Recruitment has become an increasingly popular industry throughout the UK, with more and more companies turning to specialists to aid in filling vacant positions. Despite their hefty fees, opting for help from an agency which has lengthy experience in match-making accomplished candidates to a company’s vacancy can be a huge time saver for businesses. It is no wonder that recruitment agencies are becoming more widely used, especially by smaller businesses, to help them find the best employees in the market.
With this increase in popularity, comes the growth in the number of recruitment businesses. Setting up an agency of this kind does offer a specific array of challenges which must be considered when developing your business plan. In this blog we will explore some of the most important elements to take into account before you begin establishing your recruiter brand.
Finding your recruitment niche
Whether your target market is global corporations or smaller local businesses, the success of your agency can quickly be influenced by the industry you want to serve. Although you do not need specific training or qualifications to be a recruiter, if you choose to cast your net too wide, then you may be pulled into industries which you do not have sufficient knowledge of when searching the employment market for suitable candidates.
The most important decision you should make from the start, therefore, is to choose your recruitment niche. Each industry presents different challenges and therefore requires unique staffing needs. The most successful agencies are formed by recruiters who have a detailed knowledge of the industry and contacts within that particular sector. Finding your niche will then allow you to establish more solid foundations for your business plan.
How will your recruitment agency attract candidates?
With your niche nailed down, it is then essential that you lay out how your agency aims to attract candidates. The first point to consider here is establishing what service you wish to provide. Some agencies, for example, submit a shortlist of potential candidates to employers, found through advertising, other agencies go so far as to screen and then interview applicants before creating their shortlist. Establishing what service your agency will take will then aid in planning how you will attract the candidates themselves.
A key question at this stage is whether your agency will have a bricks and motor premises on the high street or whether it will reside solely online. Part of a successful recruitment business relates to the contacts a recruiter has, how many professional connections do you have within your chosen industry? This may influence the decision as to whether a physical store is necessary. Have you considered your agency-wide approach to finding new candidates? Where will you advertise? How can job hunters find you? Establishing this policy in your business plan will provide a basis for you to see the feasibility of your idea and the potential success of your agency.
Potential start-up costs of a recruitment agency
Having established both the niche industry you are targeting and the type of service you wish your agency to provide, it is time to consider some of your up-front costs. Whether you decide to open a physical store or not, you will still require some form of space if you hope for your agency to grow e.g. a space to interview candidates or meet clients. With this space comes the need for equipment, everything from computers to phones to the software itself. Setting up your website will also be a substantial overhead. It will also cost your agency if you wish to access online CV databases, which will require a monthly fee to access.
Establishing a thorough and detailed business plan is the first step in ensure the plan for your recruitment agency will be both feasible and successful. If you would like help with putting together your business plan, get in touch today! Contact us online using the form on the right or call 01604 420 420.