Do you want to start a recruitment agency business with no experience? If so, find here a stepwise guide on starting a recruitment agency with or without work experience
Recruitment Agency Business is very broad by nature. Services like Permanent Staffing, Temporary Staffing, RPO can be delivered by a recruitment firm. Most companies need to hire employees. They may choose to hire new employees on their own or use the services of a recruiting company.
When an organization engages the services of a recruiting company, it finds, qualifies, and presents candidates for one or several job openings. For current business owners, a Recruitment Agency company can be started fairly quickly with minimal investment, but there are several things to consider before opening for business.
10 Steps to Start a Recruitment Agency with No Experience
Here are the steps to follow to start a recruitment agency business with no experience and little money:
1. Select Your Niche
If you are a beginner with not much experience, it is best to concentrate on a single or two verticals. There are plenty of job verticals that you can cater to like information technology, consumer goods, pharma, etc. Selecting fewer industry sectors will help you in providing better service to your customers. Broadly there are four types of recruitment agencies that operate in the job market. They are the following:
- Traditional recruitment agency
- Headhunting agency
- Staffing Agency
- Niche or Specialized recruitment agency
2. Research the Job Market
After you select the niche, start collecting information about the present demand for the various jobs in that specific industry. In-depth market research will help you enormously in creating your business plan. Contact as many companies in person or search the internet as much as possible.
3. Develop a Business Plan
Based on the findings of the market research, start writing a business plan for your recruitment business. If you don’t have much idea on how to write a business plan, take help from this free business plan tool. Some of the basic topics that must be addressed in your recruitment business plan document are the following:
- Startup and recurring costs
- Target customers
- Service Fees
- How do you plan to promote your recruitment services?
4. Select Office Location
If you are planning to seriously make a career in the recruitment business, having office space is critical. If you have a low budget and can’t afford to lease office space, convert your home into an office initially. In that case, you must ensure the home office is designed professionally.
5. Decide on the Services to be Offered
There are many types of services companies look for from recruitment agencies. They are full-time, part-time, and sometimes both full and contract job placement services. There are many other services you can add based on the requirements of the companies you will work in.
6. Set a Plan for Headhunting
You must have a plan for sourcing candidates. Your success as a recruitment service provider will largely depend on your ability to provide the right candidates for a specific job. Apart from contacting candidates from your own database, it is advised to register with candidate database providers.
You will find many such service providers on the internet. In addition, there are plenty of free job posting sites like indeed where you can post job advertisements for collecting candidate profiles.
Nowadays, most recruitment companies prefer using applicant tracking software for day-to-day headhunting. It not only helps in sourcing talents but also keeps you organized.
7. Name Your Business
Select a relatable business name for your recruitment agency. It will help job providers and job seekers to relate to your company and services. You can check this article to know more about naming a business.
8. Choose a Business Structure
You need to form an appropriate business structure under which you will run your recruitment business. Every country and state provides different options for registering your business.
Talk to concerned people and authorities and decide the best structure fit for you, Say, if you are from the United States, if you can afford some extra money forming an LLC will provide you with certain extra benefits.
9. Make your Recruitment Agency Business Legal
If you want to run a stress-free legal recruitment business, it is very important to comply with the laws of the land required to run the business. Check with relevant authorities or talk to a professional and learn the kind of licenses and permits required. Business insurance is another aspect you must consider.
10. Promote your Recruitment Agency Business
A visiting card and a brochure are a must. Distribute your cards and brochures to each company you come in contact which might get your business. If you can afford it, create a website for your company.
You can create a website nowadays with very less investment. Check this guide to create a website of your own. Promote your recruitment agency business on social media platforms like Linkedin, Facebook, etc.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.