How To Start a Recruitment Firm Services – small business plan
A recruitment firm is an agency which provides job placement for job seekers and matchers employers with employees. Each and every state has hundreds of recruiting agencies—both public and private. If you want to make it big in this sector, all you need is a solid business strategy, knowledge about licensing and permits, a sound knowledge in recruitment basics and a strong advertising strategy. Before starting any kind of business, you should write down the goals and the setbacks. The goal of a recruitment agency is to interview and screen employees for various job vacancies in organizations/companies.
The field of service
First of all, choose the kind of recruiting service you want to provide. You might want to focus only on one industry, for example, the Publishing Industry. You should target people accordingly; i.e., those who have a diploma in publishing and experience in editing, and those who have a graduation in English. Or you can identify which field is the preferred one for prospective job seekers and venture into that. Choose the field which is in demand; for example, software engineering is a chosen field by many Indians. Study the best recruitment agencies and analyze them for knowledge about the market as well as challenges and setbacks.
Choosing Geographic Location
The geographic location also plays an important role. Although mostly, you will be making calls to prospective job seekers and a majority of the work will be done via the internet, it is helpful to establish your business where there is visibility, to encourage walk-ins.
Mainly concentrate on location which has more unemployment, do identify the people with right skill set by conducting written test and a preliminary interview , start placing the right resources in locations where the demand for the job is more.
You should have sound knowledge about recruitment skills; learn the skills on the job by working for an established agency before starting your own. You should be able to guide your staff as well in recruiting skills (as a business owner/director, this is very important.)
Business Plan for Recruitment Firm
Make a business plan and apply for a loan. Make sure you have the capital for expenses like the space, electricity, water, staff charges and miscellaneous expenses. Consult your local government agency for knowledge about the laws pertaining to this business. Do the paperwork to avoid penalties. Make sure you insure everything from your business name to your staffs; get employee insurance too. Insuring is an important part of any business. Take care of business taxes and learn about the due dates of taxes and penalties.
The next step would be to make a list of potential clients (employees and employers). You may contact them by calling, emailing or sending them physical letters, though calling, messaging and emailing would work best.
Investing in a website is very important to increase your visibility and traffic. Build the employee and employers data base , this data should be collected in parallel to become a successful recruiter. Be consistent and earnest. Invest in company journals/newsletters to send to employees and employers.
Resources for your Firm
Hire a receptionist to answer calls. Hire recruiting staffs in order to help you with the recruiting process. Don’t forget, whenever you hire, make sure they are experienced, so that they can call up potential clients and hence help in making your business boom.
Set the right Expectation
Do sign agreements with the employees and employers on the terms and conditions of recruitment process, placement etc. Mainly discuss on your agencies fees/commissions upfront. Ensure everything is in writing and duly signed to avoid latter confusions.
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