Starting any business venture is tough, and the same goes for a recruitment agency. It’s not an industry for everyone, but if you have prior experience or have industry know-how, then you may do just fine.
Knowing what you are getting into is always a good start. Covid-19 put a damper on the recruitment industry last year, but it has slowly regained its lost momentum and is poised to grow in the future. This article will explore eight steps to take as you look to start your recruitment agency.
What Type of Agency Do You want to be?
The first decision you want to make is, what type of agency do you want to be? There are four types of agencies, namely:
- Executive Staff Agency
They specialize in recruiting high-profile candidates for high-level positions in a company like the CTO or CFO.
- Temporary Employment Agency
Also known as Temps. This type of agency fills vacant positions for temporary or contract staff on short notice. Temps typically interview and screen the candidates before sending them off to the client.
- Specialist Recruitment Agency
Specialist agencies specialize in one area of recruitment. It can be nursing, manufacturing, or teaching positions.
- Contingency Recruitment Agency
They scout for candidates when a vacancy needs to be filled and get paid a commission after filling the position.
What Industry Will You Operate In?
After you decide on what type of agency you want to be, the next step is which industry or industries do you plan to work in? At this point, you should consider your industry experience. Go for what you already know. Another point to consider is the way the market is moving. Some jobs are in demand and will continue to be high ticket jobs for the foreseeable future. An example is IT jobs. Other areas include healthcare and retail.
Who Are Your Competitors?
After picking the industry or industries you want to operate in, it’s time to know your competition. Understanding your competition marketing, pricing, and recruiting strategies can give you insight into what they are not doing well and capitalize on that gap. The information also provides you with benchmarks you can work with when developing your business goals.
Access the Business Finances
Business finances cover a lot of elements, but the first is the startup cost. How much will it cost you to set up your business? You can start online and take advantage of the internet. Build a website, pay for your internet connection, a CV database, decide on recruitment tools to help your workflow, and a small space to interview candidates and meet clients. There are also legal fees you will pay to register your business name for insurance and tax purpose. The business fee and price of your services will also need to be determined.
What is Your Business Plan And Strategy?
Your business plan will include drafting your business goals or objectives and how you intend to achieve them. It is also answering questions like: How should you operate your business? As a sole proprietor, limited company, or a partnership? Or, Do you plan to hire on a permanent or contractual basis? Are you handling the admin work yourself, like accounting or outsourcing the service? These questions help you structure your business and also give you clarity on how to plan your strategies.
Research on the Laws Governing Recruitment In Your State
Recruitment is a heavily regulated industry. And if you plan on setting up shop in the industry, then you have to know the rules and regulations of the business. Some laws recruiters will need to know about in the UK (for instance) are the Employment Agency Act of 1973, Conduct of Employment Agencies and Employment Businesses Regulations 2003, GDPR, and a host of others.
Work Out A Marketing Plan
Before you create a marketing plan, ensure your business has its logo, business card, website, and presence on social media networks. Only after these can you set out to market your business. Your marketing will need to consider your target audience. A recruitment firm will have to market to both client firms and candidates since a recruitment business requires both. This may mean you might have to create ads for these two markets or make one advert all-inclusive. When marketing, look at the channels you intend to use to advertise your service. Will it be social media, ads, your website, or a combination of all? Coming up with a business slogan can also make your marketing campaign memorable.
Hire the Right People For The Job
No business can run itself alone, whether it’s family helping, paying freelancers, or employing someone full-time. The business will need the right human resource to function well. It may be a bit tough to find the right professionals, but the work is worth it. Getting the right fit will save you from future headaches.
Final Thoughts
Starting any business isn’t an easy step. But when you plan, prepare yourself, stay resilient, and work hard. It is possible to set up a successful venture. The recruitment industry continues to grow each year, so it won’t go out soon. The steps here are the tip of the iceberg, and you will need to carry out more advanced research to support this article.
