How to Start a Small HR Consulting Company
- 1). Determine the general services that you will provide, based on your experience and expertise. For instance, some businesses might need you to run background checks on potential new hires or interview executive candidates. You might operate as a full-service office and target small- to mid-size companies that either don't have an HR department or want to outsource the work.
- 2). Select an appropriate company name and check available website addresses (hrconsults.com and hrc.com are taken). Find a location that works well for you. Consider renting office space, especially if you will screen applicants for your clients.
- 3). Review applicable local, state and federal regulations. Obtain a local business license and any certifications necessary. Consider enrolling in a course offered by the U.S. Equal Employment Opportunity Commission to stay current with employment discrimination law. If you will handle employment eligibility verification (I-9s), you might want to increase your familiarity with the federal E-Verify program.
- 4). Plan a growth strategy for your business. Will you need a secretary, an assistant, a partner? At the beginning, or down the road when your business reaches certain benchmarks? Organize your business systems so you can manage effectively, with clear assignments and responsibilities, and a plan for backing each other up when necessary. Create a checklist that identifies daily, weekly and monthly HR tasks (payroll, site visits, leadership training classes) associated with each client. Establish a relationship with an attorney, on an as-needed or retainer basis, to help you with legal matters.
- 5). Advertise your services continuously and highlight the multiple reasons why companies should hire you. For instance, you might describe the significant attention to detail and cost-savings that your small business can offer, compared to an in-house HR department or a larger outside firm.
