Starting a Recruitment Agency

Starting a Recruitment Agency

Starting a Recruitment Agency

  • Know your skill set, knowledge and experience


  • Plan which services your start-up will offer


  • Know and follow the legalities, rules and regulations that you need to.


  • Funding - how will you fund your recruitment venture?


  • Set up your company and create your identity


  • Run a smooth back office




Know your skill set, what are your strengths and weaknesses in recruiting and where does your knowledge and experience lie?  Your skillset may need support in certain areas but identifying this means you can build the perfect core team to balance your own strength.  Knowing, for example which areas you have great experience in and which you have little experience in will be helpful when deciding what your start-up will offer.  


Plan Your Services

Plan which services you will be offering as a recruitment agency based on your analysis of number 1. If you have experience in a certain sector or niche then this is obviously a good place to start. This could be temps or industry specific perhaps.  Alternatively, if you have identified a gap in the market where there is a specific demand for specific recruitment services, this may be another good place to start.  If this is, however, an area you do not have much or any experience in then you may want to partner with a recruitment professional who does have experience here.


Know the Rules

Legalities, it’s not an exciting one, but it’s so important for start-up’s to get right.  As the owner of a company you have many rules and regulations that you need to be aware of and keep on top of.

Knowing all you can about agency worker regulations (AWR), and equality in the workplace and insurance means you are not only well informed yourself, but can also offer helpful advice to professionals you recruit and keep a well-run start-up!  Take a look at Gov.Uk guidelines for a starting point.   



How will you fund your recruitment venture?  Do you need to consider a loan or other financing methods?  Most start-up recruitment firms will need some kind of financial support, by the nature of the agency you are starting,  there will be money coming both in and out of the company and this may not always coincide with the business’s needs.  Your worker may need to be paid before your client pays you.  There are bank loans, but also companies that specialise in funding for recruitment start-up. See our services


Setting up

Setting up your company.  Choose a name, check that you can register it at companies house.  Create yourself a marketing plan, you need to know via which mediums you will be advertising and from where you will be bringing in business, if you work in recruitment already you may well have your own contacts.  You will also need to set yourself up online, making your services clear to those looking for them.  Creating your company’s identity starts here!


Back office

Consider your running practices.  How will you run your back office, payroll and invoicing, will you plan to do this in house or outsource?  In house, it may take you awhile to get a smooth system running, even if you have experience working in recruitment firms already.   Payroll, timesheets, invoicing and more all need to be processed regularly, on time and in an organised fashion.  Again you may look at outsourcing this.

Now Read New Millennia's Guide to a Successful Business Plan and Startup Mistakes

Jack Mellor