SSG have helped over 300 UK recruiters start their own recruitment business – so we’re in an ideal position to advise any recruiter about what is required to start up on their own.
These are the 8 essential things you need to start your own recruitment business:
No one has ever achieved anything without a degree of determination and this is something each of us can affect with 100% certainty. Understand and channel your motivations, whatever they may be. Perhaps you are considering how to start a recruitment business because you want to be a high-flying recruitment entrepreneur, or maybe you are looking to find a better work/life balance? Whatever your reasons, tap into your dreams to unleash the fire of determination and entrepreneurial spirit.
All recruiters are used to dealing with targets. Placing a certain number of candidates per month or building your client portfolio are the objectives all recruitment consultants use to define success. Add to this expansion into your chosen market and mastering your expertise in the recruitment industry and you’ll be getting closer to where you need to be. When it comes to starting a recruitment agency, you’ll be constantly looking to set yourself new challenges and realistic objectives to accomplish.
- Moral Support
Everyone has difficult days; the trick is to not let them derail your plans. If you are doing something as significant as starting up a recruitment agency, you’ll need a team of friends, family and professionals around you to support you through the dark times. Professional support is especially important, as it can often easily resolve a challenging situation with a client or candidate. Make sure you have access to expertise in accounting, technical support, creative/branding and employment law.
- Branding and Marketing
When you are setting up a recruitment agency it’s important to get the branding just right. Speak regularly with a creative advisor to help you capture your target candidates and clients. Discuss colour schemes and website SEO, consider your digital presence and don’t disregard social media as an optional extra. Make sure you are getting the right advice when it comes to building your personal and company brand, so you reach the most (and the right) people. Don’t forget to register your company name, and trademark any intellectual property you’d like to retain exclusive use of.
- Management Accounts
Measure every penny which comes into your business and every penny which leaves. Manage your cash flow and calculate your corporation tax bills and fees. Finding a management accounts expert to do this work for you would be invaluable, as the technical aspects of accounting can put most people’s head in a spin. Running a month by month Accounts pack which provides a detailed breakdown of your company figures including tax, NI, VAT, dividends, total invoices raised and most importantly calculating the profits in your business you can draw.
- Back Office Support
If you want to start a recruitment business, you’d better make sure you can make money! Enlist an accounts specialist to oversee your client invoicing, and ensuring that those invoices get paid. Credit control is crucial for any business, and having someone keeping an eye on any unpaid invoices will save you time, effort and stress. If you are running temps, you’ll also need to make sure you have provision for paying your candidates, with a secure and robust payroll process. Keep on top of paying your VAT bills, CT bills, self-assessments and more.
- Digital Security
Building trust with your clients and candidates goes a long way to starting a recruitment agency successfully. The businesses and individuals you deal with need to know their information is safe in your hands, and that it can’t be compromised. Make sure your new recruitment business conforms to the new GDPR guidelines, and seek advice if you aren’t sure of the implications. Further to data protection, you need to make sure your systems and website is secure by taking the guidance of technical professionals.
- Legal Support
Whether you like it or not, there’ll be times when you need to get some legal advice and support. Whether it’s in the early stages of registering your business, or resolving a dispute further down the line. Whatever it is, you need to have that support framework to lean on when things get *complicated*.
So, how did you find our list? Did we miss anything out? Let us know in the comments below if there’s something you think should have made the list, or if you’d like the share any of your personal wisdom and experience with us.
Finally, here’s our solution:
Whether you have been considering your options for a long time, or if you are only now looking into how to start your own recruitment business, SSG have a solution for you.
SSG have dedicated professionals in accounting, creative, technical and marketing – meaning we have someone to help you regardless of your specific challenges.
We have set up recruitment agencies for over 300 recruiters, and have seen all of the potential difficulties you may come across.
We can help you build your brand, make your first placement, ensure your data is secure and manage your accounts. All of this with no upfront costs.