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The temporary staffing industry continues to expand, with yearly double-digit growth beingcommonplace. Companies find it convenient and cost-effective to work with a temporarystaffing agency to fulfill unforeseen demand, fill short-term vacancies, and assist withchanging workloads due to restructuring or mergers. Additionally, employers are enticed bythe idea of "test driving" new employees to minimie risk and ensure a good match for

 permanent positions.

!any a ob seeker has reaped great rewards from temporary staffing. #killed but yet-inexperienced workers are able to get a foot in the door at prestigious companies, where aweak resume would have made it very difficult to be considered. #imilarly, "drifters" $thosewho tend to rapidly drift from ob to ob% may be plagued by an overly-long resume.Temporary staffing services can be ideal for drifters, as they have the opportunity to work onshort-term proects and move on without the negative repercussions. &etirees and collegestudents are also very common candidates. A retired nurse may find enoyment and extraincome from a temporary medical staffing firm. A computer science maor can gain valuableexperience working with a technical agency.

'nly a small number of personnel is re(uired to handle recruiting and clientele. )ven thelargest international firms tend to function with small, mostly-independent branch officesserving specific regions. This modular structure means it is (uite possible for a one-officetemporary staffing agency to compete effectively with established firms.

'verall, the triple-benefit to clients, associates, and entrepreneurs has contributed to the phenomenal growth of the temporary staffing industry. *ecause of these advantages, it willremain an integral part of the employment process through good times and bad.

Start Up Costs and Financing Sources:

+, to +,

The startup and operating costs of a temporary staffing agency are much lower than manyother businesses. The basic re(uirements are a small office with the typical supplies, acomputer system with general accounting software and database software for organiingcontracts, and the people skills to work with clientele and associates. /t would not beimpossible to start a temporary staffing agency on a shoestring budget of a few thousanddollars.

The largest business expense is payroll. /t is common for associates to be paid by the agency before the agency is paid by the client. An account must be maintained with sufficient fundsto cover payroll costs until bills are paid by the clients.

/t is difficult - but not impossible - to get help from venture capitalists in covering part of thecosts of setting up a temporary staffing agency. A well-researched, forward-looking business

 plan is essential.

Pricing Guidelines for Service:

Associates are paid by the hour, and the agency covers its costs by charging a premium to the

amount billed to the client. The exact amount of the premium differs from case to case andcan vary from 0 to 0 or more. #ome associates are willing to work for less and some

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clients are willing to pay more, which when properly matched can result in very decent profits for the temporary staffing agency. The contract usually spells out a flat fee to be paidto the agency in the event that a client decides to permanently hire an associate.

Advertising and Marketing:

A competitive hurdle for small startups is that larger agencies already have establishedreputations and brand recognition. This is actually a minor obstacle because of the localiednature of the business. /t is not necessary to wage a national marketing war to gain exposurefor a new agency. An inexpensive and well-directed marketing campaign can (uickly build avaluable reputation within the local operating region of the startup.

Essential Equipment:

An office $perhaps a home office% should be e(uipped with the standard office supplies and atleast two telephone lines.

At least one computer system with accounting software and a database for keeping track of proects is mandatory. A printer is used for printing invoices and ob listings, and a high-speed /nternet connection connects the agency with online ob search sites.

!any temporary staffing services have computers with tutorial software available to helpassociates to train their keyboarding and basic office software skills. These computers arealso used to test the skills of applicants.

Income Potential:

!any billions of dollars are spent on temporary staffing services each year. A small, single-office agency can earn profits in the tens of thousands of dollars. The large, internationalfirms rake in millions every year.

arget Market:

A temporary staffing agency is the middleman between two distinct markets1 clients andassociates.

/t is usually not a difficult matter to reach hundreds of applicants with simple help wanted

advertisements. !ore focus will probably be placed on connecting with client companies andconvincing them that your services will help their businesses.

Certain industries seem more receptive to temporary staffing. 2inancial institutions and otheroffice-centric companies are constantly seeking (ualified office support staff. 2actoriesfre(uently need labor for light industrial work, product assembly, and shipping and receivingtasks. 3ospitals and clinics use temporary medical staffing to hire transcriptionists, certifiednursing professionals, and other support staff. /ncreasingly, high-technology companies hirecomputer programmers, database specialists, and systems engineers on a temporary basisthrough agencies specialiing in technical placements.

ips for Success:

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4evelop a niche5

/n larger markets, providers of temporary staffing services have found it useful to branch intoniches such as temporary medical staffing, legal, financial, or technical fields. The focusednature of these agencies allows recruiters to build a pool of highly-educated, trained, and

experienced associates who are able to provide the best service to clients within a particularindustry.

A hospital executive would feel more comfortable contracting nurses from an agencydedicated to temporary medical staffing than from a one-stop-shop that also places welders,

 anitors, and filing clerks. This confidence also helps associates to command better wagesthan they might otherwise receive through a general-service temporary staffing agency.

Automate5

!uch of the work of running a temporary staffing agency can be automated by computer

software. 6ell-designed database software can ease the process of matching (ualifiedassociates with appropriate ob openings. Accounting operations can be very heavilyautomated $but working closely with a good accountant is still advised%. 6ith these tools in

 place, ust two maor tasks remain1 finding clients and finding associates.

7se your own services5

As the business grows, it will become necessary to add staff to handle the recruitment andmarketing. That should never be difficult, since typically doens or hundreds of (ualifiedcandidates are already in contact with the agency5

raining! Skills or E"perience #eeded:

&ecruiters are at an advantage with a background in human resources, business management,and marketing. A degree is not essential for starting the business, but the knowledge gainedthrough a business management program is immensely helpful. 8eople skills are important,and can be learned through experience and self study. 9umerous books have been published,specifically addressing temporary staffing as a business opportunity.