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FAQs About Owning a Direct Placement Employment Agency

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About Direct Placement Employment Agencies

Tips for Running a Direct Placement Employment Agency

Many employers rely on employment agencies to provide them with qualified candidates to fill their job positions. As a result, starting an employment agency can be a lucrative business venture.  If you are interested in starting or running your own employment agency, here are a few tips to help you operate successfully.


  1. Secure needed finances. Starting an employment agency will require some start-up capital. If you are unable to come up with the funds to start your business, check with the Small Business Administration for advice and guidance. They can steer you toward those sources that can help you.

  2. Register your business. It is important that you meet all the legal requirements before you start to operate any business. Contact your city hall or county clerk's office to inquire about the requirements and obtain all necessary legal documents.

  3. Decide where you want to set up an office for your employment agency. The location you choose needs to be convenient and easily accessible for applicants. Check the zoning laws in your area if you will be operating your employment agency from your home.

  4. Set up a dedicated phone line for your business. You will need a phone service where you can be reached at all times like a cell phone. Hire an answering service to handle after-hour calls or consider getting an answering machine or a voice mail to take these calls for you.

  5. Join your local Chamber of Commerce. Membership in this organization will help to spread the word that you are running an employment agency. Introduce yourself and hand out your business card and brochures to other members. Let them understand the benefit of using your pre-screened applicants to fill their available job positions as opposed to placing an ad in the newspaper.

  6. Promote your employment agency. Advertise in the local newspaper and phone book as well as online. Also, post fliers in public places that attract huge crowds, such as college campuses, community centers, grocery stores, Laundromats, Libraries and at the mall. Send out direct mail to businesses in your area.