Set up tips for successful recruitment start ups
If the role of running your own recruitment agency was advertised, the cold hard facts might scare you off - it’s certainly not easy work! But you can earn yourself a substantial income as well as having the freedom that comes from being your own boss and the flexibility to set your own working hours. Here are our top recruitment business set-up tips to help navigate your recruitment agency successfully through those twists and turns.
Free at last from the shackles of slaving for someone else! Now, don’t get so excited and carried away that you spend like a sailor on shore leave. Be practical and economical when choosing your location and style of office (and ask yourself if you even need an office at this early stage!) and think about all your outgoings. Costs are critical, particularly at this tender early stage, when cash flow is often restricted and hidden costs lurk round every corner. On top of any office rental are business rates and utility bills to pay, remember. Banish thoughts of a plush luxury office for now. A small office, shared office space or home office; now that sounds more within your means.
Networking not advertising works best
So it’s time to think about branding. Ah, branding, a glamorous world… where image is everything. So easy to fall head over heels in love with dressing up your company image with designer material, from stylish advertising to promotion. But branding alone won’t grow your business. Your new business growth will be driven by networking and exploiting the potential of your existing contacts. You really ought to tell as many people as you can about your new business to extend your reach. Find out what makes your business different to the rest - that’s your unique selling proposition and the best way in these early days is to sell it through word of mouth. Facebook and LinkedIn are perfect places to start spreading the word, as well as Twitter and sector-specific events or publications. Use online business forums to also promote your expertise. And around the time of launch why not hold either a pre-launch preview or an after launch event to generate buzz in your new business venture.
Get your pricing right
What to charge a client for placement or the supply of a temp worker? Whilst it’s tempting in the beginning to undercut competitors purely to gain the business, this will not help your agency in the long run. There are many factors in the equation that need consideration. For instance:
- PAYE and NI contributions as well as holiday pay and factoring costs for the supply of temp workers
- Time spent selecting and interviewing the applicant
- Travel costs
- Advertising costs
- Your margin
- Your expertise and the benefit to the client of being able to tap into your network
The process of hiring employees is time-intensive, with costs around the £5,000 mark typical.
Track your business progress
Keep up to date with the right accounting and business programs to suit your business needs. They are your friends for streamlining your entire business operation, keeping your spending in check and tracking your business progress from the very start.
Keep cash flowing
Maintaining healthy cash flow is one of the trickiest challenges you’ll face. As the bills keep rolling in during setting up and that difficult time gap in-between first securing work and getting paid, you may wonder at times how you’re going to stay afloat . If you’re experiencing a shortfall, it’s best to take the plunge and get financial support to get you through the lean times. Remember though that loans come with terms and charges that need to be carefully thought through. What really pays in the long run is getting a financial adviser or partner, best able to keep your business sailing along on an even keel.
Seek the best advice
When you’re setting up any business, you have to be prepared for the unexpected. You need to think on your feet or risk getting deep into trouble. But there are shortcuts to success. To find them all you need to do is to listen to the experiences of others who have been through the same situation and learned the best courses of action to take.
At SSG we provide sound advice based on extensive experience of providing financial backing, recruitment support, legal and compliance, back office services, branding, marketing communications and business mentoring. Since forming in 2003 we’ve supported the launch of over 200 recruitment agencies across 29 sectors.
Interested in setting up? Talk to us…
We’ll help you avoid the many pitfalls of starting up as a recruiter with comprehensive support in all areas:
- Getting your business seen through highly focused branding and marketing.
- Taking away the stresses of day to day accounting with full reliable back office support.
- Arranging any funds you need to set up and grow.
- Once you’re established we offer mentoring to help support business growth
To make the best first step towards a successful recruitment business call SSG on 01442 937 774 or for more information visit www.wearessg.com