How to Start Your Own Recruitment Business

Have you decided to start up your own recruitment company? Well, here is what you should know. 

It Is Not Easy

Every year, hundreds of recruitment companies are started. Unfortunately, most of them don’t last long. But if you are fortunate enough to make it, you will be happy you made the decision to start. 

Successful recruitment entrepreneurs have many benefits such as being able to work when and from where you want. Additionally, you will be in complete control of the business decisions and enjoy high earning potential. 

However, when you blank, you’ll have problems paying your bills—unlike someone who is employed. 

You will wear many hats: finance, technical operations, administration, business development, sales, marketing, etc. 

Once you decide that you have what it takes, you have to pick the type of recruitment business you want to start. 

Option A: Lifestyle Boutique

Most recruitment entrepreneurs go with this option. 

Lifestyle recruitment is suitable for someone who enjoys recruiting and is tired of their agency taking a huge cut of their earnings. When you do it alone, you get to keep most of your money. 

As a one-person band, you’ll also have more freedom. 

This life is suited for principal consultants with an extensive network. 

Option B: Recruitment Business

A well-rounded skill set is important here. It is suitable for you if you are a strategic long-time thinker and commercially minded. 

Recruitment managers would do well here. 

You’ll work longer hours and won’t become wealthy overnight. It will be hard initially. But in the long run, the rewards will be worth it. 

Regardless of the option you choose, here are a few things you should think about before starting. 

What to Consider

Before you decide to quit your job, have a clearly written business plan. It will help you deal with any hurdles you come across and make decisions. 


  • Will you require an investor? 
  • Would you like to co-found with someone else?
  • Would you like to become a franchise as opposed to building from the ground up?


  • Do you know who your competition is? 
  • How do you plan on competing with them?
  • Do you think there is space in the industry for your business?

Business Planning

  • Do you have your priorities set up?
  • Do you know how you will generate new business?
  • Are there activities that you plan on outsourcing, like Accounts?


  • Where will you get the capital from? 
  • Will you run contractors or temps?
  • How will you pay to roll them?


In as much as you want to be competitive with your prices, you should find a balance if you want to make profits.


Talk to an insurance agent for all the policies you will need.

Marketing and Branding

  • Have you drafted your core values?
  • Do you have a marketing strategy?
  • How do you want people to view your brand?


Think about online presence, databases, computers, telephony, office space, etc. 


You will need software packages, mostly for your online operations. 


Your business should be legally compliant and professional. Know the local laws. 

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