Pros and cons of niche vs. general staffing

Both niche and general staffing have their merits – and their downsides. The route you choose depends on a number of things, and to make the decision a bit easier, we’ve assembled a list of pros and cons for you to review.

NICHE STAFFING

Pros:

  • You have a deeper understanding of the industry or industries.
  • You are able to invest more time to staying up to date on current needs and trends.
  • You learn the traits to look for in an ideal candidate and build a pool of talented, reliable employees that you and your clients can count on.

Cons:

  • If your niche is too specific, you won’t have enough clients to support your costs.
  • Competition may be fierce.
  • Your potential and repeat customer base is not as large, which could inhibit profitability and growth.

GENERAL STAFFING

Pros:

  • You increase the amount of business your staffing service can access, improving your chances for profitability and growth.
  • You gain experience in a wide variety of industries.
  • You increase your networking and geographic options.

Cons:

  • You can stretch yourself too thin and not have enough employees to meet client demands.
  • If you try to enter a staffing industry with which you are unfamiliar, supplying the wrong talent or not meeting your clients’ expectations could burn you.
  • Your business can grow too large and too fast without the capital to support it.