When you’re thinking of starting up your own recruitment agency, then naturally one of your first thoughts is likely to be the investment. Compared to many other industries, start up costs of a recruitment agency can be relatively small, however they can add up and quickly become significant.
If you’re starting your own recruitment business after years with a large agency, then you may not be prepared for some of the costs. Here we’ve covered five costs you need to prepare for:
1) Job boards
One cost you’ll likely be highly familiar with, is the cost to use the relevant job boards. The cost itself depends on the number of roles posted, so rather than commit to a large long term plan, instead start small then gauge the result.
Specialist job boards can sometimes prove to be more effective than the big players, and may offer free trials for start-ups.
There are also a number of free job boards that you can use, such as Indeed, to help gain interest in your role without spending.
When you’re first starting out you’ll need to let people know you’re there! This means considering small costs such as your logo, right through to larger costs such as your website.
You can easily build a website yourself for free, however you will have hosting costs to pay for. Employing the services of a marketing professional can have many different advantages, however of course you’ll pay more than if you handled the marketing yourself.
3) Registration and Memberships
Every new recruitment agency must register with Companies House, and there is a small charge to pay.
Registering with a recruitment body, such as REC or APSCo, isn’t essential. However paying a monthly or annual fee does give you access to many different tools, such as legal document templates and the latest industry news.
4) Accountancy services
You’ll need to employ the services of an accountant to help you manage your finances effectively. Again, this is something you may choose to handle yourself, but it will take time away from driving new business.
New Millennia offer an accountancy essentials package for a low fixed monthly cost, covering everything from preparation of financial statements to submitting payroll for directors.
Securing your first successful placement as part of your own business is such a buzz! However that buzz can subside a little when you realise that you may have to wait months before you’re paid by the company you’re working with.
At New Millennia we offer a 100% recruitment financing option to help plug that gap. We’ll pay you, then take on the responsibility for collecting the invoices directly ourselves. We specialise in financing the recruitment industry, meaning an end to your cash flow concerns. Get in touch if you’d like to know more.