Temp agencies are agencies that contract with employers to refer them to employees willing to work on a temporary basis--"temps." The temp agency may be paid a set fee for their referrals or may receive a set percentage of the money paid to each worker. Temp agencies are relatively simple to set up, requiring little infrastructure or overhead, just tools to communicate with businesses and employers and draw up contracts, such as a phone, computer and printer. This makes a temp agency a business that can be successfully run out of your home.
Create a business plan. Most small businesses begin with a business plan, which outlines the firm's organization and its route to profitability. Founders of a temp agency should identify a niche that will secure them business. For example, rather than seeking employment for all kinds of temp workers, an agency may want to specialize in a particular type, such as manual laborers, paralegals or administrative assistants.
Decide on a business structure. According to the U.S. Small Business Administration, all small businesses must settle on a structure for their business, such as limited liability partnership (LLP) or limited liability company (LLC). Each of these business types have particular advantages and disadvantages, mostly related to taxes. Consider consulting with a business attorney for advice on which would best suit your needs.
Obtain permits and licenses. Each state has their own set of permits and licenses that new businesses must fill out and file with appropriate state agencies. Consult your secretary of state for further information. Generally, these will consist of forms to receive a state and federal tax identification number to register your business name--the name you pick out for your company--and to enter into compliance with local regulations related to employment and operating a business.
Obtain equipment. Most temp agencies require the use of equipment for contacting both temporary workers and companies, as well as for drawing up contracts. At a minimum, this will include a working phone, a computer with an Internet connection and a printer.
Prepare contracts. All temp agencies must draw up contracts that specify the respective duties and fees assigned to themselves and their clients. Again, it is generally advisable to consult with an experienced attorney for suggestions on what information needs to be included in these contracts.
Secure clients. Once the business has been legally established, temp agencies must then secure a stable roster of employees and businesses. More often than not, there are more temporary employees available than open jobs. Consider advertising your services to local workers in local classified ads and directly contacting large businesses that hire in your niche field of employment.
- business colleagues preparing for business meeting image by Vladimir Melnik from Fotolia.com