Every year, MAYACHI meets aspiring business owners eager to launch their first recruitment agency. Most of them are former recruiters, often top billers or managers ready to branch out on their own. They are familiar with the industry, its clients, and the challenges.
Then there’s the minority: people with zero recruitment experience who are convinced starting a recruitment agency is “easy money.”
Here’s why that’s a dangerous assumption.
“Recruitment agencies are overcharging clients”
We hear this one a lot. Lower-paid workers often compare client charge rates to their own salary, but they don’t always consider the full picture. Their pay includes National Insurance, holiday pay, pensions, apprenticeship levy, and more. On top of that, candidates get paid before the client, adding a funding cost. By the time all this is accounted for, the actual margin is much smaller than it seems.
“There’s a massive shortfall of staff in my industry”
Some workers see a staffing gap in their sector and assume it’s a business opportunity. In reality, there are often good reasons for shortages: low pay, strict legislation, tight client budgets, or simply a lack of people willing to do the work.
“I know loads of people who are looking for work”
Even with a large talent pool, placing candidates successfully is far from easy. Experienced recruiters know that finding the right match between client and candidate requires skill, patience, and industry knowledge and that’s something an inexperienced newcomer may underestimate.
“You only need a phone and a few contacts to make money”
Recruitment is physically and mentally demanding. Cold calls, knock-backs, and chasing placements require stamina. If it were as simple as picking up a phone and making money, everyone would do it. Spoiler: they don’t.
“I can run my agency while still doing my other job”
Running a recruitment agency is not a side hustle. It demands attention, focus, and sometimes unsociable hours. Expecting to do it alongside another job is a fast track to burnout.
“I’ve helped a few people find jobs”
Helping friends or posting job ads internally does not make someone a recruiter. Recruitment requires training, experience, and dedication. There’s no shortcut.
Over the years, MAYACHI has had to deliver the hard truth to many non-recruiters: starting a recruitment agency without experience is rarely smooth sailing. Even agencies launched by seasoned recruiters can fail, making it even less likely that a novice director will succeed.
For those with experience and ambition, MAYACHI provides a roadmap. From company formation to banking setup, HMRC responsibilities, accounting, expense management, and tax-efficient director pay – we help new agencies launch with confidence. Our goal is simple: give your business the best possible start and the strongest chance of success.
