how to start a recruitment agency business

How do I Start my Own Recruitment Agency

If you are keen on starting a recruitment agency but don’t know where to start from, then don’t worry, this guide will provide you with all the information you need in order to start up your own recruitment agency with some or no prior experience in HR.

how to start a recruitment agency  business

Step by Step Guide to Starting a Recruitment Agency

Here is a list of 9 basic steps to start a recruitment agency

Create a Recruiting Business Plan

A concrete plan will let you analyze your strengths in a better way. When running a company, you need to realize that it is going to consume your time as well as capital. You cannot follow a similar business plan that your friend’s dad went for; your strengths, your weaknesses, your budget, etc. is going to differ. 

Identify Niche based upon your Strengths

Whether you are going to deal with the corporate sector or job seekers. This is one of the few steps that will determine, your business model, and the type, of recruiter, you are going to be. You will have to examine the network you are going to have and the knowledge you have mastered and select a market to give your service. Moreover, consider who (candidates) you have the strongest connection with. Are they newly graduated or do they have some experience? Noting down these questions and answering them will help you form an organized picture. 

Analyze existing Competitors

Before jumping into the market, you need to assess what your competitors are up to. For that, you can use SWOT (strengths, weaknesses, opportunities, threats) and 4 Ps (product, place, price, promotion) analysis in order to find out your position in the market. 

Calculate Your Finances ; Recruitment business Setup Costs

Starting a recruitment agency does not need as much money as other startups. But you should still calculate costs before executing your plan. You will have to consider the costs of digital tools, office equipment, staff, insurance, etc. You can make a budget spreadsheet for your ease. 

Your costs are going to include:

  • Website Cost: You will need a specialized person to make a recruitment agency website for you. 
  • CV Databases: Some online Job boards like Total and Monter use CV databases that will allow users to upload their CVs so it can reach the targeted employer. 
  • Equipment Cost: Internet connection, computers, recruitment software, etc. requires money. 

Insurance Charges for your Company: You will need to get indemnity insurance in order to protect yourself from any false claims in the future.

Understand Recruitment Laws and Regulations

It is important to consider the legal aspect of your country before starting your own recruitment agency. You being the owner of your company, will have to develop an in-depth understanding of relevant rules and laws in order to prevent further legal issues. 

Develop Marketing Plans 

First impressions really do matter! Start with making a logo and image that is according to your agency’s format. Once you have developed a look, draft a marketing structure and match each step with tools for making images. Moreover, you will be targeting your audience in three steps.

  • Select targeted candidates 
  • Select targeted companies 
  • With the help of your marketing team, come up with targeting strategies

How will you reach out to candidates and clients? For that, the answer is LinkedIn. You need to select the suitable channels to connect and you are good to go! 

Choose a Name for Your Recruitment Agency Startup

Giving your recruitment company might look like an easy task, however, it is a tricky one. There are many legal parameters and branding points that you need to keep in mind before giving your company a name. For example:

  • Make sure the name you select is an original one
  • Try to keep it catchy and also convey the right kind of message through it
  • Keep a flexible name that you can easily expand in future; if you have to

Avoid Working with Companies You Don’t Know 

Working with totally new companies at the initial stages of any business can backfire. The risks are to be taken at the later stages. At this point, simply focus on building ties with companies you are already familiar with; whose working style, niche, etc. suits your recruitment needs. 

Lastly, Don’t Rush

Developing industry expertise and sharing that knowledge with clients takes time. Give promotional offers or discounts for the first ten customers. This will help you in gaining a good number of followers. Last but not the least, be prepared for every sort of setback but do not give up. 

Set Up Goals for Your Recruitment Agency Startup

Introducing objectivity by making your business goals is how you can achieve success. You should work on flexible business models that include short-term as well as long-term goals of your agency. Moreover, you should come up with strategies and back-up plans that will help you in fulfilling those goals. 

Buy Important Tech Tools

The contemporary world runs on technological tools. To start a recruitment agency, you will have to make a solid investment in the right kind of tools. For example, you can use an Applicant Tracking System (ATS). Furthermore, you can invest in posting boards if you want to provide an expanded exposure to your clients. The sensible investment will save your money as well as time.

Invest in Human Resource

We suggest you get highly professional recruiters onboard. This just does not include the senior recruiters but also the junior ones. They are your team and the force that will make your recruiting agency successful. There are many people you can get onboard who can benefit your business. For instance: 

  • Researchers 
  • Website Developer
  • Marketing Staff
  • Administration Staff 
starting a recruitment agency with no experience

Frequently Asked Questions

Can i start up a recruitment agency with no experience?

starting a recruitment agency with no experience or any business for that matter can be challenging, However, good news is that You can start a recruitment agency with no prior experience, as we have seen many successful freelance recruiters that went from zero to a successful recruitment startup with no prior experience. Follow the above guideline to increases your chances of success.

How much does it cost to start a recruitment agency?

The overall minimum cost required to start a recruitment agency can go up to £30 upfront, £30/month with add ons of £85-150/month. Keep in mind, this approximate cost is to start a recruitment agency in the UK.

How to start a driver recruitment agency?

The basic steps of starting a driver recruitment agency are going to be the same as mentioned above. This is one of the best small businesses to start as this has a low startup cost.

Do I need a license to start a recruitment agency in UK?

The industry of Recruitment Agencies is regulated. Usually, you don’t need a license to start a recruitment agency. However, there are some exceptions. If your agency will be providing candidates to food packaging sectors, agriculture, etc. then it will have to get a license from the Gangmasters and Labour Abuse Authority (GLAA).

Do you need a license for a recruiting agency in Pakistan?

Getting licensed is no longer a need for employment placement services. However, you need to register yourself in the Bureau of Emigration and Overseas Employment (BEOE) in case you want to start a recruitment agency in Pakistan.

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