Before you start
Don’t start your new business without a plan – Have at least a first year target covering revenue, costs and cash-flow. Make sure you have enough start-up funds – Often the first 6 months are crucial and the most difficult.
Understand that your time is valuable and don’t waste it on things like recruitment website design. Many recruitment websites can take weeks to be built and every stage of the consultation, design and development is likely distract you away from making money so try to pick solutions that to not eat into your valuable time as this will be critical in the first year.
Research your market, your best bet is to stick to what you know and are comfortable with, working with existing clients is a lot easier than developing new ones and decide on whether you are going to be a contract or permanent recruitment agency. Contract recruitment will give long term profits and turnover but requires finance. Permanent recruitment brings short term cash-flow benefits but you are only as good as your last permanent placement.
Aim to have contacts to deal with from day one but do not rely too heavily on clients from your previous jobs as some may stay loyal to the previous agency. Restrictive covenants in your current employment contract may also prevent you from ‘poaching’ clients in this nature as well.
Ensure that you register the company correctly with Companies House and HMRC and get to know your bank manager as they can often give advice and competitive deals for banking services.
Legal contracts will ensure you are paid correctly so are worth getting in place before you close your first deal. To begin with it may be simplest to copy someone else’s verbatim and change the names to your own. Also Invest in Employers Liability and Public Liability Insurance which will protect you in the event of any legal action.