You can have several business ideas as you try to get financial freedom and meet your passion. One of such plans can be to own your own HR company. Before establishing the company, there are things you need to understand and put in place. Can you think of any? Read on to know how to start your own HR company.

Come Up with A Business Plan

Before you start your HR business, come up with a business plan. Through it, you'll understand what you want to do, how you will do it, and the time frame.

Here are the things it should contain;

• Company's name

To start, come up with a suitable name for your company. Doing this is never easy but consider whether you'll be a sole proprietor or if the company will have partners. If you’ll manage the company alone, avoid using your real names for the business.

• Startup cost

To start an HR company, you'll require between $2,000 and $10,000 for office basics like computers and internet connectivity. But office premises are optional since you can work as a freelancer. When coming up with a business, you should be careful to have another source of income. This is because the high startup costs may make you broke, and the business may take time to pick up. Also, spare extra cash that will help in the operation of the company for some time.

• Know Your company's target market

Another important thing you should consider is the target market for your HR company. Do you have an interest in big or small businesses that plan to outsource HR consultancy? Are you targeting non-governmental organizations? Through this, you'll find it easy to approach your clients with ease as you know what to offer to them.

• How you'll earn money through your company?

Before you begin operations, it's important to understand how you'll be earning money. Yes, you'll be offering business consultancy services, but at what cost and conditions? To set your charges, know the cost of services of the firms around you. On average, the cost of hiring consultancy services falls between $99.52 and $184.74 for every hour. To maximize profit, you should strive to work for more hours and write various articles for newspapers or magazines.

Pick on The Best Legal Structure for Your Company

After developing the plan, the next crucial step is deciding on the HR company's legal entity. Doing this will protect you from being accountable for the mistakes of the company as an individual. Meaning the company will be responsible for its errors. You can decide to be a sole proprietor or work as a limited liability company. Get professional advice to help you understand more about this.

Register Your HR Company for Taxes

Before your company starts to operate, you'll have to register for various taxes either with the state or federal. Apply for EIN for free and register your HR company for the taxes. Remember, the amount of taxes will depend on the kind of legal structure you pick on.

Set Up A Business Account for Your Company

It's best to open a different bank account for your company rather than working with a personal account. It will protect your individual properties from the business and give you easy time managing your finances. Also, request a credit card to help your company maintain its credit records.

Have A Way of Monitoring Your Company's Cash Flow?

It's advisable to record all your company's transactions. It will help you know if you're heading in the right direction financially. Record your expenses and the amount you're able to earn daily. Through the records, you'll get to have an easy time filing for your taxes.

Apply for Permits and Licenses for Your HR Company

For your company to operate, you need a business permit and license. Not having them will result in huge fines, and if you're not lucky, your company can close down. To be safe, look if your state requires you to have both the permit and license to operate there.

Also, you'll need a certificate of occupancy if you have a physical office. It will show office location, whether you meet the government requirements, and zoning laws.

Suppose you'll lease the office let the landlord obtain the occupancy certificate on your behalf that can allow your business to operate from there. But if you're going to build or buy the office buildings, you'll have to do it yourself.

Get Insurance cover for Your Company

Your company should also have an insurance cover that will enable you to work safely and lawfully. With the insurance, your company will be able to get cushioning suppose it incurs a loss. Given that various insurance policies cover different risks, go for the one that suits you. If you're not sure which one to go for, you can start with general liability insurance. It mostly covers small businesses like the one you intend to create.

You can also cover your workers by choosing the workers' compensation insurance if you'll have employees.

Build Your Company's Name and Start Networking

After following all the necessary procedures, it's now time to market yourself and build your company's name. Through this, you'll know where your company's income will come from and beat other competitors. To get clients make good use of your friends, family, some of your colleagues, and the other business around you. Talk to them well and ask for referrals if possible. You can also get clients through different marketing channels like social media and trade shows. But choose one platform that will enable you to reach as many people as possible and concentrate on it.

Build Your Online Presence

After choosing the marketing channel, you'll use for your HR company to build your online presence. Let the company's website sell you to the world by having it active and well set up. It should also be professional and not like your personal account.

Conclusion

Starting an HR company isn't involving but to be safe, don't skip any of the steps since they can attract penalties. Ensure you have all the permits, licenses, and insurance policies to not land into trouble with the authorities. Most importantly, develop a business plan and follow it to allow your company to succeed.