The main idea of this business plan is based on the opening of a new personnel outsourcing agency “Staff Outsourcing”, that will provide services of staff leasing and outstaffing in Chicago, IL, and nearby areas. The agency will offer its services to small and medium-size developing companies situated in Chicago, IL. The main vision of our company is that selecting and recruiting personnel is as much about the right job for the person, as it about the right person for the job. The motto of the agency is “We work for your success”.

The main long-term strategic mission of the agency is to become number one company on the market of personnel outsourcing companies for small and middle-size companies in Chicago, IL, region. This can be achieved trough the right positioning, professional services and personalized attitude toward all clients, and offering services at prices slightly lower than those of competitors. Positioning of the agency will be based upon the slogan “smart hiring solutions for medium and growing businesses”. Such positioning will help to attract attention of the necessary market segments – small and medium-size companies operating their businesses primarily in the areas of FMCG, Advertising Industry, and Telecommunication.

According to the financial forecasts the break-even point will be achieved in the second quarter of agency’s operation, and the positive cumulative profit will be earned by the end of 2010. Thus all the financial investments will be returned in no more than two years. Although some financial risks are present, they can be easily avoided through the right management and direction of the agency.
Introduction

The main idea of this business plan is centered upon the creation of an absolutely new agency “Staff Outsourcing” that will provide professional services of outsourced human resources and personnel management for small and medium-size companies. The first office of the new company will be established in Chicago, IL.

Personnel outsourcing – deals with subcontracting a process of recruiting and hiring employees to a third-party company. In addition the third-party company becomes an official employer for these employees responsible for payroll, paying taxes to the government and executing some other personnel connected issues. In general, employees while working for a client-company will be officially hired by “Staff Outsourcing” agency. Personnel outsourcing is the performance of all or parts of functions on management of human resources of the company by third-party experts.

HR outsourcing consists of two parts:

• Staff leasing – the outsourcing company completes the process of searching and selecting necessary personnel for the client-company. Such personnel is then employed by the provider.
• Outstaffing – provider officially recruits some of the new employees for the client company. But in this case the client-companies find appropriate staff themselves.

The initial process of providing personnel outsourcing services has such a sequence of events: the outsourcing company will find a worker who meets the requirements of the client-company; this specialist would be hired by the outsourcing provider and effectively leased to the client-company to carry out some defined task (ex. it may be the replacement of the secretary, IT-specialist, accountant etc.)

“Staff Outsourcing” agency will start operating its business with providing recruiting, leasing, and outstaffing services to its clients, but as the agency will develop and grow it will start offering the services of personnel training and performance of administrative HR tasks.

The main advantage of staff outsourcing for the client-companies is that they can get professional personnel and free themselves from the problems related to human resources. Personnel outsourcing helps to improve financial indicators for companies with a limited headcount. In the conditions of the present economic crisis personnel outsourcing may help companies to save their staff and at the same time to reduce their budgeted expense items.

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