Starting your own recruitment agency is an exciting time, however it can be expensive when you’re first starting out. It’s natural to want to get everything in place as soon as you get going, however this can mean that costs can quickly spiral out of control.
Here at New Millennia we work with new recruitment agencies every day, and if asked, one piece of advice we always give is to keep overheads to a minimum. We know that can be tricky as a new business, so we’ve put together a few tips to help:
1) Work from Home
It can be tempting if you’ve left a bigger recruitment agency to immediately want to move in to your own office space. You’re probably thinking you want to appear professional and have an impressive place to meet with clients and candidates. However rent will likely be the biggest cost you’ll have each month and will put a lot of pressure on your business in the early days.
Instead consider using flexible workspace or simply work from home to help keep costs low. You can meet candidates in hired meeting space or more informally at a coffee shop. You can then invest in a really great looking office once you’re more established!
2) Shop Around for Quotes
You might need a number of external services such as an accountant or marketing support, as well as essentials such as insurance. Make sure you take the time to shop around for quotes, as you will find that services can vary wildly in price. Ask for recommendations from other self-employed people you know to get the best services for the best possible price.
3) Make Careful Hiring Decisions
You’re about to open your own recruitment agency, so chances are you know a thing or two about hiring! However you do need to think smart about the decisions you make. For example, we’ve seen startups invest in numerous admin staff when starting out, to handle back office functions. Back office functions can be outsourced, helping you focus on finding work and keeping costs low.
4) Go Paperless
It might seem like a small thing but it can make a big difference. Also it’s much easier to go paperless if you decide you’ll do it from the outset.
5) Monitor Your Meeting Costs
When you first start out you’re going to be attending lots of meetings with clients and candidates. Travel costs and other extras, such as drinks or meals can really begin to add up. Consider what the outcome of each meeting is likely to be before deciding whether to travel there. A video conference as a first port of call can be useful to suss out whether it’s worth the investment.
6) Invest in the Right Digital Tools
With so many job boards to choose from and a range of different digital tools for managing your accounts, workload and marketing, you could end up spending a lot of money. Spend the time considering the return on investment for each service or tool you sign up for, paying close attention to any user reviews. Take advantage of free trials, just make sure you cancel before the end of the cancellation period!
7) Consider the Benefits of Recruitment Funding
It’s a great feeling once you fill your first role, however you then need to wait to get paid! Recruitment funding helps to plug that gap.
Here at New Millennia we specialise in the financing and management of new recruitment agency start ups.
We offer a 100% financing option for invoicing, and unlike the banks we won’t do a stringent eligibility check. Call 0161 337 9882 or email enq@nmgroup.co.uk to find out more.
