Temporary staffing agencies also referred to as temp agencies, recruit individuals for their clients’ work opportunities. A staffing service recruits for temporary employment (temp workers), direct hire, and temp-to-fill time. A staffing business has rapid growth potential when appropriately managed. There are many different parts to operating a staffing firm, and it’s important to cover them all to be profitable.
How to start a temporary staffing agency
Evaluate your skills
To be successful in the staffing industry, an agency requires you to find clients, find employees, match clients with employees, and manage the agency. A business owner must complete these skills themself or hire a professional for the small business to succeed.
Find your target market
Once you’ve determined your skill sets, you need to find the right industry. It’s a good idea to examine different markets and see where your company can find success. Each industry’s supply and demand will differ, so it’s important to start a temp agency in the industry you understand the most.
The three segments of the staffing industry are office or clerical, industrial, and professional or technical. The target market you choose will be a niche within an industry segment. Once you select a particular group, the agency grows from there.
The best clients are those that are regularly hiring employees. Target potential clients that might not keep up with the hiring process themselves, whose business fluctuates daily and need temp workers on short notice, or ones that need a third-party opinion in hiring decisions.
How much does starting a staffing agency cost?
When determining your business plan’s finances, you need to make sure you account for both establishment and operation costs. Establishment costs include one-time fixed costs to start a staffing agency. These costs include: