Starting up in business

[lauren_turner]

Hi,

Im currently in the process of starting a recruitment business - im looking to start temp to perm staff on a % fee basis - so little over heads

Im after some general help..

What do i need to start..

Do i need a large ammount of ££ for initial costs
Insurances?
Advertising

Thanks in advance

Lauren

 

[SBOnline]

I am not familiar with recruitment specifically, but if you are just starting out and need to know more baout what poperwork etc you need try contact Business Link.

When I started out I booked onto some of their courses covering accounting, customer service, tax issues, paperwork and loads more. The events I attended were free and were also a good networking opportunity.

Search Google for Business Link and you should find them.

Good luck.

 

[GraemeL]

Hello Lauren,

this is the same topic that you posted about yesterday? I hope you don't feel my response today is patronising, as you did yesterday.

It might be worth you looking at this thread:-

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=252363

which has contributions from someone who is doing what you wish to.

G

 

[TODonnell]

I'd say just start whatever way you can. See what happens. I wouldn't flog out a lot of money upfront unless it was for guaranteed traffic.

Get a logo, a website, a virtual office address (or a cheap real one) and off you go.

 

[10032012]

Why bother? hate to sound negative but everyone got the same business idea...

Loads of unemployment... why not set up a recruitment agency?!

A heavily saturated market - there can be advantages on a single location but limits expansion potential - increasing competition by the month (be prepared for rivals that pop up out of nowhere; don't expect such start ups to be in yellow pages and have a website already) - but the main underlining concern simply is (although companies are employing...) businesses are not employing no where near as much as the huge unemployment figures.

What I would say is do extensive market research - do not overlook SWOT analysis - its not so much about small USP and your offering but this market is ALL about your competitors.

You need to be prepared for loyal employers sticking to existing agencies, employers doing it alone (non-agency work), influence of banks (at least one big bank I know of offers extremely competitive payroll services for first year) AND agreements agencies have with employers, that you wont know about until staff are taken on through the agency or until the position is vaguely advertised.

Its hard work as agencies litter job boards with jobs they don't actually have - it can be for the wrong reasons (increase dominance, get jobseekers signed up etc.) or the not so wrong (but still wrong) reasons (promoting a vacancy to get an employer on board, before there has been any agreement). If you noticed, I am using the term "employer" loosely.

I know many small agencies and they only have 3-15 new leads each month, and a handful of clients (lets not use the term employers), with a small pool of agency staff recruited. It can still work and be profitable but when factoring a fulltime week, you need someone manning the phones in office hours and you need to be constantly networking and building on relationships with potential clients.

It really is like launching a ship for the first time, hoping it doesn't sink or roll over, and more so hoping it doesn't leak in water.

It will take a while to make money - but many on this site has considered how they will operate their start-up recruitment business from home or get a cheap office in the middle of nowhere... to lower costs and provided an affordable service. It really does pay for a good location - if you aren't in the town centre (at least!) its a disaster from the beginning. There is nothing stopping you having a small shop, and operating out of an office elsewhere.

 

[Richie N]

You will need insurance for temp to perm, Hiscox is probably the best one.

 

[Talay]

Loads of new agents in the game but no-one seems to know who they are, what they represent or whether they will be around tomorrow but many seem to be operating on a shoe string. I guess they poached business by undercutting the percentages of the established players.

I get called or emailed multiple times a week and yet if they call, saying it is "xyz" they don't have the gumption to send me an email and as they have withheld their number, I don't even have contact details. When they say on teh phone they will email in a minute or two and we confirm email addresses (they already have my company's) they don't email. I must assume they can't be bothered or are just too stupid. They certainly don't have much in the way of a telephone manner.

I guess if you are professional and can actually follow up and do what you say you will do, then you can beat these clowns at their own game. But you will need to be that professional.

 

[Sonovate]

I would say go for it but do your research first. It's true that there are lots of agencies out there but how many specialise in a particular niche sector of the job market?

For example, a recent report by REC and KPMG has illustrated that there has been a growing demand for nursing/medical/care and engineering/construction staff. Granted, these staff have to be available for hire in order to fill these roles.

The point is that if you do your research into the current job markets and where the most staff demand and availability is then setting up a specialist, niche agency may be your best bet. Read the full article on this report at the Sonovate website news page. Hope this helps.

 

[Mason567]

Again I'm not an expert in the field but I'm pretty sure temp work has a lot more regulations and considerations than placing permanent candidates, so ensure you have thoroughly researched the regulations, I might be easier to start with permanent work and possibly add a temp sector on later. I think this is the case but I'm sure I'll be corrected. Do you have any experience in any recruitment sector?

 

[Ashley_Price]

Welcome to UKBF.

As others have said, do your research on the regulations for recruitment/temp agencies. Another thing is make sure you have PLENTY of financial backing. Like I've said in another thread, temps will need paying at the end of the week (or following week), whereas the companies that had the temps, won't expect to pay for over a month or maybe even two.

I don't believe in a saturated market. After all, look at how many solicitors, accountants, financial advisors, estate agents, etc. there are. It doesn't matter how many other recruitment agencies there are out there, it's the level of service and the quality of the temps that will make or break your business.