How to Start a Temp Agency Business from Home: A Step by Step Guide

A temp agency is a temporary hiring agency where people out of work can go to look for temporary jobs, usually replacing someone who is on leave, vacation or out sick.  Companies that are suddenly shorthanded, or need help with a new project go to temp agencies to find temporary help for their needs.  Starting a temp agency requires a lot of research and know-how, understanding about the employer’s market, and having a sound business plan.

Steps You need to Start a Temp Agency Business


  • Before starting your temp agency, make sure that you really understand what all is involved in running such an agency.  It is important to research your competition to see how they get their employers, the profit margins they work at, their costs and guidelines.
  • Study the employers’ market in your area.  Look through newspapers and online job listings to find out how great of a need there is for a temp agency in your area.  If there are not that many jobs available, a temp agency might not be very successful in that area.
  • Research the area around you to see how many other temp agencies are in your location.  If there’s too much competition it will be really hard to develop and prosper from your own business.

Getting Started

  • Get to know the major employers, those that are always hiring for positions within their companies.  Start up a relationship with them so that they are familiar with you.   Learn about their companies, what they do and their work ethics.
  • Study labor laws, workman’s compensation and other employee/employer laws and regulations both federally and within your state of location.

The Business Plan

  • Develop a business plan that projects what you expect to have in profits and losses for the next five, ten and even fifteen years.
  • Include financial documentation such as bank statements and tax records for at least the last five years.  Be sure to include the names and contact information of all financial institutes for easy referencing.  This is important, especially if you are hoping to gain financial support or backing from an institution to help with startup fees.
  • Develop a marketing strategy and detail it in the business plan.

Financial Planning

  • It takes a bit of money to start up a temp agency so make sure that you are financially prepared to meet all of your obligations.
  • Plan to have enough financing to last for at least eight weeks of payroll for any employees that you may hire and find work for.
  • Be sure to have sound liability insurance and workman’s comp firmly in place before starting up the agency.
  • Prepare to have seed money to procure training and testing supplies, office equipment and other necessities.  Training and testing equipment is important in matching your potential employees with the perfect employer so that you build a strong reputation of providing employers with the type of employees they are looking to hire.
  • Marketing is essential to the success of any business.  You will need to make a budget and allocate a good portion, especially when you first startup, to the marketing area so that you can gain clients and employees.

One thought on “How to Start a Temp Agency Business from Home: A Step by Step Guide

  1. Hussain Reply

    Hello sir, I am Hussain Girgaon. I completed 2 year interior design and landscaping course. I want to start my own firm. So please suggest me the procedure. Thank you…

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