Delivered September 28, 2019. Contributor: Hillary O.
The best practices for starting a small recruiting agency
The RIGHT BUSINESS MODEL AND NICHE
One of the best practices in starting a small recruiting agency is to for the startup to focus on what they are good at and stay in a niche. This applies to both expertise and business model.
Business Model: There are recruiting agencies that only place their candidates on a direct hire employment/full-time basis, agencies that place candidates on a contract part-time/temporary basis, and those that do both. Focusing on one of these might be a good place to start. The company can decide to expand to both services later.
Expertise/Niche: A recruiting startup will most likely be more successful if they work within a niche with high demand. It is best to begin by focusing on a niche with employers that are having a difficult time "finding highly sought-after candidates." This is because companies in this type of niche will be more willing to pay the demanded recruiting fee.
There are a lot of recruiting agencies. It isbest practice to research the recruiting agencies in whatever city the startup will be in. This will help determine whetherornot it is a saturated market in that city.
Regardless of where the recruiting agency will be in, it helps to know what they are doing right and what they are failing at. This way, a new recruiting agency can capitalize on what others have failed to get right.
Knowing how much other recruiting agencies in the same city charge can also help in setting up a rate.
Only the project owner can select the next research path.