Business Ideas | Small Business Ideas: How to Start a Contract Labor Company

Saturday, September 6, 2014

How to Start a Contract Labor Company | Labor supply Business

In mainstream economic theories, the supply of labor is the total hours (adjusted for intensity of effort) that workers wish to work at a given real wage rate. It is frequently represented graphically by a labor supply curve, which shows hypothetical wage rates plotted vertically and the amount of labor that an individual or group of individuals is willing to supply at that wage rate plotted horizontally.

Contract labor companies provide all types of labor at the best possible rates and at the right time. Employers can find any number of employees with just a single call to a contract labor company. To start a contract labor company, you will need to have good organizational, planning, and communication skills. You will also need to understand client requirements and deadlines and meet these requirements at the lowest possible rates.

If you want to start labor supply company, the following details have to pursue.

1. proposal about your intention towards CLC.

2. registration of your company.

3. labor licence from CLC.

4. PF registration from PF office.

5. ESI registration job. or medical insurance.

6. and other things that you have done in coming years in respective contract.

7. PAN Card number

these are the inevitable things that you have to done before starting the labor supply

STATUTORY COMPLIANCE MOST RELEVANT

Labor Welfare Fund ACT

The Profession Tax ACT

The Contract Labor (R&A) ACT, 1970

The Maternity Benefit ACT, 1961

The (National & Festival Holidays) ACT, 1963

The Minimum Wages ACT, 1948

The Payment of Wages ACT, 1936

The Employees Provident Fund ACT, 1952

The Employees State Insurance ACT, 1948

The Contract Labor (R&A) ACT, 1970

The Payment of Bonus ACT, 1965

Shops & Establishment Act

With the country’s abundant supply of job seekers, starting a manpower business could very well spell profit

If you want to try a business with huge potential, then the Manpower Agency business is for you. The service you will be marketing is the skill and labor of our workforce of which there is more than an abundant supply in our country.

Note, however, that the kind of workers needed is rapidly changing. Now more and more of the job orders abroad are for those with professional training like nurses, engineers, and teachers. Lower wage countries like India are taking over more of our traditional markets for low cost labor.

There are basically two kinds of manpower agency with regards to the registration requirements. One is for the local and the other is for the international market. To make it clearer I list the respective requirements separately.

For Manpower Agencies that will cater abroad:

1. Register your business name with the Department of Trade and Industry (DTI) for single proprietor or with the Securities and Exchange Commission (SEC) for corporations or partnerships.

2. Get a barangay clearance and then proceed to the Municipal or City hall to get your business permit.

3. Register with the Bureau of Internal Revenue and get your TIN, Certificate of Registration, and authority to print receipts.

4. Apply for license with the Philippine Overseas Employment Agency (POEA). Some of the critical requirements here are:

a. At least 75 percent of the company must be owned and controlled by Filipino citizens.

b. Proof of substantial capital and/or investment.

c. Proof of marketing capability as supported by the following:

Duly executed Special Power of Attorney and / or duly concluded Recruitment Agreement authenticated by the Philippine Embassy nearest the prospective employer;
Manpower request or visa certification from new employers for not less than 100 workers duly verified by the Philippine Overseas Labor Office nearest the job site;
Certification from the POEA Pre-Employment Services Office

d. Proof of possession by the single proprietor, partners, the company President or the Chief Executive Officer, as the case may be, of a Bachelor’s Degree and three years of business experience.

e. NBI clearance issued not earlier than 6 months prior to filing of application and clearance from the POEA Anti-illegal Recruitment Branch of the proprietor, partners or members of the Board of Directors, as the case may be, officers and employees who will be involved in recruitment and placement activities. Foreign directors or partners shall submit clearance from their country of origin in lieu of the NBI clearance.

f. At least a 100 square meter size office as evidenced by a contract of lease or proof of building ownership.

g. Proof of publication in a newspaper of general circulation on the notice of the application with the name of the proprietor, partners, incorporators and officers.

h. Attendance of Pre-licensing seminar conducted by the POEA.

i. Payment of filing and license fee.

For Manpower Agencies for the domestic market only:

Follow the steps in numbers 1 to 3. You no longer need to get a license from the POEA. Here’s the other requirements that must be submitted:

Submit a duly accomplished and notarized application form with undertaking (2) copies at the Department of Labor and Employement (DOLE).

Contract of Lease for two (2) years or Owner’s Certificate / Title of Office Location.

Updated NBI Clearance of the partners in the case of partnership or all the officers and members of the Board of Directors in the case of corporation.

Organization structure and list of all officers and personnel with their respective bio-data and ID pictures and detailed description of duties and responsibilities.

Sworn statement of assets and liabilities or duly audited financial statement, as the case may be.

Proof of payment of surety bond (valid for 2 years).

Payment of fees: Filing fee, license fee, cash bond.

Note that the rules may change especially for those who want to deploy abroad. It is advisable to always check on the POEA website before proceeding.

For those who wish to go into this business, unless you already have sure clients abroad, I advise that you first try the local market before you invest the substantial amount needed to put up a manpower agency for foreign placement.

Instructions Details

Step 1

Gain experience as a contractor by working in any field related to the construction industry. Identify federal, state, city, and county contractor requirements. Learn skills such as construction methods, blueprint reading, supervising, bidding, and negotiating contracts. This experience will help you operate a successful contract labor company.

Step 2

Devise a business plan. Include your mission and vision statements, startup and operating expenses, projected revenues for three years, funding sources, and marketing plan and pricing strategy. Identify competitors in your locality and assess your funding requirements. Establishing a contract labor company usually involves huge startup expenses.

Step 3

Decide on the legal structure, such as corporation or limited liability company. Analyze the benefits of all structures and choose one that suits your requirements. Obtain advice from an attorney if you are unable to choose between structures. Select a domain name and register your business with your state's secretary of state.

Step 4

Choose a suitable warehouse to store your leftover materials, including wood, equipment, and vehicles. The space should also have an administrative office. Choose the location based on the size of your equipment and vehicles.

Step 5

Purchase or rent the equipment and machinery. Renting equipment can save you some money in the short term. Inspect all your equipment and machinery at regular intervals. Learn to operate all the machinery and equipment.

Step 6

Obtain the necessary education, training, and experience to receive a business license to operate in your locality. Check with federal, state, city, and county departments to obtain the necessary permits.

Step 7

Hire skilled contractors as well as subcontractors, including plumbers, electricians, architects, masons, and landscapers. Make sure that they have their own licenses and a clean background.

Step 8

Obtain liability insurance that covers your equipment, machinery, and warehouse. Obtain worker's compensation insurance.

Step 9

Market your business by joining the local chamber of commerce and other local associations in the construction or human labor industry. Place ads in journals, newspapers, and the yellow pages.

Reference

Labor supply Company

How to Start a Contract Labor Company

How to Start a Manpower Business

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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