Start a Temporary Staffing Agency

A temporary staffing agency may be the business for you. Temporary staffing is a 66 billion dollar industry. The American Staffing Association estimates that about 2.2 million people are employed daily by staffing agencies. With the economy swinging in periodic ups and downs and the increasing cost of employee benefits, businesses turn to temporary staffing agencies to supply them with temporary help to adapt to these conditions. Temporary agencies used to only offer clerical and secretarial workers, but today’s agencies also supply professionals in health care, business, law, and other areas. The internet is used to find potential employees all across the country and even the world.

What you need to know about temporary staffing agency

  • The start-up cost for this business ranges between $5000 and $80,000. Cost will be less if you start with small businesses and more if you plan to employ a larger number of temps.
  • You need money to cover payroll since you pay employees and you bill the businesses, which may not pay you for 30 days.
  • You may need a bank loan until businesses that have hired your temps pay you, a line of credit for your payroll.
  • You will charge either a percentage of the going salary for a position that you fill or a commission for placing an employee.
  • You must keep up with the going pay rates for the positions you fill.

  • Income potential for this business is $40,000 to $100,000, and potentially more.
  • You will spend about two-thirds of your time in-home, scheduling employees, billing, and records keeping, and about one-third out of the office making presentations to clients, and interviewing employees if you rent a conference room.

How to you market a temporary staffing agency

To clients:

  • Advertise in online and offline directories, and in the business section of local newspapers and publications.
  • Make calls and presentations to potential business clientsConduct surveys, contact the businesses in the area you plan to concentrate on and ask them what times in their fiscal year they need help to fill in for or back up their employees.
  • Network with the local chambers of commerce
  • Use mailing lists to businesses, search publication’s help wanted ads; establish a business network for referrals.

To employees:

  • Advertise in the online and offline business directories.
  • Place want ads in employment section of newspapers and on cable television.
  • Give talks to retiree’s groups
  • Contact local schools, technical schools, colleges for student help and recent graduates.
  • Print professional-looking brochures and advertising literature.

Target Market

Companies, practices, and other business that need short-term labor

Home business equipment requirements

  • Home office suitable for interviewing employees (unless you rent a conference room periodically, once a week or so to conduct interviews)
  • Computer with billing, payroll, and temporary help softwareHigh speed Internet
  • Desktop publishing capabilities for forms you needBusiness telephone with answering service or voicemail
  • Fax machine

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