Company ‘B’

The owner of company ‘A’ started working as an independent contractor, as an ultrasound technician, at a local hospital. This owner worked at the facility per-diem and then decided to get started on her own.

The hospital she worked for was very pleased with her work, and decided to offer her a contract. All she had was a P.O. Box, a cell phone, and a free email account along with a business license. She also insured herself. While you may be surprised, but the initial cost for her startup was a mere $1000. She had no office, and she was essentially working from home.

If any client wished to schedule her for a shift, they would simply call her on the cell phone and request her to cover specific shifts. Just a few months after securing her first contract, another medical facility –again a hospital – got in touch with her after hearing about her ultrasound services and the reputation of her work. This was her second contract.

It wasn’t long when the first client asked her whether she could help them with their radiology department as they required an x-ray technician from Monday through Friday. All she had to do was contact numerous x-ray technicians until one of them agreed to cover the required shifts. Over the course of working for the two clients, he had saved sufficient money (around $5000) to pay the x-ray technician, but soon after, she billed the second client, which improved her cash flow considerably.

At the end of the day, she ended up spending $6000 of her money to get her business started. Today, she is the owner of a healthcare staffing agency that generates revenue over a million dollars every year.

COMPANY ‘B’

Company ‘B’ was established as a corporation with an office and employees were hired to handle potential calls. They had hired a scheduler, a secretary, and a staff CPA. The owners had invested approximately $250,000 and it took them around six months before they managed to secure contracts. After this, they were able to hire more staff to cover the shifts of their clients. A sales person was also hired to get contracts for the company.

Today, the company is generating revenue in excess of a million dollars after it invested one-fourth this amount and has already achieved (and crossed) their break-even point.

Both of the companies described above have been successful, and a clear contrast can be seen between the expenses incurred for each owner of to startup their staffing agency depending on the type of setup they wanted.