Starting your own recruitment agency doesn’t need to be difficult…April 15, 2019Olivia Cheetham
The prospect of taking the leap and starting your own recruitment agency can be daunting, but it doesn’t need to be. There is a continuing rise in the number of recruitment agencies, the demand for workers is increasing and there will always be the need for recruiters’ services. There is no better time to start the ball rolling and make your mark.
Here are a few pointers to consider when setting up your own agency.
Recruitment sector experience
Crucially you need experience in the sector! It may sound obvious but having experience of how your chosen sector works is vital. It is impossible to appreciate the pressure and complex demands you will face, so it is worth delaying your plans to gain this experience. Knowing what to expect before setting up, what barriers and obstacles you may face and also the benefits that running a successful agency can bring, is invaluable. It is crucial to know how the industry works before trying to find your place in it and putting your stamp on the recruitment world.
Do you have a niche?
What is your area of expertise and what sector are you going to specialise in? While your business will evolve as you adapt to changing markets and circumstances, starting with a clear direction from the outset is advantageous. The fastest growing agencies now work in niche sectors offering higher fees as it is harder to source good candidates. Having an established network of connections in your field, both clients and candidates, will help you to hit the ground running. Your USP is your knowledge and network, without knowledge of your chosen sector, you are not going to be able to supply the right candidates as you won’t know what qualities to look for and have the credibility to attract them.
Do you know your competition & market?
Checking out the competition will help you to understand what you need to do and what you need to avoid. Once you’ve done this, prepare to go above and beyond to separate yourself from the rest. Researching in your chosen sector or niche is vital to understand your market, Which competitors are doing well and what can you learn from them? Are there areas for improvement that your sector is lacking? This research will all help with how you structure your business and position yourself.
Do you have a brand and have you considered your marketing strategy?
How do you intend to distinguish your agency? What will your branding values be, and do you have a clear marketing strategy? Do you have a clear plan as to how you will attract new clients and candidates? Approaching this in the right way can make or break a new business. Recruitment is a competitive market, so your personal brand and business brand need to be supported by a marketing campaign to differentiate you from the competition.
Legislation – the ever-changing legislative landscape of recruitment, are you aware of the legislation in the sector and up to date?
Recruitment is characterised by a plethora of legal and HMRC legislation. This legislation can have wide-ranging impacts on your business. IR35, GDPR, Auto-enrolment and Making Tax Digital are all issues that you will need to be aware off to protect your recruitment agency. Visit the Government website and read the guide on Employment agencies for a full breakdown and the requirements before setting up.
Do you understand the true start-up costs?
Whilst there is an initial cost to setting up your recruitment agency, this can be kept to a minimum. There is no need to invest in fancy software at the very beginning. For most new start-ups, a mobile phone and a laptop are all that is required, and many recruiters choose to work from home in the first few months whilst they establish themselves. Once you are ready to move, serviced offices are on the rise and offer various sized spaces, with everything you could need, for a competitive price. A good option at first rather than purchasing an office or tying yourself into long term rental contracts. When looking at your expenditure, plan for the future as you need to be prepared and to anticipate the changing costs as your business develops.
Starting your own recruitment business should be an exciting time! There is a lot to think about, but it doesn’t need to be complicated with Easypay’s assistance. We offer 100% recruitment funding and back-office services to new and established recruitment agencies with the personal touch that recruiters require. We are here to explain what you need to do and to support and guide you through your first months. You will always be able to speak to a member of our team. As part of our service, we will design your business logo, letterhead and business cards free of charge and we are always available to answer your queries.
Undoubtedly, you will have lots of questions, but we have the answers, so please get in touch and we will share our experience and knowledge.
With Easypay, it’s personal…