Local temp agency with a small office

Manufacturers, warehouses, distributors and offices that need flexible staff, and sometimes want to try workers before hiring them.

You bill clients an hourly markup over what you pay the worker. After payroll taxes, workers' comp and overhead, the remainder is your margin. The revenue range here is the margin you keep, not total billings.

• Business development and sales
• Recruiting and interviewing
• Managing a small team
• Understanding payroll and employment basics

• Working capital: payroll for many workers can run ahead of client payments by weeks, so lenders or payroll funding may be needed
• Workers' compensation can be costly for industrial placements, and claims affect your future rates
• Check whether your state or city requires a staffing agency license, bond or registration
• Employment law applies, including wage and hour rules, I-9 verification and discrimination rules, so consider legal advice
• Office lease terms and zoning, and whether you really need a storefront rather than a lighter setup
• Losing a few large clients can cut income quickly, so spread your client base

Startup costs are estimated at typically around $15,000 to $75,000, depending on your office lease, team and insurance. You may also need working capital because payroll can run ahead of client payments by weeks.

Monthly revenue is estimated at typically around $8,000 to $40,000, depending on your clients and placements. Losing a few large clients can cut income quickly, so spread your client base. The estimate assumes at least about 40 hours a week.

Check whether your state or city requires a staffing agency license, bond or registration. Also check workers' compensation costs for industrial placements, employment law such as wage and hour, I-9 and discrimination rules, and your office lease terms and zoning.