With many talented recruiters being placed on furlough or sadly being made redundant. It is without a doubt that those with spare time on their hands have been thinking about their next career move.
The UK is a nation of entrepreneurs. So, the desire for greater control over your career and possibly becoming your own boss is something that comes naturally to many.
But to turn your dream into a ‘successful’ reality, there are some points you should consider when starting a recruitment business;
1. Drive and support are the keys to success
First and foremost, make sure it’s the right decision for you, your family, and your lifestyle. Recruitment can be a challenging but rewarding industry. If you are ready to be your own boss, have the drive to succeed in recruitment, and are ready to reap the rewards – then it sounds like the time is right for you.
Secondly, you may have the entrepreneurial drive to start a recruitment business, but it takes more than just that to become successful. With the right support, processes, and infrastructure in place from day one, you will be in a far better position to sustain future growth.
2. Make sure you have a plan
Proper planning prevents poor performance. It’s worth spending some time building a business plan. You can either enlist the help of a professional business consultant or you can produce a simple plan yourself. There are lots of free resources out there to help and they encourage you to think about;
- What market would you like your business to operate in?
- Who is your competition and what sets them apart?
- How much are you going to charge?
- Are you going to work from home or rent an office?
- What are you going to name your business? And is a domain name available?
- How are you going to market your business?
- Do you need to employ consultants?
- How do you plan to grow the business?
Whether it’s a simple plan, or a more substantial document, it will help to get your ideas clear.
3. Don’t forget the basics
When it comes to starting a recruitment business there are some basic requirements that you will need to ensure you complete or comply with, such as;
- Registering your business
- Setting up a Business Bank Account
- Business Insurance
- VAT – If your annual turnover is more than £85k you will need to register for VAT
- HMRC & CIS (if construction) Submissions.
- Managing & Filing Accounts – You’ll need to decide if you have the skills to complete these tasks or enlist the help of an Accountant.
- Rules & Regulations – Do your homework and make sure that you are aware of the latest rules and regulations.
4. Choose wisely when it comes to funding your business
Financing your recruitment start-up can seem daunting as it’s a new area for you. How much cash do you need to have in the bank and how many contracts could you potentially take on at once?
Cashflow is King and having adequate funds in place to ensure your workers are always paid, can make or break you. How you fund your business is perhaps one of the most crucial decisions you will make, and you don’t need buckets of cash either.
Traditional financing is a good option for most companies but with tighter controls over-borrowing, the traditional finance route has become less popular when it comes to start-up businesses. That accolade is increasingly attributed to alternative finance providers. There are recruitment specialists within the alternative finance market who can provide you with immediate access to cash to pay contractors and release your profit margins each week.
Explore your options but keep an eye out for restrictions, such as; funding caps, concentration limits, and hidden charges. These could cause you cash flow problems and make it very difficult for you to expand.
5. Don’t waste your valuable time on admin
It is important to consider what you should be focusing on in the early days of your business. You don’t want to spend valuable time on admin, worrying about cash flow and juggling everything – becoming a jack-of-all-trades. If there’s a chance that administration tasks will take you away from developing your business, then it’s worth considering an outsourced back-office provider.
An experienced recruitment Back-Office provider will take care of all your admin needs, from payrolling your temps and HMRC submissions, to invoicing your clients and chasing payments. Think of the amount of time that you would save and could use to focus on developing new business?
You’re a recruiter, you know how to recruit. So, let someone else take care of your back-office leaving you to focus on the front-end of your business. Spending your time on business development, sourcing the best quality talent, and fee-generating activities. Those businesses get to market more quickly, stay ahead of the competition, and most importantly – grow.
For more information and advice on starting your own recruitment business, download our FREE guide HERE.
Believe it or not, now is a good time to start your own recruitment business
With the government easing the lockdown measures in place. The recruitment sector is starting to bounce back – Job vacancies in the UK already rose from 45.6% to 50.1% of their 2019 average in the week starting 5th June, according to data from the Office for National Statistics.
Companies are starting to increase their staff requirements and highly skilled redundant workers are on the lookout for jobs. Creating a high demand for recruitment agencies to fill vacancies. So now is a great time to time to start your own recruitment business and take advantage of the opportunities arising.
Starting your own recruitment business has never been easier
Simplicity QuickStart is a fast-track solution that enables you to start your agency instantly, without the hassle, time-restraints, and expense associated with setting up a business.
All you need to do is; source candidates, win new clients, and fill vacancies. Focusing your valuable time on your business plan and the future growth of your new business venture.
Simplicity will take care of the rest; providing you with access to your profits each week, invoicing your clients, and paying your workers, every Friday – without fail.
Call us now on 01594 888518 to get started or download a copy of our QuickStart Brochure HERE to find out more.
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