How Do You Start Your Own Temp Agency?


Quick Answer

Starting a temporary staffing agency requires researching your local market, choosing a staffing niche, obtaining a business license and getting business liability insurance. Secure enough start-up financing to cover all costs involved. Avoid critical legal mistakes by hiring an experienced attorney who understands staffing agency legal issues. Set up office operations in a location accessible to workers and clients, and set up background check and payroll systems.

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Full Answer

Many temporary staffing agencies start out small, and specializing in a familiar industry sector is a good way to use expert knowledge to good advantage. It is important to research local staffing agency competition and potential clients to see where your agency fits best. Your new temp agency must be attractive to employers seeking assistance with staffing needs, and local industry often dictates staffing requirements. Keep in mind that training and staffing temporary workers for highly skilled positions comes with higher operating expenses than lower skilled positions.

Once you've selected an industry to target, you'll need to find a competitive business location that can accommodate staff agency workers and temporary workers. When raising funds for your agency start-up, seek enough financing to cover operating costs and several weeks of temp payroll. Client companies usually pay staffing agencies between 45 to 60 days past the invoice date, which means the agency must cover payroll during this time.

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