How to enter into a recruitment business?
You could help people find jobs
Starting a recruitment agency of your own is a smart business opportunity. But do you have the vision to tackle barrage of challenges that would come your way even before you take the first “baby” steps into recruitment business?
Wondering how to enter into a recruitment business without compromising on your budget, mission and of course, market objectives? You could try the following channels to make a name of your own. Read on:
Look for funding sources
If you have been a successful recruiter yourself, finding an investor won’t be that hard. If you are fresh in the industry, it is always advisable to have a seasoned recruiter in your team. You need to build a PDCA list before even going ahead with the first business draft.
Investors consider only those businesses for funding that are clear in their business goals and have a buffer system to protect them from mishaps.
Stand-alone business or partnership model
In a bid to save personal expenses and handling the team, fresh recruitment agencies prefer to go for stand-alone models. It would consist of team of recruiters hired from colleges and fresher lots. Yes it is cheap scheme, but fails nonetheless.
In a partnership model, you have an opportunity to churn much concrete results. You could absolve big hurdles related to management and financial hurdles. Partnership with an established recruiter or executive will definitely come handy when it comes to entering the recruitment market.
Join a hiring network or purchase a franchise
Like any startup, recruitment agency too is riddled with some risks that can be minimized if you purchase a franchise or join a recruiting network.
If you are planning to purchase franchise from an established recruitment agency, you may have to shell out significantly higher entry fee. It could be less than 10 percent of annual revenue. If you don’t take a quick flight to success with placements, the franchise model could prove to be a suffocating model. You have to sign a bond agreement which you may not leave even if you are losing money in the business.
Desk recruitment or virtual assistance
Startup agencies are switching to virtual assistance management and consultancy to help companies find their right talent using digital media.
Traditional recruitment houses are switching to online models to save the cost of infrastructure, deliver quicker results and manage their relationships and networks more effectively. At lesser price, you could earn higher incentives from the online business.
Exploring the world of online recruitment business
There is a huge wealth of opportunities available online.
Defined niche with refined search processes
Proper networking channels without Face-to-Face meets initially
Global prospects delivered through local channels
Saving on infrastructure will allow you to explore better prospects
Success rate is higher and you end up expanding your business in shorter time frame
Quick tips before launching with a recruitment business
Tip 1: Define your niche markets
Deal only in limited number of profile catering to niche business houses. If you have experience in particular field through your education or past professional commitments, use them. Banking, media, insurance, shipping and automotive industries are safe markets to handle initially. Lot of positions ready to be filled!
Tip 2: Balance your Offline meetings with strong online presence
Invest into a good website that is crisp, clear and interactive. Add a touch of human element into it. Clients and candidates should be able to navigate through your pages and contact you for particular openings directly. Set apart a customer relations executive in case you are planning to invest in marketing personnel.
Tip 3: Relationships matter. Come first. Serve first
Build and consolidate relationships you have with the clients. First relationships always continue longer than others. Invest time, effort, commitments and then money on relationships. Chain networking will help you take your business to new heights in shorter time.
Have you ever dealt with any recruitment agency? Do share your views.