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5 ways to start your Own Recruitment Business

by Max Jones/ Thursday 26th october 2017

What are my options when starting my own business?

About a month ago, I found myself stumbling into a car showroom – always a risky, risky thing to do. My partner & I had gone out for lunch on a Sunday &, because the weather was rather nice for this time of year, we decided to have a little “mooch” around the shops. When I say “we”, you know & I know this was pretty much driven by my partner – but hey ho!


So there we were walking through yet another clothes shop, she’s trying on her 7th jacket of the afternoon & after that she decided she liked the first one she tried on back at that well known department store named after some chap called John! (Lewis…).
Fortunately, on the way back to this department store, we walked past the same car showroom we did on the way; but this time my temptation got the better of me & we found ourselves going in & within 5 minutes I was sitting behind what would become my brand new car.


So, picture the scene, I’m standing in the middle of a car showroom, slightly overwhelmed by the amount of options available to car buyers at the moment. I mean gone are the days of just merely buying a car outright! Now you have the option to take out a weird and wonderful finance scheme, you can lease, part exchange, part own (strange) & so on. It just seems a little bit overwhelming to me.


However I guess buying a car is a significant event in a person’s life. Therefore to have the options (or at least know about them) is immensely important – simply buying a car there and then is not the only fruit on the tree after all.


This got me thinking, when it comes to options: car-buyers & recruiters are pretty similar. Arguably, as a recruiter the dream of one day owning their own recruitment venture is a pretty powerful feeling. I mean much like the aspirations of any car-buyer is to one day own their own Aston Martin, now surely you can relate to that? Now speaking from personal experience, that's a pretty powerful feeling!

This increasing "entrepreneurial trend" has not gone unnoticed of course. I guess much like car-buyers out there, the options for recruiters wanting to start their own agencies is becoming increasingly wider.

Long story short, SSG is just one of the many options available.

For SSG, the ideal Recruiter is one that is motivated to start their own venture & for whom the perfect solution to the question of “how do I start my own recruitment business” is with the help of SSG.


However, it is a massive decision to start a business &, as the years have rolled by, SSG has grown more and more aware of what an amazingly personal and intense relationship exists between SSG & our budding entrepreneurs. We want to get that relationship off on exactly the right footing and part of that transparency and honesty is to present recruiters with the options available to them. Sounds fair enough, doesn’t it?


So what are they? What are the options available to a recruitment entrepreneur of 2017?

1. Self-Fund DIY

✔ Raise the required capital yourself
✔ Coordinate the launch of your business
✔ Buy access to the tools you need to make money 


For me, as an alternative to SSG this is my favourite one. Although it may seem scary, daunting and down-right tough, if you weren’t to go with SSG to launch and support your business, this is most viable & satisfying alternative. Of course there’s no denying, you need to take particular care to ensure you have enough capital to cover you in the three main areas of expense:

  1. The cost of physically launching your business
  2. Simply living during the “baked bean” period
  3. The cost of the tools to help you succeed (& not just a few job boards of course, we’re talking all the on-going back office, branding and technical costs too)

But ignoring the obstacles for a moment & taking a look at it from a far, if you believe that SSG wouldn’t be right for you then Self-Fund DIY would be my recommendation.

2. A Franchise

✔ Buy a Recruitment Franchise from an established Franchise Vendor
✔ Invest your capital (around £10,000 - £30,000)
✔ With that investment, buy the backing of the Vendor
There are a considerable amount of Recruitment Franchise opportunities out there today, many backed by big household Recruitment names! Simply tapping “Recruitment Franchise” into google will show that although you would be trading using the franchise owner’s name, the sales pitch will suggest you have the support and expertise of their umbrella. What do most franchises stipulate?

  1. Well usually there’s an upfront investment from yourself, presented by them as an investment into your future and your clear commitment
  2. There’s usually a monthly management fee which is either a fixed fee or a percentage of the placements made

Critics of the model base their feelings around the high financial investment & lack of personal branding for the recruiters who choose this avenue. For me the major obstacle would be – if the Franchise owner really believed that they could help you succeed, then why do they need payments upfront?

3. An Investor

✔ Find an Investor (ideally not too “close to home”)
✔ Present your lengthy business Plan  
✔ Give away some ownership of your business for some hard cash
Gone are the days of pension funds, housing and saving accounts. Society is changing and the increase in private investors within the marketplace are demonstrating this. While they’re not all 6ft 6 & own a wide collection of colourful socks, investors all want one thing – security & return on their investment. They’re fiery dragons after all (did you get my Peter Jones reference...?). They all want to see progression, return, growth and a clear exit strategy.

If you need hard cash to get the job boards you need, the website you desire and the ability to outsource your accounts, then this is a route you should seriously consider. A word of warning, of course, would be that this hard cash does not come for free – if you’re happy giving up a percentage of control over your business then this is a route worth exploring.

4. Commission-Only

✔ Work for an existing Recruitment Company
✔ Work from home on a Commission-Only scheme   
✔ Trade through their business & share their branding
There are several Recruitment Companies out there willing to let you work through their business as a self-employed commission-only Recruiter. Long story short, this route will allow you to:

  1. Work from home
  2. Make the odd placement
  3. Keep (pre-tax) up to 70% of what you bill (OK you have to sort out your own tax etc, but you get the point)

No real commitment & the freedom to walk away when you want – sounds great & I can see why. However critics always point out 4 main issues with the model:

  • You have to pay your own tax (& that means dealing with the tax-boogie man)
  • You have a clear restricted market
  • You have no security
  • You’re in “recruiting limbo” (you haven’t got salaried employment nor do you own your own business)

My view is that it is an understandable route to consider but ask yourself why do existing ventures off this option? Free employees who build their database for them, a cynic might suggest…


Plan of action? 


Review the options in front of you.


The reason I wrote this, is because at SSG we know what it is to face so many big decisions all alone. Starting your own business is a massive challenge & it will radically change your life and the lives of your family. So, you know what, we are more than happy to help. We have all been exactly in your position.


I guess all that I can hope is that now you are aware of the options, perhaps you will revisit Option 5 - SSG & choose to talk to us?

When engaging with a passive candidate, recruiters should learn to steer away from old-fashioned techniques because remember, your objective as a recruiter is to be noticed by your target audience. New technology continues to challenge the way we work and in effect determines the recruitment process. My advice would be to make the right choice when considering how you’re going to approach these guys.

So, here are 4 practical ways (and if you put your mind to it) relatively easy steps you can take to attract and engage with potential passive candidates.

Thank you so much for reading this article on wearessg.com

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