If you’ve been in the industry for a while, you know that running a recruitment agency can be equally rewarding and lucrative. But it’s not exactly a walk in the park, particularly in the early days. You need to consider loads of areas when launching your firm, before you even think about hiring staff. Speaking broadly, some of the most common areas you need to consider are:
- Finding and appointing your professional advisors, such as accountants and lawyers
- Registering your business – What type of entity suits you best? What shareholder agreements do you need in place?
- Designing your branding and website (remembering to check on Trademarks!)
- Setting up your finances and banking – Will you need external funding?
- Protecting your business – What insurances do you need? e.g., Professional Indemnity, Public Liability, Workers Comp, Property/contents/equipment insurances, etc.
- Putting your IT infrastructure in place, such as phones, email, data storage, devices, network, etc. and, of course, critically, cybersecurity and backup solutions
- Your operational software, such as your CRM/ATS, back-office, accounting platforms, etc.
Here is our guide to getting started.
Understand the true costs
Of course, we all know that starting a business can be expensive, but many new business owners are surprised at just how many costs they hadn’t anticipated. It’s really important to be across all of the costs, big and small, from office rent and insurances to software subscriptions, IT equipment, and business development expenses.
One cost many business owners forget to factor in is their own time. Your time is a valuable resource, and it’s important to put a dollar figure on it to understand if you are making the most of it. For example, if you spend a lot of time on admin instead of business development, you might be costing the business a significant amount in lost opportunities, so it’s worth looking for a solution from the outset. The good news is that the right tech in your business, from your accounting software to your CRM/ATS, can do many of these tasks for you at a far lower cost.
When it comes to hiring staff, you need to think about a range of costs. On top of salary, you need to pay superannuation, sick leave, annual leave, and payroll tax. You’ll also need to factor in the time (and the cost) it will take to train them up. Of course, as a recruiter, you’re well aware of the value of the right hire and the costs of the wrong one, but when it’s your own business, it’s far more personal.
Find your niche and build your brand around it
With so much competition in the marketplace, it often pays for new businesses to start with a defined niche or a handful of industries to target. This will also help you find your first hires, as you can look for people with skills in your specific field.
Once you know your niche, you can start building a brand identity around it. From your business name to your website, a brand and design that attracts your target market is a must. It will help potential clients identify you as the right agency for the job.
If you don’t already have a clear vision of this, consider talking to a brand expert who can help you create a business that engages your customers.
Unless you have a background in graphic and web design, it’s a good idea to outsource the creation of your website and logos to an expert. Your website is often the first thing people will see when searching for a recruitment firm, so you want to make sure it represents your ethos and offerings accurately.
Set up your cloud-based software solutions
Investing in the right cloud-based software solutions can reduce start-up and ongoing costs, but it pays to know which ones will suit your needs. You’ll need an accounting solution to manage invoices and incoming payments, as well as a payroll system for your employees. Investing in a quality CRM and ATS tool can increase efficiency and allow you to track and automate communications and workflows. Recruit Wizard is designed specifically for recruiters and can be tailored to suit your individual needs. It incorporates candidate sourcing and email integration and highly effective applicant tracking and customer relationship management tools.
Know the rules and protect your business
You’ll also need the right insurances – from building and property to public liability and professional indemnity. If you want to work with larger organisations or government departments, you’ll find many of these clients will require you to have these insurances in place before they commence a relationship with you.
Get out there and find your clients
With the right tools and tech in place, you’re ready to go out and do what you do best – connecting with people and doing business. It can feel like a daunting task but starting a business can be incredibly rewarding, and today’s tech can do much of the heavy lifting for you.
When it comes to starting a recruitment firm, investing in a robust and effective recruitment management solution is a no-brainer. We’ve helped many startups with a locally supported solution designed for recruiters by recruiters, and you can read more here or set up a time to chat with our team to kick-start your business.