There is a lot of value and fulfilment in running a Recruitment Agency. You get to provide people with work and at the same time provide businesses with good quality assistance, everyone wins. It is therefore ultimately a very rewarding industry to work in. However, it takes a lot of hard work and commitment to take it to a fully functioning agency. It is also a huge financial undertaking and accordingly a strategy should be in place to give you focus.
Know Your Niche:
As with any business venture you will need to formulate a plan. There are a lot of industries out there that will need staff. Do not be tempted to spread yourself too wide and cater to everyone. No one business is capable of doing that and you will become overwhelmed. The better option is to decide up front which industry or industries you are going to specialise in e.g. Financial, Engineering, and then stick with them. This allows you to focus your expenditure on marketing in the right areas to attract the type of staff and clients that you require.
Before you start it is also important to research your geographical area. What are the staffing needs? What kind of staff will you need to employ and keep a pool of? It is important that you are able to keep up with demand in the industry you are supporting as if you cannot, clients will go to someone else who can.
It’s all about the Sales and Marketing:
This underpins your business, so make sure that you have a strategy in place. Know where and how you are targeting any campaigns, and make sure that they are relevant to your chosen industry or it is just wasted effort. Try obtaining mailing lists and use telephone directories for cold calling both staff and potential clients. Use business acquaintances to promote you to people they know – word of mouth is the best kind of marketing. Use social media to your advantage and both promote the business and find potential staff matches in places like Linked-in.
Get The Administration Side Right:
As with any new undertaking it costs a lot of money in the early day to set up and get going. You need to cater for all of the initial costs like the extra marketing it will require to get going, practicalities like acquiring office space and furnishing it and things like insurance cover. On top of this you will need to be able to meet your payroll for staff and for recruitment consultants and sales staff. Your invoices are unlikely to all be paid in a timely fashion. This is normal practice in any business. However, you do need to factor this in to your budgeting and take into account that it is highly likely that there will be a cash flow gap. You will therefore need to ensure that you have funding in place to cover this eventuality. Doing this is simplicity itself as many people find the solution to this, when starting a recruitment agency, is to take on the support of a company which does recruitment factoring. This will deal with all of your payroll costs before your invoices are paid.
All in all, the best thing that you can do when starting up a new recruitment agency is to do your research and plan. This will give you the focus and a road to follow. Add to that good quality staff and a good sales team and you are well on your way to opening your doors.
Image attributed to FreeDigitalPhotos.net Stuart Miles