by Nerissa Miller

Created on: July 24, 2009   Last Updated: July 25, 2009

Employment agencies will always be around as long as there is a demand, and supply of workers. There is however an increasing demand for on-line job search engine. Many employment agencies have also moved into on-line posting, or creation of agency job bank to reach out to more applicants.

Know the basics, and you will be on your way to starting your own employment agency business.

Laws, and business entity

Find out the regulations governing the opening of employment agency, the certification, and insurance required to operate the business. Decide if your business is going to be a sole proprietorship, partnership, limited liability company or corporation. Talk to an attorney to determine which business entity will suit you. You will also need the help of your attorney in drafting contracts for applicants, as well as your clients.

On- the-job training

If you have no idea what is the day to day operation of the agency, the paper work involved or how to structure your staff commission scheme, try to find a job in an employment agency to gain experience.

Business Plan

You will need to write a business plan, stating the type of services your agency will be providing, and the mission, and vision for your business.

Determine your target market, and whether you want to specialise in a niche market. If you are not running the business from home, start by doing a market research to determine where you want your agency to be located. Your office location is very important, as it has to be easily accessible by job searchers, otherwise, they will not want to turn up at your office for a pre-screen.

Consider the overheads. What is your upfront investment? How many staff do you need? What will be theirs salary, and commission structure?

Set your rates. You need to find out what other employment agencies are charging, as you need to set competitive rates so that you can attract clients.

Decide on how you want to reach out to your clients, and job applicants. Do you need to invest in hardware or software to build a job bank? Are you expecting your staff to do cold calls only or are you prepared to do media advertising or on-line job posting?

Determine how you want to finance your business, and determine how long it will take for you to break-even.

Your investment will not go down the drain if you have a proper business plan. It is a guide for you to fall back on, and you can always improve on your plan to make your business more profitable.

Learn more about this author, Nerissa Miller.
Click here to send this author comments or questions.