Some of the world's most profitable and famous modeling agencies started on a shoestring budget. The key to success in this industry is not having deep pockets, but good contacts and knowing how to capitalize on those contacts. When you stand back and analyze a modeling agency, what you find at the core of the business is simply this: a modeling agency represents people of various appearances, shapes, sizes, races, etc., who are used to promote or display a product or service for paying a client. Nothing more. This gets back to my first point, which was industry contacts. Contacts are important in this industry for a few reasons, including the fact that the industry is very competitive or even cutthroat. Reliability is essential, and new modeling agencies find a lot of closed doors unless they have a contact inside. Once established, a modeling agency can be very profitable, making this a business opportunity that is definitely worth investing some time into researching the possibilities further.
There are a variety of potential clients for your business: Photographers, ad agencies, fashion designers and even trade show participants who need to staff their booths.