Cornerstone Staffing

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Executive Summary

Cornerstone Staffing is a small staffing agency in Ohio. We find reliable workers for local businesses that need extra help, mostly for warehouse, light industrial and office work. Our workers are our employees, and we handle their pay, payroll taxes and insurance, so the business only has to tell us how many people it needs and when.

We make money in two ways. The first is temporary staffing: a business pays us an hourly rate for each worker we place, and we pay the worker a lower hourly rate. The second is a placement fee: when a business wants to hire someone permanently, we charge a one-time fee for finding that person.

Here is what our numbers show. We expect sales of $304,800 in Year 1, growing to $1,910,000 by Year 5 as we sign more clients. We expect losses of about $28,500 in Year 1 and $11,000 in Year 2 while we build our client list, then a profit from Year 3 (about $12,000), growing to about $68,200 by Year 5. Staffing is a business with thin profit margins, so we plan carefully for cash.

We need $115,000 in total. Only $21,300 of that is startup costs. Most of it is cash to pay our workers every week while clients take a few weeks to pay us. I am putting in $15,000 of my own money, and I am asking for a $60,000 SBA loan plus $40,000 from an investor or partner.

I am Monique Hayes, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Cornerstone Staffing will be a limited liability company (LLC) in Ohio, owned by Monique Hayes. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Send people who show up, do the job well and are treated fairly, and tell clients the truth early when something goes wrong.

What we offer:
- Temporary staffing. We place workers with a business for a day, a season or a longer project. The workers are our employees, and we pay them, withhold and pay their payroll taxes, and carry workers' compensation insurance (the insurance that covers workplace injuries).
- Direct-hire placement. When a business wants to hire someone for good, we find, screen and introduce candidates, and the business pays a one-time fee when it hires one of them.
- Temp-to-hire. A business can try a worker first, then hire that person. The service agreement spells out how and when.
- Simple service. One person to call, one rate sheet, one invoice each week.

The space. We will rent a small office of about 600 square feet, budgeted at about $9,600 a year ($800 a month) with utilities. Most of the work is done by phone, online and at our clients' job sites, so we do not need a warehouse or a large building.

Licenses, insurance and rules. We will register the LLC with the state, get a business license and an EIN (the business tax number from the IRS, free at irs.gov), and set up payroll. Some states license or register staffing or employment agencies, so we will check with the state labor department before we open. We will carry workers' compensation, general liability, professional liability and employment practices liability insurance (which covers claims such as a worker saying they were treated unfairly), and we will confirm the right coverage with an insurance agent. For every worker we hire we will complete the federal employment eligibility form (Form I-9), and we will ask our lawyer and accountant how our state treats worker pay, taxes and classification. Ask your accountant whether any of our services are taxed differently in your state.

Where things stand today. This plan is my starting point. Before I sign a lease or put any money in, I will talk with at least 15 local employers and ask for at least 3 signed letters saying they would use us at our rates. If I cannot get them, I will change the plan before I spend money.

Problem & Opportunity

Small and mid-sized businesses often need extra workers quickly and do not have the time, people or know-how to find them.

1. Hiring takes time. Posting a job, reading applications, interviewing and checking references can take weeks, and the work does not wait.
2. Busy seasons and absences. A rush order, a holiday season or a worker who quits can leave a business short-handed with no warning.
3. Risk. A business that hires directly takes on payroll taxes, workers' compensation and the paperwork of every new hire, even for a short job.
4. Big staffing companies are not always built for small clients. A small employer may be treated as a low priority or find it hard to reach someone who knows their business.
5. Good workers are hard to find. Many people who want steady work do not know which local employers are hiring.

How we will find out if people want this before we spend money. Before I sign a lease, I will interview at least 15 local employers: warehouses, small factories, distributors and offices. I will ask how often they need extra help, what they pay now, and what frustrates them about their current staffing. Our Year 1 plan needs about 5 regular clients, so I will ask for at least 3 signed letters of interest. The letters tell me whether the plan is realistic.

Products & Services

What we sell. We have two services, each priced simply.

1. Temporary staffing. A client tells us what they need, we find and screen workers, and the worker shows up on the job site. We bill the client for the hours worked, and we pay the worker, handle the payroll taxes and carry the insurance. Our plan assumes an average bill rate of about $24.00 per hour in Year 1, rising to about $27.00 by Year 5 as wages rise. The cost to us is about $18.50 per hour in Year 1: about $16.00 in pay for the worker plus about $2.50 for employer payroll taxes and workers' compensation insurance. That leaves about $5.50 an hour to pay for our team, office, software and other costs. We expect about 12,000 billed hours in Year 1, which is about 6 workers working full time on average, growing to about 66,000 hours a year by Year 5, or about 33 full-time workers.
2. Direct-hire placement. When a business wants to hire someone permanently, we charge a one-time fee. Our plan assumes an average fee of about $2,800 in Year 1, rising to about $3,200. Finding and screening candidates costs us about $200 for each placement (job board ads and background checks). We expect about 6 placements in Year 1, growing to about 40 by Year 5.

How it works for a client:
1. A short call or visit. We learn what kind of workers the client needs, the schedule, the pay range and the safety rules at the job site.
2. The client signs a short service agreement that covers rates, how we bill, who is responsible for safety, how a worker can be hired permanently, and how either side can end the arrangement.
3. We recruit and screen. Every worker completes an application, an interview, identity and work eligibility checks, and any background or drug screening the client asks for, where the law allows.
4. The worker starts. We confirm the first day with both sides and check in after the first shift.
5. Workers send their hours each week, the client approves them, and we pay the worker and invoice the client.
6. If a worker is not a good fit, we send a replacement as quickly as we can.

Gross margin, explained. "Gross margin" is the share of each sale left after paying the direct cost of the work. For us, the direct cost is the workers' pay, payroll taxes and workers' compensation. Our plan shows about 27% in Year 1. That money has to pay our team, rent, insurance, software and other bills, which is why staffing needs steady volume to be profitable.

Market Analysis

Who will use us:
- Warehouses and distribution centers that have busy seasons and need extra hands.
- Small manufacturers and food or packaging plants that need light industrial workers.
- Small offices that need front desk, data entry or administrative help for a project or while someone is out.
- Any local business that wants to try a worker before hiring.

Where we will work. Within about 30 minutes of our office, so we can visit job sites and workers can get there.

How we sized the plan. Our Year 1 plan needs about 5 regular clients using an average of one to two workers each, plus a few one-time orders. That is about 12,000 billed hours, or about 240 hours a week. In a metro area with many small employers, that is a small number of businesses to win. I will check the real number by talking to local employers before spending money.

Season. Many warehouses and distributors are busiest in the fall and around the holidays, and some manufacturers have their own busy and slow months. Our numbers show a yearly average, so we will ask each client for their expected needs a month ahead and recruit before the rush.

Where our workers come from. Job boards, local workforce centers and community colleges, referrals from our own workers, and community organizations. We keep a list of screened workers ready, so we can fill an order quickly.

Competitive Landscape

Other choices employers have:
1. Hiring directly. It costs no agency fee, but it takes time and puts all the paperwork and risk on the business.
2. Large national staffing companies. They have strong brands and many workers, but a small employer may be a low priority and may not get one person who knows their business.
3. Other small local agencies. They compete for the same clients, so reliability and service matter most.
4. Online job sites and gig apps. They can be fast, but the employer still does the screening, paperwork and risk.
5. Doing without. Some businesses just ask their current team to work more, which can lead to burnout and mistakes.

How we will win clients: a real person who answers the phone, workers who are screened and ready, honest rates on one simple sheet, a replacement when a worker is not a good fit, and a visit to every new job site. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How employers will find us.
- Direct outreach. Visit warehouses, plants and offices in our area, introduce ourselves to the person who handles hiring, and leave a one-page rate sheet.
- Local business groups. Join the chamber of commerce and local manufacturing and trade groups, and go to their meetings.
- Referral partners. Accountants, bookkeepers, insurance agents, workforce centers and small business centers often hear when a business is struggling to find help. I will meet them in person and thank them for every client they send.
- A free Google business listing with photos and reviews, and a simple website with our services and a form to request workers.
- A referral thank-you for any client who introduces another client.

Marketing budget. About $6,000 a year in Year 1 (about $500 a month), growing about 12% a year. The logo, website and business cards are paid for from startup costs ($2,500).

Operations Plan

How the business runs day to day.

A normal week:
1. Clients send us orders by phone or email. We confirm the job, the number of workers, the start time, the pay range and any safety needs.
2. We contact screened workers from our list, confirm who is available and send them the job details.
3. Workers report to the job site. We check in after the first shift to make sure everyone is happy.
4. Workers record their hours, and the client approves them online or in our app.
5. Payroll runs weekly. We pay the workers and deposit payroll taxes on time.
6. We invoice clients every week and follow up on any invoice that is late.

Recruiting and screening. Every worker completes an application and interview, shows proof of identity and the right to work (Form I-9), and passes any background or drug screening the client requires, where the law allows. We keep records for every worker in one place.

Safety. Before a worker starts at a new site, we visit the site, learn the safety rules and make sure the worker is told about them. If a worker is hurt, we have a simple written steps for getting care, telling the insurance carrier and telling the client. Workers' compensation insurance covers workplace injuries, and rates depend on the type of work, so we get quotes before we set our bill rates.

Equipment. About $6,000 to start: computers, phones and tablets for the team ($4,500), plus office furniture, a printer and supplies ($1,500). We set aside about $3,000 to $4,000 a year after that to add and replace equipment as the team grows.

Software. About $9,000 a year for software to track applicants, record hours, run payroll and send invoices.

Running costs in Year 1: office rent and utilities about $9,600, insurance about $7,200, staffing software about $9,000, recruiting costs (job boards, ads, background checks) about $8,400, marketing about $6,000, accounting, legal and license fees about $6,000, and an allowance for unpaid invoices about $3,000. That is $49,200 in all.

Billing and getting paid. We bill weekly and ask clients to pay within 15 days. Some will pay faster and some slower, so the plan assumes clients pay in about 22 days on average. That means at the end of Year 1 clients owe us about $18,288 that we have already paid out in wages, and by Year 5 about $114,600. We pay workers every week no matter when clients pay, so we keep cash in the bank to cover the wait. If cash ever gets too tight, some agencies borrow against their unpaid invoices (called invoice financing or factoring). It is costly, we do not plan to use it, and we would ask a lender or accountant before we did.

Management & Organization

Who runs the business. Monique Hayes, owner and agency manager. As owner I will sign clients, recruit workers in the first year, run payroll and billing with our software, and handle the money side of the business. I plan to pay myself $52,000 a year in salary.

The team. Pay figures are salaries for our own office team, not the workers we place.
- Recruiter: one starting in Year 2, two in Year 3, and three in Year 5, at about $44,000 a year each.
- Account manager (sales): one starting in Year 4 and two in Year 5, at about $50,000 a year each.
- Payroll and billing specialist: one starting in Year 3, at about $44,000 a year.
- Office administrator (part-time): one starting in Year 2, at about $24,000 a year.

We hire people who are organized, calm under pressure and good on the phone. Everyone follows the same written steps for recruiting, screening, safety and billing.

People who will help us: a lawyer for a one-time review of the service agreement and worker paperwork, an accountant or bookkeeper, an insurance agent who understands staffing, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (4 to 6 months ahead): interview at least 15 local employers and get at least 3 signed letters of interest, register the LLC and get an EIN, check what our state requires of staffing agencies, get insurance quotes, have an attorney review the service agreement and worker paperwork, open a business bank account, set up the software and test payroll with practice records. Sign the lease only after the letters are in hand. Target opening: spring 2027.
- Year 1: sign about 5 regular clients, bill about 12,000 hours and make about 6 placements, for $304,800 in sales and a loss of about $28,500.
- Year 2: about 10 clients, about 24,000 billed hours, $634,600 in sales and a loss of about $11,000. We hire our first recruiter and a part-time office administrator.
- Year 3: about 16 clients, about 40,000 billed hours, $1,086,000 in sales and our first profit, about $12,000.
- Year 4: about 22 clients, about 54,000 billed hours, $1,510,500 in sales and a profit of about $58,000.
- Year 5: about 28 clients and about 66,000 billed hours, for $1,910,000 in sales and a profit of about $68,200.
Growth depends on winning and keeping clients, so treat the later years as goals, not promises.

What we check every week: hours billed, orders filled, workers who did not show up, workplace injuries, unpaid invoices and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $115,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $21,300, listed item by item in the Startup Costs section: $6,000 for computers and office equipment, $1,600 for the lease deposit and first month of rent, $1,000 for licenses and registration fees, $3,500 for legal and accounting setup, $2,500 for a logo, website and business cards, $4,000 for the first insurance payments, $1,200 for software setup, and $1,500 for launch recruiting.
- A cash cushion of about $77,100: the deepest hole our cash falls into while we build our client list and wait for clients to pay (about $51,800) plus about three months of running costs (about $25,300). Lenders call this "working capital."
- Together that comes to about $98,400, rounded up to the nearest $500: $98,500.
We are raising $16,500 more than that, $115,000 in all, because staffing grows by paying people first. When we add clients, we pay more workers every week before the money comes in. With the extra cash, the lowest balance at the end of any year is about $20,300, at the end of Year 3, which is more than a full week of worker pay (about $15,100 that year).

Where the money comes from:
- My own money: $15,000.
- Amount requested as a loan: $60,000.
- From an investor or partner: $40,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect losses of about $28,500 in Year 1 and $11,000 in Year 2 while we sign clients, then a profit from Year 3 (about $12,000), growing to about $68,200 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan. The loan is planned at 12.75% interest over 10 years, so payments of about $887 a month (about $10,644 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: my personal guarantee (my promise to repay from my own money if the business cannot), and a claim on our equipment and unpaid invoices if the lender asks for one.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with one or two clients and a few workers, run the business from home, and use payroll software. Startup can be roughly $5,000 to $10,000 for the LLC, insurance down payments, software and a simple website, plus enough cash to cover about a month of worker pay. Get your own quotes, especially for workers' compensation insurance.
- Phase 2: once you have steady clients and a record of on-time payment, lease an office, hire your first recruiter and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or quotes, including workers' compensation.
- Your state's staffing or employment agency requirements, if there are any.
- Signed letters of interest from future clients.
- A sample service agreement with a client, and a sample worker application.
- The lease, or a quote for the office.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Temporary staffing: about $24.00 per billed hour in Year 1, rising to $27.00; cost of about $18.50 per hour (worker pay, payroll taxes and workers' compensation), rising to $20.70; about 12,000 billed hours in Year 1, growing to 66,000.
- Direct-hire placement: about $2,800 per placement in Year 1, rising to $3,200; about $200 in cost per placement; about 6 placements in Year 1, growing to 40.
- Owner salary: $52,000 a year. Recruiters $44,000 each, account managers $50,000 each, payroll and billing specialist $44,000, part-time office administrator $24,000.
- Other yearly costs in Year 1: office rent and utilities $9,600, insurance $7,200, staffing software $9,000, recruiting $8,400, marketing $6,000, accounting, legal and license fees $6,000, and an allowance for unpaid invoices $3,000. These grow between 6% and 35% a year as we add clients.
- Clients pay about 22 days after we invoice them, and wages are paid every week.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs