Start an Employment Agency Business

how to start and employment agency

If you want to start an employment agency business there are several considerations to make and much planning to complete before you accept your first client.

Research Your Area

After deciding that you would like to start an employment agency business, you must determine whether such a business is feasible in your city. Employment agency businesses require employees and employers who have or are willing to work with an intermediary to find employment opportunities and fill open positions. Typically, students, hourly workers and part-time employees and companies that hire these types of workers use employment agencies. If your city contains companies and a population falling within these categories, it is likely that it will support an employment agency business.

The absence or scarcity of either employees or employers does not mean you should abandon your endeavor. This might make your job a little more difficult, but it won't make it impossible.

How to Start an Employment Agency Business

When simplified, the process of opening an employment agency consists of six steps: planning, funding, pricing, legalizing, locating and marketing. The tasks within each category might change depending on your city and work experience, but their order will generally remain the same.


During this step, you are developing your business plan. A business plan establishes the guidelines for how you will start and run your business, what your business will do, how it will be funded and your short and long-term goals for its operation. Many banks or other agencies will not loan money to a business owner without a plan.


Very few businesses are profitable or self-sustaining immediately upon opening. It is very likely that you will have to wait several weeks before receiving your first placement payment, and until then you will need money. In this stage you should identify how much money you need and the potential sources from where you could obtain it. When establishing this amount, consider the expenses for office supplies, rent, marketing costs and your salary.


Pricing refers to how much and who you will charge for your work. Your charges should accord with the rates charged by other agencies. Call local agencies to determine what they charge and how they structure your fees. Internet research will also help you establish your fee schedule.


Before opening your business you will need to determine whether you state has any licensing requirements for employment agencies. Small businesses in your state may be regulated by the Department of State, Division of Corporations or Department of Commerce. The agency's website should inform you about any state licensing or registration requirements.

Your city or municipality may also have licensing and registration requirements or zoning laws prohibiting you from running your business in a certain area, such as a residential neighborhood. Failure to comply with state or local laws may result in a fine being levied against you or your company, making it worthwhile to investigate and fulfill all legal requirements.


One of the most important aspects of your business is its location. Your office should be accessible to both employers and employees. It does not need to be particularly fancy, but it will reflect of your capability, so visitors should at least feel welcome.


Finally, it's time to start the work of getting your business up and running! Let your city know that you are ready to help connecting employers and employees. Market your company in the locations that businesses and workers consult to find jobs, for example community employment boards and newspapers.

Your Employment Agency's Success

Employment agencies often have a continuous amount of business: when the economy is good employers require assistance filling job openings, and when bad employees need help finding jobs. Your planning and hard work in starting your business, therefore, will never have been wasted. Most important of all, though, have fun! Being a business owner is empowering and provides you with a great way to create the perfect job for your lifestyle.

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Start an Employment Agency Business