Are you thinking of starting a recruitment business? Don’t worry if you’re not sure how to get started or what to do to ensure success — here are a few pointers!
With a new year well underway, now is a wonderful time to consider your future and goals, such as starting your own business. And if that business is recruiting, you’re not alone — there are already approximately 40,000+ employment companies in the UK!
We have a lot of experience working with start-ups at Simplicity — we’ve been doing it for over 17 years. Partnering with The Recruitment Start-up Hub, we’ve come up with the following top ten tips to assist you in getting off to the best possible start and standing out in such a competitive market.
Plan ahead of time and make attainable goals
Begin by creating a simple business plan with straightforward, clear, and timely goals. You may have ambitious long-term goals, but it’s critical to be realistic. It’s critical to be nimble and adaptable to change if required. A detailed strategy will not only allow you to design tactics, but it will also serve as a standard for your success.
Choose the sort of agency you want to run
Agency models range from classic high street shop fronts to internet start-ups working from home and everything in between. Therefore, you must select what kind of agency you want to be, which may depend on the market sector(s) you want to operate in. For example, if your business is digitally focused, such as the media or creative sectors, you may not require a physical presence.
Perm or contract?
Again, this may depend on the market sectors chosen; contracting is more frequent in some (IT or construction) than in others (sales and marketing, for example). Of course, there are benefits to both temporary/contractor and permanent employee placement. Having a strong temporary/contracting arm offers recurring revenue, boosts customer confidence and adds value to your organisation.
Make use of your advantages
Play to your strengths if you have a special interest or plenty of expertise in a certain field. It will not only keep you motivated, but it will also give you a head start on understanding what’s what, being up to date on the newest trends, and finding the greatest individuals to work with. You could even have a list of contacts ready to go.
To niche or not to niche
Determine which industry you’ll target and how you’ll provide something unique to consumers. Whether through expertise, experience levels, the sort of work you cater for, geography, or sector. Avoid oversaturated niches where many other recruiting companies fight for opportunities and strive for the proper mix. If your emphasis is too wide, you will struggle to match client expectations, but too limited, you will have a tiny customer base and be unable to place applicants.
When deciding on a niche, consider which industries are on the rise. For example, manufacturing, marketing, and renewable energy are all expected to rise, besides the more apparent IT and digital transformation industries. If you focus on any of them, your business will likely get off to a solid start.
Understand where to look for prospects and clients
Of course, any recruiting business revolves around the applicants it works with and the companies it serves. As a result, you must be rather astute in understanding where to find the correct people on both sides of the process. Nowadays, most recruiting processes are centred on social media platforms such as LinkedIn, Facebook, etc.
Prepare to graft
Never forget that there is no such thing as a free meal when starting your own business to build your wealth! Recruiters typically work long hours (because they must work around other people). You’ll need to truly wow customers and applicants with the service you provide if you want to start growing your name soon. Do your research on candidates and clients, be honest, and recognise the value of what you’re doing on all sides, and you won’t go far wrong.
Get your funding in order.
Your recruiting agency will require some initial money to get up and running like any other new business. It’s prudent to have enough cash on hand to cover six months of overheads (whether it’s a loan, grant, or from your personal funds!). However, one of the most difficult issues for start-ups is cash flow, as contractors and temp workers will expect payment immediately, whereas clients may have up to 60 days to pay invoices.
Simplicity Finance will help you address this problem. We’ll give 100% recruitment finance (unlike other companies, which only allow you to draw down 70% until your invoice is paid). We’ll pay your Temps and Contractors, and your profit margin is paid ‘up front’ into your bank account every Friday (minus our fees). You’re also protected against debt with Simplicity.
Organise your day-to-day activities
You’re opening a recruitment business because you enjoy recruiting, not because you want to devote all of your time to operating a company. So, rather than dealing with compliance, payroll, tax, invoicing, credit management, debts, and so on, you’d rather do what you’re excellent at. That is why collaborating with a back-office provider like Simplicity is beneficial to many start-ups. Our professionals will issue invoices in your name, track payments, manage payroll, assist with compliance, and keep your cash flow moving. This will allow you to focus on growing your emerging business when it needs you the most.
Become your own boss and start supplying workers within 24 hours
Starting your own recruitment business has never been easier with Simplicity QuickStart. 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!
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.
For more information, download our QuickStart Brochure HERE
Not quite ready to start you own recruitment business?
Sign up to The Recruitment Start-up Hub today for FREE. Access all the latest hints, tips, and guides on getting started and running a successful recruitment business. https://www.recstartuphub.co.uk/