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Starting a Recruitment Business - the Basics

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If you want to be able to turn your idea into something real, you have to think about finance...Some of the first questions you will need to ask yourself are:

  • How much everything is going to cost to set up?
  • How much will you need to make each month to break-even based on predicted operational costs?
  • How much capital will you need to pay for temporary staff (bearing in mind that you employ the staff and then subsequently charge the client. After all invoices can take a while to be paid!)
  • How will you raise said capital?
  • If you employ other recruitment staff - will you have a bonus structure (it’s generally expected in this industry) and if so what are the terms of the bonus policy?

Design and Marketingstarting a recruitment business

You know what you are going to be selling, but how you going to sell it? Consider:

  • Branding - How will your recruitment agency / business be packaged to both clients and candidates?
  • Design - who will design your business cards, marketing gifts, company logo?
  • Have you created a Market strategy?
  • Do you have any existing clients / companies that you are guaranteed to gain work from?
  • How will you use Social Media?
  • How will you market your new business? Press releases, open days, launch day?
  • What type of sales targets have you set in place?

Business Practicals

Red Tape to some - protecting yourself to others! You might want to consider:

  • The legalities of working as a recruitment agency/business
  • The legalities involved with employing temporary staff, employment law and legislation
  • Your business terms and conditions
  • Employee Insurance
  • Company policies - equal opps, health and safety, data protection etc
  • Service Level agreements for particular clients
  • Pricing templates
  • Do you have a bespoke recruitment database to record candidate and client details?

In fairness the checklist above could go on and on....however, if you are still keen to start a recruitment business, we hope that it helps you out along the way!

Check out the Startacus business toolkit for a growing directory of all the business bits and bobs, links and articles you may need - no matter what business you are considering starting.


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Published on: 23rd April 2013

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