Tuesday, April 30, 2013

How to Start a Recruitment Business

Recruitment Business
Starting a recruitment business typically involves using your skills in locating, interviewing and hiring the best personnel available for client businesses. Using the resources provided by the Small Business Administration, you can get training in business management and starting a business. Planning, launching and growing a recruitment business takes effort, but the lucrative rewards make it worthwhile.








Step 1

Conduct market research to determine if recruitment agencies in your area fulfill all needs. Identify an unfilled niche, such as customer support representatives. Use your experience and connections to identify a target market.

Step 2

Write a business plan by starting with a free template from a website or develop your own format tailored to your recruiting expertise.Include an executive summary that describes how you will fill a void not met by other temporary or permanent placement agencies. Describe how you plan to organize and structure your company, market your services and finance your start-up business. Define the type of personnel you have experience recruiting and can send to potential employers to fill vacancies in their organizations.

Step 3

Project in the financial statement of your business plan how much you intend to charge. For example, charge a 50 percent markup to clients. Therefore, if an employee gets paid $20 per hour, charge the client $30 per hour.

Step 4

Rent or buy office space so that you can conduct interviews and other administrative efforts, such as background checks for your clients. Initially, renting space until your business grows makes sense.

Step 5

Create a website to advertise your services and arrange for payment, such as by credit cards or PayPal. Describe your services including writing job descriptions, soliciting applications, conducting reference checks, evaluating skills, interviewing and screening potential employees. Describe the incentives you plan to offer recruits, such as dental, medical and disability insurance as well as a 401(K) plan for retirement savings.

Step 6

Recruit by publishing job descriptions in local newspapers, magazines and industry trade association publications.

Recruitment BusinessStep 7

Establish a sample contract and pricing model. Download a free template from a website, such as Microsoft Office Templates. Document communication between your business and a client’s Human Resources department, such as personnel offers, acceptances and terminations.





Step 8

Hire personnel to help. Use a virtual assistant if no trained personnel are available in your area to handle business processes such as payroll processing, answering phone calls and data entry processing.

Step 9

Develop policies and procedures to support your recruitment business operations. Evaluate and purchase recruitment software tools to help you manage and retrieve profiles so that you can match them with job descriptions or work defined by your clients. Use the tools provided by the Society for Human Resource Management to conduct interviews or create your own interview tips, techniques and checklists.

Step 10

Use the resources provided by the Business.gov website to structure your business, adhere to federal, state and local regulations and pay your taxes.

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2 comments:

  1. To start a recruitment business, in theory you don’t need much more than a computer, internet connection, and a phone. But while your online presence is important, don’t forget that to make your business work you need to maintain a human element. Employers and job seekers are people and they will interact best face to face. Their true needs cannot always be captured by technology so ensure you take the time to meet clients and actively network. Getting out there is a very important part of the job.

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    1. Thank you ‍Sir, for your valuable information !

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