Starting your first recruitment agency can seem like a daunting task, especially if you haven’t worked in the field before. But once you break it down into smaller steps and take the right precautions, it’s not nearly as hard as it seems. Recruitment agencies play an increasingly important role in today’s job market. The current economic climate has resulted in more and more job seekers looking to build their portfolios or start their own businesses. Recruiters are in high demand to fill open positions within their company or work with companies who require assistance with finding new employees. In other words, starting an agency is a great way for budding entrepreneurs to venture into starting their own business and developing their business ideas.
What You Need to Know Before Starting a Recruitment Agency
First things first, you’re going to need to decide if the recruitment industry is really for you. There’s a lot to consider here — does it align with your needs and interests? Will it fit your work / life balance? Can you see yourself having the drive and determination to make it a successful venture? If you have any questions about this, the best thing to do is to sit down and talk through your plans with a mentor or business leader with experience in the chosen sector. Businesses like Blue Bay alliance and key industry figures like Adrian Manesfield have a wealth of experience and knowledge to share and provide some key pointers to help get your agency off the ground.
Once you’re sure you want to pursue this career, the next step is to make sure you’ve fully researched the industry. There are a lot of myths floating around about what it’s like to start a recruitment agency, so it’s important to be sure you know what those are and how they affect your business.
Researching Potential Clients and Jobs
Once you’ve decided you’re ready to embark on this journey, you need to start researching potential clients and the jobs market to see what the current trends affecting the UK or country you work within are. This research will help you determine what kinds of clients you want to work with and where you want to focus your business. If you’re just getting started, it could be wise to begin with smaller clients in a niche sector, who are more likely to not have the internal resource to successfully hire people compared to larger counterparts. Here are some questions to ask yourself when researching potential clients:
– What kinds of jobs does this company/sector need help filling?
– What do these types of jobs look like?
– What kinds of people do these types of jobs require?
– What is the volume of these jobs and how competitive is this sector?
The Cost of Starting a Recruiting Agency
The next thing you’ll want to research is the cost of running your business. This will help you understand if you can actually make a profit by running your agency. You’ll want to start by looking at similar agencies to see what they charge and understand what you need to charge to make a profit. To get an idea of what your overhead costs will be you can jot down some key fundamentals that you need to make the business work:
- Do you need premises or will you work from home?
- Do you need people or will you operate on your own
- What hardware do you need?
- What software do you need?
- What structure will the business take? How will this impact your tax both personal and business?
Finding the Right Talent
Once you’ve got a rough idea of what your operating costs will be, it’s time to find the right talent. You’ll want to start by making a list of the skills you want to hire for and the companies you want to work with. This is a good way to determine your ideal clients and will help you avoid working with employers who don’t meet your job skills and company type. Once you’ve got a list of potential clients and job listings you’d like to work with, it’s time to find talent. Your initial network will ideally be the first place to start with, so social media sites, including LinkedIn and Facebook together with local networking groups, job boards and, as well as reaching out to professionals who post their own ads on sites etc.
The Bottom Line
Start small with local clients who are both willing and able to hire you. Stick to sectors you know and have experience in. You can also focus on expanding your network and gaining knowledge about the industry in your area. Once you’ve gained some experience in the recruitment industry and have built a client base, you can start to focus on building a national brand and expand into new markets. If you’re considering starting your own recruiting agency, you’ll want to make sure you’re prepared for the job. You’ll want to make sure you understand the industry and have researched the operating costs of running your business. You’ll also want to make sure you have the right talent for the jobs you’re hiring for and have a list of potential clients and employers you want to work with.