We often hear from recruiters who want to set up their own agency but are daunted because they believe it’ll take months to get up and running. It’s easy to lose track of the essentials and focus on having a website ready or waiting to receive business cards, and all of this delays the actual start of recruitment.
The reality is that if you hit all the basics, you can be trading in 2-3 weeks – which makes the point where you start breaking even a lot closer.
TBOS suggest what you need to do:
Form the Company
Registering as a limited company at Companies House is quick and painless; after the information’s been collated and uploaded, it should be done within 12 hours. Once registered, you’ll receive a Certificate of Incorporation, which also lists the company registration number.
Register Your Domain
Set up your website while you register your company – we recommend purchasing both .com and .co.uk addresses. As soon as you have this in place you can set up the email addresses you’ll be using.
Sort Out Your Bank Account
You’ll need the bank account to be set up next so fees have somewhere to go. Your priority should be a user friendly business banking system which can make the payments you need – once you know you have that, get your account in place quickly and push for online access. Business accounts take 3-7 days to be set up and online access may take a further 7-10 days.
Register with HMRC
As you’re registered with Companies House you’ll have a UTR number and automatically be registered for Corporation Tax. You should decide when you’ll register for VAT based on when you want to start trading – HMRC can take time to process your application, so you have a waiting period of between 10 days and 10 weeks.
PAYE registration is required when you start running payroll (contractor or staff) and can be done online, with a 3-5 day delay. If you’re working in the construction industry, also take time to be CIS registered (contractor and subcontractor).
Arrange Data Protection Cover
Your agency will deal with customer data, so you should be registered for a Data Protection Certificate. This can be done immediately on the ico.org.uk website, costing around £35 per year.
Get Your Company Insurance Policy
Speak to a reputable provider specialising in recruitment for the best Employers Liability, Public Liability and/or Professional Indemnity policies for your business. Take the lowest level of protection needed to start with; don’t overspend, and always remember you can upgrade when your clients demand better cover.
A good advisor should lay out what you need and get you a good deal.
Contract Templates
Many employment lawyers can provide standard templates for contract or permanent placements, but there could be extra costs if you need something specific added. We recommend you don’t pay over £1500 for the templates you need; look into bundles to cut costs.
It’s Logo Time
Your logo unifies your contracts, invoices, and websites, and becomes your company identity almost immediately. It’s worth getting this done right and professionally right from the off.
You’re Good to Go!
Once all these steps are in place it’s go time and you should start recruiting and growing your business immediately.
Other important steps should be on your to-do list; you’ll want to make sure your accounts and back office needs are covered; invoice finance or other funding will have to be arranged if you’re making contract placements; and you should set up your website and social media presence – but don’t let getting that done get in the way of signing contract #1.
If you’re looking to start your own agency you’re very welcome to get in touch with us on our form, at enquiries@tbos.co.uk, or over the phone on 0845 881 1112.
