Start a Skilled Trades Staffing Agency

It is not glamorous, so recruiters chase tech and white-collar roles while the trades shortage keeps getting worse and fees keep rising.

1. 1

   Pick one trade and region

   'Electricians for commercial contractors in DFW' beats 'trades staffing.' Contractors trust specialists who speak their trade's language and know its certs.

2. 2

   Choose direct hire or temp first

   Direct hire needs almost no capital; temp staffing means you run payroll, carry workers comp, and float wages until clients pay. Most founders start direct hire and add temp once cash flow allows.

3. 3

   Set up compliance before selling

   Entity, EIN, general liability, and workers comp rated for trades work, plus any state staffing agency registration. Contractors' procurement teams will ask for certificates of insurance on day one.

4. 4

   Build the fee math

   Direct hire fees run 15 to 25 percent of first-year pay; temp markups on trades run 40 to 70 percent over the pay rate. Know your burden (taxes, comp, insurance) before quoting anyone.

5. 5

   Land one contractor client first

   Call GCs, mechanical contractors, and service companies with open jobs posted right now. One signed job order tells you exactly who to recruit; a bench with no client is just a contact list.

6. 6

   Recruit where tradespeople actually are

   Trade school career offices, Facebook trade groups, supply house bulletin boards, and referral bonuses paid to placed workers. Speed matters; a good electrician is off the market in days.

7. 7

   Deliver, then add payroll funding

   Fill the first order fast and check in weekly. When you expand into temp, use invoice factoring or payroll funding so growth does not strangle your cash.