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It all started on a shoestring. I had two partners, we had complementary skill sets, and having partners seemed less scary. Each tossed $500 into the company, we filed articles of incorporation, bought some business cards, and started beating the streets. Within a few months we had placed some programmers on contract and were cash flow positive. After the first year, we were taking a little over $200k each from the company in salary and bonus, plus each of us had a leased Mercedes-Benz(you know, because image). After three years, relationships between the partners started to go a little south (never go into business with partners), so we decided to sell as opposed to letting it fail. We contacted a business broker who shopped the company around. We eventually sold and each walked away with a little over $350k. How It Works It’s easy, but takes time to build relationships. This is a 100% relationship business. Find a company looking for talent. Google for websites that announce the award of government contracts. Go to SimplyHired, Monster, Indeed, and Dice and look for companies that are hiring. Contact the companies and tell them that you have access to an untapped source of talent and would like to enter into an arrangement (subcontractor or contract recruiter). Most of them will ignore you, some will eventually respond. You only need one. Make sure you know your fee and get a signed contract. Find talent. Finding talented people that are willing to work as contractors is where the rubber meets the road. Personal friends and family that are technical, Facebook Groups, Meetups, community colleges, universities, user groups, conventions, etc. It takes some skill, be influential, be genuine, don’t try to bullshit technical people. Taking some free classes on EdX or Coursera will give you the background you need to talk intelligently to this crew. Put the talent with the company. The money is made in one of two ways: you are paid a fee for placement, or take a percentage of the bill rate. I would always prefer to take a portion of the billable rate. For example, if a programmer is willing to work for $75 per hour, and the company is willing to pay $100 per hour, there is a $25 margin. You will either split that with someone, or keep it for yourself. In this arrangement, make sure they know they will get paid when you get paid. It seems simple, because it is. You just have to be willing to ask questions, negotiate, and present the win-win. The value you provide is being able to identify talented people and get them to take a job with a different company. Actionable Steps Incorporate and get some general liability insurance. Get template contracts for both the companies you will place people with and the people that will work for, or through, you as contractors. Find an attorney and accountant that you can work with. Start looking for companies that want to hire, and finding technical staff that can do the work. Put them together. Invoice on a regular basis, follow up, and don’t be afraid to visit in person to collect. There are books on Amazon that detail starting a business and specifically staffing companies. I’d stay away from the books on starting staffing companies though, because they go out of date pretty quick. Focus on business and consulting (people) skills. I’m a huge fan of the “Dummies” series, and Starting a Business All-in-One For Dummies is a useful guide to getting a business off the ground legally. (I usually give a copy to my consulting clients after we’ve met.) And as cheesy as the title sounds, Million Dollar Consulting: The Professional’s Guide to Growing a Practice is literally worth it’s weight in gold. Final Thought You make your money on the margin. I am a programmer, and know technology, so that’s why I started a company sourcing and placing technical talent. But the idea applies across a wide variety of professions: general laborers, construction, office workers, technical tradesmen, medical, etc. Think.