Feasibility Study for an HR Services Company in Egypt
HR services companies earn by managing personnel on behalf of client companies: human resources supply, talent assessment and screening, and personnel file and payroll administration. The activity has its own regulatory requirements, and the margin depends on how you price the service above the cost of salaries and social insurance.
Where your money goes
- Activity requirements and licensing
- A talent assessment, screening and personnel file team
- Working capital to cover payroll until the client pays
- An HR management system
- Premises
Where the money comes from
- A monthly management fee per person
- Talent assessment and screening fees
- Outsourced services for companies
- Training and upskilling
What makes HR Services businesses lose money
- Clients who pay late while salaries must still be paid
- A thin margin per person
- Responsibility for social insurance and legal obligations
- Dependence on a single client
What the study answers
- The working capital needed to cover the payroll cycle
- The right management fee pricing
- The number of personnel needed to break even
- Legal and social insurance risks built into the numbers
To make the numbers accurate, we ask about: Service field, How will you price?, Clients, Solo or with a team?.
The numbers are calculated for your project: your city, your capital and the size you plan to start with. Not generic figures copied from the internet.
Order a HR Services feasibility study (EGP 2,500)