Starting a recruitment firm is highly promising in 2021 for entrepreneurs. But what if you don’t have enough experience in this form of business?
This article will guide you through the beginners’ steps of starting a recruitment agency in India.
A Brief on Recruitment Firm Business
The business aspects of a recruitment agency are widespread. If you start a recruitment firm, you need to focus on the below services –
- Temporary and permanent staff recruitment
- Hiring employees for other companies
Companies often choose third-party recruitment agents to recruit new staff for them. Once you receive the contract of recruiting new employees for an organization, your agency needs to indulge in locating candidates, checking their qualifications, and finally, arranging for interviews with the employer for the job in question.
Starting a recruitment firm doesn’t involve high investment for the entrepreneur. However, if you don’t have experience in this field, you need to consider certain points before starting.
Starting a Recruitment Business in 10 Easy Steps
Here we have the 10 essential steps of starting a recruitment business with less investment money and zero experience in the field.
Step 1: Niche Selection
The first step to initiating your recruitment agency without prior exposure to the field is focusing only on one or two job niches. The job market offers multiple verticals for recruitment. However, it is wise to select less at the beginning. Choose a single niche of the job industry and focus on recruiting candidates in that sector.
Step 2: Job Market Research
The second phase of starting your business involves gathering information regarding the job scenario of your chosen industry. When you do a market survey, you will find out about the job prospects, market demands, etc. Create your business outline based on this information. The best way to conduct a job market survey is to connect directly with companies in need of new recruitment and research the internet.
Step 3: Business Planning
Planning a business is essential. Your job market research data will help in creating a plan for the recruitment agency. Set your goals, identify the target audience and their needs, and plan the business strategies accordingly.
Step 4: Office Selection
A serious/legitimate recruitment firm requires an office. The suggested option is to lease a space. However, if the budget for the business is low, you can always transform your home into a workplace in the beginning. No matter which option you choose, the decor needs to be professional.
Step 5: Select Services
A recruitment company can offer a wide range of services. You can support candidates with placement for part-time, full-time, or even contractual jobs. For expansion, you can also offer career counselling or training and placement services. Decide on your services depending on your target audience.
Step 6: Headhunting Plans
Once you have a business plan and office setup, you need to understand how to source preferable candidates. The success of a recruitment agency depends on its agent’s ability to locate and hire an ideal contender for a particular job.
If you lack experience in this field, you can source candidate information from database suppliers. Research and locate such agents or visit job posting websites and advertise your job notification mentioning the candidate profile in need.
Step 7: Name the Business
Choosing a suitable name for your business is an essential part of planning. Finalize a name that relates to your business. Relatable names peek interests about your company amongst job seekers and providers.
Step 8: Structuring Your Business
Go through the state and country norms for business structures to create an appropriate one for your recruitment firm. Business structure is essential for registering your agency.
The concerned authority in the state board will help you identify a suitable business structure. In the USA, business owners gain additional benefits by forming an LLC.
Step 9: Legalize the Business
Before you begin your business, understand the local and State laws running a recruitment firm and abide by the same. Relevant legal professionals can guide you through the permits and licenses required in your country to open a Recruitment business legally. For example, every business requires insurance for hassle-free operation.
Step 10: Business Promotion
The final step to running a successful recruitment agency is promotion. Invest in brochures and visiting cards and start distributing them among probable business generating companies listed on your database. If your budget permits, develop your company website. Your online presence and Search Engine Rankings will fetch you better leads. Another useful form of platform for promotion is the social media website LinkedIn.
Starting a recruitment firm is very simple. You need to follow the basic steps above, invest little in promotion and printing, and start operating in a hassle-free manner. However, while operating your business, one must follow the local legal norms and stay updated with the current recruitment trends.