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Starting a recruitment agency

Whilst the debate still continues to rage regarding the pros and cons of working from home, there is no doubt that starting a recruitment agency from home has many benefits. Before we even start to look at the business implications, start by asking yourself a few questions:

  • Do I have the motivation?
  • Do I work well on my own?
  • Is my working space work ready?

If you are at the stage where you are thinking of starting a recruitment business then you probably have the motivation, but are you used to working at home on your own? A good place to start is ensuring that your working space is work ready, distinguish between your working area and any other distractions that may be in your house.

Recruitment experience

The next obvious consideration is your recruitment experience.

Ashleigh Bennett, Head of Sales at SSG Partnerships commented, “From our experience of partnering with over 700 recruitment start ups, we would seriously recommend having at least 5 years experience of working within recruitment. Ideally exposure to both building clients and sourcing candidates is also beneficial before considering starting your own recruitment business”.

Recruiters typically have either client side or candidate side experience which is great but both skill sets are needed when you start your own business. The first thing you will need is clients – who is recruiting? When you have the clients and job vacancies then you can start to find suitable candidates.

Pro’s to starting a recruitment business

The obvious benefit of starting your recruitment business from home is of course cost! This is normally the first thing that everyone thinks of, save costs on renting office space and work out of my office / dining room / bedroom at home. Renting office space is quite a commitment and often requires an upfront deposit and a lengthy contract that ties you in.

For many potential owners, lifestyle plays a key part in the decision-making process. They may be working long hours and commuting some distance into the office. Family commitments often clash with this way of working so the appeal of losing any commuting time and being free to work around your personal diary is very attractive.

Starting your business from home will also help to speed up the process of going live. Putting aside all other elements of starting your business, all you will need is a desk, laptop and mobile phone. You may also be able to make some tax savings by claiming back on things like extra electricity costs.

Con’s to starting a recruitment business

The appeal of working from home may sound great at the beginning but it’s not for everyone and won’t be suitable for every type of recruitment start up. If you need to meet clients or candidates in person on a regular basis having office space available may be the best option, especially if you need to make a good impression. A good alternative option for more ad hoc informal meetings is to use a local coffee shop if you have one available.

In some rare cases you may need to get permission to run a business from your home and you may also need additional insurance.

Longer term as your business expands and you take on extra staff, you may find that having a remote work force is no longer sustainable and having office space is a better option for you.

Taking the plunge

Where you work from is of course just a small part of the start up recruitment business equation. You may have the skills, experience and contacts but there are so many other obstacles that stand in the way of making your dream a reality. For most people overcoming the initial financial implications is the biggest barrier. They know they will earn more working for themselves when they are billing the same as they are now but it’s the initial start up months without guaranteed income that can cause would be entrepreneurs from going for it.

It’s by no means an easy decision to go ahead and start your own recruitment business. You’re not just a recruiter anymore, you need to be wearing many different hats and ultimately the success of your business is on your shoulders.

At SSG we partner with recruitment entrepreneurs to help them launch, build, and scale or exit their recruitment business. We are here to give you the support you need to make your business successful and our team of experts will take care of everything from accounting, technical support, marketing, HR and legal and partner support. You will also have access to our extensive resource library and our network of recruiters to offer advice.

Time to start your recruitment agency from home?

Download The Ultimate Recruitment Business Startup Guide to help get you started.

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