When you begin the process of setting up a recruitment agency you need to keep an eye on a lot of factors. At TBOS we hear a lot of new Directors complain about lost months.
That’s… not entirely true. Sure, you can get lost in irrelevancies, but if you stay focused and just handle the basics you can be trading in just 2 – 3 weeks.
So what are these basic priorities?
Register with Companies House
Once you collate and upload all relevant information, the whole registration process can be done inside 12 hours. After that’s done you’ll have a Certificate of Incorporation with your company registration number.
Get Your Domain & Emails in Place
While you’re registering your company you should check your preferred domain name is available. At TBOS we also recommend making sure you have both .co.uk and .com versions. The next step is to set up email addresses.
Set Up Your Bank Account
The next step is to have an account in place. Bear in mind that in the early stages for your company there won’t be much difference between business account offerings in terms of cost and available services. What you need is a user-friendly system which can make the payments you need.
This step takes between 3 – 7 days, with another 7 – 10 to set up online access.
HMRC Registration
Just by registering at Companies House you’ll be registered for Corporation Tax and given a UTR number. VAT registration can take between 10 days and 10 weeks after online application based on the speed of review; you can also register PAYE online once payroll is an issue, with a 3 – 5 day process for this.
If you’re working in construction recruitment, also remember your CIS registration as contractor and subcontractor.
Do You Have Data Protection Cover?
Recruitment agencies handle customer data constantly and so need to register for a Data Protection Certificate. Head over to ico.org.uk for this – it’s about £35 annually.
Company Insurance is a Must
You need to protect your business, so make sure your policy offers the right protection at an acceptable price. We recommend turning to a reputable specialist provider for your Employers Liability, Professional Indemnity, and Public Liability policies.
Don’t overprotect for too high a cost to begin with – your clients will let you know when they expect more cover and you can scale with their expectations. Your advisor will help with this.
Secure Contract Templates
Without the right contracts you can do business but you can’t guarantee you’ll receive any payments. Employment lawyers will often provide standard templates, up to date and fully protected, but if you need any extras you should expect a higher price.
Some firms offer bundle deals on multiple contracts, getting a better price. Whatever your choice, keep your initial purchase under £1500.
Get a Good-Looking Logo
Your company logo is one of the ways you present yourself and build a brand identity. Get it in place early so its appearance on your website and contract can start to catch the eye – and use a professional!
What Else are You Waiting For?
Those are the essentials; with them all in place you can start making placements, getting contracts signed and bringing in money immediately!
As you go you’ll still need to set up other things and get your back office set up (or use TBOS Complete to provide one), organise invoice finance or other funding if you’re working in contract placements; building your online presence including social media and website, and much more – but you should be earning money before you begin that.
Over the seven years that we’ve helped new Directors to set up fledgling agencies we’ve worked with almost 100 start-ups.
We want to make sure you can get to work immediately and not squander your time worrying about back office administration you haven’t yet trained for, so we can save you time and money. We’ve worked with agencies in multiple industry sectors and we know what to expect from each.
For more information on how TBOS can help and advise you on how to set up your own agency, please get in touch.
If you are looking at additional help on how to start a recruitment agency have a look here for some tips.