If you take a moment to perform an online search for the “top tips for starting a recruitment agency”, the chances are you will be inundated with various ideas, tips, tales, and tricks of the trade. I do not claim to know more about the field of recruitment than any other person, but I do have an idea of what recruitment agencies deal with on a daily basis. How do I know this information? From my experience as a recruitment agent and by conducting research into the field. In this article, I will provide information on what works in recruitment agencies, what the challenges of running a recruitment agency are, and who you should definitely NOT DO!
What Should I Do When Running A Recruitment Agency?
When setting up a recruitment agency, it is essential that you register the business correctly and use legally sound contracts. This is a tip from a person who did not perform these acts and landed up not receiving £20,000 in fees!
it is also important that you invest in employer’s liability and public liability insurance. While some individuals may choose to overlook insurance policies, this can be a mistake as you may find yourself having to pay fines so costly it could close the business.
Have enough capital to begin operating as a business. Of course, the amount of capital will depend on the nature of the business; however, the rule-of-thumb is that you should have suitable funding to ensure you are able to operate for six months without earning any income.
It is important that you secure a good back office company. While many people find spending time on administrative tasks dull and tiresome, this is essential as a beginning task for any successful business. If you choose to service clients without any admin facilities, you will soon find that there are negative consequences; therefore, it is always recommended that you spend some money on a back-office service provider to help with the initial admin requirements.
According to 4Mat you should always invest in a decent CRM. Needless to say, data is a highly valuable asset and you do not want to find yourself in a position where you are missing out on revenue because the client’s information is not accessible on a spreadsheet. Be sure to keep information organized and maintain this order. By doing so, you will be able to run a successful business and keep a steady stream of income.
What Shouldn’t I Do When Running A Recruitment Agency?
It is imperative that you carefully consider the company name and logo before making it official. Remember, the name and logo will become the company brand and it is important that this name is both professional and suitable. The recruitment industry is highly saturated and the last thing you will want is to change a company name after you begin trading. Some people feel the need to change their brand if they feel it is irrelevant or inappropriate; however, rebranding is touch and it requires a great deal of dedication.
While contacting clients from a previous recruitment job can be beneficial, it is not recommended that you contact them without checking or adhering to restrictive contracts. Legal cases are often filed against people who begin their own companies and choose to contact clients from a previous job when they are not legally allowed to do so. When starting a business, it is important to have a plan of who you will target and consider all restrictions in this area.
Finally, do not give up! While running a recruitment agency is not simple and may take a while to gain popularity, it can be successful if you remain committed to the company.