Are you interested in starting a recruitment agency? Do you have the skill to spot talented individuals? Do you need a sample recruitment agency business plan template or guideline? If you answered YES to any of the questions above, then i advice you read on.
A recruitment agency, also known as staffing agency or employment agency is one of the fastest growing recession proof businesses of the 21st century. This is due to the rapidly rising global unemployment rate. You can take advantage of this trend and make money for yourself by genuinely connecting job seekers with companies that have job openings.
You can even go further by actually conducting the screening exercise, interview and the entire job recruitment process on behalf of corporate organizations. Another good reason why starting a staffing agency is a good move is that companies are looking for ways to reduce their operating cost and one of such ways they consider is cutting down on HR expenditure.
Rather than handle human resource needs in-house, companies are now outsourcing such tasks to recruitment agencies; for efficiency and cost-saving purposes. Do you want to start your own recruitment agency? Are you looking for guidelines to help you start up? Then read further-:
Starting a Recruitment Agency – Sample Business Plan Template
1. Choose a niche
It is important to decide on the type of recruitment agency you would like to start and the industry you want to serve. For instance, you may choose to serve the banking industry or the food and beverage production industry. Each of these industries is different and unique in their staffing needs. So you would have to select the industry you would like to serve.
2. Spy on your competitors-: Spying on your competitors would give you a broad idea of how the business works.
3. Gather some recruiting experience
Searching for the perfect employee to fill vacant positions requires a lot of skills and a perfect knowledge of recruitment strategies. If you have never worked for a recruitment agency or you have absolutely no idea about how the business is run, it is advisable that you register for an internship in a well established recruitment agency to acquire some training.
4. Build your skills
As a recruiter, you will be testing candidate’s intelligence; therefore, you must build yourself to be able to handle the tasks. You must also be able to recognize raw talents and the best fit for every job position.
Starting a recruitment agency is not cheap. You will need to pay your staff, market your business, insure your business and undertake all sorts of business expenses. This means that you have to be financially prepared. Make a list of all the things you will need to start the business and how much it would cost you.
6. Research Recruitment Laws-: There are laws guiding recruitment in every state and in some industries too. To ensure that you are not breaking any laws, you must study all the laws and get familiar with them.
7. Obtain Business License-: Find out if there are licenses you have to obtain to run a recruitment agency in your local area and obtain all necessary license.
8. Research Employment laws
There are also laws guiding employment in every state which you must be aware of. For instance, there is the equal opportunity employment law that commands a balance between the number of men and women working in an organization and there are also discriminatory laws that protect the handicapped and physically challenged when it comes to employment. There are several of such laws and to be sure you are not breaking any, you have to know them.
9. Choose a location to site your business-: Select a very visible location for your business that would be accessible to your clients as well as job applicants.
10. Register with some companies-: You should also register under some companies as an official recruiter so that when there is a vacancy, they would contact you to help fill the position.
You will need to map out plans to create awareness for your business. Make a list of businesses around you and send a well written letter of introduction to introduce your services to them and make sure you follow up on the letter. You can also consider placing newspaper adverts or advertising your services on the internet.
12. Create a business website
If you want to start a recruitment agency in today’s business world, it is impossible to do it without a website. Your website would be your means of advertising job vacancies.
It would also be your means of receiving applicant’s curriculum vitae and sorting them out. Sometimes, you might even be required to conduct online tests and interviews for applicants.
13. Hire support staff
There is a whole lot of work to be done in a recruitment agency; therefore you will need people to help you with some of the tasks. However, you must ensure that you hire people who already have experience in a recruitment company.
14. Insurance-: You need to get insurance services for your business to cover any type of liability.
15. Open a business bank account
Your bank account would be used to receive payment for your services from your clients, so it is advisable to open a bank account with your business name and separate your personal account from your business account.
Equipments Needed to Start your Recruitment Agency
- An office space with a conference room and a reception space where applicants would be received and interviews would take place.
- A computer
- Testing Software
- Printers, Fax machines and Photocopiers.
- A telephone
- Internet subscription
- A business card
How much money would you make from your recruitment company?
As a recruiter, you would be paid by the company you are hiring for and not the applicant. Your charges would be a certain percentage of the successful candidate’s first annual salary or a flat fee depending on your agreement with the company. These percentages could be between 15-20%. The average yearly income of a recruitment consultant is between $65,000 and $ 75,000.
If you want to start a recruitment agency and you are finding it difficult to shell out the $2,000 minimum start up costs, you can start a home based recruitment agency which is cheaper to start.
You can leverage on the power of the internet by conducting all your business online and when it’s time to interview your clients, you have Skype and your telephone to the rescue!