Last year the number of new recruitment businesses registered increased by 3% on 2019 numbers! Incredibly, despite the effects of COVID-19, 2020 figures from Companies’ House reported that business recruitment entrepreneurs, registering their start-ups, exceeded that of 2019.
Reasons for this perhaps, unpredictable start-up scene were discussed in our post Why NOW could be the best time t,o start your recruitment business! So, if you are a budding recruitment entrepreneur with dreams of setting up your own business, take a look at our 5 tips below and turn your dream into a reality:
- Analyse Your Personality and Circumstances
Are you ready to start a business? Is it that the right decision for you? Recruitment is a challenging but rewarding industry but if you are passionate about it and have a drive to succeed then you could be ready to reap the rewards.
Develop a good understanding of your strengths and weaknesses so you know where to best focus your attention. Be honest with yourself this will help you to recognise what you are good at, and which areas you will need to find someone who can do a better job than you. You may have the drive but to be successful you need the right support in place. You shouldn’t shy away from working with business partners, employees, independent contractors and others to address major needs and make sure important concerns are handled successfully
2. Make A Business Plan and Keep It Simple
Proper planning will increase your chances of success. A good simple business plan will not only keep you on the right track it can also prove useful to show outsiders if you need to raise money. There are lots of free resources out there to help you. But the trick is to keep it simple, have a focus and make sure you can do this well, then as work progresses you can expand your business plan.
3. Don’t Forget the Basics
When it comes to starting a recruitment business there are some basic requirements that you will need to ensure you complete or comply with, such as:
- Registering your business
- Setting up a Business Bank Account
- Business Insurance
- VAT – If your annual turnover is more than £85k you will need to register for VAT
- HMRC & CIS (if construction) Submissions.
- Managing & Filing Accounts – You’ll need to decide if you have the skills to complete these tasks or enlist the help of an accountant.
- Rules & Regulations – Do your homework and make sure that you are aware of the latest rules and regulations.
The government website is a great resource www.gov.uk/set-up-business.
4. Understand Your Market
Conduct market research on your industry and talk to target customers to find out your business’s potential. Ask experts questions about launching a start-up. Reach out to professionals that can help you with certain areas of business, such as financial advisors and lawyers. Absorb everything. None of this knowledge or advice will ever be wasted.
5. Don’t Be Afraid To Ask For Help
As we’ve said previously, even when a business is on the right track, it will still need good support and the right infrastructure to survive and succeed. It is vital, therefore, to choose wisely when it comes to business funding. Explore your options but keep an eye out for restrictions that could cause you cash flow problems and make it difficult for you to expand in the future.
Focusing on your strengths is important in the early days. If there’s a chance that administration tasks will take you away from developing your business, then it may also be worth considering an outsourced back-office provider.
1PS can help provide you with immediate access to cash to pay contractors and release your profit margins each week. We are also an experienced recruitment back-office provider and can take care of all your admin needs, from payrolling your temps and HMRC submissions, to invoicing your clients and chasing payments. If you are thinking of setting up your own recruitment agency, please don’t be afraid to ask for our help. We are here to enable you to start your journey instantly, without the hassle, time-restraints, and the expense associated with setting up a business.