How to Start a Temporary Staffing Agency

The business model of a staffing agency is predicated on providing qualified staff for companies. The staff are trained by the temp agency and assigned on short terms to companies.
The business requires high level of customer service and lots of interpersonal skill. It also involves hands on approach to answer queries and provide welfare for staff.
The business is practicable from home or an office environment. To practice from home you need to create a data base for your clients and temp staff.
Then create a dedicated working area as an office. However it is better to run your business away from home for better interaction with temp workers and clients.
The job is rewarding, challenging and slightly complicated. The main challenges are setting up the business, finding qualified staff and companies looking to hire.
The success of the enterprise is based on the capacity of the temp agency to deliver qualified staff.
woman worker
How to Start a Temporary Staffing Agency
  • Understand the business
  • Incorporate the business
  • Gain experience
  • Network with industrial players
  • Acquire appropriate license and permits
  • By appropriate software
  • Secure funds
  • Focus on a niche sector
  • Interview qualified temps
  • Secure a good location
  • Get contracts
  • Promote your business
Incorporate the Business
The first step is to incorporate the business. You need to turn it into a legal entity by registering the business as a limited liability company.
Then get liability insurance and a secure a tax identification number. Register a trending name that is easily recognized and precise. You need a business license and work closely with an attorney to draft contracts.
Secure Funding
The majority of your funds is for rent, furniture and weekly staff payouts. Other financial involvements are licenses, marketing and regular staff training.
The business is not cash and carry and companies tend to hold payment until subsequent months. However some companies pay the agency monthly based strictly on contractual agreement.
Approach any financial institution in your locality and seek long term, low interest loans at a fixed rate. You could try a partnership arrangement or find a core investor.
Secure Office Space
Secure an office space that is conducive for recruitment, meetings and client appointments. Furnish the office appropriately to convey a serious corporate identity.
How to Acquire a Workforce
Once your agency is visible you would likely get an influx of interested candidates. You need to conduct interviews and authenticate referral. Try to study their credentials and be diligent.
The staff you select should fall into the industry you want to service. You could decide to recruit every six moths and provide in-house training before fixing them with appropriate companies.
To get staff use trade association directories, or a mailing list. A very effective method is through newspaper and radio publications.
Social Media Presence
Many companies use social media to recruit new employees. You could try recruitment forums, job placement websites and other online resources.
To succeed you need to carefully plan your recruitment strategy. Focus only on your target industry and use lots of networking and corporate gatherings to build your data.
Other effective method to gain patronage is by advertising in trade publications and sponsoring local events. Don’t forget referrals, word of mouth marketing and traditional advertisement.

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