Produced by TBOS Limited
So you are thinking of starting up your own recruitment agency? Want to be your own boss? Fancy a new lifestyle? Want to earn more than the salary and commission you are currently being paid? Here are some tips to make the decision easier:-
- Don’t start your new business without a plan – Have at least a first year target covering revenue, costs and cash-flow.
- Make sure you have enough start-up funds – Often the first 6 months are crucial and often the most difficult. It is unlikely that you will be in a position to take a salary during that time
- Decide on whether you are going to be a contract or permanent recruitment agency – Contract recruitment will give long term profits and turnover but requires finance. Permanent recruitment brings short term cash-flow benefits but you are only as good as your last permanent placement
- Do not rely on your old clients from your previous job. Clients will often stay loyal to the existing agency. Also beware of restrictive covenants in your existing employment contract.
- Ensure that you register the company correctly with Companies House and HMRC – Coming up with a name is often the hardest part
- Open bank account with a bank that will help grow your business – Some banks are still offering free banking to new business customers
- Get sound legal contracts in place – This is your first line of protection on your deals and will ensure you are paid correctly and within terms
- Invest in Employers Liability and Public Liability Insurance – This is another form of protection for your agency
- Find a good back office service provider to look after your daily accounting and invoicing needs – Ensure you are not distracted from selling by dealing with administration and accounting issues
- Concentrate on increasing the top line (sales) of your business. Don’t get bogged down on over analysing your bottom line – Many new recruiters lose focus on what is important which can have a knock on effect on business performance levels.
