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WORK AT HOME - START YOUR OWN
TEMPORARY HELP SERVICE
This is a work at home service with excellent growth potential, indications of
strong stability, a nationwide market with a growing demand and a risk factor
that's rated average or less than most new business ideas. Temporary Help
Services are well suited to absentee ownership situations; require no experience or technical knowledge
on the part of the entrepreneur; and have only minimal equipment needs. Net
profits before taxes for some established temporary help services have been
reported as high as $500,000 per year.
There's a difference between regular, private employment agencies and a
temporary help service. The employment agency is a "brokerage" office that
matches unemployed persons with available jobs. The temporary help service hires
people onto its own payroll, sends them out on contract jobs, and pays them
accordingly.
Temporary help services make money "off the top." They send out temporary
workers on one-or-two-day-only jobs paying $15 an hour to the worker, and
collecting $20 an hour for the time the worker spends on the assignment. More
and more, businesses are willing to pay the premium costs for a trained person
for just a few days at a time, than to accept the burden of a 40-hours per week
payroll obligation and the task of finding enough work to keep such a person
busy enough to justify a full-time salary and the attendant support costs. Businesses everywhere are finding it easier to
pay more for "temporaries" than hired 40-hours per week "permanents." That's the
secret of success with this kind of business, and the point to keep in mind when
selling your services.
The successful temporary help service recruits as many skilled and qualified
workers as possible. These workers differ from the regular job-seekers in that
they're looking for "temporary" work only. For any number of reasons, they're
only willing to work on jobs lasting from one to five days, or perhaps two to
three weeks, on any one job assignment.
These persons are ideal for the employers needing help but not wanting to
hire and train full-time employees. Your task will be to find and attract top
people and to maintain complete files on them. What kind of jobs they specialize
in, their attitudes about work, and when or how often they're willing to work
would be essential information to have in our file. Each person should be tested
in your office, sent out on a few assignments to build a favorable reputation as
a good worker, and then offered a permanent listing on your roster of available
specialists.
Work hard to build your roster of available workers. Within ninety days of
start-up, you want to be able to send someone out to fill any employer's needs,
regardless of the job requirements. Job assignments will range from loading dock
and light clerical work to word processing and even master-of-ceremonies work.
Depending on the size of your market, you could conceivably specialize in
temporary help for data-processing, the medical or legal professions, or perhaps
the retail trade; and you'd still make a lot of money. Generally though, we are
going to show you here how to start a "full-service" temporary help agency.
You'll need a good mix of employers in your area for best chances of real
success. Your area can be one of high unemployment or one with relatively few
unemployed. Whichever the case, the thinking of the business community and the
work force available should be non-traditional; there should be an undercurrent
of thought toward the idea of calling in specialists to handle a job quicker,
and more efficiently, than the full-time worker.
The people wanting to affiliate with you as workers will be housewives,
college students, retired people and a large number of people who like to work,
but don't want to be tied down to a regular job. When you explain the concept of
your service, you'll be pleasantly surprised at the number of traditionalists
you'll convert to temporary workers.
First, you should visit your local Chamber of Commerce office. Explain the
philosophy of your service, meet the chamber officers and ask for their help.
You'll find that they have a listing of all the major businesses in the area,
plus the names of the 'right' people to talk to in selling your service. If you request, you might
be invited to Chamber meetings and be introduced to the business leaders in your
community. The only kind of information it is not likely they will be able to help you with is a
listing of doctors, lawyers and small, home-based, one-person enterprises.
However, don't neglect contacting these people; they have a need for varied
specialized help just as the larger, more widely known firms in your community.
It is possible to start this business in your home, but make sure you have
the space for a reception area, and at least a semi-private interview area. Most
of your selling efforts will be conducted by mail, phone and personal visits to
the employer's place of business, so you won't have any problem there. However,
you may run into zoning problems if your city zoning people discover a large
number of cars parked at your house every day. It certainly always helps to be
on good terms with your neighbors, and further, working by appointment will help
keep traffic under control.
So, practically speaking, starting your business from home will require a
much smaller initial investment. In this particular business, rent and
advertising will be your largest expense, so beginning the business from your
home is definitely worth considering if your start-up funds are limited.
In actual operation, you could have the applicants interested in your
services contact you by phone. You would then set up appointments either in
their homes or your own, thereby eliminating congestion of cars in front of your
home, as mentioned above. If you began on a part-time basis, you could have a
family member or friend answer your phone and set up appointments for you. If
you do begin part-time, and working out of your home, you might look into the
advantages of a professional telephone answering service.
Another idea for saving on costs might be to rent unused space from a
business already established. These businesses might be sales and distribution
offices, suburban insurance agencies, quick print or copy shops, and repair
service shops. Look around; many businesses have had to take what was available
at the time, and would be more than happy to lease or share their vacant space.
Keep in mind though, that you'll do much better with an office of your own, and
you should move into one just as soon as you can afford one. Proper facilities that convey a professional image should be
number one on your list of priorities.
Your business image is projected by your address and the appearance of the
building in which you locate. Your reception area will set the mood of
professionalism and efficiency. The reception area should be inviting - walls
painted in light pastel colors, wall prints, floor lamps and wall-to-wall carpeting. It should also feel
comfortable while being functional. Comfortable modern chairs and sofa; perhaps
a floor planter or two, reception desk and ash trays all help to achieve this
effect.
The main office need have only a desk and a comfortable chair, facing the
door, a chair beside or in front of the desk, and a file cabinet. A print or two
on the walls, and perhaps a bookcase are the only "extras" you might use to
dress up your office.
Your second office equipment will be for testing your applicants. You can
inexpensively build a table along the length of two walls, partition into
cubicles and have an electric typewriter, an adding machine and make a headset
connected to a dictaphone/recorder, and another set up for testing short hand
capabilities. Later on, you'll probably want to have a word processor and a
computer.
Ideally, you should also have a sales office and a storage room. The sales
office will be where you greet and talk with employers who drop in to look you
over to find out more about your business. Mainly, this office will be where
your people will work from when calling prospective clients and selling your
services by phone. The storage room needs only shelves to hold various forms,
mailing pieces, envelopes and business records.
One way to hold your start-up costs to a minimum is by leasing your office
furnishings and equipment. Whatever you do, remember that you're projecting an
image, so don't settle for less than the best. This is absolutely imperative in
regard to any equipment used for testing your applicants. You might be able to
work out an arrangement with the business department of a local college, or
business school, to send your applicants to them for testing on their machines.
Such an arrangement, even at a cost of $5 to $10 per test, could save you
several thousand dollars in start-up costs.
The first person you hire should be either an experienced manager or someone
you can quickly train to assume those duties. It's best to hold out for a person
with at least one year experience as a bona fide personnel manager. This person
should be outgoing, detail-minded, people-oriented and able to work well under
pressure without losing his sense of humor. You don't want someone likely to
blow his cool when confronted with a difficult situation.
Your manager will be responsible for organizing the interview and testing
systems, for setting up your sales solicitation program, and for supervising the
temporary workers, as well as your office staff. It's a highly responsible and
demanding position, so don't be reluctant to spend the money necessary to get
the best. You will need to research to determine what salary such a top manager
receives in your area.
The next member of your staff should be an enthusiastic, hustling sales
person. This employee should be experienced and adept at selling by phone as
well as in person. Unless you can afford to pay a good direct mail advertising
copywriter to create your mailing pieces for you, it would be wise to look for
direct mail advertising or copyrighting experience in the background of the
sales person you expect to hire.
Your sales person should spend the mornings calling prospective employers on
the phone, and the afternoons making in person sales calls. With this kind of
work routine in mind, look for sales people with high ambition and energy
levels. Try to pick the kind who will come in early and stay late to work on his
direct mail efforts, clearing the decks so that he uses his time during regular
business hours to close sales by phone and in person. You need and want a
"closer" - not an order taker. Be as selective as you have to be in choosing
this salesperson.
In addition to the going rate which a sales person of this type should be
paid, you should also consider paying a 5 percent bonus for each new account
brought in. When you find the right person, it will be worth it, so make it
worthwhile to join your staff. Not all sales people will necessarily develop
into good sales managers, so try to find one who fits all your requirements. The
sales manager would recruit, organize, develop, motivate and supervise your
sales staff. With those responsibilities, you'd want to offer a salary plus
override on the sales production of his staff of sales people.
You'll need an efficient and foolproof bookkeeping system to keep track of
your payroll, client billing, income taxes, work schedule, hours worked and all
the money that comes in. For this chore, I suggest that you contract with a
company that handles this type of work for a number of independent small
businesses. Explain to them everything you think you need; ask them to set up a
system, and then instruct your receptionist on how to keep it up to date on a
weekly or monthly basis.
You'll save money in the long run if you will consult with an accounting firm
and have them set up a system that not only works, but can be interpreted and
computerized from the beginning. Later on, you may want or need to hire a
full-time bookkeeper just to keep up with the daily entries. If so, check out salaries paid in your area
for that kind of work.
The last member of your staff will be your receptionist. This person should
be a lady of better than average good looks, a lot of empathy for people in
general, and an easy smile. She should dress stylishly, but not provocatively.
When she isn't answering the phone or greeting customers, she can be
administering tests, doing miscellaneous typing, making folders for the records
of your workers, and general office filing. And if you have an accounting system
set up, she could also assist with the daily bookkeeping.
The kind of temporary workers you'll want to attract will fit into several
general categories, and can be recruited in a number of different ways. Good
places to look first will be in the business, secretarial and technical schools
in your area, and perhaps also the colleges. To sustain your efforts, have a
brochure about your company made up, and make sure the placement directors or
counselors always have an ample supply on hand. Many schools stage "career
days," when employers are invited to set up booths on campus and talk to the
students, pass out literature, and invite the students to visit their companies.
Make sure that you know about these, and that your firm is represented.
Another group will be housewives who perhaps held regular jobs before
marriage or the birth of a baby, and now want to get back into the job market.
You can bring these people in by posting bulletin board notices, arranging
announcements at meetings, or with guest speaking engagements. And of course you
can try for guest appearances on local radio or television talk shows.
Another group to recruit will be the "bored with life" people. These are in
the 45-to-55 age group, not satisfied with the future where they are, and
looking for a better opportunity. It is imperative that you begin recruiting and
signing workers as soon as possible; at least a month before you open for
business is not too early. According to industry surveys, the most common reason
for the failure of temporary help services is not enough workers lined up to
fill the client demand. When you get a request for help, you should be able to
send out a qualified person.
Each market area differs in the number of different types of workers a
temporary help service should have available, but in every case, it's best to
have more than you figure to be a basic need. You must establish a maximum
number of people within any one occupational field that you'll sign up, or else
you won't be able to keep everyone busy. Unless you keep the workers you have
registered working pretty much as often as they want to work, you'll begin to
lose them.
It's not hard to determine when a person is losing interest in temporary job
assignments through your firm. Whenever you call to give an assignment and you
can't reach the person you're calling, try several follow-up calls. It should
become obvious to you that he's no longer interested if you still can't reach
him with your follow-up calls. It's a good practice to ask for notification of
vacation or other plans that will affect their availability for work.
If you call and a job assignment is refused with a lame excuse, come right to
the point and ask if he wants to change his availability status, or if you
should drop him from your list of available temporary workers altogether. Never
coddle a temporary worker. If he's not available when you call to give an
assignment, or he gives you a less than valid excuse for not accepting, flag his
"call assignment" card and move on to your next available worker. You might call
a couple of days later to check his availability and interest in continuing to
work, but don't waste too much time. You can always reinstate such a worker, but
it is probably better to spend the time recruiting a replacement.
As mentioned earlier, one of your major expenses will be for advertising.
Your manager and sales people should keep you advised on your current
advertising impact and results, and from this you should have a good
understanding of how to use your advertising budget most effectively. Your
advertising should be "double-barreled," aimed at both the employer and the
worker.
Generally, your efforts to add new employers to your client list should focus
on direct mail. Advertising efforts to recruit new temporary workers should be
almost exclusively devoted to newspapers. Years ago, some radio stations sold
sixty-second
commercials to a few temporary help agencies. The agencies talked to
prospective employers, playing up the fact that they had skilled workers to
handle overload and deadline situations. These commercials were broadcast in the
mornings before 8 o'clock. Then they followed up during the afternoon hours with
commercials inviting people seeking temporary help to come in and sign up.
Everything worked well except that not enough prospective employ ers called
often enough to justify the expense. This advertising method is being followed on a small scale in some areas even now, so watch
for it.
For really professional results, you should get a free-lance advertising
copywriter to do your direct mail piece. This should be a 4-page brochure making
these points:
1. All employers have sudden work overloads; face deadline situations; or are
suddenly
left with a mountain of work for specially trained employees just when they
are home
sick, on vacation, or off for an emergency.
2. Your company understands these work load problems, and has available
skilled
professional replacement workers who can quickly step in and get the job
done.
3. Your company thoroughly tests each of the specialists hired for these
special staffing
crisis situations, and can assure the employer that they are tops in their
individual areas
of expertise.
4. Your company is well aware that many businesses would like to save the
expense and
headaches of hiring a full-time specialist of the same caliber of your people
on a
"temporary" or "on-call" basis. Your people cannot be hired by the
prospective
employer because they already work for you; but if and when a temporary
worker is
needed, your company stands ready to fill the need, regardless of the job
specialty
required.
5. Even if he doesn't need one of your people today, the need could arise at
any time, and
suddenly. So he should just keep the brochure and your telephone number
handy, and
don't hesitate to call you personally for whatever temporary help is needed.
Once you have the copy written, decide on the layout and type style you want
to use; if and what color will be used; and take it to a quality printer. Your
brochure should be printed on 60-pound coated paper, and folded to suit your
needs by the printer.
Your complete mailing should consist of a short cover letter inviting the
recipient to avail himself of your services; a brochure explaining your services
in greater detail; postage paid business reply card. The mailing envelope and
the cover letter should be addressed to each business owner or personnel manager
by name.
Pay the cost of a bulk rate third class postage permit; have your permit
indicia imprinted on your mailing envelopes; and organize your mailings to get
between 200 and 500 letters into the mail three days a week, every single week.
Don't skimp on your direct mail advertising efforts, because this will be the
lifeblood of your success.
Your newspaper ads for qualified workers looking for temporary assignments
should be display ads in the "Help Wanted" section. Most such ads are one column
wide by 3 to 6 inches deep. Be sure you have an ad running in the Sunday paper,
and at least one more on Wednesday or Thursday. Before you even start soliciting
accounts, you could run an ad one column by 6 inches deep every day for a month.
These ads should invite the readers to come in and register with your
company. Work with your free-lance copywriter to say what you want to say.
Overall, though, these ads should explain that you have plenty of jobs going
begging; that the worker sets his own days to work, and can take jobs as often
or as seldom as he likes. Stress the real advantage of "paychecks on your terms"
- an impossibility with a nine-to-five job. (We have had reports of employed
persons coming in to interview, going back and quitting regular jobs, and
becoming great "temporaries.")
Don't forget to send out news releases to all the media in your area when you
open for business. Leave yourself open for broadcast talk show interviews, and
when you promote someone, pass special mile-stones, or become involved in
unusual stories in connection with your business, at least telephone the media and give them
this information.
The most important requisite for success, however, is consistent advertising.
In a city of 100,000 population, you should budget $10,000 for your first year
advertising. Plus, get involved in as many promotions and as much public
relations contact and publicity coverage as possible. Once you're beyond the
"break-even" point in your business, you will allocate funds for advertising
based on your gross income.
In day-to-day operations, your manager will interview applicants; do testing;
talk with clients; solve problems; take orders from employers; and make job
assignments. Usually, his busiest time will be right after lunch when job orders
start to come in. With this in mind, you might want to arrange for him to take
an early lunch period.
While your manager is "running the show" your sales person will be making
telephone calls in the mornings, and in person during the afternoons. It's a
very good idea to send out your direct mail advertising one week, and then call
on these same people, either by phone or in person, the next week. Remember that
your sales calls should be relaxed visits, allowing the prospect to learn more
of your business and the kinds of people
you have available. During each sales call, the prospect should be left with
the feeling that your company can save him money, solve a lot of production and
scheduling problems, and take the exasperation out of his personnel
requirements.
As a rule, you'll find that most jobs are called in during the afternoon
hours. With this in mind, it would be wise to have set procedure for your
specialists to call you each afternoon to let you know where they can be reached
through 5:00 p.m. if they are available for a job assignment the next day. You
might want to set a policy of "No call from you - No assignment for you."
Most temporary help agencies give their workers a supply of a 3-part time
card when they're hired by the agency. When the request for a worker comes in,
the most qualified in the required category is called. Job, name of company,
location, approximate
length of job, and salary are all explained. If they agree to take the offer,
they fill in the time card for the day the work begins. When they report for
work, they have the time card signed by the employer to verify starting time,
and finishing time. One copy of the time card stays with the employer; the
temporary worker keeps a copy; and the other copy is mailed to your office.
Smooth and simple, but make sure you've got everything worked out before you
begin.
Your bookkeeper notes the proper information on the ledger for that employee,
files the time card, and sends a ledger duplicate to accounting for billing. Of
course a reminder call should be made first, but as a rule, any account that
hasn't paid within
thirty days should receive a personal visit. As to the hard-core delinquent
account, no more employees furnished, and a collection agency to clear up the
account will be your policy. You may want to look into the advantages of selling
your accounts receivable to a factoring company.
Unlike the brokerage type employment agencies, your temporary help agency
will not require licenses other than those required by any other business in
your area. You should, however, bond each of your employees in order to protect
yourself from any possible liability or other legal entanglements. And of course
you'll need to carry a standard business insurance policy.
Then - the HOW, WHAT, WHY and WHERE - of getting started with your own
profitable temporary help service! Remember, it takes solid and consistent
advertising, earnest recruiting, and selling. So don't stop or let up until you
have everyone in your area registered, and every possible employer as a client,
aware of your business. It's a big job with lots of challenging work involved,
and you'll need good people to help.
It is worthwhile to search out these people with care, to be sure you have
good, reliable employees - the rewards will be well worth it! Organize your
business for success, and get with it. The WHEN is NOW!!!
To get started on making your dream a reality of working at
home, please consider one of our helpful and information packed guides;
Complete Work At Home
Guide
Internet Work At Home
Jobs Guide
Freelance Work At Home
Guide
Mystery Shopper
Work At Home Guide
Computer Work At Home
Jobs Guide
Assembly Work At Home
Guide
Clerical Work At Home
Jobs Guide


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