such companies. The simplest example is the aggregator of freight forwarding services in the city. In fact, such a business is the possession of a contact database. An advertising page is created on the Internet, where a contact number is published. A database of people who have their own personal truck and are ready to be partially employed in freight traffic is being recruited. When an order for transportation appears, it is transferred to the car owner for a small commission. As a result, you make a profit, a motorist – an order, and a client – a service.



This is the simplest initial business rental scheme for staff. Which has undeniable advantages. But there are also undeniable disadvantages. So, for example, you cannot know whether your “employee” will be free when an order appears. And if there is no one to contract him, then the client will simply refuse your services. Because in the market – you are not alone.


Outsourcing, outstaffing, staff leasing in simple words

Now staff rental services are well-developed infrastructure. There are many companies on the market that provide not only a similar service, but also similar services. For example, they draw up company employees to join their company (the reasons for this may be different). The desire to “fashionably call” their field of activity is superimposed on diversity. In the end, what we have. When searching for very specific services, in addition to the personnel rental itself, such words as outsourcing, outstaffing and staff leasing are found. It is clear that all of them are tracing paper from foreign words. But this does not make the situation easier. Therefore, briefly go through each of the terms.

Personnel Outsourcing

Outsourcing of personnel in simple words is when one company undertakes to perform certain types of work for another with the help of its specialists.

In fact – this is the rent of staff. The company needs painters to paint all the walls in the room. But she does not have her own painters. She turns to a company that outsource staff, voices a need, pays money. And the company brings its specialists and does this voiced work.


Staff outstaffing

Personnel outstaffing in simple words is when a company wants to have specialists on staff, but for some reason cannot afford it (for example, the tax system does not allow it). Then she turns to the outstaffer company and she draws up all the specialists for herself. At the same time, they continue to work in the company.



Note: In 2015, everyone said that the legislation would soon change so that no outstaffing would be allowed and this industry would end. Many believe that this has happened to this day. Yes, in 2016, a number of amendments were adopted in this area. But in fact, no one has banned anything. Only certain terms and concepts were legally regulated in order to provide greater security to participants in outstaff transactions.


Staff leasing

Staff leasing – in fact the same staff lease. And generally not quite the correct term. Because it came from the economy and means a long-term lease with the right to redeem things. And a person as, we hope, everyone understands is not a thing. But the term is still used. Moreover, in theory, an employee can really go on to the company that provides the service. But such cases are extremely rare.

We briefly went over modern terms that many companies like to use, so that it will be easier for you to search in the future if you are aimed at opening your own business in the personnel rental industry.

 

What you need to know before starting your own staff rental business

    Demand
    Direction. What kind of staff to rent
    Competition

Demand for the services of hired personnel is very large. As we mentioned above, many firms cannot, or do not want to keep a certain position in the state. For different reasons. So, for example, a huge part of small companies transfers accounting to a third-party employee, or company. This is just pure outsourcing.



Another example is construction companies. The fact is that it is more profitable for many construction companies to hire work crews for certain types of work. These are mainly handymen and movers. It is especially important when it is not about permanent work, but about periodic orders. A company may consist of several high-level specialists and a main team that is engaged in narrow-profile work. But when an order is taken, it is understood that the work will be carried out comprehensively. Up to the removal of construction waste. And such – 99 percent of orders.

So it turns out that rental workers are an extremely popular topic. Therefore, those who decide to start their own business in this direction, most often stop at the services of general workers and movers.



    There is always a demand for services
    Such services do not require specialists of a specialized level
    Simple organization

But where there is a great demand, of course there is a big offer. The competition in the rental of movers and handymen is very big. Both small teams of workers and large companies engaged in the provision of personnel in hiring large companies offer their services. And only those who will provide quality services will be able to survive in this market.

This is where we come to the main problem of the companies that rent movers and handymen. In this case, there are frequent cases when people cannot go “to work” on the first call, or relate to such a side job without any responsibility.

As a result, the person (company) who volunteered to provide the services of hired loaders risks simply not fulfilling the order, or fulfilling it very poorly. Both options lead to the same thing – loss of a client and gaining a bad reputation. In an industry where competition is so intense, such circumstances are unacceptable and most often can lead to disastrous results for the entrepreneur. Until the collapse of the business.

This is the main difficulty for beginning entrepreneurs in this area. You need to live up to the point where you will be one hundred percent sure of your teams of workers. Then the reputation will be built successfully, and orders will appear more and more often, and it will be possible to expand the reach of potential customers.



But there is an option – to build a business from scratch, independently overcoming all obstacles and exploring the rake of this industry. And take advantage of the offer of a company that sells a franchise.

 

Staff rent franchising

The development of franchising naturally led to the fact that in any industry you can find a proposal to create a business based on an existing scheme and a popular brand. And if for the same catering this is massive and characteristic, then for a service such as staff rental it is rather a surprise. But there are such companies. Basically, these are companies that have already achieved some success in their field and are now considering franchising as a tool to expand their own influence in the market.



For a novice entrepreneur who has no experience in building a business at all, this will be a good help. Since the franchisor’s great experience will play into the hands.

But, as always, in franchising you need to be careful. A company that offers to buy a franchise in order to inspire trust must meet several criteria:

    The first is to have experience. If a company started offering a franchise as soon as it appeared on the market, then there can be no talk of any experience. Without eating a dog in your own business, to teach something else is impossible.


    The second is a franchise offer. A company that can offer nothing but franchisee for money under its own “brand” – simply wants to make money, and not develop its own network, making both itself and its partner more successful. Experienced franchisors offer comprehensive support, legal advice, assistance in the selection of personnel, training and other services, from which, in fact, the amount of a lump-sum payment is collected (yes, it is not taken from the ceiling).
    The third is a specific pattern of earnings. If the franchisor cannot say what exactly you will profit from by covering your own investments, then the question arises – what exactly does such a franchisor sell?

If you noticed, on the franchise pages in our catalog even approximate calculations of the monthly profit for the franchisee are presented. And this, for a minute, is only general information, and not private information that is provided after you contact a company representative (this can also be done through the franchise page in the catalog).



Since in the rental industry, there are few franchised offers in principle, as in other areas (for example, coffee houses), be twice as careful when searching. Do not dwell only on general information, ask representatives of the CP, contact them, ask questions and evaluate.

And we, as always, will do our best to facilitate your task. We recommend starting the search with the Personal Solution franchise.

Franchise Personalized Solution

Declared investments at the start – 258,000 dollars

Payback period – 4 months

Lump-sum payment – from 258 000 dollars

Royalty – 2% of revenue

Why you should pay attention:

    A company with extensive experience. In the market – since 2007. Franchising has been developing since 2012.
    Provides step-by-step instructions for developing a business in the field of rental of movers and handymen.
    Provides comprehensive advice on the competent promotion of your business.
    Teaches Sales
    The Personal Solution brand has weight
    Own HRM system

According to the franchisor, with 22 two workers, the profit will be 200,000 dollars per month. A detailed calculation of this figure can be found on the franchise page in our catalog. There you can leave a request for a franchise representative to contact you.