Start a local temp agency with a small office

Local employers, from factories and distribution centres to offices and hospitality venues, that regularly need temporary cover.

You bill employers an hourly rate per temp and pay workers a lower hourly rate. Your margin on a growing pool of weekly hours covers rent, staff and profit.

• Business development and account management
• Recruitment and interviewing
• Managing people and admin
• Handling payroll and compliance carefully

• Employment agency regulations and the Agency Workers Regulations, so check the current rules on GOV.UK and with the Employment Agency Standards Inspectorate
• Heavy cash flow needs, since you pay wages weekly and wait for client payments, so plan enough working capital
• Lease commitments on premises, so check break clauses and business rates before signing
• Employer's liability, public liability and professional indemnity insurance
• Right to work checks, and any extra checks needed for roles in regulated settings
• Reliance on a few big clients, which can hurt badly if one stops using you

Startup costs are typically around £8,000 to £30,000, depending on your premises, lease deposit, insurance and the working capital you need to pay wages weekly before clients pay. Treat these as estimates and plan your cash flow.

Monthly revenue is typically around £4,000 to £20,000, depending on how many clients and workers you have. These are estimates only, and relying on a few big clients can hurt badly if one stops using you.

Check the employment agency regulations and Agency Workers Regulations on GOV.UK and with the Employment Agency Standards Inspectorate. Also check lease break clauses, business rates, right to work checks and your insurance needs.