The dos and don’ts of starting a temp agency

Starting a temporary employment agency is both an exciting and intimidating process. Here are some dos and don’ts for getting started.


Do create a business plan. This plan keeps you, your management and any investors organized. It also informs lenders and vendors of your company’s stability and growth potential. Visit the U.S. Small Business Administration for a step-by-step guide on creating the perfect plan.


Do identify a niche. Many temporary staffing agencies think it is a good idea to staff any and all industries, but it is more beneficial to target a niche. This allows you to stay up to date on current needs and trends and reduce competition. Examine your strengths and those of your management team, then evaluate which industries are underserved in your area.


Don’t go it alone. When deciding how to start a temp service, talk to people who have started a firm before, preferably not in your niche or geographic area to avoid competition. Also tap other business owners or reach out to your chamber of commerce for information on starting a business and additional resources.


Don’t forget legal requirements. Make sure you follow rules and regulations for areas such as licensing, taxing and workers’ compensation. (Requirements vary by state). Workers’ compensation is usually the second-largest expense for your temp agency, so ensure your coverage completely protects both your business and your employees. A payroll financing partner can be absolutely indispensable in these areas.


If you’ve considered these Dos and Don’ts and have adequate plans for the aforementioned necessities, you’re ready to move ahead with your temp agency launch. In-need of a payroll financing partner? TemPay would like to be that service for the life of your business. Please contact us to get started, won’t you? You may also wish to apply today for payroll factoring and other payroll financing services with us – we’re standing by to hear from you.