What to Start Off with in Building a Recruitment Business
✓ Assessment of a business model, P&L
✓ Constitutive instruments and terms of cooperation with partners (in case of a collective venture)
✓ Detailed contract
✓ Your first 3-5 clients, who already need candidates
✓ Staff selection process
✓ Choice of ATS, systems for sales/presales, financial reports, and workflow
✓ Creation of a website and social media pages
✓ Description of processes and work rules
◊ Assessment of a business model, P&L
What amounts have you got in your pipeline? What are the optimistic and pessimistic forecasts on net income? What is the minimum pay, you are ready to work for? Which bonuses can you give out without experiencing losses? What is the minimum revenue to reach a break-even point? By calculating the numbers beforehand, you could get an idea of whether you have enough potential client leads, as well as the possible salaries and bonuses you could offer your staff. P&L draft – https://bit.ly/2nJyufU
◊ Constitutive instruments and terms of cooperation with partners (in case of a collective venture)
A necessary part for those, starting to work with an investor, partner, or a friend: sign a partnership agreement and negotiate on shares distribution, avoiding terms like 50/50. More details on that in a separate post.
◊ Detailed contract
More details on that in a separate post.
◊ Your first 3-5 clients, who already need candidates
Perhaps, because of them, you decided to work independently:)
In the beginning, try to work on a maximum of 5 vacancies per recruiter (senior level, IT). Complete the first assignments with your initial team and make better forecasts later, based on the results.
It is important to be an exclusive provider so that the chance of your company and not somebody else filling a role would be higher.
If there are vacancies in a total of $20,000 in your pipeline, do not plan to fill more than $10,000 a month. (Not all are going to be successful, as there is a chance for a vacancy to be filled by internal resources, etc.)
◊ Staff selection process
The easiest and the most successful way to start is to have at least one skilled and qualified colleague, with whom you can build a team. In case you are going to start with people who need a constant “tune-up”, be ready to work around the clock. In this case, operational and strategic issues that need your attention will be badly affected.
◊ Choice of ATS, systems for sales/presales, financial reports, and workflow
Without automatization of the processes, it is going to be quite difficult to do business systematically. The instruments we use will be shared in the next posts.
◊ Creation of a website and social media pages
This task may be of greater importance if you have a lack of clients. Some companies pay attention to the issue only after 3-5 years of operating. However, we still recommend using a corporate email, a page on LinkedIn, and a landing page as a minimum. A landing page is useful for your clients in terms of referrals and will make you look more professional than a group of enthusiastic freelancers.
◊ Description of processes and work rules
An endless process. The documents are going to improve with time. However, when your values, vision, and goals of the company, your motivation system, rules of work with clients, and induction plan will crystalize, you will speak the same language with new members of the team. Pay attention to this even when you are already swamped with other tasks in your business.