If you’ve been thinking of starting a recruitment agency of your own, you’re probably already aware of the importance of developing both a good business plan and a good marketing plan. Here are three other important considerations:
1. Have enough money. Conventional wisdom states that you will need to have enough cash reserves to support your new business for 18 months with no revenue. Historically, half of new business start-ups fail within the first five years, and a significant portion of those failures are due to being undercapitalized. Before starting a recruitment agency, figure out where the money will come from – personal savings, loans from family or a business partner, conventional financing, etc. Trim your personal overhead as much as possible so that you can still pay your household bills on a greatly reduced – or nonexistent – income.
2. Have a plan to run a business, not just a desk. If you’ve been a successful recruiter working for someone else, it’s easy to think that starting a recruitment agency of your own will increase your personal income. That’s not necessarily true. When you’re working for someone else, you’re responsible for your personal production. You may have help in the form of administrative or research support, or even business development, which allows you to spend your time on what you are good at — making placements. When you go out on your own, your budget may not allow for administrative or research support. You’ll be responsible for business development (which does not include the clients and candidates belonging to your former employer, right?). And you’ll have to do all the other things that come with running a business like bookkeeping, paying taxes, and dealing with service providers (website developer, telephone provider, ISPs, etc.). All of those things leave less time for making placements, which probably means less money.
3. Decide if you want to go it alone, purchase a franchise, or join a recruiting network. Starting a recruitment agency is a risky venture, just like any other start-up. There are different business models to consider, which can impact the risk:
- Go it alone. Use your own knowledge and a “bare-bones” style such as a laptop and Skype from your home when starting a recruitment agency. This option allows you to be completely entrepreneurial and requires the least amount of upfront cash. It’s also the riskiest option, because you won’t have any support to keep your fledgling business moving. What if it takes 6 months to land your first client? A year to make a placement? Can you survive that long?
- Purchase a franchise. A recruiting franchise provides you with infrastructure for your business, training, possibly software, advertising, market penetration, and other support. However, there is a very high cost of entry — anywhere from US $25,000 to US $200,000 — and you’ll be paying franchise fees (typically 5% – 9% of your gross revenue) every month. It can be difficult and expensive to leave the franchise if it’s not working out for you. It can also limit your autonomy as a business owner. If you like a corporate model with lots of training, a franchise can be a great option.
- Join a recruiting network. There are formal and informal networks, free and paid. A recruiting network provides you access to candidates, jobs, trading partners, and peer support. All of these can make starting a recruitment agency a little easier. You can provide candidates for your trading partners’ jobs, or rely on partners to source candidates for your jobs. And it’s invaluable to be able to call up another recruitment agency owner for advice. Your partners will lift you up when you struggle and celebrate your successes.
Starting a recruitment agency is an exciting prospect with a high income potential. Do your homework, develop a great plan, and look for options that provide affordable support to increase your odds of success!
Some useful advice however I would disagree with Point 1 – If you are an experienced Recruiter and have not generated any revenue at all inside of 6 to 8 months from starting your business then you should really think about cutting your losses and going to work for someone else. If you have no experience at all in recruitment and want to open up a recruitment business you arer asking for trouble – you will burn through a lot of your savings whilst learnign the ropes. Go and work for someone else first.
Thanks for the comment, Cliff! I think the 18 months rule is valid – stuff happens. Clients don’t pay on time, or you need to invest in infrastructure for your business, there are bills to pay during the start-up months before the cash comes in, etc. So even though it SHOULDN’T take 18 months to start making money, it’s best to be PREPARED for that situation. Also, I think there are some recruiters who think it’s ‘easy’ to start up their own shop just because they’ve been successful working for someone else, and that is not always true. Totally agree that anyone who has not previously been a recruiter should not attempt a start-up.
I agree,however Clients don’t pay on time, or you need to invest in infrastructure for your business, there are bills to pay during the start-up months before the cash comes in, etc.
At Placement Mumbai, we always stand by our clients 100%. Many companies offer recruitment and placement services but due to our teams’ efficiency & dedication we are among the top most placement agency in Mumbai. We believe that no other placement agency can offers the level of service and support that we give to our each and every client.
Well, I don’t believe one needs to have some level of experience in recruitment before starting one. To everything there’s always a first time and one would be a able to build up the experience over time whilst doing your own thing. I use myself as an example; I’m running a very successful recruitment agency in West-Africa, Ghana; meanwhile I never had any experience in working for someone else. And talking about placements, I made my first job placements in the 1st Month of operation for a very big firm of which I made alot of money which helped push my Agency to the next level. Thus, in summary, you just needs to have the right attitude and the can-do spirit and everything will work perfectly well. Remember ‘energy flows where attention goes’ Thanks.
Hi I have been your comments and I am thinking about starting a staffing agency.I have many questions and concerns that I am pondering. My main one is how does a staffing agency arrive at the percentage rate for the positions that you fill. Is there a state or country percentage rate base on the payrate to charge a client. How would I determine if my rates are inline with other staffing agencies. Please advise
Thanks
Annie,
Each business needs to determine prices independently of others after research and strategy. If I were you I would be calling 5 to 10 client companies that I want to do work for and see what their expectations are. You can also benchmark other businesses in your market.
For anyone to suggest a price to you could be considered price fixing, restraint of trade or collusion. So it would be unwise for someone in the business to offer a suggestion.
Nice !!!!
Doing your own thing is good, and by working hard and willing to learn you get better and better, so if you belive that you can do it then go ahead
Well after 26 years and working as VP, HR, Branch Mgr & trainer, I’m going out on my own.. I’ve made other companies millions and I plan to make a little for the retirement account. Currently spent $3000 in updating a home office, equipment, phone lines, fax lines, etc.. so to start a business required preparing and a next egg..
What is the startup cost for starting a temp agency? How long does it take the client to pay? I am a very determined and hardworking individual. And also, how do will I go about getting clients? Cold calling?
Hello, I would like to know in detail the procedure to get clients for a recruitment agency. Thanks
Hi Shannon,
The costs to start a temp agency can be kept low if you have providers that will act as the employer of record and fund your payroll. TFI Resources is a great provider that many of our NPAworldwide members use.
You need to understand the laws of temporary employment before jumping into this business. The Affordable Care Act has recently impacted change particularly if you are the acting as the employer of record. So do your homework.
You would likely want to have something that attracts employers to you like a great collection of employees, an industry expertise or some cost advantage. Leading with price is not always the best long-term strategy, although short-term it is not likely that you will command a premium to existing providers. Cold calling, buying lists, social media marketing, direct mail, event marketing and referral can all be effective, but most employers have providers in place. You need to have a reason that you will be replacing what they know and like. What is your unique differentiating quality, skill or attribute? Why would anyone change to your service?
Most temp agency’s clients pay in 30 or 45 days. The cost to start your 1 person temp agency is around the cost to put up a website ($10/month), a job board subscription ($5K for the year) and the cost to incorporate ($100 approx) and your own living expenses if you need to include that. Once you hire an employee, you need something like a payroll company for around $35/month). The biggest cost would be your 1st employee’s salary which will be due at the end of the month or every 2 weeks. So you have a cash outflow of say $6K at the end of the month and you get paid say $10K for that temp by the client, 30-45 days post that. So safe to say you need at least $10-20K to get started assuming you are the only employee and doing sales, recruiting, payroll, etc. This is how I got started.
If you are really short of cash you can try to convince the contractor to incorporate themselves as a company and offer them a a higher rate in exchange (say $8k/month) and get them to accept a similar payment term as the one you get from your client.
Hi
I am still gathering information before i start my agency
Hello Everyone,
I am planning to start up with an recruiting agency in India, precisely I am in Gujarat, Ahmedabad, all set up costs,recurring costs I am aware. I wanted to konw what all kind of documentation is done between Company and Recruiting agency inorder to play fair. Companies are there in my contact and reach.
Regards.
Hello Every one
I totally agree with all ,
I am having 5 years of experience as a IT Recruiter,2 years back i started my new business(Yedla consultancy). Clients are comming,the problem where i am facing is still now ,even a single bill was not cleared
please help me in getting out from this
Sunil, thanks for stopping by! You can get some great tips on collections at this website: http://www.staffingdebt.com/
Good luck!
Hi, i worked previously for a recruitment agency and quickly climbed up the ranks, i did recruiting, training and placement for them. So i decided than to go out on my own, I have at the moment 2 clients that I am working with informally, my plan is to secure at least 5 before I register without working with them as I am with the other 2. I would really appreciate some start up advice because I was thinking of buying a dead name? I know I can do this on my own because I have the skills but Iam 22 and have no idea how to start up this thing. Please help
Hi, I’m planning to set up a recruiting agency in India.Can someone guide me on the requirements, which include licenses, bank security deposits and other documents required.
I’ll be very grateful for your advice.
Thanks
Xav
Hi everyone does one need a mentor to start a recruitment company?
I need a mentor to help me start my staffing agency. I plan to open in 7 months.
I have been in a corporate and smaller family owned staffing environment for over 10 years in recruitment, sales and branch manager roles. I am seriously thinking of starting my own firm. I have approximately $100k to invest, will this be enough to get me through the 1st year? I plan on taking a small salary of $500 per week for myself after the 1st two to five months, thoughts?
For those who are looking for coaching or mentoring, please take a look at http://www.greatrecruitertraining.com, http://www.goodasgoldtraining.com, or http://www.nextlevelexchange.com for starters. There are lots of successful recruiters who also provide executive coaching.
@Christine, you might check out SCORE, https://www.score.org/ for help with your financial plan. They offer free advice to small business start-ups, often through a Chamber of Commerce.
Hello @Christine. I would like to discuss business with you in further detail. (naimah_bashir@yahoo.com)if you’re interested. Thank you
Hi everyone,
I do plan to setup of the recruitment agency. I need a mentor to help me which I plan to open a few months later. Thanks
Hello Everyone,
I am planning to start up with an recruiting agency in Nepal, precisely I am in pokhara all set up costs,recurring costs I am aware. I wanted to konw what all kind of documentation is done between Company and Recruiting agency inorder to play fair. Companies are there in my contact and reach.
Regards.
Some great comments! I’m thinking about starting with a focus in the hospitality industry. I have worked for more than 10yrs in the industry and have maintained great relationships with many ex coworkers. Appreciate tips….
For those looking for sample contracts, you can Google “sample recruitment agency contract” to get started, but it’s smart to have contracts reviewed by an attorney. In the USA, recruiters who join NAPS, http://www.naps360.org, receive access to legal counsel as a benefit of membership.
Hi, I have 4+ Years of experience into Recruitment. Kindly let me know if anyone is having any suitable opening for me. My Location is Mumbai
Dave, great article. It’s exactly what we advice new startups when we help them launch. Most has back office knowledge and support whisky as an employee and many sadly basic mistakes which slows down their growth. Your article gives the a good overview. Graeme Read
@Graeme, thanks for stopping by. Glad you liked my post!
I am also planning to start my own recruitment firm.So, these comments will help me ti gain insight.
your blog on three important considerations has been greatly appreciated by me. Can you please send the complete blog to me by mail.Thanks very much.
Dear Tejinder,
Our blog is not available by mail, but you can sign up for a free email subscription here:
http://www.npaworldwide.com/subscribe-to-the-npaworldwide-blog/#.VHyKfsl5W1U
Best regards,
Veronica
Hi christine! My name is Wade and i am from Vancoiuver B.C.,Canada. I am wanting to start a staffing/recruitment angency as well, and was wondering if you might be interested in possibly partnering together for business?Not sure where you live?But i am in canada and if you are in the U.S., we could have a canadian one and U.S., eventually it could be very very lucrative I think! I am a very hard working ,determined and positive person and would love to talk about partnering possibly if you are interested?My email is darthwader667@gmail.com if you want to reach me so we can talk, thanks alot Christine,I look forward to speaking with you. Wade.
Hi all
I’ve been working for a recruitment company for almost 4 years in Auckland, NZ and making the company around $15k margin per week.
I am planning to open my own recruitment company in New Zealand.
but the issue is, clients sometime does not pay on time. I meant some clients pay 1st of the month, 20th or fortnightly.
do you guys think I should go for only client who can pay weekly invoices or fortnightly ?
Thanks
Ronney
Hi me and a friend a looking to start a recruitment agency in south africa we are looking into targeting the retail industry plz advise us
Cynthia please let’s chat on WhatsApp 0734205689
can you help me? what is the different of sub-agent and franchise.. because I’m planning to build a manpower agency? can you help me suggestion plss
Hello All,
I’ve been thinking about starting a temp agency specializing in legal and admin positions in Maryland. I have ten years experience in the legal field. I don’t have experience in recruiting/hr and im a little worried. How much would I need to start? Know if any places that fund agency startups? Suggestions please and thanks.
@Christine or others that may be interested in partnering with a successful niche market staffing agency, pls contact me directly @ harrisonra922@gmail.com. We are currently US based but looking to expand our operation to Canada and the Caribbean.
If you are looking to start up a recruiting, staffing agency having a solid applicant tracking and recruiting software system in place from the start will help you grow. We work with NPA and can offer solutions for start-ups.
https://jobadder.com <- Trail/Demo.
Hi ,I need help ,I want to start my own business in South Africa recruiting contalency ,I need help on South African policy and procedures in the workplace ,Who do I go policy and procedures in the workplace to for help .
Hello everyone! I know I’m about a year late to this blog but it’s very informative. I’m want to start a staffing agency in Orlando, FL. I have over ten years experience in customer service, administration, educator and call center. I’m doing my research on how to start up. And advice? Thank you!
Hello Shaker, I have been a recruiter in Dubai for the past 4 years and planning to start my own shop … my 1st and most important advice is to go work for an agency at least for a year for the following reasons:
– business development is key and it evolves pitching a very expansive sail through carefully planned stages starting with a cold call.
-researching for candidates is no walk in the park, I can actually write a book about the different tweets and tricks I learned from a 100 more experienced consultants over the years
-A network of decision makers that trust you in the market, my time in agencies gave me the chance to be get on 1st name babies with decision makers in many industries.
-last but not least specialise in one industry and own it because you will gain the following, good references for future business development, shortlists of employees that you can use again, in depth technical knowledge of the field.
Hello Shaker, I have been a recruiter in Dubai for the past 4 years and planning to start my own shop … my 1st and most important advice is to go work for an agency at least for a year for the following reasons:
– business development is key and it evolves pitching a very expansive sail through carefully planned stages starting with a cold call.
-researching for candidates is no walk in the park, I can actually write a book about the different tweets and tricks I learned from a 100 more experienced consultants over the years
-A network of decision makers that trust you in the market, my time in agencies gave me the chance to be get on 1st name babies with decision makers in many industries.
-last but not least specialise in one industry and own it because you will gain the following, good references for future business development, shortlists of employees that you can use again, in depth technical knowledge of the field.
Hey all,
I am really wanting to start m own hospitality based staffing company. I’m still at the research part right now, I’ve spent over 10 years in the hospitality world. And have worked in a mom n pop temp agency, although to be honest I basically did everything for the owner. I have kept in touch with former co-workers etc. And I know that based on what is available there isn’t an agency they like but they need people. What do I need to do to get started? I know it will take time, but where do I start? I’m in the US, and need some guidance. If anyone has any they wouldn’t mind sharing my email is thatonechic85@gmail.com . I really enjoyed this article and all of the comments.
Okay. So I have been out on my own recruiting executives for the past 7 years and have made 200k-300k per year depending on the year lol. I want to open and office and hire people in house but I am extremely scared. I have a lot of business and a lot of clients but only 200k cash. I don’t know if that is enough for all the overhead. I want to hire 4 people to start out and mold them into me :) but the FL market for ambitious individuals is very few. Anyway any advice would be awesome.
Hello,
I am interested in starting my own Staffing/Recruiting Agency Immediately.
However, I don’t know where to start.
Please help,
Thanks In Advance,
TT
Please feel free to contact me by email:
tobarkoa_t@yahoo.com
and/or call me at:
(972) 201-4340, a.s.a.p
Thanks in advance,
TT
Hi I’m Mubarak from Bangalore( India)
I’m planning to start my own manpower consultancy in Bangalore. I the registration process and everything. But the problem here is I don’t have experience in recruitment. If any body interesting to join with me. I welcome u all..
Kindly help me
All of the comments was very informative! I’m interested in opening my own staffing firm and i would like more info on the markup fees and payroll funding. Please help!
Good morning, I just found this blog and I really think it is informative. i have gone to all the websites and I’m thinking of joining NPA. I want to also start a recruiting company. I’m in the planning phase now and want to make sure I’m goin gin the right direction. I have years of recruitment experience and I have owned my own company before. i closed it because I got married and we moved out of state. I still have the entrepreneur spirit, so any comments and help will be greatly appreciated. Please contact me with any advice. thank you- sorry found a typo.
I am openning a staffing/ recruiting company and would like to know prices, what is acceptable price and structural set up for recruiting company?
Hi Michelle,
Like you, I have the ambition, determination and strong will to succeed where you feel others in your State are lacking. I’mean currently living in the greater Chicago area with property in Fort Myers, FL. I posses a strong technical background in engineering with experience in operations, manufacturing (Lean/Six Sigma/Process Improvment), Quality, Contracts, Logistics or Purchasing, and Project Managment within the Nuclear/Injection Molding/ Automotive industries. In addition to that I maintain an HR consultant with over 40 years experience in health care. I have great communication and negotiation skills but it’s my passion to succeed that separates me for the rest. I would like to discuss future opportunities with you as soon as possible. As you know timing is always critical.
Thanks!
Eric S.
Hi All, I agree this is a very informative post and the comments are equally informative. I am based in Los Angeles and I have a technical staffing firm based in India. We built our team 10 years ago to build and sell 3 e-commerce companies and we transitioned the office team into a staffing agency 3 months ago. I am looking to either hire an experienced consultant or bring on a co-founder with deep experience in the HR, Recruiting and Staffing industry. If you are or know of anyone who might be interested, please have them get in touch at hello@staffingzoom.com. Thanks!
Hi, i am 22 years old and i want to start a recruitment agency,i dont have any knowlege or experience. i just want to know where do i start? please feel free to contact me at ( aidenphoenixmusic@gmail.com) your advice would be highly apreciated .THANK YOU
@ Sheroly-lee, have you started your agency in SA? Would be great to chat and exchange experiences and / or ideas. Message me and lets chat….if you get this. tamsynclsaul@gmail.com
Hi all. I’ve read all these posts and I see we are all very keen to start up our own business. I started recruiting in South Africa in 2007 and currently working in the Medical industry. I am a mom to 2 young kids and I am ideally wanting to set up my own small business from home. I want to continue working, but Im also wanting to be more ‘present’ in my children’s lives. Many agencies are exploring the ‘work from home’ concept and I want to give this a try. I dont have any savings to take the risk, but who knows, maybe there’s a guardian angel (investor) wanting to partner up with me.
I have done Generalist placements, but my passion lies within our Healthcare industry.
Im 35 years old, extremely hard working, committed and just yearning to make my own money. For myself and for my children.
How do I combine my passion in sourcing staff but also help our younger generation find the right career opportunity, in our beautiful, developing country.
I own/operate an established medical staffing agency and would love to talk further or connect with the poster that referenced S. Africa opportunity. Pls email me at harrisonra922@gmail.com.
Hi, Great article…and I completely agree with the 18 month timeline…I have just started to take out my salary after 18 months of starting the recruitment business. I have 15 yrs of exp working major MNC like GE, HP & Dell at middle/Sr. mgmt positions before i started this. After the candidate joins it takes 2-3 months before the payment comes in…and if you need to grow and actually make money you will need to keep reinvesting money in the business. I started to 2 employees and have 12 now and want to take it to 20 by the year end. We currently work with companies in IT, BFSI, BPO, Real estate etc and hire for Front-line and Middle/Sr. mgmt positions. I think you have to invest and grow to stay in the market…that’s my 2 cents.
I am looking to Partner with someone in the US to help with business development and can work out a revenue sharing model.
If you are interested. Pls. mail me at Robin@smartserve.co
I am planning to start a recruitment consultancy in Chennai. Can you please let me know which recruiting network I can join to start with.
Hi, i would to know the meaning amount i need to start my own recruitment business
Bernard, 20-May-2014:
Great encouraging message, thank you!
I would love to connect and share experiences – please email me on sherleymystyle@gmail.com.
Many thanks.
Hello Michelle,
What part of Florida are you located?
i am currently a recruiter in india, can anyone please guide me how to go for a US IT staffing start-up.
Hi,
I’ve started my own recruitment agency a while back since then i am not able to place even a single candidate.We are specifically targeting the IT industry but we have no direct clients on our panel we are working with recruitment agencies like “Experis & NTTDATA”.Please, Suggest. Is it mandatory to have a direct client in order to make a placement ? Kindly help i am in a deep trouble.
I loved the article and i love the comments, its great seeing everyone give their input and advice. Ive been working for a recruiting agency for a few years and would like to start my own business. Im from South Africa, ive always been looking for something not just to sustain myself but to help others aswell
Thank you for commenting on this forum. I am starting an IT and Engineering staffing firm with the future potential of light industrial. We have the financial model, business plan, board of directors and c-suite in place with 30+ years of collective experience in staffing and tech. We are currently in the market for investors and partners. LLC is established. If you or someone you know is interested, please contact me directly at (424) 888-3185. Wishing happiness and success to you!
Hi, i have followed the comments on this blog and i find them very constructive. i have hotel experience and qualifications in hospitality management and i would like to start a recruiting agency in Lesotho, what could be the firs step after putting all communication in place.I would like to start working from home. I wouldn’t mind direct communication through pulespn@outlook.com as well.
This was just not good infomation . You sound like a negative reletive and even more shame for you if you happen to own a agency but thanks for the time.
Hi Ceecee, I’m sorry the article was disappointing. We applaud anyone who wants to open their own recruitment firm. Thanks for reading!
Hi All,
Myself murali from chennai near by most of the biggest IT companies locating area if any one join to me a partner for a HR Consultancy with Manpower Kindly call me
Thanks
91 9962254128
I am starting an IT staffing / consulting firm. I am 100% about this and wanted to see if anyone else is interested that has experience. We have company registered, a 5 star website being built. Next will be to purchase the software / database and hiring some top notch Business Development Managers in India. If you are on the same path feel free to contact me. I am located in USA.
drnostoploss@gmail.com
I will like to start my own recruitment firm in Nigeria (West Africa).please I need your advice and help. Thanks in anticipation.
Hi I would love to start up a permanent placement agency from home but have no idea where to start. How do I market, what should my placement fee be, etc. Any suggestions or mentoring is appreciated if you have the time. Please contact me carly.mitchell29@yahoo.com
Hello,
Very informative I must say. I do have a question after reading everything. I have no experience in Staffing period. I currently work in IT but am sick of paying out while I do all the work. So I decided to go into business for my self. I have decided on the software, website, and company name. To be honest I have been applying like crazy to every staffing agency in Atlanta and Florida. Thus insuring I learned the mistakes on someone else’s time. As I have not gotten a offer so I am getting anxious yet don’t want to jump the gun. I will be targeting the Middle Eastern market as it relates to relocation to there or state side. I lived in Kuwait and traveled most the Middle East and feel there is a big piece missing in staffing agencies that I have realized. I will be a one man show till I make enough to hire on. What positions should one trying to fill. I thought about education as I was in private schools overseas. Yet my family in Kuwait has really strong connections. What positions should I be trying to fill first as I get my feet wet?
Hello Everyone, I have read EVERY comment on this forum and I am very impressed with the contributions. I recently partnered up with a startup Staffing firm based out of Pittsburgh PA with 2 current offices. 1 in Pittsburgh and the other in NJ. I will be opening the Michigan Branch focusing on IT staffing. My back ground is in IT sales and Engineering but this first staffing business. what type of questions should I be asking my partners who have already established their footprints in this business?I am alos looking for a remote recruiter. thanks
This was a great read! I enjoyed your section about have a plan to run a business and not just a desk. This article is helpful and I can’t wait to share it with my Sister, thank you!
Michelle,
I’m an extremely tenacious self-motivated person with a midwestern work ethic.
Based on my innate skills/personality traits and those which I work daily to instill in myself. I know this is a field which I would have unlimited potential. So, I’ve made the decision to jump in with both feet and commit myself until I become a world-class recruiter.
I’m already planning on moving to the south east with a sole focus on executive recruiting positions. I’m eager to learn and would go to bat everyday as hard as I can. Would love to speak more.
Sincerely,
James
P.S. I’m 25 yrs old and have sales and management experience+constantly read/learn all things business related and have for years.
Hello,
I have been with my agency for a few years and I am highly successful in building rapport, and placing top talent. I’ve been thinking about starting up a company, and I’m super motivated; however, I do believe i’d want an equally determined partner. I’m in the Toronto, ON area. How do you suppose I find a suitable partner?
Thank you so much! The article and the comments were very helpful. I am also looking to start up a recruiting/staffing agency. I have purchased my LLC and bought a domain.
My problem is, what is my real first step? Should I find contractors or facilities first? Is the best way to cold-call facilities or to purchase a list?
“Turning away clients is harmful for future referrals but at the same time risking poor care due to lack of staff is equally damaging to a company’s reputation.”
Please advise on what steps I should take next.
Please email me at
Chahna.Tailor@gmail.com
It makes sense that you would want to be careful with job placement. You want to make sure that the people who find your job are the people who would work there! You wouldn’t want to put it in a place where people typically wouldn’t be interested.
I have 6years of experience in Human Resource Management & degree in Environment Management, I want to start my own recruitment firm in Papua New Guinea. I’m in the planning stage now. I require information on making it successful.
Hi,I have 18 years experience in call centers and very keen starting my recruitment agency in SA,i need more info for success.
Hey Veronica, that’s was really a nice piece of content you wrote. It would be really great for those start-ups looking to start a recruitment agency.
Hi Ronnie from New Zealand, please get in touch with me if you are still interested in starting a recruitment agency- I would like a chat. I am in Auckland. Email me on judy@kiwiaupairs.com
Thanks
I want to set up my own chef recruitment agency specializing in finding chefs of levels for places that are always struggling for chefs i.e. London, mainly recruiting from other countries that are in the opposite scale of not having enough Job opportunities for chefs , I’m based in France and would like some help or guidance starting up
I’m in South Africa and want to start a recruitment agency. Any one in South Africa or Gauteng. psn.sifiso@yahoo.com
I am based in South Africa and want to start my own staffing agency. There seems to be a lot of talk about training services being provided as well by other staffing agencies. What kind of training is this and how important is it to have?
I live in Omaha NE and I have a strong background in the hospitality industry; recruiting, training, writing training to help different business. Recently I have thinking to start my own recruiting agency with other HR options.
This article was helpful!
Thanks
Karim
Hi all i would like to start a recruitment agency in kenya for both local and overseas jobs. I have worked in a similar organization for the past year. Incase you have any advice on how to start one kindly contact me rosewaithera2014@gmail.com
Hi, I Adil from Calicut (Keral a-india). I’m working as sub agent for travel agencies in Kerala. Is there any body in nearby states to help me in this matter. Thanks – 9037770886 (india)
Hi i’m in South Africa i have an interest on starting a recruitment agency…would appreciate an advice or assistance on how to start…email: llebzaa@gmail.com
Setting up a recruitment agency requires passion, planning, and experience. The growing industry requires you to research well beforehand. After all, you are dealing with people’s lives and mistakes of bad placements cannot be undone.
hi
I have just completed the registration process for a recruitment agency in South Africa, I have decided to just do it. I need financial freedom and beside I have researched this for the last three years. My concern only I’d how to hook potential clients?
I meant hook potential clients and seal the deal. I’m based in South Africa. I am ready to do this
I’m based in South Africa. I am ready to do this.
I really like reading some of the comments on this Blog!
Q: What is the forecast for the Recruiting Industry in 2017? Is it a good time to start a business or not?
Starting a Business is as easy as registering a name with your local department of taxation. What’s been a challenge, however, is finding Clients on behalf of whom you’ll be finding talents. Does anyone here have an advice on where and how to find clients? Whether they are huge Companies like HP, Freddie Mac willing to hire you to find them qualified talents or just small Vendors like MultiVision or Insight Global who are willing to subcontract you to help them find talents.
Any advise would be appreciated.
Cheers!
I have started a recruitment firm in India since 2014, recently converted into a Private Limited.
Initially I had no office, always set up work at home employees and it worked out really well. I have spent less amount on infrastructure and more or Business Development and travelled to many parts of India and abroad too to generate Clients and successfully we did too.
Now looking to expand more.
I have a group of 7 people and want to make it big with proper investment. My budget is around 20K USD (Initially)
Please suggest.
hi i want to start a recruiting agency but i domt know how to start.like how to register it and and how to get a funding
Planning on starting a recruitment company in Jamaica with my Dental experience to place Dental staff overseas in places such as Canada, Australia and New Zealand. I need guidance and also partnering with someone to who are based in those particular countries or even establish health marketing recruitment placing in those countries… please reach out moyaservice@hotmail.co.uk
Hi, I needed some help ass I want to start a recruiting agency for ships in South Africa. What do I require to have on my side as I have a potential Cruisliner that will need my services.Can I operate from home. Please contact me cemane.lusanda@gmail.com
Thanks for the informative post. From your blog we can get a whole information and importance of Placement services.
We also provide Placement Services in a informative manner according to our client’s requirement. We helps to placed any field for good job . For more concern to view our website : http://www.outplacement-mittmann.de
I have been in business for five years placing people with disabilities in jib in Rochester New York. I am looking for a partner who is experienced in recruiting in demand it positions to grow this staffing firm. if you are hungry and have a minimum of proven recruitment full cycle experience in IT placement (data management and other highly skilled professionals I would like to talk please send resume to my Email careerplusagency@gmail.com. Donna
Hello, I would like to start an aupair and domestic staff recruiting agency with local and oversees potential clients. I’m targeting the middle east as short term goal and North America and Australia as long term goal. Anyone from those countries willing to have a mutual partnership is free to inbox me at aumaodida@gmail.com or twitter @aumaodida I am Kenyan.
Good morning all,
Each comment, questions and responses were extremely valid and on point. I have been a physician recruiter for many years in a multitude of sectors. Federal, private and contractor arena. Cliff was quite accurate in his response. Although, based on your contractual agreement with a facility, I’ve seen the client side take up to ninety days net prior to payment, as they are using that time as a probationary period to ensure the candidate is a ‘good fit,’ for their facility. One must keep in mind the following factors:
* Job Boards are expensive, yet necessary and you pay per how many, “seats,” or users you have using the board.
* ATS/ CRM’s are vital for tracking, notes, and candidate follow through. Without a proper ATS, not only are you able to blast your post, but you’ll easily find yourself back to pen and paper—-hoping to remember both your contract and who you presented.
* You need to factor in an attorney fee for the legal contract agreement.
* Plan on so movement the first year as you are competing against larger firms. They are equipped with teams who are fishing from the same candidate pool, and may in fact have exclusives with certain facilities. It’s not an anomaly to attempt a name clear from the in-house facility recruiter to hear they are either doing their own search hence to avoid using outside firms, or explicitly tell you they are working with several firms and no longer wish to add another. That my friends is quite common regardless if you’re a start up or established firm.
* Start small and LLC yourself. It’s tough going however, it affords you the option as both a tax right off and provides you time to see if this venture will be successful. Keep the first years nut for yourself!
* You must be familiar with Credentialing! If you should have what appears as that rock star candidate—you’ll soon find out when you run his/ her’s NPBD and dig into the candidates history. Credentialing takes up a large portion of manpower. It often involves copious conversations to urge your candidate to complete the packet and return as expeditiously as possible. If there is foot dragging—red flag this candidate is also working with another firm and playing both sides for another opportunity.
* Be prepared! Deals fail through at the eleventh hour! Despite all you have done, it’s never a Deal, until your provider actually walks in the door. It’s heartbreaking, but the unfortunate reality of the business.
* Attempt contracts in rural areas. These hospitals usually have urgent needs and may be more willing to sign. If that’s the case—-look for candidates that are “home grown,” from the area. Contact area medical schools and make friends with Medical Staff Services for new grad placement.
* Join ASPR, NAPR, AMA and ANA–attend the conferences and get your name out! If anything at all it establishes yourself and you may find connections that are willing to collaborate. First year splits are nothing to shrug.
* So you obtained a contract but you’ve exhausted your provider base. Find a firm you trust and offer to buy/ or split a deal if the candidate is moved to hire.
This is a cut throat industry! Most recruiters (even those working for a firm and having all the tools at their disposal) never last six months. It’s all about placement and getting on the board. This substantiates firms paying low salary wages (30-35k) yearly and starting you at a lower commission rate. It’s a revolving door. Joe is there one day, gone the next… In private sector, the larger you bill the higher your commission will follow.
Lastly, find your niche and stay in your lane!
Great post, so informative…thank you!!
Good morning entrepreneurs,
First , I have to thank the creator of this blog. I have read most of the comments and I’m learning a lot already. I’m thinking on starting my own recruiting and placement firm. However, I’m looking to target US veterans or transitioning military personnel. I served 4 years in the Marines Corps and I want to help veterans find better jobs. My questions are 1. Can I implement a retainer fee strategy for permanent positions only, if so how likely it is for clients to accept my fees , would 10% retained fee work? I want to find exclusive military talent(operations, IT, financial services , health care) and place permanent positions. 2. If I were to add a contingency price model with a 30% mark up strategy , how long does it normally take for a client to fill a temp or temp to hire position after posting it in a job board? whats the longest they can wait ?
Thanks in advance, I would love to speak to a mentor who can guide me.
victorquinzo1130@gmail.com
Winnie in South Africa please contact me, I am also based in SA and I am starting my own recruitment agency soon
mariamainkm@gmail.com
I’m considering starting a recruiting business, in South Africa . Anyone I could contact for some advice/direction? Thanks!
Hi there names paula I am wanting to start up a recruitment agency I have only $2,000 aus dollars in savings is that enough to start up a businesses? I also have no experience in recruitment I have years experience as a nurse but I have a passion for becoming an entpernuer and connecting candidates with the right staff. So any input or encouragment I will take on board to help with be greatly appreciated thankyou
My first day as a recruiter in the design and architectural industry. Any advice or collaborations?
Thanks for sharing this useful post, I think experience, google search and networking is very important to gaining business.
I’m in SA , and would like to start my own call center recruitment company, I don’t know where to start, but I know if I put my mind to it…it’ll be a success, though competition is tough
Thanks for sharing this useful post!
I am starting a medical staffing company here in US. Where to provide trained nurses from India to work in underserved areas. I am at the infant stages. Would like to know :
1) Do I need a physical office to make it work?
2) Is anybody out there with experience knowledge, expertise and $ who Would like to partner with us
I am in preparation to establish an employment agency in a country having a 6% economic growth and requires a substantial number of workers of various categories and different sectors.
Hi
Good article and good comments.
I am also thinking to start a new small recruiting agency in UAE.
If any one here with the same target may be we can meet and discuss the chances.
Fadi
fadi.alhassan@gmail.com
I totally agree with your first point about having enough month up front first. So many times i’ve seen first time recruiters crash and burn by not having enough up front capital. What i always see is delay in getting invoices paid from their clients and spend quite alot of time chasing unpaid invoices. Can i share your article with my readers? i have alot of people interested in starting their own recruitment agency https://webstartupsolutions.co.uk/portfolio/how-to-start-a-recruitment-agency-business/
Hello All,
I am looking for experienced potential partner in US California to start a recruitment company. I have good deal of experience in Startups , HR and so on.
ymeamen@yahoo.com
Thanks
Hi all. I am planning to start a new small international recruitment agency in Auckland and have no clue where to begin. As this is my first time doing a business. Pls any advice would be awesome. Thanks
Hi there, I totally agree with all the points you’ve shared. I am interested in starting a recruitment agency in my country Ghana which has a very profitable opportunities in that regard and I need a partner to let us do a genuine business. Kindly get in touch if it interest you. Thank you guys.
Been working on my own for almost two years, it has not been an easy experience, this job is not for sissies. In the two years, I think everything that could go wrong has gone wrong, It takes grit and commitment and dont take everything personally. Never give up.
Hello, my name is Kelvin and i want to start a recruitment agency in South Africa,the market is huge with potential of growing into a multi million Rand/dollar company. Ots 2019 unemployment is at its peak, individuals that are certified with degrees in their feild have difficulty finding employment and i want to provide a service to them.
Happiness at Work is our motto and the inspiration behind the name. We are a young staffing company with primary focus on Permanent, Contract & Flexi hiring. We are one of the Best Job Consultancy Hyderabad . We not only feel proud, but feel great in get associated & supporting our clients.
I have an MBA in Marketing and Finance. I’ve been in procurement, tax, financial and recruiting roles. I am looking to start a recruiting agency or look at options. I am a people person and enjoy connecting.
Hi, I would like to start my own recruitment agency in SA and need some guidance please. Anyone willing to be my mentor?
You might start here: https://npaworldwide.com/blog/2021/01/20/how-to-start-a-recruiting-business-easy-steps-to-follow/
Veronica i disagree with her perception cause whatever it can be a business or agency was started through chances of taking risk,dont tell people not starting to do it.
Hello Ndamulelo, I am definitely *not* discouraging anyone from starting a recruitment agency – just pointing out the risks and the need for good planning and research before you start. Recruitment is a great career!
Isnt possible to start a recruitment agency without university diploma or degree
Hi Ndamulelo, I am aware of many recruiters in the US who are successful business owners and do not have a university diploma or degree. Perhaps the educational requirements vary by country?