An employment agency is a popular means of finding work for many people. After all, the employment agency takes on the task of finding jobs for clients, alleviating the employees’ need to do the actual legwork. However, actually opening an employment agency business is a much bigger, more difficult and time-consuming task. If this sounds like a promising venture, read on to get started.
Instructions
1. Educate yourself about the realities of running an employment agency, including the laws regulating the industry and insurance you may be required to hold. If you don’t know what it takes to run an employment agency, you will not achieve the success that you want.
2. Work in an employment agency. If you cannot secure work at an employment agency, find an agency that is not in direct competition with you in a nearby town and ask if you can shadow the employees at the employment agency for a day or for several days.
3. Conduct market research to determine what need there is for an employment agency in your area. Is there a particular niche that you will fill? For example, will you open a general employment agency or specialize in finding jobs for those in the medical field?
4. Write a detailed business plan. Your business plan will help you flesh out your plans for your business and should focus on such topics as your marketing plan and your financial goals.
5. Secure the needed financing. You are likely going to need upwards of $40,000 to get your employment agency off of the ground as you are going to have to pay your employees before you are actually paid by your clients.
6. Choose a business entity: sole proprietorship, partnership, limited liability company (LLC) or corporation. Be sure to talk with an attorney to determine which business entity will be best for your particular business needs.
7. Hire an attorney to ensure you run your employment agency business by the book. In addition, you’re going to need contracts written for your clients and employees to sign.
8. Set your rates. During your market research, you should have determined how much other employment agencies in your area are charging, which will now help you set your own competitive rates.
9. Choose office space, if you are not going to be working out of your home. If you will be hiring office employees, for example, you will likely need an outside office, somewhere clients can come and where potential employees can drop in to take the needed administrative tests.
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