Starting a recruitment agency is not as expensive as it often appears and can be done on a “shoestring” budget initially until the business generates placements and receives funds. Understanding what the true costs of starting a recruitment agency are and where to go to get it is important to avoid the start of your agency being delayed due to not having something in place.
Below are the initial costs that any new start-up recruitment agency can expect when they start: –
REGISTERING A COMPANY AT COMPANIES HOUSE
Registering a company at Companies House is the first cost for any recruitment agency. This can be done by a registration company which will charge between £60-200 to complete on your behalf or you can take the time to do this yourself for just £12. If your new recruitment company has a complex share structure, then sometimes it may be prudent to use a registration company instead of doing this yourself.
DATA PROTECTION CERTIFICATE
Every recruitment company will hold personal data on clients and candidates, so it is advisable to visit the Information Commissioners Office (ico.org.uk) and register for a Data Protection Certificate which costs around £40 per annum.
COMPANY INSURANCES
Every recruitment company needs to have insurance to trade, this will depend on the type of placements being made, where the placements will be made and the size of the company. Speak to a reputable insurance broker (mainly ones who specialise in recruitment) to get a quotation. We know plenty of insurance brokers so if you need us to make an introduction – contact us and we will gladly make it happen.
DOMAIN NAMES
A domain name is vital for your recruitment agency as it is used for the website and for communicating with clients and candidates via email. Buying the best domain name for your business is important and it is advisable to buy the .co.uk and .com email addresses if possible to further protect your business name. These can be purchased for a relatively cheap price on long-term contracts. There are lots of companies to choose from so make sure you read all the information and terms. Click here for a directory of domain companies.
TELEPHONE NUMBER
Remember the days when we used to speak to each other over the phone? A telephone is the other main tool of a recruiter, and this may involve buying a bespoke telephone number for the company or just having a mobile phone number where clients and candidates can get in touch. Business lines and mobile tariff costs depend on the provider and the requirements of the agency.
COMPUTER/LAPTOP
Recruiters also need some hardware to be able to work such as a computer or laptop which has internet access and appropriate software costs. At the outset, processes can be done cheaply using single licence CRM’s and LinkedIn. However, as the business grows, other software may be considered to streamline processes. Anti-virus and 365 licences are also a cost consideration.
Other items may also need to be considered such as accountants, back office, funding and website but these can be added once the above list has been put into place. We’ve worked with many hundreds of recruitment agencies to help them understand what they need to do to get their new company off the ground. We can recommend which suppliers can help get these services in place and provide help and guidance to ensure the agency has the best possible start. All you need to do is book a call right here.
