How to Start a Temp Agency

Starting a temp agency from scratch may seem daunting, but staying organized and focused is key. Here are six tips to help you start a successful temp agency:

1. Gain experience.

If you aren’t familiar with the temp agency industry, research it and gain experience as a temporary employee and as an administrator.


2. Network with industry professionals.

Pick other owners’ brains. Target temp agency professionals who are not in your niche or geographic area to avoid any competition.


3. Analyze governmental requirements.

Research areas such as licensing, taxing and workers’ compensation. Requirements may vary by state.


4. Establish a realistic cash flow analysis and projection.

In the first year, when you start your temp agency, do this on a monthly basis so you can plan for cash needs. There are also many costs temp staffing firms don’t take into account, such as workers’ compensation insurance, rent and electric bills. Determine your income and expenses and then how much cash you’ll need to operate on a day-to-day basis.


5. Identify a niche.

While it may sound like a good idea to be a “jack of all trades,” it is actually more beneficial for a temp agency to pick a niche. This will allow you to stay more up-to-date on current needs and trends in whatever industry you choose and also reduce competition. Look at where your strengths lie, what industries are strong and underserved in your geographic area.


6. Be willing to pound the pavement.

If you’re starting your own temp agency, you’re going to need both clients and employees. Use the contacts you have to bring people on board. Ask where you can post job listings in the area and talk to local businesses about their temporary staffing needs.


Ready to learn more about TemPay and what we can do for you? Apply now or contact us online or by phone at (866) 6TemPay to learn more about starting a temp agency.