Thinking about setting up a recruitment agency? Whether it’s something you’ve been considering for some time, or is a relatively new idea, now is a great time to make that leap from fed-up recruiter to entrepreneurial recruitment business owner.
The UK recruitment industry is the biggest it’s ever been, seeing sales grow by 9.7% last year to £31.5bn and market forecasts show the industry is set to grow by 22% over the next 3 years!
Am I ready to set up a recruitment agency?
The market is ready but are you? Starting any business can be a slow burning process, especially when you are setting up a recruitment agency. Here at SSG, we believe knowing when you are ready is a gut instinct thing, rather than a timetable thing. But with our years of experience, we know the questions you need to ask yourself:
Can you do it?
Do you want to do it?
Are you professionally ready?
Are you domestically set?
Are you financially sorted?
Setting up a Recruitment Agency with SSG
First things first, any conversation between yourself and SSG regarding setting up a recruitment agency will be treated with the strictest of confidence – even if you just turn to us for advice or to chat about your options. Even if we’re not right for you, or you’re not right for us, we won’t share your plans or details with anyone.
But, in the hope that working with SSG might be right for you, and that you might be ready, and that this might be the perfect time and that all your little ducks are in a nice neat line, then you’ll want to know how it all works.
How it works
Our business model is really very simple – we take experienced recruiters who want to set up their own recruitment agency and we help them do just that. SSG offer a free business launch; a carefully project-managed process to ensure that we do everything necessary to get your new business ready to trade. We cover the legal and compliance aspects, creative and branding, technical provision, resource allocation and financial and accounting. The launch of your new business is our investment in you and is absolutely free of charge – no upfront fees, no fixed cost to pay, no weird and wonderful loan agreements or deferred payment schemes. It really is just what it says on the tin, a free business launch!
What’s in it for SSG?
How do we make our money? After all, we’re in business too, right? SSG continues to support your business after the launch is completed, covering those key areas, in exchange for a Service Charge – a descending percentage of the billings of your new recruitment agency. You only pay us when you bill (so our success is dependent on yours!) and you only pay us when you receive cleared funds against an invoice.
There are no fixed costs and our Service Charge is never more than 30% of your billings (makes that 20% commission on that £10k fee look a bit measly in comparison eh?!)
Why choose SSG when setting up a recruitment agency?
If the pure financial advantages have failed to convince you that working with SSG is the right option when setting up a recruitment agency (after all, taking home 70% of your billings rather than a measly commission cheque does seem much more appealing), how about some facts and figures?
SSG have been in business since 2003 and have launched in excess of 200 recruitment agencies. We currently support over 135 ventures and, if we do say so ourselves (which we mostly don’t), our team of experts are incredibly experienced, incredibly professional, incredibly proficient, incredibly knowledgeable, incredibly friendly….well, just incredible really!
It is a testament to this team that the success rate of the businesses launched and supported by SSG far exceeds the average success rate of all new businesses launched in the UK. It’s also a testament to this team that the majority of the recruitment businesses we support elect to extend their contract with SSG at the end of the initial term – we like to think that means we’re doing something right!
Having that support network in place, the safety net that SSG provides, makes taking that leap and setting up a recruitment agency just that little less scary, just that little more certain, and just that little more likely to allow you to be a successful business owner with less of the stress, less of the risk and more of the money.
Getting on the road to setting up a recruitment agency…
You know you want it, you know you can do it, and you know SSG are on hand to help make it happen. What’s next?
Who do SSG work with?
Recruiters with at least 2 years’ experience in a 360-degree role within an agency environment, who are good, or better than good, at what they do. We only work with recruiters who really want it – after all, when the going gets tough, we need to know you will face those challenges with determination, desire and drive. And, of course, we need to all get along!
Watch a few of our videos below and you will see recruiters who were just like you – thinking about setting up a recruitment agency, worrying about what they would need, wondering what they hadn’t thought about, seeking a support network, researching their options. They have all made their business a success with the support of SSG – why can’t you?
How much money do I need to startup?
Our business launch facility is absolutely free of charge, so you won’t necessarily need to raise any funds to startup. However, you should have enough squirrelled away to cover that ‘baked beans period’ (our affectionate term for those first few months where you might not bill anything and are reduced to slurping your last tin of baked bins from the larder!) plus your phone bill of course.
How long will the launch take?
The launch of your new business can take anywhere from 4 weeks to 6 months – it all depends on you! Your availability, your timescales and your absolute feeling that you are 100% comfortable that we have done everything we said we would do. We’ll agree with you a plan of action and then work through that plan with you, as well as helping you decide when to resign from your current role.
What areas do SSG offer support in?
We like to think of ourselves as a one-stop shop! Rather than liaising and negotiating with a number of different suppliers, we act as a central point. We’re there for:
Legal and Compliance – we consider all of the things you might not, from ensuring the name you have chosen for your new business is safe to use, to registration for a business bank account and registration for all the necessary tax facilities. We make sure your business is compliant for any policies such as Data Protection, as well as sector-specific requirements such as DBS checking.
Creative and Branding – from designing your logo on Launch Day, through the provision of stationery and building a bespoke website, to the creation of marketing materials like flyers, brochures or postcards. Our creative geniuses are on hand to make your business look beautiful!
Resource Allocation – including the key provision of job board access, as well as recruitment software, training, credit checking, skills testing and vacancy reports, we ensure that your new business has access to the resources it needs to trade successfully.
Accounts and Financial – possibly one of the more challenging business areas, we ensure that your business’s back office runs smoothly by handling everything from invoicing and credit control, to the VAT man and the provision of Monthly Management Accounts.
Business – every business is different and so we respond to your specific business needs. That might be assistance with tendering for a PSL, advising on client disputes or reviewing your terms of business. It might be that you have big plans and we are on hand to help with growing your business – taking on employees, moving into offices, exploring new sectors or geographical locations. Or it might be simply a shoulder to cry or someone to share those champagne moments!
We are SSG – your business, our support. Call us on 01442 937 774 to find out how SSG can help you achieve your dream of setting up a recruitment agency.
1. Am I ready to set up my own recruitment agency?
Why not take our quiz and find out? It will give you a good idea of whether you are ready, or if you need to develop your skills and experience in certain areas before you consider making the leap. Or, just talk to us – we’re always happy to chat, be that via our website, over email or just on the good ol’ dog and bone. Call us on 01442 200944.
2. What will the set up cost me?
SSG provide a completely free recruitment business launch – no fixed fees, no upfront costs, no weird (and not so wonderful) loan agreements or deferred payment plans. We keep it simple and transparent. All you will need is a nest egg to tide you through the initial ‘baked beans’ period and enough to cover your immediate costs such as your phone bill.
3. What do I pay you and when?
Sticking with that simple and transparent theme – you pay us a percentage of what your new recruitment business bills. Never more than 30% and decreasing year on year. You pay us only when you bill and only when you have received cleared funds. So no dodgy cash flow issues or astronomical monthly costs. Yes, it’s risky for us – but that’s the decision we take!
4. How long does the launch process take?
This depends on you and how quickly you want to move, but generally between 4 and 8 weeks from your Launch Day would be a reasonable estimate.
5. Who do you work with?
Only recruiters – that’s where our experience and knowledge lies, so why would we do anything else! We look typically for a minimum of 4 years’ experience within a 360-degree recruitment role in an agency environment. Add to that the drive, desire and commitment to ride the highs and tough out the lows, plus us all getting along famously and you have the magic mix.
6. Am I tied into a million-year contract where I sign over my first born son?
No such luck! We understand that things change and that you don’t know what life will throw at you, so our contract has an initial term of 4 years. The majority of our ventures stay with us at the end of that initial term, but some do fly the nest, having learned and grown enough to be self-sufficient without the SSG safety net.
7. What will you help me with?
We want you to focus on what you do best – recruiting! So, we provide support in four key areas:
Legal and Compliance – we consider all of the things you might not, to ensure your business is fully compliant.
Creative and Branding – from designing your logo on Launch Day, through the provision of stationery to building a bespoke website, our creative geniuses are on hand to make your business look beautiful!
Resource Allocation – including the key provision of job board access, as well as a raft of other services, we ensure that your new business has access to the resources it needs to trade successfully.
Accounts and Financial – we know no one wants to deal with the VAT Man and that challenging area of ‘the books’, so we ensure that your business’s back office runs smoothly.
Business – every business is different and so we respond to your specific business needs. PSL tendering, client dispute resolution, expansion, business mentoring…..the list is endless. Or it might be simply a shoulder to cry or someone to share those champagne moments!
8. What’s your success rate?
Considerably higher than the average business start-up success rate! We have launched over 200 new recruitment businesses since the inception of SSG and continue to support in excess of 135 of those. 4 out of 5 of our ventures stay with us at the end of their initial contract term.
We’re not saying it’s easy – it’s not! You will need to be absolutely committed, motivated and willing to work incredibly hard. There will be amazing highs, along with the occasional lows. But, we will support you along the way to help make your business a success.