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.
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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