Starting a new business is an exciting prospect, albeit a daunting one. If you have the capital and a concrete strategy in place, it can be very rewarding once you get it off the ground. Starting a recruitment agency is no different.

We work with a lot of temporary recruitment companies who have recently dipped their toes into the industry but are growing fast and therefore need our service to handle the admin while they work on bringing in new clients and providing them with candidates.

Today we’re going to explain how setting up a recruitment company works, and when is the best time to invest in recruitment funding.

 

Starting a Temporary Recruitment Agency

This isn’t something anyone can decide to do on a whim. It’s not something that any entrepreneur should do either, even if they have the money to get started.

Unlike some other business ventures, setting up a new temporary recruitment agency requires a lot of experience in recruitment itself. You need to know the importance of temporary recruitment, how the process works, and at least understand the basics of compliance so you don’t make any crucial errors in those early years. You also must register your agency straight away.

Even if you have decades of experience, building a recruitment agency solo makes it much tougher. It’s best instead to work with a partner or a small team of experienced recruiters so you can pool your resources and share the burden. This is even better if you have experience in different recruitment roles and can delegate accordingly.

We find that the most successful recruitment start-ups are founded by people who already worked in recruitment. They can strike out on their own, but with years of experience working within the type of agency they want to run.

Speaking of types of recruitment agency, that’s another thing you need to consider if you’re thinking of starting your own.

 

What Type of Temporary Recruitment Agency to Start

Temporary recruitment is a huge sector packed with companies all trying to offer the best candidates for businesses across the UK. Finding your footing can be difficult when you’re just getting started, as potential clients will be more likely to work with an established agency that has access to a wider pool of candidates.

If you have a niche, you can become the go-to temporary worker provider without having traded for years. There are some industries that are so big that you can provide temporary staff for just businesses within it. This includes:

  • Healthcare
  • Hospitality
  • Logistics
  • Warehousing
  • Education
  • Construction
  • And more!

If you select one of these industries, you can find more specific candidates, as well as clients who are more willing to choose you over a recruitment agency that covers all bases. Again, we recommend doing this based on your own experience, but don’t be afraid to try a bold direction if you think it’ll work.

 

How much Money do I need to Start my own Recruitment Agency?

Naturally, you can’t start any business with just an idea and experience. You need money to pay your temporary workers, and temporary staff you hire as well as yourself, and plenty to fund day-to-day operations.

A temporary recruitment agency can be started from a home office, but you still need around £20-25 thousand to get things moving. This is the bare minimum too, if you have more savings to work with, you’ll be able to grow faster and have a lot more financial security. There will be some surprises on the way; with plenty of funds available you’ll be ready for anything.

The first 12-18 months are the most important time for a temporary recruitment agency. This is when you’re fully set up, have a database full of candidate CVs, and are building strong relationships with your clients. You’ll also be focusing on marketing and have a solid team backing you up.

But the pressure will be on. You’ll be busier than ever, and you and your team will be stretched thin trying to do your job as well as balancing hours of administrative tasks. If this is too much, it’s time to call in the professionals.

 

The Best Recruitment Funding Services for Startups

We work with a lot of temporary recruitment agencies that are still relatively knew, but have found their niche and have a solid client base. However, we don’t ignore the newbies and are always happy to provide some advice to anyone in the recruitment world who is thinking of starting their own agency. Many of our team have a recruitment background, so we know what it’s like!

Our service is perfect for any temporary recruitment agency, regardless of age or size. If you’re trying to avoid hiring a full-time administrator or simply give the rest of your team more time to work on what they do best, we’re the team to work with.

Many new companies avoid working with third parties because the costs add up quickly, and communicating with multiple people over the phone and email can cause headaches, which is exactly what you’re trying to avoid.

With Back Office Support Services, you get everything you need from a single provider and, more importantly, it’s for one fee. Our service includes:

We also keep things simple by providing just two points of contact. Your payroll account manager will handle all invoicing and payroll, ensuring everything sent out is accurate to minimise delays. And in the rare case that there is a delay, and your clients haven’t paid an invoice you need ASAP, you’ll still have access to the funds to keep workers paid on time.

Your credit controller will be keeping a close eye on your clients’ credit limits. If they are having issues with debt and are approaching their credit limit, they’ll let both you and the client know so it can be adjusted accordingly. You’ll never be affected by a client’s financial issues, keeping you secure for the long haul.

We pride ourselves on the human touch. We’ll get to know you and how you like to do business, providing superb service but also asking after you and your team to build a better relationship. You’ll receive regular reports and a heads-up whenever there’s an incoming change in the recruitment world, just in case you aren’t aware. We’re also only a phone call away if you need a chat!

If you’re still fighting to establish yourself in the world of temporary recruitment, trust us to help you. We’re just as invested in your success as you are and have loved seeing our clients thrive for nearly 30 years.