If you have finally achieved what you have been longing after for a long time and started your own recruitment agency, you should be pleased with that success.
Although, this means that the hard work has only just begun and there will be much tougher days ahead of you. This is why researching the stories of others and listening to expert advice is the best method of ensuring your startup business venture gets off to the right start.
Expert advice is what we hope to provide you with today! So, please read on further in order to listen to what we have to say and hopefully start to shape your recruitment agency for the better.
Make sure you research
We may have already touched upon this, but it is essential that you do your market research before opening your venture, particularly in the industry you’re looking to recruit within. You may have previous history of working in the sector, if so, you will likely already have a decent amount of knowledge at your disposal. However, running a business is a completely different story than working for one, so the chances are you’ll still have much to learn.
Your future clients will expect your knowledge of the industry to be at an expert level, as if it is not, they will look to other businesses within your chosen industry, so stay up to date with the latest news. Try to remain aware of your closet competitors, as well as industry leaders, as you can take inspiration form both of these, even if they seem worlds apart from one another.
Keep your overheads low
You should without fail always aim to keep your overhead costs as low as possible. When you begin a new recruitment agency, or truth be told any new business, you are taking a gamble and running a large financial risk. If you can manage to start things off with low costs, you’ll be awarding yourself with the very best chance of future success an continued progression.
Consider where you can set aside cash in the early stages of your business’ lifespan. Do you really have to employ a large team of workers right form the word ‘go’? Do you need all of that office space or could you initially work from home? These are the sort of cost-cutting questions you need to be asking yourself as a business owner when you first start out; make sure you don’t blow all your money unnecessarily straight away.
Create a strong recruitment agency startup business plan
Prior to you launching yourself headfirst into your own startup recruitment agency, it is essential that you have a business plan to follow and fall back on if you should ever need to do so.
Setting different goals, regarding both what they ask you to achieve and how long you have to accomplish them, will give you many things to be going after at any one given time and keep your agency on the right track. Each goal should be achievable and actionable, so that it isn’t out of the realm of possibility for you and your team to aim for.
It is vital that you have a clear plan for your business when beginning a new venture. Have clear goals and set yourself deadlines to have pieces of your planning done by. Not only will planning lay out clearly what you need to complete in order to achieve your business goals, it will also help to keep your finances stable. Include budgeting in your planning process and allow yourself plenty of time to complete objectives.
Put resources into marketing
Despite the fact that we suggest minimising expenses for your startup enlistment organisation, you will need to put some resources into both advertising and marketing. Obviously, you don’t have to spend a fortune, however set aside some cash so that you can look after the image of your business and connect consumers with your brand from an early stage.
Get an idea of what you want to achieve as quickly as you can, this will help you mould together a strong brand for your business venture and award your new recruitment agency with a sense of identity.
Running a company website is of course essential, and SEO strategies should be at the forefront of your thinking, so that your content can rank as highly as possible across multiple online search engines.
The same will apply to all of your marketing tools, without placing your maximum effort, as well as a little bit of cash, into this section of your business, you may well struggle to find an audience that wants to give you and your service the time of day.
Try not to ignore your back-office functions
Only by offering the very best service to your clients and customers will your new startup recruitment agency become a long-term success story, though we are sure you are already aware of this.
A particular point that many new recruitment agencies falter is when they are faced with endless amounts of back-office tasks that have been piling up for some time. Especially for those supplying temporary professionals who have the responsibility for processing timesheets and taking care of payroll duties.
Try not to let this be the case for your agency and get the work done as soon as you can so it isn’t sat there building up overtime. You will not become overwhelmed by the sheer amount of back-office work there is to do if you handle it efficiently from the moment you start your business venture.
Never undervalue yourself
Deciding on the price you are going to charge for the number of services you provide will undoubtedly be a prolonged task, though it is one well worth thinking about for a decent amount of time. The balance is always tricky to get right as you don’t want to go too high and risk deterring a client you have only just managed to win over, but you also do not want to go too low either, for obvious reasons.
You may believe it is a smart strategy to try and undersell the big players within your industry, so that you can win over some of the market share while you are still in the early stages of your career. However, it is always important to remember your value, as well as the experience you have of the sector you are running a business within.
Furthermore, if you then decide in the future you want to increase your prices to match other businesses in the same industry, you will put off the clients you have already established a connection with. Thus, you are actually better starting off with that higher price point that you may be able to drop down from in the future.
Consider Invoice Factoring
Invoice Factoring is a type of business finance which releases cash currently tied up in outstanding customer invoices. As a new start up business, cash be tight and the wait for clients to pay your recruitment firm will be over 30 days, Recruitment agency funding is a great fit, to ensure there is cash to pay your staff regardless if they are weekly or monthly paid.
This business solution is ideal for helping fund expansion plans, improving your cashflow and collect payment from your customers. There are two main types of funding options: factoring and discounting. With factoring the finance provider will fund and carry out credit control. Invoice factoring is simply a way to release the money owed in funds that’s tied up in your unpaid invoices.
Instead of waiting for your customers to pay, you borrow against the money you’re owed and is a type of debt financing. Not only do you get the money you’re owed without the wait, but we also chase up your outstanding sales ledger for you with debt collection services.
How much can a startup recruitment agency make
In the UK, startup recruitment agencies make about 33% gross profit, according to Companies House, the average turnover in year one is about £250,000
How to startup a recruitment agency
To start a recruitment agency, most start out of a spare room in their house, until the business is generating enough profit to move into a commercial property.