| The temporary staffing industry continues to expand, | | | | with the standard office supplies and at least two |
| with yearly double-digit growth being commonplace. | | | | telephone lines. |
| Companies find it convenient and cost-effective to | | | | At least one computer system with accounting |
| work with a temporary staffing agency to fulfill | | | | software and a database for keeping track of |
| unforeseen demand, fill short-term vacancies, and | | | | projects is mandatory. A printer is used for printing |
| assist with changing workloads due to restructuring or | | | | invoices and job listings, and a high-speed Internet |
| mergers. Additionally, employers are enticed by the | | | | connection connects the agency with online job search |
| idea of "test driving" new employees to minimize risk | | | | sites. |
| and ensure a good match for permanent positions. | | | | Many temporary staffing services have computers |
| Many a job seeker has reaped great rewards from | | | | with tutorial software available to help associates to |
| temporary staffing. Skilled but yet-inexperienced | | | | train their keyboarding and basic office software skills. |
| workers are able to get a foot in the door at | | | | These computers are also used to test the skills of |
| prestigious companies, where a weak resume would | | | | applicants. |
| have made it very difficult to be considered. Similarly, | | | | Income Potential: |
| "drifters" (those who tend to rapidly drift from job to | | | | Many billions of dollars are spent on temporary staffing |
| job) may be plagued by an overly-long resume. | | | | services each year. A small, single-office agency can |
| Temporary staffing services can be ideal for drifters, | | | | earn profits in the tens of thousands of dollars. The |
| as they have the opportunity to work on short-term | | | | large, international firms rake in millions every year. |
| projects and move on without the negative | | | | Target Market: |
| repercussions. Retirees and college students are also | | | | A temporary staffing agency is the middleman |
| very common candidates. A retired nurse may find | | | | between two distinct markets: clients and associates. |
| enjoyment and extra income from a temporary | | | | It is usually not a difficult matter to reach hundreds of |
| medical staffing firm. A computer science major can | | | | applicants with simple help wanted advertisements. |
| gain valuable experience working with a technical | | | | More focus will probably be placed on connecting with |
| agency. | | | | client companies and convincing them that your |
| Only a small number of personnel is required to handle | | | | services will help their businesses. |
| recruiting and clientele. Even the largest international | | | | Certain industries seem more receptive to temporary |
| firms tend to function with small, mostly-independent | | | | staffing. Financial institutions and other office-centric |
| branch offices serving specific regions. This modular | | | | companies are constantly seeking qualified office |
| structure means it is quite possible for a one-office | | | | support staff. Factories frequently need labor for light |
| temporary staffing agency to compete effectively | | | | industrial work, product assembly, and shipping and |
| with established firms. | | | | receiving tasks. Hospitals and clinics use temporary |
| Overall, the triple-benefit to clients, associates, and | | | | medical staffing to hire transcriptionists, certified nursing |
| entrepreneurs has contributed to the phenomenal | | | | professionals, and other support staff. Increasingly, |
| growth of the temporary staffing industry. Because of | | | | high-technology companies hire computer |
| these advantages, it will remain an integral part of the | | | | programmers, database specialists, and systems |
| employment process through good times and bad. | | | | engineers on a temporary basis through agencies |
| Start Up Costs and Financing Sources: | | | | specializing in technical placements. |
| $5,000 to $25,000 | | | | Tips for Success: |
| The startup and operating costs of a temporary | | | | Develop a niche! |
| staffing agency are much lower than many other | | | | In larger markets, providers of temporary staffing |
| businesses. The basic requirements are a small office | | | | services have found it useful to branch into niches |
| with the typical supplies, a computer system with | | | | such as temporary medical staffing, legal, financial, or |
| general accounting software and database software | | | | technical fields. The focused nature of these agencies |
| for organizing contracts, and the people skills to work | | | | allows recruiters to build a pool of highly-educated, |
| with clientele and associates. It would not be impossible | | | | trained, and experienced associates who are able to |
| to start a temporary staffing agency on a shoestring | | | | provide the best service to clients within a particular |
| budget of a few thousand dollars. | | | | industry. |
| The largest business expense is payroll. It is common | | | | A hospital executive would feel more comfortable |
| for associates to be paid by the agency before the | | | | contracting nurses from an agency dedicated to |
| agency is paid by the client. An account must be | | | | temporary medical staffing than from a one-stop-shop |
| maintained with sufficient funds to cover payroll costs | | | | that also places welders, janitors, and filing clerks. This |
| until bills are paid by the clients. | | | | confidence also helps associates to command better |
| It is difficult - but not impossible - to get help from | | | | wages than they might otherwise receive through a |
| venture capitalists in covering part of the costs of | | | | general-service temporary staffing agency. |
| setting up a temporary staffing agency. A | | | | Automate! |
| well-researched, forward-looking business plan is | | | | Much of the work of running a temporary staffing |
| essential. | | | | agency can be automated by computer software. |
| Pricing Guidelines for Service: | | | | Well-designed database software can ease the |
| Associates are paid by the hour, and the agency | | | | process of matching qualified associates with |
| covers its costs by charging a premium to the amount | | | | appropriate job openings. Accounting operations can |
| billed to the client. The exact amount of the premium | | | | be very heavily automated (but working closely with a |
| differs from case to case and can vary from 5% to | | | | good accountant is still advised). With these tools in |
| 50% or more. Some associates are willing to work for | | | | place, just two major tasks remain: finding clients and |
| less and some clients are willing to pay more, which | | | | finding associates. |
| when properly matched can result in very decent | | | | Use your own services! |
| profits for the temporary staffing agency. The | | | | As the business grows, it will become necessary to |
| contract usually spells out a flat fee to be paid to the | | | | add staff to handle the recruitment and marketing. |
| agency in the event that a client decides to | | | | That should never be difficult, since typically dozens or |
| permanently hire an associate. | | | | hundreds of qualified candidates are already in contact |
| Advertising and Marketing: | | | | with the agency! |
| A competitive hurdle for small startups is that larger | | | | Training, Skills or Experience Needed: |
| agencies already have established reputations and | | | | Recruiters are at an advantage with a background in |
| brand recognition. This is actually a minor obstacle | | | | human resources, business management, and |
| because of the localized nature of the business. It is | | | | marketing. A degree is not essential for starting the |
| not necessary to wage a national marketing war to | | | | business, but the knowledge gained through a business |
| gain exposure for a new agency. An inexpensive and | | | | management program is immensely helpful. People |
| well-directed marketing campaign can quickly build a | | | | skills are important, and can be learned through |
| valuable reputation within the local operating region of | | | | experience and self study. Numerous books have |
| the startup. | | | | been published, specifically addressing temporary |
| Essential Equipment: | | | | staffing as a business opportunity. |
| An office (perhaps a home office) should be equipped | | | | |