Temporary Help Agency

The high cost of maintaining a full-time employee contributes to the growth of the temp-help business.

Minimum Start-Up: $10,000
Average Start-Up: $100,000
Revenue; $100,000 – $2.5Mil
Profits; $25,000 – $250,000
One Person Business: Yes

Advancement in computer hardware and software enables companies to staff mean and lean, preferring to hire temps during peak seasons rather than lay off workers during slower times.

On any given day, over 1 million people work on temporary assignments. By 1995, trade statistics estimate that 1.25 million jobs will go by way of “temps”, creating an aggregate annual payroll of about $10 billion.

These figures suggest that the temporary help business is here to stay.

Unlike the temp boom of the late 70s, today’s temp-help has gone beyond clerical help, with 37% of placements involving professionals.

JOB MATCHMAKER

A temporary-help service acts as a matchmaker between businesses seeking temporary help and individuals who want a job.

The temporary agency pays the employee on a weekly basis a set rate, and in turn bills the business/client a predetermined rate, usually 10% to 15% more than was paid the employee.

START-UP HURDLE

If there is a single hurdle that makes starting a temporary-help agency “difficult”, it has to do with your ability to cover the payroll up front.

As a temp agency, the demand for cash flow presents a two-sided problem.

While you are expected to pay your workers on a weekly basis, you are also expected to extend your clients 30 to 60 days credit.

So while you’re waiting to get paid, you need to have enough cash to cover your payroll.

For example, if you place 10 workers at 40 hours each for the week, at a rate of $8 an hour, it would require $3,200 cash for the week. That’s $12,800 in 4 weeks!

To avoid this problem, it is advisable to hire your workers as independent contractors.

You can act as their agent, and collect your commission when they are paid.

Making Money With Giveaways

The guy who thought of giving away free rolls of film every time you have your films developed at his photo center – is a genius!

You know the rest of the story, and so do thousands other photo centers around the world who copy this excellent promotion.

STRETCHING DOLLARS

A budget conscious market is always out looking for a free lunch.  For this reason, you can build a marketing system that self-liquidates its associated cost, distributing gift certificates that offer free this or free that – all the customer has to do is pay a minimal shipping and handling charge.

FREE SOFTWARE

In Las Vegas, I met a poker player who sells software he put together for $29 and higher.

To double the volume and reach other markets, he decided to repackage his software. He gave it a new name, made a new floppy disk label, and offered it at a ridiculous price: FREE

To receive the software, all you have to do is fill out the gift certificate and send it back to him with $8.69.

THEY WENT APE!

He was giving the certificates to schools, businesses, and stores who give away the certificates as their own promotional gifts to their customers. Because the cost to produce and mail this disk is cents, he was making $8 with every certificate that was redeemed for the free software.

$800,000 IN 27 WEEKS

Take a snapshot of this picture: Say, a total of 1 Million certificates were circulated. Let’s say you paid half a penny to print and distribute these million certificates. Your cost is $5,000.

If you generate a 7% conversion, you’ll earn $560,000.00

NUMBERS GAME

If you give other people permission to make copies of and give away your certificates, your cost to circulate 1 Million certificates will go down. But your opportunity to make money remains the same.

1% response = $80,000
2% response = $160,000
3% response = $240,000
5% response = $400,000
10%              =$800,000

5 WAYS TO GENERATE QUICK CASH YOU NEED BY RUNNING A MINI-BUSINESS, PART 5 of 5

Continuing from part four, mini-businesses:

INCREASING YOUR INCOME FROM YOUR PRESENT BUSINESS

The easiest way to bring in more income quickly is to offer a special price or package of your current products or services. Your only upfront expense will be getting the word out about your special. Depending on the type of business you run, this expense could be minimal.

For example, one of the services I offer, in addition to my publishing efforts, is custom typesetting and layout work. I could offer a special price for a limited time, or a quantity discount off my normal per-page pricing. In this case, the most cost effective marketing method I could use would be to prepare a flyer for the special (no cost to myself but time spent creating the flyer and copying costs), and distribute it to my best customers and those prospects I would most like to have as long-term clients.

Besides the quick business I’d get from the special, I may entice a few newcomers into my fold that will bring long-term business my way. Used correctly, this technique can provide the quick income you need, while building your permanent customer base.

CONCLUSION

Every business has hard times at the start. That’s just a fact of life or the self-employed. It doesn’t have to be so bad, though, if you plan ahead and take whatever steps are necessary. Package your products and services for quantity sale. Run a small secondary business. These are the ways to reinforce your main business and keep it afloat in rough water.

This is part four of a five part series. Click to read part one, two, three, or four.