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How to Open a Staffing Agency

by Jill Leviticus, studioD

Make your agency stand out from the other staffing agencies in your market; this will require a combination of capital, strategy and drive. Specializing in a certain employment or industry niche or providing added services can differentiate your agency from its competitors. Thorough planning and research ensures that your business idea is viable before you make a sizable investment in your new agency.

Research your market. Find out what staffing agencies serve your area and note their specific areas of expertise. Determine what industries have a strong presence in your area.

Determine your focus, using your research as a guide. For example, if your area has a large number of industrial businesses, start an agency that specializes in placing laborers, technicians and engineers for those businesses.This would be a good focus, particularly if existing agencies don’t meet this need.

Prepare your business plan. A business plan provides in-depth information on your new business, including information on management, market analysis, financial projections and marketing strategies. If you plan to finance your business, the bank will require a business plan.

Determine how much money you’ll need to start your business. Your business plan should outline the costs involved in opening your staffing agency. Common costs include such items as office rental, computer and other office equipment, salaries, professional memberships, conference fees, insurance, telephone and Internet service and advertising. If you plan to offer computerized aptitude tests for job seekers, you’ll need to include the cost of extra computers in your budget.

Talk to a lawyer about incorporating your new business. The Entrepreneur website notes that the most common reason for incorporating a business is to ensure that you are not legally liable for the actions of your corporation. Ask your lawyer about any local or state fees required to establish your business.

Rent an office for your agency. While it might seem wise to rent a small, inexpensive office at first, you’ll make a better impression on both job seekers and potential business clients if you rent a larger office in a safe business district and furnish it comfortably.

Create a marketing plan. You’ll need to reach both job seekers and business clients, which will require different marketing tactics. A basic marketing plan might include creation of your website, mailers to potential clients, attendance at industry conferences and job fairs, and advertisements in both career and business websites and publications.

Items you will need
  •  Business plan
  •  Marketing plan
  •  Capital


  • Online career forums offer an inexpensive way to promote your business to both clients and job seekers. Become an active member of forums, but don’t limit your interactions to posts that only promote your agency. If you do, other members might not take you seriously.


  • Don’t become too ambitious when planning the size and scope of your agency. The Venture Street website advises that you might want to concentrate on one area initially and expand when you’re in the position to hire employees with experience in other areas.

About the Author

Working at a humane society allowed Jill Leviticus to combine her business management experience with her love of animals. Leviticus has a journalism degree from Lock Haven University, has written for Nonprofit Management Report, Volunteer Management Report and Healthy Pet, and has worked in the healthcare field.

Photo Credits

  • Comstock Images/Comstock/Getty Images