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If you are considering investing in a new business and want an investment that can reap extremely high rewards, even within the first year, then you should look into how to buy a staffing business. Buying a staffing business, or employment agency, is not the first thing that springs to mind when you are looking to make a new investment but there are few businesses that can bring you such a level of wealth in such a short space of time. In fact, there are no businesses that can do that because even property development and retail takes time. As such, you may want to look into staffing businesses for sale in the near future.

Profitability
Mediocre and small but successful staffing businesses for sale will cost you in excess of $100,000 to purchase, but the most successful ones require an investment of upwards of $1 million. These are perhaps the best investments because the employment agency, or staffing business, is already established and extremely relevant to your wants and needs in terms of profit. You could potentially reap a profit of $2 million from a staffing business for sale in your first year of business alone! Of course, this largely depends on the industry that the staffing business is aimed at, but it is a possibility nevertheless.

Have your accountant and lawyer look over the cash flow charts and accounts on offer to ensure that there is real profitability within the business at hand. Some agencies may only have had one or two good years and may be selling whilst they can in order to make their money back. This can happen if contracts are lost for whatever reason so be sure to have your lawyer look over all of the paperwork before you commit to anything at all. Both your lawyer and accountant can give you an accurate assessment, as could a business broker if you did want to go through a transfer service yourself.

The Demand
Different types of staffing are required for different industries, and so there are many staffing agencies for sale out there that specialize in one of them. However, others do a little of everything. You may find that the specialist staffing businesses for sale have a higher profit margin because they attract more companies in that area. Your accountant will be able to give you a good idea of the most salient ones out there.

The actual consumer demand for staffing, recruitment or employment agencies is high because they are more likely to find suitable work this way. This has led to an explosion of them on the Internet and thus buying a staffing business has much more earning potential than many more businesses. You do not even have to maintain the agency in the same place either because it can be moved as a direct result of this.

The beauty of many of the staffing businesses for sale is that they will come with a full compliment of staff but the staffing needs are not necessarily high. You may only have three or four people working in the office and yet make over $1 million a year from it because of the nature of the work. Of course, you should make sure all existing contracts are included in the sale and that business continues as normal so as not to disrupt it.

Your Involvement
You do not have to be directly involved in the staffing business for sale for it to work, but it would help your margin of profitability if you were. A staffing business has to be actively managed to ensure that the contracts are being fulfilled and that customer needs are maintained throughout, as well as new relationships with prospective partners being cultivated.

You should know all of the rules and regulations of the business, of which there will be a few depending on the country and local laws that apply. Even if you do not plan on being involved, you should know all of the laws and your lawyer or a good broker will be able to help you here. When it comes to how to buy a staffing business, you will find that the complexities are worth the overall rewards so be patient.