Starting recruitment and training business.. advice

[Jack braizer]

Hi all

I know there is a lot of people who ask questions about business but i really need the advice as i struggle to get it from friends or family.

Well basically, i have been working in transport and logistics sector for a very long time. I have also gathered RTITB FLT trainer qualifications couple years ago.

My idea is to start a recruitment agency specialising in transport and logistics sector and also a small training centre where i will be mainly training people how to drive a forklift truck, and than helping them finding work.

I will also want to try and expand where the traning centre will be providing hgv training, cpc courses and maybe apprenticeships and many different logistics related courses. The main idea is to train people and than help them find work.
At this moment of time i have a decent job with good earnings so i have got enough money to start the business but i am mainly struggling with the setup and marketing and the competition. There are many recruitment agencys around but i wanna provide unique service to mainly young people without any qualifications and basically provide them with any training that we can and tham assist them with job search, creating cv's and other things related.

If anyone could please give me some advice is would be much appreciated. I know its a long paragraph so if you have read it all than thank you very much.

 

[Luke bell]

Woah! okay...

I will start by telling you that I own a Recruitment business here in the UK. I have had the business for around 1 year and I can tell you be prepared for an extremely fierce and cut throat industry.

My advice would be to prepare yourself going in. The Recruitment industry can be rewarding with a lot of hard work and persistence. You also need very 'thick skin' as a sales person, Recruitment is very much a NO industry as many bad recruiters have ruined for the goods, honest recruiters out there.

My advice would be solely concentrate on one thing at a time, Recruitment takes time as it is, and unless you have a team behind you, filling jobs roles for clients, generating leads through business development, Pre- qualifying candidates, chasing clients, chasing candidates when they don't turn up for interviews, searching tonnes of CVs and so much more, isn't a quick and easy task.

I can see where you are trying to head with your ideas, and as an Entrepreneur myself I say nothing is impossible, but being realistic will work out better for the long run.

It is good to pick one niche and become a master of that niche, but make sure you do sufficient market research in this area. Call your competitors and have questions in front of you and pose as an employer, gain an idea of the % fees they charge per a hire and find out what their process and terms are.

There is a connection between training and Recruitment, but the two are very different industries so go in with your eyes wide open and do as much research as you can into the market and the process. If you can see an opportunity to expand or do a deal with a training company in the future or vice versa, go for it, but make calculated decisions going forward.

In terms of costs/overheads when running a Recruitment business think about how you are going to source candidates, think about which databases you are going to use as these can add up massively. Also think about your phone line, office/home rent any general business rates, insurances, sales software, website costs, general living costs etc. And above all, be prepared to work 12 hours + a day, you never leave Recruitment in the office.

Recruitment is rewarding, just be prepared for it.

 

[Blue Sky Accounts]

Hi Jack.

I agree with Luke, start small. Although it would be nice to have the finished business model from the start it will take a lot of work.

I work in a recruitment business within the accounts department and it can be very profitable if it is done correctly. However the price you pay is a long working day and constant rejection. Their is also a lot of competition as the barrier to entry is quite low.

Some of the things you could think about is whether you will specialise in perm placements, temp staff or if you will supply contractors for a weekly/ monthly fee.

These have their own risks and rewards. If you go for perms you could experience a lot of "feast and famine" but once you have a reputation you could increase you lead wins. Sending out weekly/monthly contractors will be a massive money pit and you would need a big credit facility as most of the contractors will demand payment weeks before your sales invoice will be paid. Lastly there is an extra level of complexity with temp staff.

Have you worked in recruitment or sales before? That would be a good introduction. From my hands on experience it is mostly about maintaining relationship and building a reputation.

Let me know if you have any question. I will be happy to help

 

[Colin_W]

As something of a lurker in forums, I am always highly impressed by the generosity of people to contribute by answering questions and I think the response from Luke above is one of the most generous I have seen. And Blue Sky's advice is equally generous. I know the answers were not for me, but thank you for taking the time to make this forum in particular one that I do enjoy lurking in!

Nowhere near as generous, but the same thought has crossed my mind - I have often thought about expanding into recruitment in the sector I operate in partly because I think it could become highly profitable, partly because I think there must be a better way of doing things than the recruiters I have engaged in the past.

However, every time, when I start to define the business model I will use, it quickly becomes apparent that as a client, I don't know nearly enough about the nuts and bolts of the recruitment offering to be able to do it justice. So, my only advice would be consider what Luke and Blue Sky have said very carefully!