Key steps to starting a recruitment business.
When launching any business there are multiple factors to consider. So, what are the main areas to consider before making the leap.
Are you ready?
Arguably the most important factor is making sure you’re ready for it. Starting a company is challenging so preparation and commitment to your long-term objectives are key. You must have already developed strong sales and business skills, have a decent grasp of budgeting and finance, and know your sector inside out.
As a new recruitment business, if you want to survive, make sure you’re focused on growing specialist niche areas. The recruitment industry is crowded, making it difficult to stand out against recognised brands and achieve visibility amongst big players.
Nurture relationships
Establishing both customer and industry relationships is fundamental for your first year’s success and ongoing business growth. Regularly checking in with existing clients and candidates to find out where they’re up to can generate surprising results. Customers receive approaches from recruiters all the time, so if you’re not front of mind someone else will be making sure they are. Candidates will always know someone who could be perfect for a current or future position.
Networking with prospects through industry events and on social media, as well as joining professional associations expands your company’s reach and provides valuable insights and industry contacts.
Create your business plan
Your business plan should be your roadmap to success. Below are some key points to help achieve this:
- Executive summary: This section should detail the overview of the business; you should discuss what makes you a good fit and why this could enable you to run your business. Outline your experience, contacts, qualifications, and personal qualities. Sometimes it is easier to write this after you’ve completed the rest of your business plan.
- SWOT analysis: Carrying out a detailed SWOT analysis allows you to identify different strengths, weaknesses, opportunities, and threats behind your recruitment business idea. Go into depth on your target market and competitors – this will allow you to better understand the industry and provide clarity on how you can succeed in a competitive market.
- Management team: Who do you need to help scale your business to achieve your goals? What are their roles and responsibilities.
- Financial plan and projections: One of the most important components of your business proposal is putting together your financial plan. Outline all the costs your business might incur to operate effectively, including equipment, CRM system, marketing, website, technology integrations, and business insurance.
- Plan for scalability and adaptability: Scaling your business should be considered from the outset. As your business grows, ensure your systems, processes and teams can scale accordingly. Stay agile and adaptable to change.
Registering your company
Consider the formalities of registering your recruitment business. You’ll need to register your business with HM Revenue and Customs (HRMC) and Companies House. This process usually takes a few hours and if you feel you have the necessary experience you can do this yourself, alternatively you can hire an accountant to help you with the process.
Create your brand and marketing strategy
It’s important to think about how you want to effectively position your business and promote your services. As part of your SWOT analysis, you should focus on your competitor’s presence and the audience you are targeting. This will help with understanding what you want included within your branding. Before engaging any marketing agencies as this can be costly, do you have any contacts who could help create your brand?
Once you’ve launched, always revisit what you want to be known for to make sure your messaging is consistent and resonates across all your marketing. Whether it be writing articles, thought leadership, or social media engagement. A compelling and consistent brand attracts both clients and candidates.
Partnering with Recruitment Entrepreneur (RE)
Recruitment Entrepreneur has a team with a wealth of experience. After successfully launching of over 40 global businesses. RE recognises the hurdles that come with starting a recruitment business, especially in today’s market.
Our model offers mentoring and back-office support in marketing, operations, and finance, ensuring you have guidance to grow and a platform for success. Partnering with Recruitment Entrepreneur means gaining access to a tried and tested formula that reduces obstacles of entrepreneurship.
If you’re curious about how Recruitment Entrepreneur can help you on your entrepreneurial journey, visit this link to find out more.
