Have enough cash reserves
You will need to have enough cash reserves to support your new business for 18 months with no revenue.
Plan/ Plan/ Plan
A well-written strategic plan will save a lot of money in the long run and will also build the trust between you and your business partners.
Look at the options of franchising
Recruitment can be very risky if you are a first timer to the trade or you don’t have a great strategic plan, so why look at the option of franchising and get the experience within that model. Also, decide whether to operate online or on the high street.
Keep your products and pricing very competitive
There is always a room for traditional high street shops but with the devolvement of the internet and online tools, online businesses are taking a massive proportion of the industry so you should make sure you keep your pricing and commission structure competitive and always focus on adding more value.
Can you focus on a particular niche?
Find a good niche line of business and stick to it. You are better off with a niche than chasing a big elephant.
Keep on top of rules and regulations
Make sure you comply with the latest rules and regulations. (For an example the IR35 is a hot topic these days if you are considering a contracting agency.) Get yourself familiar with the regulations and get subscribed to latest industry news feeds. Consider signing up to industry bodies like Recruitment & Employment Confederation (REC).
Leverage using technology
Look at all the options to leverage your cost with the technology. There are many technology solutions for every start-up to smooth the operations during the initial period of business.
Cash is the king
Grow with cash in mind. Borrowing will give you the option to grow but always focus on cash rich assets for your business.
Do not focus on fancy office space during the first 2 years
The best example is James Caan who has started his recruitment business from a broom cupboard and build his business to a multi-million empire.
Have a mentor
Having a great mentor will not only give you the much need guidance and vision but also the much-needed confidence during the difficult times.
Assess the competition and market climate
Research/ Research / Research before you enter into any market.
What is your USP
Start your business with a unique competitive advantage. Take the leap and work hard and motivate yourself and your staff.
Define strengths and weaknesses
This can help you to understand your business and hire the correct people. Have your staff strategy and look for recruiters who recruit for the recruitment industry (Rec 2 Rec). Hire recruitment staff who can take your business to new heights.
Administration/ Operations
Determine the insurance, Admin, accountancy and legal requirements. Credit check your clients thoroughly and get an applicant tracking system. Create a recruiting agency marketing plan.
Educate yourself and your team
Become an expert by taking courses, online material and signup with conferences and seminars.
Understand recruitment rules and regulations
If you want to build a new type of agency, try to be a problem solver for companies and organisations by finding the correct fit for the requirements.
Separate contracting vs permanent
Contracting and permanent are 2 separate models so understanding recruitments with each of these models are vital.