Starting a recruitment company, just like any other, requires a decision, a bit of vision and a lot of dedication. The good news is that this is a process that has been repeated in the creation of successful companies for decades or even centuries. The bad news is that it is never easy. Each new beginning is just that – a beginning. Let us take a look at some of the options that can help you or affect you negatively on your way to creating a business from scratch.
Impact of experience
The best position to be in when starting a recruitment agency is probably if you’re coming directly from a recruitment management, training or HR position in a larger company. This gives you an overview of the market and, hopefully, means you are bringing a lot of important connections with you. Luckily, previous experience, although helpful, is not obligatory. As with any other company, if you put in strategic planning, hard work, a commercial mind and long hours, you are good to go. As the Entrepreneur says, evaluate yourself and see whether your skills and passions lie here and work accordingly.
The power of Internet
It goes without saying that you need to have your own website and logo, so you can start building your brand as soon as you can. As far as the paperwork is concerned, there are many online options for this. For example, if you aim to register a company in Australia, this is perfectly doable without leaving your house, just like in most countries of the world. Add a bank account to the mix, find an accountant and start some insurance going – and all of this can be done online. What a time to be alive!
Size and location
This depends on your initial capital and business plan, of course, but most recruitment companies remain in the boutique phase with less than 10 workers. This also means you can utilize your own space, such as a shed or basement for work purposes. Alternatively, you can share office space with someone, or go co-working which is a popular option nowadays. If you are planning to go back, that will most certainly involve rather large expenses on office space, whether you purchase or rent it. The good news is that your job is mostly done via internet and phone, so the actual location of your office is not that important.
Who do you recruit for others?
Just like in any other profession, you can choose to specialize or to take the general route. The problem with generalization is that you might be spending too much time and resources on keeping track of everyone and everything. The problem with specialization or niche recruitment is that your focused strategy is good for a smaller number of clients, which leaves you at a disadvantage. If you have the skill and connections, you might aim for recruitment of executives, such as CEOs or CFOs. A good option for pretty much all recruitment companies is graduate recruitment, because those who are starting a business are usually aiming at lower salaries, while the companies are always on the lookout for young, inspired workers.
Who do you recruit for yourself?
Some would say that this should be the easiest thing in the world, to do for yourself what your company is doing for others. Ask any marketing agency about the time they did marketing for themselves and you’ll probably hear some interesting stories. Regardless, this needs to be done and you want to pay attention to experience, but more so to personal traits, as they are very important in recruitment as a business. People skills are quite necessary as your employees will be meeting, talking to and judging a huge number of people. Sales and negation skills go hand in hand, because you want your company to make good deals. And finally, top it off with a nice layer of self-confidence – a genuine, engaging confidence that will appeal to both ends of the recruitment rope.
Software makes your life easier
As you are providing other business with potential workers, you are bound to keep on top of databases and software that can help you. Some software packages will have features such as: absence management, expenses, timesheets, asset management and more. HR software can also help you train and manage people who work for you, while also helping you set goals towards which you can work together. The software is necessary but can be expensive for a startup. Remember that sometimes even simple things that you have just not heard about before, like Boolean search, can help you utilize resources you already have, without the added cost. It is up to you to decide what really is vital for the future of your recruitment company and spend the money accordingly.