So you’ve decided to go at it alone and set up your own recruitment business. If you are tired of working for someone else and want the financial freedom to run a company as you wish, a recruitment agency start-up can be an excellent business proposition. But making money requires investments, in terms of cash as well as experience, time, and other factors. Nearly 1,500 recruitment businesses started in 2011, making it difficult to stand out from the crowd. Exactly what is essential to the successful recruitment start-up? Is finance the only important consideration?
1. Budget Plan
Finance should certainly be at the top of your list when it comes to planning a new recruitment business. Put simply, you will fail if you underestimate how much money you need in order to operate without much of an income for as much as six months. Be realistic about your financial needs and how much money you have to put into the venture. Make sure you calculate aspects such as office overheads, transport costs, investments in infrastructure such as software and office furniture, and essentials like payroll.
2. Cash Flow Finance
It pays to work out how you are going to manage your finances and to look into possibilities in terms of outsourcing financial functions such as payroll (for example, with Simplicity) or putting a factoring solution in place. Cash flow is essential when starting a recruitment business, so make sure you know how you are going to maintain yours.
3. Experience
But finance is not the only consideration to take into account. You also need to know the industry you are operating in and understand how you are going to make an impact with your business that allows you to stand out from the rest. If you have no experience in the recruitment industry, consider starting a business in another sector. Recruitment relies on contacts, industry knowledge, and business experience, so you need to be well versed in these factors before you start your own company.
4. Unique Selling Point
How are you going to make an impact? How will your business be different from the hundreds of recruitment agencies already in existence? A great niche makes it easier to succeed in business, whether you are in recruitment, finance, or retail. Know your niche and where your target market is. Make sure you know where your strengths lie and where you will target your efforts. Next, you can develop a marketing strategy based on your USP, and develop a website with an Internet marketing plan.
5. Financial Infrastructure
Organise your finances before you start operating. You need business insurance, a good business bank account, and the correctly formatted company and VAT registrations. Consider whether you need an accountant or legal advice. Put these features in place as soon as possible so you are in compliance with any regulations and requirements.
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