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How to Start An Employment Agency Business

What you will be doing.  Unemployment is still too high to be acceptable.  People need jobs.  Sometimes, they need others to help them find the job that could make all the difference in their lives.  As the owner of an employment agency, you will facilitate the coming together of employer and employee. 

For a fee, people seeking workers will use your skills as an organizer and liaison to find them employees.  Networking with small businesses, tradesmen, and government agencies, you will have access to information regarding job openings.  These groups can count on your service to send them potential employees with the skills they seek. 

How to start.  You will need a sizeable investment.  Seeking a small business loan is prudent.  Write out your business plan.  The point of the plan is to stay focused on the direction of your business.  Check with local agencies to find out regulations regarding taxes and licensing.  

Starting costs.  A small business loan of around $40,000 will cover initial delays in payment.  For your part, potential employees will need to be checked out.  You can defer the cost to them by having them get a copy of their own police report to complete their application process.   

A state of the art computer with Internet access and software are needed to build your database of employers and employees.  You will need a telephone with a business number, copier, scanner, and fax machine.  If there will be an online component to your business, website setup and management are needed. 

Skills needed.  Employment agencies need to be good judges of character.  Sending workers out that do not have a good work ethic can result in damage to your bottom line.  Organizational skills are needed to keep track of where workers are at any given time.  You will listen to potential workers as you interview them.  Choosing the right job for them depends on insights into their character and personal needs.   

Marketing.  A brochure details the services you provide through your agency.  Direct mailings to local companies can develop into phone calls and meetings with businesses in need.  Conducting classes on interview techniques and other job skills at community colleges can increase your visibility in the community amongst employers and potential employees alike.  

Online, you can set up sections for employers to list their jobs and the kinds of personnel they need.  Other sections will be devoted to profiles from potential workers.  In this instance, you can use programming to automatically match workers with jobs using keywords.  The employers could review the profiles before deciding.  

You will provide a needed service in your community.  Short term or long term assignments provide income for those that need a job.