recruitment agency business plan uk

The Complete Recruitment Agency Business Plan Blueprint (Including Business Plan Workbook)

So you want to start your recruitment agency, huh?

You dream of finding top talent, building a thriving business, and making good money.

However, before you dive in headfirst, you should know a few things. Writing a full-blown recruitment agency business plan is challenging. It requires months of research, financial projections, and business modelling that will make your head spin. Not to mention the costs of hiring consultants and analysts to ensure you’ve covered all your bases .

The truth is, doing it alone and starting from scratch is risky, time-consuming, and expensive as opposed to starting as a franchise recruiter .  We’re here to simplify this process by providing a comprehensive guide on how to compile a robust recruitment agency business plan in the UK (or any other country).  This guide includes a downloadable Recruitment Agency Business Plan Workbook to streamline your planning process and ensure you cover all the essential aspects mentioned in this guide.

Table of Contents

Understanding the Importance of a Business Plan

A well-structured business plan is the cornerstone of success for recruitment agencies. It   serves as a blueprint outlining  your agency’s vision, mission, goals, strategy, and financial projections. 

Here is why it is crucial for the success of a recruitment agency. 

• A well-crafted business plan is a strategic tool that enables recruitment agencies to stay focused on their objectives, create a competitive edge, and ultimately achieve long-term success. 
• Notably, it allows you to identify potential challenges and opportunities, set realistic expectations, and allocate resources efficiently.
• By providing a clear roadmap for growth, a comprehensive business plan helps you navigate the complexities of the recruitment industry and adapt to the ever-changing market conditions.
• It helps you make informed decisions and strategies effectively. 

Leveraging the Workbook for Enhanced Planning

Utilize the Business Plan Workbook to:

• Deepen your understanding of each planning stage with detailed prompts and worksheets.
• Organize your financial data, market research findings, and strategic objectives effectively.
• Access valuable tips and best practices for recruitment agency startups.

By integrating this workbook into your planning process, you gain a valuable tool that enhances your business plan’s quality, making it a robust document that guides your agency towards achieving its goals.

The 7 Stages of Writing a Startup Recruitment Agency Business Plan

Writing a business plan from scratch for your recruitment agency can be challenging. We’ve compiled a comprehensive step-by-step guide to explain the process.

Here are the seven stages involved in putting together this critical document:

• Defining your recruitment agency’s vision and mission
• Identifying your business model and services
• Conducting market research and analysis
• Developing a marketing and sales strategy
• Building your team and infrastructure
• Defining financial projections and funding
• Outlining risk assessment and mitigation strategies

Stage #1: Defining Your Recruitment Agency’s Vision and Mission (3 Steps)

Creating a solid   vision and mission statement  for your start-up recruitment agency business plan is crucial to guiding your business in the right direction.

To do this, follow the below steps:

• Define your purpose.
• Establish your goals.
• Outline your values.

With a trusted partner like Recruiter Startup…

…. costs to start your recruitment desk are minimal compared to starting from scratch

Step #2: Establish your goals.

Set measurable goals to work towards, such as:

• Place 100 candidates in new jobs within the first year.
• Generate £250,000 in revenue by the end of year two.
• Build a network of 500 vetted clients and 1,000 active candidates in the UK.

If you’re putting together a start-up recruitment agency business plan, it’s important to review and revise your goals regularly based on your progress and market conditions. 

Step #1: Define your purpose.

Establish the underlying reason for starting your recruitment agency in the first place. Do you want to help people find meaningful work, support growing businesses, focus on a niche industry, or something else? Whatever the reason, your purpose should align with your values.

For example:

• To help UK technology startups attract top talent.
• To provide job opportunities for disadvantaged groups in local communities.
• To become the go-to agency for healthcare recruitment in the UK.

Step #3: Outline your values.

The values that guide your agency will shape your culture and brand.

Examples include the following:

• Integrity:  We’re honest and transparent and keep our promises.
• Excellence:  We strive to exceed expectations and deliver the highest quality service.
• Diversity:  We believe in providing equal opportunities regardless of gender, ethnicity, or background, in line with the  UK Equality Act 2010 .

Your vision, purpose, goals, and values provide the foundation for your recruitment agency business plan. Refer to them often when making critical decisions to stay on track. 

Stage #2: Identifying Your Business Model and Services

Next, consider which business model suits your needs: focusing on permanent placements, contract staffing, or both.

The services you offer should align with your expertise and target market. For instance, if you have a background in IT, specialising in tech recruitment might be ideal. However, starting with generalist roles could be more suitable if you’re new to the industry.

Developing a comprehensive recruitment agency business plan in the UK (or any other country) can be complex and often impractical for new agency owners. A more efficient alternative is to start your own recruitment desk under Additional Resources’ Recruiter Startup model.

We provide the necessary infrastructure, tools, training, and support to help you launch your agency quickly, enabling you to start matching candidates with jobs and generating revenue immediately. 

Stage #3: Conducting Market Research and Analysis (A 4-Point Checklist)

Performing market research for your recruitment agency is essential for understanding your target market, competitors, and industry trends.

This involves the following activities:

• Surveying businesses in your area
• Researching competitors
• Tracking industry trends
• Analysing data for opportunities

2. Researching Competitors

Investigate what competitors offer and how they operate — research their fees, services, and client attraction strategies. The UK recruitment industry is highly competitive, comprising  over 27,700 agencies . Hence, understanding your competition will help you differentiate your agency.

1. Surveying Businesses in Your Area

Determine hiring needs and budgets by surveying local businesses. As of 2022, the UK had approximately  5.5 million  private sector businesses, providing ample opportunities to explore various industries and niches. 

4. Analysing Data for Opportunities

After gathering data, analyse it to identify opportunities and establish a competitive advantage. Look for unmet needs or new trends to capitalise on.

3. Tracking Industry Trends

Stay updated on trends like remote work, which increased significantly during the COVID-19 pandemic, with   17.4% of the UK workforce   working from home in 2020. Also, monitor the demand for contract staff, as the gig economy has grown in recent years. Adapting to the ever-changing recruitment landscape is vital for long-term success.

Starting a business from scratch can be hectic. As an alternative, consider joining a recruitment franchise like Recruiter Startup. We have an established brand and in-depth industry knowledge, helping you begin your journey with a solid foundation.

Check out our  associates recruitment model  to learn more about how we operate and how much you can earn working from home.

Stage #4: Developing a Marketing and Sales Strategy (5 Tips)

A solid marketing and sales strategy is crucial for building a successful business, recruitment agencies inclusive.

These five tips can help outline a compelling start-up recruitment agency business plan, which is vital if you’re looking to convince investors to fund your enterprise:

• Define your target market.
• Build your online presence.
• Develop a marketing strategy.
• Source great candidates.
• Provide excellent service.

1. Define your target market.

To identify your ideal job-seekers, focus on an initial niche, such as IT professionals, nurses, or teachers. You may go on to specify locations, experience levels, and skills.

For example, you may focus on recruiting in the healthcare niche, a highly viable market — the UK has a high demand for healthcare professionals, with the NHS employing o ver 1.4 million people . Targeting your market makes reaching them more manageable.

2. Build your online presence.

About   61% of job-seekers  in the UK used online job boards to find employment in January 2022 alone.

Take advantage of this viable marketplace by developing a professional website to showcase your agency’s credibility. Optimise for search engines using essential keywords, like “recruitment agency” and your location, e.g., “London.” Create LinkedIn, Facebook, and Twitter profiles for networking with candidates and clients.

Our post on how to start a recruitment agency expounds more on the need to achieve a robust digital profile.

3. Develop a marketing strategy.

An excellent recruitment business plan example outlines how it plans to generate leads.

• Identify the best ways to promote your agency. 
• Consider advertising on job sites like Totaljobs, Reed, CV-Library or in industry publications. Offer discounts and promotions to new clients and attend local networking events to form personal connections. 
• Lastly, regularly email your contact list with job openings and agency updates.

4. Source great candidates.

Post jobs on your website, social media, and platforms frequented by your target candidates. You may also utilise your network to gather referrals but thoroughly screen candidates to ensure the best matches for your clients. 

5. Provide excellent service.

Strive to build lasting relationships with clients and candidates — regularly check in to ensure satisfaction and address any issues promptly. Go above and beyond expectations, such as assisting a new hire’s onboarding process.  Up to 83%   of satisfied clients and candidates will likely refer others and return to your agency, boosting profit margins by 25%.

By following these steps, you’ll be well on your way to developing a successful marketing and sales strategy for your UK recruitment agency. While crafting a comprehensive recruitment agency business plan can be challenging, focusing on the essentials lays a solid foundation for your agency’s growth.

Stage #5: Building Your Team and Infrastructure (A 4-Point Checklist)

Assembling a team of qualified professionals and establishing the necessary infrastructure is crucial when building a recruitment agency, so you must consider it in your recruitment agency business plan . However, this can be challenging and costly, as outlined in our post on recruitment agency startup costs .

Adhering to the following checklist can make your task easier:

• Hiring recruiters
• Administrative support
• Office space
• Technology infrastructure

2. Administrative Support

Your agency needs administrative staff to manage daily operations, such as answering phones, organising schedules, and updating records. An administrative assistant’s average salary in the UK is  £20,664 annually . Any candidate you’re hiring should have strong organisational and communication skills.

1. Hiring Recruiters

Recruiters are the backbone of your agency. Aim to hire experienced recruiters with proven success in your target industry or job function.

In the UK, the average salary for a recruiter is   £31,489 per year , with bonuses and commission potentially increasing earnings. Recruiters must excel in networking, interpersonal, and sales skills to effectively find candidates and maintain client relationships.

3. Office Space

If not operating virtually, secure office space for your team. Consider a location easily accessible for candidates and clients, with room for private offices or cubicles, a reception area, conference rooms, and storage. In the UK, office rental costs vary by location, with London prices ranging from   £50 to £150  per square foot per year.

4. Technology Infrastructure

Invest in a robust technology infrastructure, including the following:

•   Applicant Tracking System (ATS):  Essential for managing candidates. Popular options in the UK include   Bullhorn  and  Firefish .
• Customer Relationship Management (CRM) system:  Vital for tracking clients and placements.  Salesforce  and  HubSpot  are widely used in the UK.
• Fast internet connectivity:  Important for efficient operations.
• Enterprise-level security:  Crucial for protecting sensitive data and complying with UK data protection regulations like  GDPR .
• Virtual communication tools:  Video conferencing platforms like Zoom or Microsoft Teams facilitate remote collaboration.

Setting up a recruitment agency’s team and infrastructure is a significant undertaking, requiring substantial resources. For those considering an easier route, a franchise model like Recruiter Startup provides the essential components and support under Additional Resources , allowing you to focus on growing your business. Check out what others are saying about us .

Stage #6: Defining Financial Projections and Funding

To create a comprehensive recruitment agency business plan, it’s essential to determine funding sources and estimate projected returns on investment.

2. Finding Funding Sources

• Business loans: Banks, credit unions, and online lenders offer loans, but they require collateral and solid financial projections. The British Business Bank can help you find suitable financing options in the UK.
• Angel investors: These are wealthy individuals who invest in exchange for equity and high potential returns. The UK Angel Investment Network can help connect you with investors.
• Crowdfunding: This involves raising small amounts from multiple contributors. Platforms like Seedrs and Crowd cube are popular but require dedicated effort.
• Franchising: Pay an upfront fee to access a proven model and brand, e.g., Additional Resources’ Recruiter Startup . This option provides more support but less control over your agency.

Note: With Recruiter Startup, your upfront fee is only £750 + VAT per month, a far lower expense than starting your own recruitment agency.

1. Creating Financial Projections

Consider the following factors in doing so:

• Revenue: Estimate the number of placements you can make annually and the average fee per placement. In the UK, the average fee for permanent placements is around 15–20% of the candidate’s annual salary. Don’t forget to account for seasonal fluctuations in the job market.
• Expenses: Calculate rent, payroll, marketing, and other business expenses. In London, for example, office rental costs can range from £50 to £150 per square foot per year. 

Note: When you set up as a franchise recruiter under the Recruiter Startup model, your expenses will be slashed as you won’t need to spend on office space or staff.

• Profit: Determine your projected profits by subtracting expenses from revenue. This demonstrates the potential ROI for investors.

To secure funding, present a well-developed business plan with solid financials and explain how the investment will drive growth and profits.

Stage #7: Outlining Risk Assessment and Mitigation Strategies

Considering potential risks and creating strategies to address them is crucial for the success of your recruitment agency.

Here are some key areas to focus on:

1. Identifying and Addressing Risks

When designing your recruitment agency business plan, anticipate challenges and develop solutions.

Common risks include the following:

• Economic downturns : A weak economy slashes hiring rates. Maintain cash reserves and diversify your client base to mitigate this risk.
• New competitors:  Stay competitive by focusing on niche markets and building strong client relationships. There are over 27,700 recruitment agencies in the UK, making it essential to stand out.
• Key staff departures : Retain top talent by implementing training programs and offering incentives. Take note that ensuring high employee turnover can be costly and disruptive.

2. Meeting Legal Requirements

Compliance with legal regulations is vital for your agency’s reputation and success.

To achieve this, ensure you do the following:

• Adhere to data protection laws : Obtain consent for storing and using client/candidate information. In the UK, compliance with the GDPR is mandatory.
• Follow employment regulations:  Verify candidates’ right to work and provide fair pay/contracts. UK agencies must comply with the  Conduct of Employment Agencies and Employment Businesses Regulations 2003.
• Register as an employment agency:  Requirements vary across countries and states. Registration with the  Employment Agency Standards (EAS)   Inspectorate is necessary for the UK.

Failing to comply with legal obligations can result in fines, reputational damage, or even forced closure. Hence, prioritise compliance from the outset.

Saving Time and Cost With the Franchise Recruitment Model

Starting a recruitment agency from scratch can be time-consuming and expensive, especially when considering investing in a robust recruitment agency business plan. However, a franchise recruitment model can save time and money, allowing your business to become operational more quickly and efficiently.

The key benefits of choosing a franchise recruitment model include the following:

• Accelerated business setup : Franchising allows you to leverage an established brand and proven business model, significantly reducing the time and effort required to start your agency.
• Existing customer base:  As a franchise recruiter working from home, you can tap into the franchise agency’s existing customer base, reducing the need to invest heavily in marketing and brand awareness campaigns.
• The lion’s share of all placement fees : When you register as a franchise recruiter with an agency like Recruiter Startup, you get to keep 80%–90% of all your placements.
• Comprehensive business plan:  Franchise recruitment eliminates spending months perfecting your business plan, as the franchise agency provides a tried-and-true plan to follow.
• Online presence and marketing materials:  Franchise recruiters can bypass the hassle of building a website and online presence by using the franchise agency’s established website and marketing materials.
• Cost savings:  The franchise recruitment model often includes software requirements and supplies provided or subsidised by the franchise agency, leading to significant cost savings.
• Expert guidance and training:  Franchise recruiters can benefit from valuable insights and training from an experienced franchise agency that’ll guide them through setting up and operating their recruitment desk.

Choosing a franchise recruitment model allows aspiring agency owners to start placing candidates and generating revenue much sooner. This approach saves time compared to spending months designing a recruitment agency business plan. The franchise model is an attractive option for those looking to enter the recruitment industry hassle-free.  Contact us  now to get started!

Recruitment Agency Business Plan - Frequently Asked Questions

Yes, starting a recruitment agency can be a good idea if you possess strong industry knowledge, networks, and the ability to match job seekers with suitable employers. The recruitment industry can be lucrative and rewarding. However, it’s essential to be aware of the challenges, such as competition, changing market conditions, and the need for adaptation to new technology. 

Yes, starting a recruitment agency can be a good idea if you possess strong industry knowledge, networks, and the ability to match job seekers with suitable employers. The recruitment industry can be lucrative and rewarding. However, it’s essential to be aware of the challenges, such as competition, changing market conditions, and the need for adaptation to new technology.

Some of the best industries to start a recruitment agency are:

• Medical and Healthcare
• Information Technology (IT)
• Renewable Energy
• Construction and Engineering

Yes, the recruitment industry can be challenging due to several factors, including the following:

• High competition: With over 27,700 recruitment agencies in the UK alone, competition is quite steep.
• Changing technology: Keeping up with new technologies like AI and automation may require adaptation and learning.
• Building relationships: Developing solid relationships with clients and candidates is crucial but time-consuming.

Based on data from several sources, the UK recruitment industry is experiencing growth but at a slower pace . However, over 50% of recruitment agency experts forecast a 1%–25% Based on data from several sources, the UK recruitment industry is experiencing growth but at a slower pace . However, over 50% of recruitment agency experts forecast a 1%–25%

Wrapping It Up

So, there you have it — a complete guide to a recruitment agency business plan . As you can see, it’s no easy feat and requires a significant time and financial investment to get off the ground. The business plan alone can take months of work.  For those determined to forge ahead alone be sure to utilise our Recruitment Agency Business Plan workbook alongside this guide to help walk you step by step, and organise your thoughts and ensure no critical element is overlooked.

Why go through all that hassle when there’s a more straightforward solution?

Franchise models like Recruiter Startup offer an affordable turnkey solution to get your recruitment agency up and running in no time. We provide the systems, training, and support so you can focus on what matters — finding great candidates and clients.

Start building your dream recruitment agency today with a working business model. The opportunities are right here waiting for you, so take that first step now . You’ll be glad you did!

I'd like to explore the franchise model, what are the next steps?

Let's talk about starting your recruitment desk.

Additional Resources

01277 822668

Park Wood Technical Centre, Park Wood Doddinghurst Road Brentwood, Essex, CM15 0SN

Recruitment Agency Business Plan Workbook

Download the pdf.

Recruitment Agency Business Plan

Striking out and setting up your own recruitment agency is an exciting prospect, and there’s never been a better time to do it. With over 31,000 agencies in the UK, the recruitment industry is booming. Despite the profound impact of COVID-19 on the labour market, recruitment is projected to bounce back massively in 2024, so now is the perfect time to seize the opportunity and open your own agency.

Pre-pandemic, the recruitment industry generated over £42.3 billion in the UK alone, and recruitment agencies and firms are predicted to grow substantially in the next 3-5 years.

It’s clear that there is huge revenue potential in the recruitment industry. However, to stand out from the crowd, you’ll need a great recruitment agency business plan. This will give you the strategy and understanding of the industry you need to succeed.

So, where should you start? Our guide will take you through each individual step in making your own business plan. We’ll take you through marketing strategy, pricing structure and management, all of which are crucial to the success of your recruitment agency. As a new business owner, there will be a lot to take in, but with our recruitment agency business plan, you’ll have the ultimate guide to take you forward.

Is opening a recruitment agency for you?

• How much does it cost to open a recruitment agency in the UK?

What's included in our recruitment agency business plan?

• Your free sample recruitment agency business plan template

Summary and recap

As we’ve already mentioned, there is great potential in the UK for recruiters, and the turnover could be really significant. However, with the popularity of the industry comes a lot of high level competition.

Before you do anything else, you should be clear on who your competitors are, who your clients will be and how you will reach them, as well as fees you might have to pay whilst setting up.

You should start with a business plan. You can use it to gather and collate all of your resources, ideas and research.

You should consider things like:

• How many large recruitment agencies operate in the area (Adecco, Impellam, Reed etc.?)
• How many local recruitment agencies operate in the area?
• Is there likely to be any existing brand loyalty in the area?

How much does it cost to start a recruitment agency in the UK?

The average start-up costs to set up a recruitment agency in the UK vary considerably. More expensive start-ups will cover the costs of leasing premises, employing staff, buying equipment and any insurance you might need.

Key costs of starting your recruitment agency include:

• £12 to register your company, and £30 a month for details such as creating a website, designing a unique brand, setting up a LinkedIn company page and advertising jobs.
• You could also pay for added extras such as LinkedIn Premium and a CRM (Customer Relationship Management), a system which manages interactions with customers through data analysis, to win you as much business as possible.

However, there are ways to set up a recruitment agency without having to pay out thousands at first. By starting out as the sole employee, and even working from home, you can reduce costs to a bare minimum. All you really need is your home PC, mobile phone, some basic web tools and an internet connection.

With this in mind, a recruitment agency business plan is the best way to prepare yourself and plan for any financial obligations from the very start. We can also help you to figure out how to raise the capital you need for your business, based on your current financial situation.

We’ll take you through every step you’ll need to take to start your recruitment agency. It’s important to remember that if you plan to secure funds from a bank, it’s essential your business plan is as rigorous as it can be.

Included within our recruitment agency business plan, we offer:

• A fully completed recruitment agency business plan
• Break-even analysis (12-month analysis)
• Complete business plan guide
• Business plan template (.doc and .PDF)
• Financial planning wizard

Along with that, we’ll offer you a further 25 (at least) ways to market your recruitment agency for free. All of this is at your fingertips.

Download now for only £49

In this guide, we’re going to take you through an outline for a recruitment agency business plan, detailing what you should include within each section, and things you should consider when pitching your business to investors.

However, please remember this is only a guide. When writing your business plan for your own recruitment agency, make sure to take your time and work through everything in scrupulous detail.

When it comes to a business plan, the more thorough the better. You can never over-plan when it comes to a business start-up.

Step 1: Executive summary

Imagine you are pitching your business to an investor, what would you say? Remember that banks and investors will have seen thousands of previous pitches, so you really need to stand out to grab their attention. Putting serious thought and effort into your executive summary will be well worth it.

Make sure to think about these three things:

• Keep your language clear, concise and easy to read. Make it short and sweet.
• What makes you stand out from other recruitment agencies?
• Why should they be confident they will get their money back?

Remember, this is your opportunity to convince investors of your business’ credentials. Keep it positive, clear and easy to understand. Don’t get drawn into detailed descriptions or explanations, and avoid technical terms and jargon. Go out and grab their attention.

Step 2: Company overview

The company overview is your chance to properly introduce yourself and your business. You can give your potential investors a more detailed insight into how you plan to make sure your recruitment agency is a success.

Always remember, your focus should be on why investors should choose to put money into your recruitment agency, and why they should believe they’ll make a return on their investment.

You can consider including the following ideas in your company overview:

• What previous experience do you have managing a business
• What made you decide to start a recruitment agency?
• How will you stand out from your competition?
• Exactly who are your target clients? Do you have an ideal customer?
• What is your current financial status?

You need to show that you have a good understanding of the recruitment industry. Let them know the extent of your knowledge of the current market, how you expect it to change, and how your company is suited to thrive in the future.

You should think like a business person and don’t give your investors any reason to doubt your command of the subject.

Some other things to consider include:

• How you plan to expand your recruitment agency in the future.
• Your local market and competition.
• How is your application different to the others your investors have seen?

Basically, the goal of your company overview is to deliver a complete outline of your recruitment agency to your potential investors. Make sure to include facts and figures, and show off all your skills and expertise.

Feel overwhelmed? Not sure where to start? We’ve done all of the hard work for you.

Instant download for £49

Step 3: Management and key personnel

A business is only as good as the people behind it. To really make your recruitment agency a success, you’ll need the support of a great team. In the management and key personal section of your plan you should detail your management, staff, and plans for further growth.

Remember to include:

• Staff members and their roles at the agency
• The previous experience of your staff
• Your staff salaries
• Do you plan to bring new people into the business? If so, when? How many? And what kind of salaries will they be paid?

This section really doesn’t need to be too long or complicated. All investors want to know is that you have a solid management structure and that you’ve made some plans for expansion in the future where necessary. As long as you’ve shown this, you’ll be just fine.

Step 4: External analysis (market research)

It’s crucial to have a strong understanding of your market before launching your start-up. It will help you recognise opportunities for your company to benefit from, and identify threats before they can damage your business.

Make sure you know the competition. What will make you stand out from them?

In this section you’ll also need to look into your target market, and how you’ll attract them over the competition. You should try to make this as detailed as possible, so that investors can see the focus of your agency. Being too vague might lead potential backers to believe you haven’t put much thought into it.

Who’s going to use your recruitment agency? (your target market)

Are you going to focus on recruiting in one particular industry? Or perhaps you’re going to specialise in junior or graduate roles? You need to know who your clients will be so you can tailor your marketing and branding to suit them.

Some things that you should think about include:

• How will you get the attention of clients?
• How much will you charge your clients?
• What will make them choose you over other competitors?
• How can you gain their loyalty?

How many recruitment agencies operate in your area?

In order to attract business you’ll have to stand out from other recruitment agencies that operate in the same region. How do you plan to separate yourself from your competition? Investors might be concerned about market saturation, and you need to prove to them that your agency has more to offer than any other around you.

Some things you can think about:

• How much do you know about your competitors?
• How many large recruitment agencies operate in your area?
• What are the average costs of employing a recruitment agency?
• Do they specialise in any particular industry? How does this compare with your own business?

Put yourself in the shoes of your ideal customer. What is going to make them choose you over another agency?

Step 5: your business objectives

Your business is going to need to have objectives, both for the short term and the long term. These objectives should be an outline to potential investors of what you are expecting to achieve over a time-frame.

Think about where you want your company to be after a month, then six months, a year and even five years. Don’t go crazy though. Ambition is good, but you shouldn’t be suggesting your business is going to become a giant of the industry after the first couple of years, as you will just come across as naive.

You should try to use the S.M.A.R.T criteria to keep track of your objectives.

Your S.M.A.R.T Criteria are:

If you still need some help coming up with objectives, you can consider some of the following:

• How big is the market you’re targeting?
• How do you plan to reach that market?
• How many clients do you expect to have after the first two months?
• How much revenue do you expect after the first six months?

Along with each objective you should provide a plan, as to how you expect them to be achieved.

Step 6: Services, equipment and amenities

By giving a detailed list of all the equipment you need to start your recruitment agency, investors will be able to see what their money is paying for.

This will depend very much on the scale of your planned agency. It would be possible to start by working from home with just your home PC and personal mobile phone. But if you’re thinking bigger, some items and services you should think about would include:

• Office space, along with desks and chairs
• Work Mobiles and mobile contracts

Be realistic in this section. You don’t need twenty PCs if you’re only employing a handful of staff. There’s no point in overspending.

Step 7: Financial forecasting and financial projections

This is the section where we crunch the numbers. Financial forecasting is probably the most important part of your business plan, as you can prove to investors that they will get some return on their investment.

This might be the trickiest and most time consuming part of the whole plan, but it is essential to do it properly.

You’re going to have to show your potential backers how you’ll recuperate the money they’ve invested. How much can you make per client? How many clients will you have?

The fundamentals you’ll need to provide:

• Sales forecast
• Expense budget
• Cash-flow statement

There are a whole lot of things you’ll need to budget for. Some of those might include:

• Purchase estimations
• Hiring costs

If possible, don’t restrict yourself to just one avenue of revenue. Diversifying your income sources will make investors feel much more comfortable with their investment.

We’ve taken all of the hard work out of planning the finances for your recruitment agency. Download your recruitment agency business plan template instantly below.

Instant download

Step 8: Funding

Do you already have existing financial support? Your investors will need to know how much start-up capital you have, and where it’s coming from. You need to let them know whether you’re using money from your own pocket, or whether you have investments from some other backer.

You might have received funding in the form of:

• Personal loans
• Partners or sponsors
• Family and/or friends

Be completely clear about where your money is coming from. Don’t hide anything from your investors.

You also need to be explicit about how much money you need, both now and in the future. You should also detail to investors how you’ll be spending it, whether it’s for equipment, renting premises or paying staff.

At the same time, don’t ask for more than you need, as it’s only likely to put investors off

Your free sample recruitment agency plan

If this is all still seeming a bit overwhelming, you might like to take a look at a small template we provide for a recruitment agency business plan. This can get you started and help you to come up with some of your own ideas.

Included in this template, you’ll get:

• An example of your executive summary
• Products/services on offer
• Staff and management structure

Download .doc here

Launching your own business is a scary prospect. The recruitment industry is already a busy market, but there’s plenty of demand for it and forecasts anticipate its boom to continue. There are over 31,000 recruitment agencies in the UK, with a combined value of over £42.3 billion.

By creating a detailed and clear business plan, you’re giving yourself the best chance of success. You’ll be able to start out knowing you’ve considered every aspect of the business. Investors love an in-depth business plan, so remember: the more detail the better. With our experience, you can kick-start your agency with confidence.

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RECRUITMENT BUSINESS PLAN: How To Write a Recruitment Business Plan

• by Folakemi Adegbaju
• August 14, 2023
• No comments
• 10 minute read

Table of Contents Hide

How to start a recruitment business, how to write a recruitment business plan, final thoughts, how do recruitment agencies make money uk, how much commission do recruiters earn uk, do i need a licence to start a recruitment agency uk.

It’s obvious that recruitment agencies now face a very different problem as the country’s economic recovery picks up speed. Although the environment for recruitment businesses is undoubtedly difficult, there are significant opportunities for intelligent operators, and the medium-to-long-term prospects for the sector are excellent, but having a good recruitment business plan in the UK makes it easier. A solid recruitment business plan is very important when you are starting your own recruitment agency to serve as a road map to a productive recruitment business.

Let’s zoom off!

What Is a Recruitment Business?

External companies, known as recruitment agencies, help organizations discover qualified applicants. Employers assign them the responsibility of locating applicants for open positions within their organizations in order to save time and money and to gain access to a wider candidate pool than a direct advertisement or company network can.

Growing your portfolio of clients is vital to any new recruitment business. The following are the steps you need to follow when starting your recruitment business:

#1. Learn About Recruitment

Anyone considering starting a recruitment business would benefit from prior experience as a recruiter or recruitment manager, but it is also feasible without prior HR knowledge. If you are new to the recruiting industry, you might think about taking a recognized course that will provide you with the skills and knowledge you need to understand how the recruitment industry operates.

Most importantly, you will discover efficient techniques for finding and hiring candidates. Knowing this is important since it can assist you in hiring HR professionals and recruiters who are qualified for your recruitment business. When you assign them recruitment tasks, you can use this expertise to ensure that they are efficient and productive.

#2. Find Your Niche

If you’re going for a specific business sector, work to establish yourself as an authority and specialist in that field by conducting in-depth studies, participating in industry-related events and reading industry publications, and gradually building relationships with its major players. You have little chance of surviving as a freshly created recruiting agency unless you establish a specialty. Given the well-known brands and prominent positioning of the big companies, it is extremely challenging to compete in the general recruitment market.

Many of the most prosperous smaller-scale recruitment firms have flourished by adhering to a niche market they are intimately familiar with.

#3. Write a Business Plan

You can write a recruitment business plan to more effectively organize all of your recruitment business concepts. When launching a business, business plans are crucial, especially when you’re looking to get financing.

#4. Register Your Recruitment Agency

The most formal procedure for opening a recruiting agency is filing business registration forms with Companies House and HM Revenue and Customs (HMRC). You can do it yourself if you believe you have the required knowledge and abilities. A business can often be formed in a matter of hours, and the process can be completed online. Hiring a seasoned accountant to assist you in this procedure is an additional choice. You would receive a certificate of incorporation after registration, which would include the agency’s founding date.

#5. Invest in Tech Tools

These days, technology and recruitment agencies are closely related. As a result, you should spend money on the appropriate instruments because you’ll wind up saving a lot of time and money that way. One of the most well-liked and dependable pieces of online software used by recruiters is the applicant tracking system (ATS).

#5. Assess Your Competitors

After deciding on the market and the type of recruiting firm you intend to launch, analyze your main rivals. Never play a game without understanding its rules and the players you’ll be up against as you strive to advance in the ranks and gain clients. Because of this, your initial study should focus on the major players in your target market, including their standing, record of success, and business background. Find out how their agency differs from what you had in mind and how you might take advantage of the holes they don’t fill.

#6. Invest in People

When you decide it’s time to bring on extra recruiters to aid with workload management, it’s critical to continually provide them with alluring advancement prospects. They can continue developing their abilities in order to support the success of your organization in this way.

#7. Be Visible

Make sure your business appears towards the top of online search results for potential customers. A responsive website, SEO, Google Ads, and social media marketing are all excellent resources that can help you outperform your rivals.

 #8. Assess Your Finances

Even while most other companies need more capital to get off the ground than recruiting businesses need, you should still be aware of your available resources. Be deliberate and learn what it takes to operate an HR-related firm effectively, or you’ll start your company without the essential resources and in the dark.

Think about expenses for things like office supplies, technology, personnel, insurance, etc. Consider your financial situation, how much cash you have on hand, and whether you would be able to get a credit loan or government assistance.

#9. Research Laws and Regulations

You should investigate the market and the competition, and you should be familiar with the rules and laws that apply to your business. Without those details, you run the danger of unintentionally breaking the law or skipping important tasks. If you want to manage a successful recruitment agency, you must equip yourself with information and assemble the necessary staff to assist you in keeping up with the most recent regulations and policies. As a result, the majority of businesses rely on attorneys and counsel to handle legal matters.

However, as the owner of a recruitment business, you should always invest time in learning about pertinent rules and regulations to avoid future legal issues.

What Is a Recruitment Business Plan?

A recruitment business plan doesn’t have to be extremely complex. However, you do need a well-thought-out plan to help you lay a solid basis for development, minimize risk, and free up your time once you go live to focus on the fun part of billing instead of figuring things out as you go. By making the necessary preparations now, you’ll have fewer distractions during the truly enjoyable portion of earning money and be able to fully appreciate having the freedom to run your own business. We assure you it’s a great investment, and you’ll be happy you did when you take off at your new recruitment business.

Spend as much time going through some samples of service-related business plans as you can before you begin drafting your recruitment business plan.

There are some steps you need to follow while writing a recruitment business plan. Here are they:

#1. Executive Summary

An executive summary provides a broad overview of the company and all of its components. In many cases, writing it after you’ve created the other parts of a business plan might be advantageous. 

What would you say if you were pitching your company to an investor? Keep in mind that banks and investors have likely heard thousands of other pitches before yours, so you must really stand out to get their attention. It will be worthwhile to put substantial thought and effort into the executive summary of your recruitment business plan UK.

Keep in mind that this is your chance to persuade investors of the legitimacy of your company. Keep your tone upbeat, concise, and understandable. Don’t get sucked into lengthy explanations or descriptions, and steer clear of technical jargon. Go and capture your investor’s mind.

Consider these facts when writing your executive summary:

• Keep your language clear, concise, and easy to read. Make it short and sweet.
• What makes you stand out from other recruitment agencies?
• Why should they be confident they will get their money back?

#2. Company Overview

You should thoroughly define the agency’s main services, activities, goals, and management style in this part so that readers may understand how the organization operates and how its management style supports those aims in this section of your recruitment business plan UK. You would also specify here who you wanted the clients of the recruitment business to be. Furthermore, you have the opportunity to adequately introduce yourself and your recruitment business in the company overview. You can provide more information about your strategies for guaranteeing the success of your recruitment agency to possible investors.

Also, keep in mind that the reasons investors should choose to invest in your recruitment agency and the reasons they should feel they will receive a return on their investment should be your main focus. However, you must demonstrate that you’re already in the recruitment sector. Tell them how much you understand the market, what changes you anticipate, and how your business is poised to succeed in the future.

Consider the following while writing your company overview, it will help you when writing a company overview:

• How will you stand out from your competition?
• Exactly who are your target clients? Do you have an ideal customer?
• What is your current financial status?
• What previous experience do you have in managing a business?
• What made you decide to start a recruitment agency?

#3. Management Team

This section of your recruitment business plan UK focuses on the management and staff members who would aid your organization in achieving its objectives. It also outlines their obligations. However, a company is only as good as the individuals running it. You’ll need the assistance of an excellent staff if you want to truly succeed with your recruitment firm. You should describe your management, personnel, and future growth plans in the area of your strategy devoted to management and important individuals.

It is also not necessary for this part to be overly lengthy or intricate. Investors only care that you have a strong management team and, where necessary, that you have strategies in place for future expansion. You’ll be alright as long as you’ve demonstrated this.

You can also include the following in this section to make it more attractive and catchy for your reader:

• Your staff’s salaries
• Do you plan to bring new people into the business? If so, when? How many? And what kind of salaries will they be paid?
• Staff members and their roles at the agency
• The previous experience of your staff

#4. Market Research

You must also consider your target audience and how you will stand out from the competitors in this part. In order for investors to understand your agency’s priorities, you should try to be as specific as you can with this. Potential investors could think you haven’t given it much thought if you are too unclear. Also, consider yourself to be your ideal client. What will persuade them to pick you over another recruitment agency?

Include the following in this section to give your reader a better understanding of what you are saying:

• How much do you know about your competitors?
• How many large recruitment agencies operate in your area?
• What is the average cost of employing a recruitment agency?
• Do they specialize in any particular industry? How does this compare with your own business?
• How will you get the attention of clients?
• How much will you charge your clients?
• What will make them choose you over other competitors?
• How can you gain their loyalty?

 #5. Business Objectives

Imagine where your business will be in a month, six months, a year, and perhaps five years. But don’t lose your mind. Ambition is admirable, but you shouldn’t claim that your company will dominate its sector after a few years because that will make you appear foolish. However, both short-term and long-term objectives will be necessary for your recruitment firm. These goals should define for possible investors what you hope to accomplish over a specific period of time. To keep track of your objectives, you can also try to apply the S.M.A.R.T. (Specific, Measurable, Attainable, Relevant, Time-based)  criteria.

You can also include the following to help you add more objectives:

• How many clients do you expect to have after the first two months?
• How much revenue do you expect to see after the first six months?

#6. Financial Forecasting and Financial Projections

The financial strategy, which outlines how you intend to fund the organization, is one of the most crucial components of your recruitment business plan UK. You can use it as a place to project how much money the agency will bring in . It may also take the greatest effort and time to complete this part of the recruitment business plan, but doing it right is crucial. You’ll need to demonstrate to potential investors how you’ll make back their investment. What is your potential profit per client? How many customers do you expect?

You need to also consider and  budget for the following:

• Purchase estimations
• Hiring costs

The following must also be added to your financial forecasting and financial projections to make your investors get a better understanding of your recruitment business plan in the UK:

• Sales forecast
• Expense budget
• Cash-flow statement

It seems confusing, right? That’s why we’ve compiled a recruitment business plan for you to make it easier and stressless.

#7. Funding

Be as transparent as possible about your financial situation. While writing your recruitment business plan, nothing should be kept from your investors. Do you already have existing financial support? Your investors will need to know how much start-up capital you have, and where it’s coming from. You need to let them know whether you’re using money from your own pocket, or whether you have investments from some other backer.

You must also be clear about how much cash you will require now and in the future. Investors should be informed about how the money will be used, whether it is for staff salaries, equipment purchases, or rental fees for space.

However, don’t ask for more than you need because doing so would likely be a turn for investors.

You can get funds through the following means:

• Personal loans
• Partners or sponsors
• Family and/or friends

By developing a thorough and understandable recruitment business plan, you’re giving yourself the best chance of success. As a result, you’ll be able to open your recruitment business with confidence. Investors adore comprehensive business plans, so keep in mind that the more specifics, the better. We’ve compiled a recruitment business plan just for you! With this, you can open your recruitment agency with confidence!

In the UK, companies that hire applicants from recruitment agencies pay the firms. Typically, the agency receives payment from the company in the form of a percentage of the starting compensation for the new hire

When hiring higher-paid employees, recruiting services may demand hefty fees. A recruitment agency will typically charge between 10 and 30 percent of the annual basic wage. The expected recruitment agency fees for base wages range from £20,000 to £100,000

Despite the fact that the sector is regulated, the majority of agencies don’t need a licence to operate, though there are a few exceptions. A licence from the Gangmaster and Labour Abuse Authority has required if an agency supplies workers to the agriculture, horticulture, or food processing/packaging industries.

Despite the fact that the sector is regulated, the majority of agencies don't need a licence to operate, though there are a few exceptions. A licence from the Gangmaster and Labour Abuse Authority has required if an agency supplies workers to the agriculture, horticulture, or food processing/packaging industries.

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How to start a recruitment business

Written and reviewed by:

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Today’s recruitment companies are very busy. Post-COVID, the so-called ‘great resignation’ has taken place, with employees up and down the country searching for better jobs made available thanks to the advent of remote working.

Companies are now grappling with a cross-sector labour shortage, while immigration issues caused by Brexit have only aggravated the situation. While this is undeniably a hard environment for recruitment companies to deliver in, the medium to long-term prospects for the industry look very different.

As a recession looms, job seekers are likely to lose confidence in switching roles. Soon, the risk of saying goodbye to a stable salary during a cost of living crisis will outweigh the benefits created by finding a new employer.

Given the mixed bag of opportunities available, any recruitment startup needs to stay on top of the market and ensure they are setting up a business that meets the exacting demands of clients. Below, we’ll get you fully up-to-date on how to set up recruitment firm. We’ll through the type of experience and level of expertise required, to the kind of fees and profits you can look forward to.

There’s a lot of planning that needs to go into launching a successful recruitment agency. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your own in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for recruitment agencies  – you simply drop your own company information, wording and preferred imagery into your chosen template. Better still, it’s completely  free to try  for yourself.

Create a recruitment business plan

Recruitment pricing structure, find your niche, recruitment startup costs, financing your recruitment business, recruitment laws and regulations, final thoughts.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

As with any business, don’t do anything before you’ve created your recruitment business plan. Our easy-to-use template will take you through each step of the process, but you essentially need to cover the following points:

• About you – Discuss what makes you a good fit to run a recruitment business, and why you want to run one. Discuss your experience, contacts, qualifications, and personal qualities, and make sure to sell yourself
• About your business – There are a wide range of recruitment types, so you’ll need to make clear exactly what your recruitment business aims to do. Which sectors do you want to work in? Do you want to focus on full-time or part-time employees? Is there a particular demographic you feel an affinity with and can target? You’ll also need to explain staffing, and crucially, how you plan to finance your business.
• Market research – Here you can go into more detail on your target market and competitors – how are you going to stand out and attract business? Identify a geographic area that you’ll initially focus on – even if you don’t have an office to start with, you’ll likely need to meet candidates and clients in person, so choose the location for your business carefully.
• Costs and business forecast – Here, you’ll need to outline all the costs your business might incur – everything from website development to office space and business insurance. You’ll also need to give a realistic business forecast that explains how much profit you’ll make in Year 1, Year, 2, Year 3 etc.

While it may not be quite as satisfying as building your own recruitment business from scratch, opening a recruitment franchise has several key advantages. You’ll be able to use an established brand, get expert advice from experienced recruiters, and may also find it easier to get finance than if you were starting a completely new recruitment business.

The total investment varies, but Travail Employment Group , a leading company in this area, suggests a total of £30,000 will be required – including an initial franchise fee of £12,000.

This might be a particularly suitable role for those with little recruiting experience, due to the much greater level of support offered.

Need help staying organised?

Starting a recruitment business will take a number of steps and it’s important to keep everything tracked.

Project management tools are a great way to keep everything moving in the right direction – you can assign tasks, track progress and create projects that everyone can chip into.

Get expert help finding the right project management software for your business .

Expert insight: John Lennon, THRYVE

John Lennon (no, not that one) built innovative tech recruiter THRYVE from scratch to £4mn turnover and told Startups that, when starting out, you should think about all the realities of owning your business rather than just focusing on how you’ll go about getting clients and attracting candidates:

“If I could go back in time, my first hires would be an operations manager and a marketing manager. When you first set up a recruitment business you are a salesperson, a marketer, an accountant, bookkeeper, administrative expert, tax expert, events coordinator and so much more.

“It was only when I started THRYVE that I realised how little I knew about how to run a business. This is why so many recruitment companies fail – most recruitment business owners are great recruiters, but struggle with the transition to becoming a business owner.

“Make sure you educate yourself on basic business principles, understand how to read a profit and loss statement, understand how to forecast, take advice, get mentors and surround yourself with positive people in your space who can help you.

“And, most importantly, be really mindful of cash flow and your outgoings.

“After all, your revenue figures mean nothing if your profit levels aren’t where you need them to be.”

One of the most important decisions you’ll make is how to price your services. This should be a crucial part of your business plan.

The fee you charge will vary depending on whether you are recruiting permanent or temporary staff.

Permanent employees

Rates vary, but research by recruitment training company Social Talent indicates that you can expect to charge a one-off fee of 15-20% of the role’s annual salary for most roles, with this rising to 25% for roles that are particularly difficult to fill. This matches the view of Tim King of IT recruitment specialist Matchking , who charges his clients 20-25% of the employee’s annual salary.

This assumes that you operate on a contingency basis – in other words, that you’re only paid once the job has been filled by a candidate you put forward. In this case, you’ll often be competing with other agencies.

The other option is retained recruitment , where you are exclusively assigned to find candidates for a role. This usually involves a more in-depth process, and is often associated with more senior roles. Consequently, you are able to charge more – 30% is common, while experienced professionals in specialist niches charge up to 50%.

You’ll also be expected to factor a rebate into your fees, where you return part of the fee if the hired candidate leaves the job after a certain period of time. Again, the period and percentage returned varies between agencies.

This variation in fees reflects the fact that recruitment can involve many different processes, from writing job ads to interviewing candidates, and even conducting reference checks. As a recruiter, how many of these tasks you take on will determine the fee you charge.

When starting out, you may also want to be flexible with your fees in order to build long-term commercial relationships.

Temporary employees

Things are a little more complicated when you’re hiring temporary employees.

You’ll need to factor in the following:

• The cost of the worker
• Holiday pay
• National Insurance
• Your desired margin

These costs are initially paid by the agency, before being reclaimed from the client.

The rate may also vary depending on whether the position is fixed-term or paid by the day.

The same Social Talent research found that for a fixed six-month post, agencies would charge 12-15% of the equivalent annual salary ( not the six month period the employee was being hired for).

For a temp position that paid £300 a day, agencies would charge around 15%, so approximately £45 per day in this case.

For both permanent and temporary workers, some agencies are also shifting to a flat fee structure, as this can make them more attractive to clients.

As a newly established recruiting agency, you’re unlikely to survive unless you develop a specialist area. Trying to compete in the general recruitment space is incredibly difficult given the established brands and high visibility of the major players.

Many of the most successful smaller scale recruitment agencies have prospered by sticking to a specialist area they know inside out.

Adam Bolton gave great insight into how he started ABrecruit from scratch on the Undercover Recruiter blog. What really comes across is how he always knew he wanted to focus on .net development, and how he leveraged his experience in this area. He knew the field, knew the people, and knew how to appeal to both companies and candidates – a plan that resulted in a thriving company which has now been going for seven years.

A look at the Startups 100 reveals similar success stories – JHP Recruitment has prospered by focusing on veterinary recruitment, Debut has made waves with its clever platform for graduate recruitment, and The Dots is providing creative professionals with a new way to be seen and hired.

If you can, follow their lead.

Expert insight: James Lloyd-Townshend, Frank Recruitment Group

The chairman and CEO of technology recruitment company Frank Recruitment Group , James Lloyd-Townshend has over 23 years of experience in the recruitment industry. Speaking to Startups, he said that while it may feel like you’re turning down chances to make money, choosing a specialist area and sticking to it is the key to long-term success:

“When starting a recruitment business, you need to understand that not every opportunity is an opportunity.

“This is one of the most common pitfalls, especially in this industry. It’s easy to think that, for instance, that any sector is a potential area to operate within.

“However, that can come at the expense of having the specialist knowledge that can actually be of value to your customers.

“So for us, knowing our niche and focusing just on that, allowed us to provide a level of service that a lot of our competitors have struggled to match and has allowed us to stay out in front.”

Like any other startup, new recruitment businesses can prosper by doing what their larger competitors can’t (or won’t) do.

Being agile is the key. Adam Bolton of ABrecruit made the decision early on to work from 8am to 9pm on weekdays and all day on Saturday – a punishing schedule that enabled him to talk to candidates outside work hours, and have relaxed conversations about what they were really looking for. It’s a great example of the sort of creative thinking you’ll need to employ to make your mark in the early days.

Depending on what sort of candidates you’re targeting, you may also need to consider tech-driven solutions. Already, the job search has largely shifted from laptop to mobile, and the likes of Tempo are trying to reinvent the recruitment process by using AI, video, and rich CVs that include ratings and reviews. All this has the potential to hugely streamline the recruitment process – Tempo boasts that its fastest hire was made in just 27 minutes.

Further along in the process, the traditional supremacy of the interview is also under threat – with alternative and complementary solutions including soft skills assessments, job auditions, and even virtual reality.

As a recruitment startup, keeping on top of these trends is key. While you may not have the established reputations and brand awareness of the big boys, you’re ideally placed to innovate and operate more efficiently.

Expert insight – Malcolm Burenstam Linder, Alva Labs

Groundbreaking recruitment startup Alva Labs is taking aim at one of the central pillars of the common recruitment process – CVs. Instead it wants to use logic and personality tests to remove human bias from the hiring process and quickly find candidates that match the requirements of the role and the culture of the hiring company. This innovative approach has already earned Alva major clients like Arla and Deloitte, and co-founder and CEO Malcolm Burenstam Linder told Startups that the impetus for the company came from seeing traditional recruitment processes fail over and over again in his previous jobs:

“I previously worked for a flourishing private equity company and a rapidly growing ecommerce company, both of which had big problems with staff turnover – hiring managers were in a constant battle with the revolving door and staff weren’t staying because they simply weren’t the right people for the job.

“At both companies, I couldn’t understand how we could be so dependent on data and analytics for almost every decision, but when it came to recruiting new team members, we were relying on gut feeling and personal preference. This is when the extent of the recruitment problem dawned on me.

“By failing to talk and think about talent in an objective manner, we let bias creep into the process and demolish our chances of hiring the best people.

“And by letting our own experiences drive our definition of what ‘great’ looks like in a candidate, we directly stunted company growth.

“Eventually, I found myself waving goodbye to the stability of private equity to kickstart my own recruitment business, Alva Labs, with a vision of improving the quality, efficiency and inclusivity of the job market worldwide.”

There are only two things you definitely need to start a recruitment business – a phone and an internet connection. You can even use your personal mobile at the outset, although a dedicated business handset could cost you as little as £6 a month – check out our guide to the best business mobile phone plans for more info.

However, to really spread your wings and fly, you’ll want to invest in the following:

If you’re a recruitment agency, your website is really, really important – it’s the public face of your business, and it’s how candidates and companies will judge you.

There are a huge range of options available, as detailed in our guide to small business website costs . If you want to take the DIY approach, companies like Wix and Squarespace offer packages for around £10 a month, while a professional web design company should charge you around £1,000.

Make sure your site is set up for mobile – a recent report from recruitment platform Glassdoor found that 58% of Glassdoor users are looking for jobs on their mobiles .

You can find software that promises to help you with practically every aspect of your business, but two areas are really worth looking into for recruitment businesses – CRM software and accounting software.

• CRM software – CRM stands for Customer Relationship Management, but as a recruiter, you should think of it as Candidate Relationship Management. Numerous pieces of bespoke software are available to help you easily keep track of who’s applied for which job, and sort candidates according to skills and experience.
• Accounting software – Not many people (apart from accountants) love the financial side of running a business – running payroll and putting together tax returns can quickly make you question the wisdom of getting set up on your own. However, while you’re unlikely to be able to afford an accountant in the early days, investing in accounting software that lets you track expenses and payments could really pay dividends. You can make sure you stay on top of your finances, and don’t have any sleepless nights when it comes to filling in your tax return.

Office space

You might start off in your bedroom, but sooner or later, you’ll want to find a proper space where you can meet candidates and run your business. A co-working space is a great first step, getting you out of your living room but saving you the responsibility of single-handedly renting a space. You can find out more in our in-depth guide to the costs of co-working , but expect to pay anything between £100 and £600 a month in London depending on location and facilities. Outside the capital, prices fall dramatically – with a co-working space in Sheffield, for example, costing approximately £200 a month.

As a recruitment business, you shouldn’t need much in the way of equipment. The days of fax machines are long gone, and contracts can be electronically signed using services like Docusign . Make sure you have a good phone and internet connection, as well as a selection of private spaces where you can meet candidates.

Location is also important: you’ll want to ensure you’re based somewhere that’s easy for candidates to get to, and also consider whether there’s a part of town which is a particular hub for the industry that you specialise in.

There’s no getting around this one – as soon as you employ your first member of staff, you’ll need employers’ liability insurance that covers you for claims of up to £5m. It’s also a good idea to consider getting public liability insurance, which would cover you if anything happens to a candidate or client on your premises, while any vehicle used by the business must have a motor insurance policy in place.

Recruitment is commonly associated with two things – high salaries and high turnover.

Let’s tackle salaries first. While this is likely to be your biggest ongoing expense, it’s a bit of a myth that recruiters are always on high salaries. Nationally, PayScale data indicates that the average UK salary for a recruiter is £26,443 – notably below the UK average of £31,772 a year (or £611 a week).

Of course, this masks significant regional variation, with LinkedIn Salary data indicating that the average for a recruiter in London is £35,000 – compared to £27,500 in Manchester, £29,500 in Sheffield, and £29,500 in Leeds. And you’ll likely need to also factor in commission, which averaged £5,000 according to PayScale and £10,000 according to LinkedIn.

In terms of staff turnover/staff churn, there’s no doubt that this is an issue for recruitment businesses, with rates commonly cited that are double or even triple the national average of 15%. The common turnover factors still apply – make sure you’re open to flexible working, and that salaries keep pace with the industry at large – but dealing with rejection is often cited as the most difficult part of working in recruitment.

It might therefore be a good idea to ensure that a system is in place for employees that are struggling. For a startup, this could be as simple as an empathetic senior member of staff that can offer the benefit of their experience. As you grow, investing in dedicated mental health support could really pay dividends.

With a recruitment business, awareness is key. You need everyone to know what you do, and how you go about it – which makes marketing really important. Consider targeted digital and social media marketing campaigns, as well posting on online job boards.

While it can be difficult to know how much to spend, make sure you don’t commit to a campaign before you know it will deliver a solid ROI. Start small, and then scale up if you see positive results.

Project management software

With so many things to juggle, using project management software can make a huge difference to your recruitment business. Easily keep track of everything that needs to be done, and instantly see which tasks are overdue. Some programs can even automate processes completely to significantly improve efficiency.

Given the myriad costs discussed above, making sure you can finance your recruitment business should be one of your first priorities. Given the delay between outlay and financial return, cash flow is a common issue for recruitment agencies.

Alongside trying to secure investment or a business loan, make sure you consider invoice factoring. This is common in recruitment, and is a great way to manage a temporary shortfall – find out more in our guide to invoice factoring fees .

Two finance providers that specialise in the recruitment industry are Sonovate and Quba Solutions.

Sonovate specialises in invoice finance, allowing businesses to borrow against their outstanding invoices in order to free up cash and pay their contractors on time. It has already funded over £500m in invoices to date.

Quba Solutions

Quba Solutions is a contract finance provider that offers finance and back office services to recruitment firms. Its packages allow you to easily generate invoices, chase payments, and ensure that your cash flow remains positive.

Expert insight: Gary Ashworth

Recruitment veteran Gary Ashworth has over 40 years experience in the industry, founded his first recruitment company when he was just 21, and is currently chairman of three different recruitment companies. Speaking to Startups, he stressed the importance of having a coherent financial plan in place:

“If you want to take advantage of running contract or temporary staff as well as charging a fee for making them permanent, then you’ll have to have a line of credit in place to cover their wages, since you might not get paid for 30-60 days or longer.

“You’ll also need a more sophisticated back office to process all of the transactions and that will come at a cost.

“It’s absolutely crucial you get the numbers right – you should be turning 20% of your net fee income into profit .

“If you’re not doing that, then you’re either paying your staff too much or your establishment costs are too high. You don’t want to be a busy fool who works hard but barely makes a profit!”

The main piece of legislation that covers the recruitment industry is the Employment Agencies Act 1973 . If you want to set up a recruitment business, you’ll need to make sure you know this legislation inside out. The REC has a helpful guide, and this infographic nicely summarises the main points.

Source: Agency Central

Alongside members and key figures from the world of recruitment, the REC has also created the REC Code of Professional Practice, which aims to promote consistent standards across the industry. This covers the following 10 areas:

• Respect for Laws
• Respect for honesty and transparency
• Respect for work relationships
• Respect for diversity
• Respect for safety
• Respect for professional knowledge
• Respect for certainty of engagement (ensuring that workers are fully informed of the pay and working conditions for the role they are being employed in)
• Respect for prompt and accurate payment
• Respect for ethical international recruitment
• Respect for confidentiality and privacy

As is the case with any business, starting a recruitment agency is not for the faint hearted – but following the steps laid out above should ensure you avoid some common pitfalls.

Starting off with a good business plan is crucial – one that makes it clear what your business strategy is, has detailed cash flow forecasts, and demonstrates your in-depth knowledge of your target market. If you’re starting out with no recruitment experience, then taking on an employment franchise could be a great option – and regardless of whether you’re franchising or going it alone, choosing the right pricing structure is key.

The UK recruitment industry is already a crowded market. Finding your niche is extremely important, as is having an innovative mindset that’s open and ready to implement new recruitment solutions.

With initial costs likely to include a website and marketing, and later steps on the ladder entailing expenses like office space and CRM systems, having the right finance in place should be a cornerstone of your business strategy. Finally, make sure you have an in-depth knowledge of the UK’s employment agency legislation to ensure you’re operating legally.

Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

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How to write a business plan for recruitment in 2024 (template included)

• Published on June 3, 2020
• Updated on February 12, 2024

Writing a business plan in recruitment has always played a crucial part in the interview process for a number of recruitment agencies around the world.

A comprehensive business plan can demonstrate a recruiter’s commitment, knowledge and commercial acumen. During economic uncertainties in 2023, these qualities are more important than ever.

Arriving at an interview armed with a comprehensive business plan before you’re even asked will no doubt set yourself apart from other recruiters.

During economic uncertainties, managers will need to present a business case to leadership for budget approval in order to make a hire. Your business plan will be an important element of this business case. An impressive business plan could be the difference between landing an offer today, or falling into a pipeline of other candidates.

In this article, we share a step-by-step guide outlining how to create a comprehensive business plan. We walk through the key components and include examples.

At the end of the article, you can download a free recruitment business plan template which is tailored towards the key components mentioned in this article.

A business plan should be packed full of relevant information but should be compressed and to the point. Avoid verbiage, stay specific and keep to 4 – 6 pages.

Introduction

Start with a title. Include your name and the company you’re writing the business plan for. A little personalisation will go a long way.

Underneath your title, outline the objective of your business plan and again personalise it towards the agency you’re interviewing with. While you have the hiring manager’s attention, this paragraph is an opportunity for you to demonstrate how comprehensive your business plan is. The aim is to capture the hiring manager’s interest so they continue to read each component:

“The objective of this business plan is to outline the value I can add to employer’s name.

In this business plan, I have highlighted my specialism, hiring activity in my market, my candidate and client strategies, my methodology, how I plan to recruit through economic uncertainties in 2023, my competition and my personal revenue projections over 12 months.”

You can use this paragraph as a way to introduce your business plan verbally if you’ve called up a hiring manager. You can also use this extract in a cold email.

Your specialisation

This is a crucial positioning statement for your value-add. It sets out precisely where your network and experience lies and what you intend to bring to the table in your new role.

Your specialisation can be described clearly by outlining what roles you will specialise in, what industries you will target, what level of seniority you will focus on and what geographies you will cover.

For ease of reading, you can use each component as a title and use bullet points to expand upon your answers.

Taking a Technology recruiter as an example:

What roles I will specialise in:

• Product Management permanent roles
• UX/UI Design permanent roles

What industries I will target:

• Series A – C funded technology startups (high investment, high growth and high volume of roles)

What level of seniority I will focus on:

• Mid to senior (120 – 180k salary range for Product Managers, 140 – 200k salary range for Designers)

What geographies I will cover:

• Based in Singapore, the local market will be my core market
• Secondary markets include Jakarta, Bangkok and Kuala Lumpur due to less competition from recruiters and high volume of roles

Hiring activity trends

The hiring activity trends section provides an opportunity for you to demonstrate and portray your knowledge of the market.

The 3 important components of this section are: hiring activity over the past 3 years, hiring activity for next year and how you predict hiring activity to shift beyond that.

Utilise your own knowledge of the market but back it up with research gained from reputable sources related to your market e.g. Tech in Asia, Tech Crunch, Channel News Asia, The Straits Times or The Financial Times.

You’ll want to cover how hiring activity has increased or decreased, what the drivers of growth are in your industry and what the threats and challenges are within your sector.

Candidate strategies

Moving on from market trends, this section indicates how you will acquire candidates for your desk. It offers an opportunity for you to demonstrate the experience you’ve learnt in candidate management from your previous firm, but also an opportunity for the employer to ensure that your approach aligns with theirs.

3 key components of this section include: how you will generate candidate leads, what challenges you expect to face and how you will overcome these challenges.

Taking a Front Office Banking & Financial Services recruiter as an example:

How do I plan to generate candidate leads:

• Direct headhunting using a LinkedIn Recruiter account, this costs approximately $X amount, the key benefits being access to a high volume of InMails and enhanced search capability. This has been the sourcing tool for 60% of my previous placements

Challenges I expect to face:

• In light of economic uncertainties in 2023, highly sought-after candidates may be risk-averse and may not see this as a good time to move jobs

How I will overcome these challenges:

• I will develop relationships with these candidates for the future but I will adjust my sourcing strategy accordingly by increasing volume of direct approaches

Client strategies

A similar section to candidate strategies but geared towards clients. Arguably more important than candidate strategies during a recession as the market could be job-short – even in the good times, strong business development capabilities in recruiters are harder to find.

This section includes 6 key components including how you plan to onboard new clients, how you plan to sustain relationships with clients for repeat business, what industries your clients are in, the challenges you expect to face and how you will overcome these challenges.

Take these bullet points as a basic example:

How I plan to onboard new clients:

• During a recession, I plan to cultivate relationships by helping and consulting clients on non-recruitment related issues, such as advising clients on the current state of the market
• I plan to generate leads by making 25 cold calls per day during the ramp-up period, to again offer support and advice where needed, and to leverage any open roles
• A soft approach of connecting with hiring managers, HR contact and C-Level candidates on LinkedIn, to establish working relationships and eventually convert into clients

How I plan to sustain relationships with current clients and win repeat roles:

• The most important way to sustain relationships is by offering a service that is superior to competitors. That is by being transparent, sticking to deadlines and delivering results
• Regularly catch up with clients on a monthly basis to see how they’re doing and see if you can generate new roles
• Keep yourself updated on company news and congratulate clients on milestones e.g. if they generate a Series C round of funding

What industries I will target clients in:

• Series A – B funded technology startups
• During a recession there is less of an appetite to use agencies due to an unprecedented volume of great candidates available in the market
• Offer free support to companies currently not using agencies, provide an impressive service and convert into paying client post-recovery

The 6th component is “examples of target clients” and this is where you can really demonstrate tangible market knowledge. Use company names, find the potential contact in each company and add your comments, such as the volume of roles you expect from that client. 5 examples should be enough to peak your hiring manager’s interest.

You can use a table to display this information with ease:

It goes without saying that you should never be tempted to use information that is proprietary to your previous employer. This information can be openly found with some basic LinkedIn research.

My methodology

Are you a recruiter that is focussed on crunching numbers? Are you a recruiter who is focussed on cultivating long-term relationships? In this section, you can include a few quick bullet points to explain how you approach recruitment. This information gives your hiring manager an indication about whether you hold similar values and whether you have similar working styles.

How you can adapt to recruiting during a possible economic downturn

This section is a new one in response to market conditions in 2023 but can demonstrate how you are prepared to deal with current and upcoming challenges.

You can use this section as the title and include bullet points to outline how you will adapt to these market conditions.

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My key competitors

Which recruiters and agencies offer the greatest competition? Demonstrating your knowledge in this area highlights that you are commercially aware outside of your core market.

Include about 5 different competitors who are directly competing in your patch. You can use the table below to display this information:

Personal revenue and target projections

In many business plans, financial projections are of utmost importance and can demonstrate your commercial acumen. If you’ve ever watched Dragon’s Den, you’ll know what happens when you don’t know your numbers!

Project your personal revenue for 4 quarters. You can start your calculations by predicting the average annual salary of a candidate in your patch. You can project your average percentage fee agreed with clients and from there you can calculate your average fee. Once you have this, you can predict the amount of placements you’ll be making per month.

Make sure your revenue projections are realistic and achievable. Avoid the temptation to predict vastly optimistic revenues, especially during a possible recession. You must allow time to ramp-up and there must be a logical relationship between your historical and predicted revenues.

The plan only includes project revenue. Your historical revenue should be on your CV.

Take the below as an example:

My predicted average annual salary of candidates:

My predicted average percentage fee agreed with the client:, my predicted average fee:, my predicted average placements per month, my projected revenue over 12 months.

Underneath, you can also include the KPIs you will set yourself to guide you in achieving these numbers. For example, you can set yourself a guideline for how many CVs you need to send, how many candidate meetings you need to arrange, how many client meetings you need to arrange and so on.

The template

We’ve constructed a free template built around the components mentioned above, so you can create your own for when you reach out to hiring managers.

To download this template, please add your email below and you’ll be redirected to the template.

By downloading our busines plan, you agree to our  Privacy Policy and Notification Settings .

This step-by-step guide should give your hiring manager a clear idea of your plan. If executed successfully, you’ve already demonstrated your commitment, knowledge and commercial acumen before even attending an interview.

The way you’ve structured your plan will give your hiring manager a very clear indication of your methodology and whether you’d fit their structure. Keep in mind that if your methodology is focused on high volume recruitment, it’s not going to work well with an executive recruitment agency.

As a next step, learn this plan inside and out. Be prepared to pitch your plan to your hiring manager and answer detailed questions surrounding each component.

Leave your interviewer with no room for concern and secure that role! Lastly, if you enjoyed the article, please consider subscribing or following us on LinkedIn to have new articles for recruiters like this delivered directly to your inbox.

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As Founder of Charterhouse Partnership, I led the opening of 5 international offices, hiring & training hundreds of recruiters. Please subscribe to our weekly newsletter where I share my insights on the recruitment industry.

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How to write a business plan for a recruitment agency

Table of Contents

Why a business plan is important

Provide direction,  minimise risk , reduce spending, market research , budgeting and financial planning, examples of swot analysis for a recruitment agency, opportunities , how countingup can benefit your recruitment agency.

If you’re looking to start a recruitment agency, you’ll need to create a business plan as any other startup would. Remember, though, that you’ll need to also account for the specific situations that might arise while working in the recruitment industry.

This article will serve as a guide to writing a great business plan for your recruitment agency. We’ll look at what your plan should look like, as well as why a plan is important. The topics we’ll cover include:

There are a few different reasons why you need a business plan before starting a business , but one of the most important is that it will guide your business going forward. Without a plan, no matter how simple the plan is, you’ll likely struggle to develop your business and make effective decisions. 

A business plan doesn’t have to be set in stone — you can adapt it to account for any unique events that affect your recruitment agency. That said, it’s essential to have at least a vague idea of the purpose your business will serve, the potential obstacles you might encounter, and how you’re going to deal with those obstacles.

A business plan is also necessary to minimise the risk you’ll face when starting a recruitment agency . One of the key sections of a business plan is the SWOT analysis, where SWOT stands for strengths, weaknesses, opportunities and threats.

In order to minimise risk effectively, it’s vital that you analyse both the weaknesses of your agency as well as the threats it may face. In doing so, you’ll be able to fix your weak points and avoid potential threats more effectively.

Finally, business plans are important because they provide valuable data for minimising your spending. For example, during your SWOT analysis and financial planning , you may find that you’ve budgeted a large amount of spending to support a part of your business that’s actually very strong. 

In a recruitment agency, this might mean you’ve planned to spend a lot of money on marketing, but your business already has a strong brand because you (as the owner) have many good personal contacts in the industry. In this instance, you can safely reduce your marketing budget and save your business money. 

Thorough market research is the best first step when you’re writing a business plan . Market research means examining the industry your business will exist in, and finding out the needs and preferences of that industry’s consumers.

For a recruitment agency, a key research topic for your business plan would be finding out the impact COVID-19 has had on the market. Many new markets emerged during the pandemic, which you can provide your services to. As the UK is currently recovering from the pandemic, it would also be wise to look into which industries are now recruiting heavily after laying off staff in recent years.

Planning out how you’ll spend your money when starting your agency is also a key part of a good business plan. You need to consider your budget for starting the business as well as how you’ll manage your business finances going forward.

It’s smart to prepare a budget for each section of your business. For instance, you might set aside different amounts for recruiting staff, purchasing business premises, and marketing. Your advertising budget is particularly important when you’re a small business , as you may not be able to rely on personal contacts or existing clients for referrals, so you’ll need to attract clients independently.

Conducting a SWOT analysis is a great way of evaluating your business even after starting up, but it’s particularly helpful when you first put together your business plan. SWOT stands for strengths, weaknesses, opportunities and threats, so a SWOT analysis requires you to think of an example of these for your business. In a recruitment agency, these might be:

As mentioned above, it may be that you have a good reputation because you have a wealth of experience and personal connections in the recruitment industry, so you’ll not need to worry as much about marketing.

Recruitment agencies frequently have to use a lot of software to track their clients’ needs and organise candidate applications. If you’re not very good with technology, you may need to hire staff who are to account for this weakness.

The UK is currently rebounding from the struggles of the COVID-19 pandemic, and this presents a wealth of opportunities for a good recruitment agency.

You need to take immense care when you’re handling people’s personal information, which you’ll often do at a recruitment agency. Sending this information to the incorrect person can have a considerable negative impact on your business, as there is a lot of new legislation regarding privacy. 

Your business plan should include a good amount of financial planning, as tracking your cash flow (your incoming and outgoing cash) is hugely important in any business. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one app. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Find out more here .

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Home » Blog » Where to start with a recruitment business plan

Where to start with a recruitment business plan

Rhys jones written by rhys jones managing director – davidson gray.

Rhys sold out of his previous recruitment businesses in 2012 to focus solely on helping recruiters set up and build recruitment businesses. Follow Rhys on LinkedIn or contact him direct  here for help with your start-up recruitment business or for coaching to grow an existing one.

You’ll be pleased to hear that in my experience a recruitment agency start up business plan need only contain a few essentials and really isn’t rocket science. You only need a basic plan to start, well thought through definitely, but not War and Peace.

A start up recruitment business plan doesn’t need to be super sophisticated. However what you do need is a well thought through plan so you can build solid foundations for growth, remove as much risk as possible and allow you, once you go live, to concentrate on the exciting bit, BILLING, rather than working things out as you go along. The planning now will make the real fun part of making money so much easier with fewer distractions, and allow you to really enjoy being your own boss and owning your own business. So spend that time now, trust me it’s a fabulous investment and you’ll be grateful for it when you make a flying start in your new recruitment agency. 

If you search on the web, you’ll find various contradictory ideas on what a business plan should contain, which can leave you worse-off than when you started, confused on which way is the best way. I hope in this series of blogs I can take some of that confusion away for you. I’ve been lucky enough to have hands on experience of building my first businesses from the ground up. Added to this, I improved my knowledge with additional learning gained at Cranfield Business School, which I applied to those early businesses and the many more recruitment businesses in different sectors I went on to set up, all of which are continuing successful companies. So with this experience, I’d like to think my ideas on recruitment agency business plans are worth considering (sorry if this sounds like I think I’m the Richard Branson of recruitment, it’s not meant to, but think it helps explaining my experience).

The common school of learning on business plans is to use the SWOT analysis, i.e. what will be the planned business’s:

• Opportunities

I don’t disagree that you could add this to your plan, and it’s handy to have in, but this series of blogs look at what I feel are specific and essential to a recruitment business plan (plus the bits you may not know if you’ve never set a business up before). Where to start.

To see if you do have the basics of a business in you, I advise firstly to look at the sales and cash flow forecast. If your business idea doesn’t pass this test, you need not waste your time any further – your business just won’t fly. So let’s start with the engine of the business, money in.

Your Sales Forecast

To allow you to write your cash flow forecast, you’ll need a well thought through sales forecast.

There’s lot to consider here, a lot more than first appears. You can’t just take what you bill now and assume you can simply replicate that without understanding where your current billings come from. So, below are ways to stress test where your current billings actually come from by looking at where you get both your vacancies and candidates.

Candidate Attraction

Needless to say finding good candidates is critical to your placements, so you need to make sure you have thought about where you will get them from. To help understand where you are currently successful, I suggest you look at your last six months’ billings and write next to each candidate placed where that candidate came from. Was it a headhunt call, a referral from previous candidates / clients, was the candidate off the business database, were they from a job board, social media, LinkedIn, Twitter etc? This is a real life study based on you, and how you are currently successful. It’s invaluable to understand what you will be able to easily reproduce when working for yourself e.g. headhunt calls, LinkedIn etc. and parts you may need to make up for e.g. candidates who came from a database search. So this will help you appreciate how easy or not candidate attraction will be for your sales forecast. It will also help get you thinking what you can do to make up for any tools you have now in the workplace but won’t have when you leave. Plus, if it’s job board centric then this is a cost you need to add to your cash flow plan. I’m not going to go into how to improve your candidate attraction here (that will be another blog) but if you’re currently very dependent on the company database, this should ring alarm bells and you need to think ahead and plan how to recruit successfully without it. And try applying these new techniques now whilst you’re still employed to perfect them so you can add their added sales value to your plan with confidence.

Client / Vacancy Attraction

At this stage it’s pertinent that I bring up the potential handicap that your current employment contract’s restrictive covenants may have on your planned client base. The current widely accepted covenant, i.e. what the courts see as ‘fair and reasonable’, is that you can be restricted from trading with any clients you’ve had ‘material dealings with’ over the last twelve months with your current employer, for the next six months once you leave (any more than this is seen as unreasonable).

Now this isn’t to say if it’s in your contract that means you’re definitely frozen out from this potentially lucrative group of businesses, there could be errors elsewhere in your contract that makes this void. So get it legally checked and from a commercial angle if you can. Law isn’t black and white and getting good commercial legal advice is hugely valuable which is why I use Barrister Greg Walsh of  Greg Walsh Law  for my Davidson Gray partner businesses. I see it as that valuable to get good quality advice. But if your current clients are off limits for the first six months, work this into your plan. Next, go back again over the last six months’ placements and mark where your clients/vacancies came from as you’ve done for your candidates. Do the clients come to you for you, or because of who you work for, are they from a PSL you won’t be on, were there any from a mailshot, new business cold call etc?  This will quickly show you where your current vacancies come from so you can write your sales forecast from a true picture of what you can and can’t replicate easily. Plus, if some methods you use now to gain clients are removed or won’t be as effective once you leave, you have time to plan new business development and marketing initiatives to replace this business. And as with the new candidate attraction strategies, see how they work where you are now, but maybe not too much, you don’t want too many new clients your covenants could restrict!

The sales forecast itself

Once you’ve considered the above, you will be able to see more clearly what tools and advantages you currently benefit from where you work. It should now be easier for you to write a realistic sales forecast. I find it helpful to write two sales forecasts, one you feel is realistically achievable and one that you feel is the absolute minimum you’ll achieve. The bare minimum one is important in your cash flow forecast. You don’t want to get five months in and run out of cash, so if you know the bare minimum you’ll achieve, you can see how much of a cash buffer you’ll need. The realistic forecast is the one you plan for with the activity you expect to hit, the KPIs you set yourself etc. Plus this can be your motivator, as you should be earning a lot more on this forecast than you currently are very, very quickly!

So simply start with month one, and take it through to month twelve. You can’t realistically predict year two in a start-up. You will learn a lot midway through year one and you can use this learning for year two’s forecast.

Once you’ve done your sales forecast, you can use this in your cash flow forecast. I will go into this in my next blog where I’ll explain how you can get a very good idea of  how much it will cost to set up a recruitment business , running costs, and net profit month by month.

I hope you’ve found this second blog in the series helpful, and as always if you have any questions, feel free to contact me. You can find me on LinkedIn under my main business name of Davidson Gray.

Interested in working with Rhys to grow your start up?

Rhys not only provides the start-up infrastructure for your new business and all the support services your business will need, he can actually work with you to grow it. Take advantage of as much mentoring and coaching as you would like, plus Rhys considers himself a working partner and will take responsibility for the areas that you’d like him to, perhaps those you have the least passion for e.g. Finance and Digital Marketing. When working together on the business’s growth strategy, much of the effort to deliver it can be delegated to the Davidson Gray team.

Book a chat with Rhys  here.

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In this blog, aimed at recruiters, we examine the potential LinkedIn Recruiter options in more detail and find out what you get for your money and how to make the most of the investment.

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Leadership or management – what’s more important to a growing recruitment business?

Leadership or management – which one’s the more important skill to have when growing your recruitment business? We’ll look at why it’s crucial to have both and when to use them to greatest effect.

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How to start a recruitment agency: 10+ considerations for success

There are thousands of recruitment agencies in the UK, with new firms popping up every day—often by industry professionals looking to strike out on their own. But figuring out how to start a recruitment agency can be daunting. And, if you’ve already started your agency, growing it can be overwhelming, too. Success comes with a whole new set of challenges, some of which can come as a nasty surprise if you’re not prepared. Here are twelve areas any new recruitment firm should consider.

What is a recruitment agency?

Recruitment agencies help put the world to work, matching talent with fitting opportunities and providing companies with flexible recruitment solutions. recruitment agencies play a part in each step of the employee lifecycle, from initial recruitment to placement and onboarding to redeployment and beyond. For job seekers, working with a recruitment agency can help them gain access to diverse opportunities and expert guidance. At the same time, companies can tap into pools of qualified talent, administrative support, and the agility to navigate their evolving recruitment needs. In essence, recruitment agencies guide both candidates and companies through the employment journey with precision and a keen eye for the perfect match.

Benefits of starting a recruitment agency

Starting a recruitment agency brings a range of benefits, offering entrepreneurs the flexibility to curate their own roster of temporary workers and build relationships with diverse clients. This flexibility extends not only to choosing the right talent for specific roles but also to tailoring services to meet the unique needs of client companies. The potential for growth and profitability in the recruitment industry is substantial, as the demand for skilled and flexible labour continues to rise. Entrepreneurs can capitalise on this by strategically positioning their agency to tap into burgeoning markets and industries, contributing to both personal and financial growth.

The ability to operate from the comfort of home or establish a dedicated office space adds another layer of flexibility to the journey of starting a recruitment agency. This adaptability allows business owners to structure their work environment according to their preferences, fostering a conducive atmosphere for productivity. Furthermore, starting a recruitment agency provides the opportunity to carve out a niche within the industry, focusing on specialised areas of expertise. By honing in on a niche, entrepreneurs can establish themselves as experts in specific fields, attracting clients seeking specialised recruitment solutions. In a growing market, the advantages are vast, with the potential for high demand amplifying the prospects of success for those with the foresight to navigate the dynamic world of recruitment.

How to start a recruitment agency: 12 focus areas

Starting a recruitment agency can be a lucrative venture, but it requires careful planning and strategic focus. To ensure success, it’s important to consider 12 key focus areas that will set the foundation for your agency’s operations and growth. Whether you are a seasoned entrepreneur or new to the recruitment industry, these focus areas will provide a comprehensive guide to starting and running a successful recruitment agency.

Your business plan

Social media, recruitment trends and news, industry expertise, recruitment technology, candidate experience, client engagement.

To start a recruitment agency, you’ll need a business plan to act as your North Star, helping you to determine your mission, target market, financial projections, and growth strategies.

• Do you have a growth strategy in place?
• Are you emphasising profit or revenue?
• Are you focusing on existing clients, new clients, or an even mix?
• Will you specialise in a specific placement-type (temp, perm, contract, direct hire)?
• What industries will you serve?

Marketing is key to ensuring that your recruitment agency gets the visibility and brand awareness it needs to get off the ground. Crafting a compelling marketing strategy allows you to showcase your agency’s unique value proposition.

• Do you have a modern website that’s easy to use?
• Is your site mobile-friendly?
• Do you monitor review-sites for feedback about your firm?
• Do you provide resources for candidates on your website?
• Do you have a specific selling point that differentiates your firm from the competition?
• Do you personalise your communication (in email, social media, etc.)?

Developing strong sales tactics ensures that your agency can effectively communicate its value and capabilities, establishing a solid client base.

• Do you have a clearly defined target customer audience?
• Do you have satisfied clients you can use as referrals?
• Do you have a strategy for generating leads that goes beyond cold-calling?
• Do you avoid generic value propositions in describing your firm? (e.g., “We provide great customer service).

A strong social media presence not only enhances brand visibility but also allows for real-time engagement, keeping your agency top-of-mind in the competitive recruitment landscape.

• Do you have an established presence on sites like LinkedIn and Facebook?
• Do you regularly share useful content with candidates and clients?
• Do you have a sourcing strategy for identifying qualified candidates on social networks like Twitter, Facebook, and LinkedIn?
• Do you use social media to effectively network with prospective clients and candidates?

Staying informed about recruitment trends and industry news is vital when starting a recruitment agency. This knowledge positions you as an industry expert, enabling your agency to adapt to evolving market demands, remain competitive, and provide cutting-edge solutions to clients and candidates.

• Do you stay up-to-date on recruitment industry trends?
• Do you network at recruitment events?
• Do you stay up-to-date on current events and legislation that impact recruitment firms?
• Are you a member of your area’s recruitment association?
• Do you embrace new recruiting technology?

In-depth knowledge of industry nuances and specific sectors allows you to tailor your services, address unique challenges, and offer unparalleled value to clients and candidates.

• Are you seen as an expert in the industries you serve?
• Do you provide valuable industry resources to prospective candidates and clients?
• Do you go to industry-specific events to stay up-to-date and network with prospective clients?

Investing in training programs is key to starting a recruitment agency, ensuring that your team is equipped with the skills and knowledge needed for success. Well-trained staff can navigate the complexities of recruitment, fostering client satisfaction and candidate retention.

• Do you have a formal training program in place?
• Do you incorporate employee feedback into your training?  
• How frequently, if ever, do you evaluate employee performance?
• Are you able to ramp-up new employees in a month or less?

To start a recruitment agency, you’ll need to invest in the best tech stack from the start. Leveraging cutting-edge tools and software streamlines operations, enhances efficiency, and keeps your agency ahead in a technologically driven recruitment landscape.

• Do you use an applicant tracking system ( ATS ) and/or customer relationship management ( CRM ) software to manage your data and nurture relationships with candidates and clients?
• If you are currently leveraging an ATS, is your email fully integrated?
• Do you have a reporting solution for tracking candidate and client data?
• Do you automate the onboarding process for candidates or is it manual?

Prioritising the candidate experience is key when starting a recruitment agency. A positive candidate journey, from application to placement, fosters loyalty and positive word-of-mouth, setting the stage for attracting top-tier talent.

• Do you have a candidate engagement strategy in place at your firm?
• Do you personalise all communication with candidates?
• Do you follow up with candidates after their placement?
• Do you measure candidate satisfaction?
• Do you solicit candidate feedback?
• Do you interview candidates at the end of the hiring process to learn about their experience?
• Do you use candidate feedback to make deliberate improvements to your firm?

Engaging clients ensures that your recruitment agency enjoys continued success. Regular communication, understanding client needs, and delivering exceptional service all help build client partnerships for the long run.

• Do you use an applicant tracking system (ATS) to nurture client relationships and detect unhappy clients?
• Do you maintain consistent and frequent communication with your clients?
• Do you measure client satisfaction?
• Do you solicit customer feedback?
• Do you use client feedback to make deliberate improvements to your firm?

Detailed reporting provides insights into key performance indicators, allowing you to refine strategies, track success, and make informed decisions for the continuous improvement of your agency.

• Do you report on critical recruitment metrics like fill-rate and gross margin?
• Do you perform weekly or monthly reports to better understand your business?
• Do you measure your employee’s performance on specific key metrics?
• Do you use your data to make meaningful changes to your firm?

Safeguarding sensitive candidate and client data builds trust, ensuring compliance with data protection regulations and safeguarding the reputation of your agency in an increasingly security-conscious landscape.

• Do you have a backup of your pertinent client and candidate data?
• Is your data linked to a personal account vulnerable to attack (e.g., a personal Gmail account)?
• Do you have a GDPR compliance strategy in place?

Want more insight and tips on how to start a recruitment agency?  Check out Toolkit: Resources to Grow Your Recruitment Firm from the Ground Up  for useful tools and tips you can use to better your firm.

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Home » Recruitment Business Plan

Recruitment Business Plan

Ready to take control of your future by starting your own recruitment agency.

The closer you get to putting your plan into action, the sooner you will need to write a professional business plan that will help you:

• Understand your competition
• Define your unique selling proposition (USP)
• Outline your business milestones
• Investigate funding options
• Get your business off the ground

SSG is currently supporting 200 UK-based recruitment startups launch and grow into successful agencies, so we’ve put together a helpful and easy-to-follow guide to writing a successful business plan for a recruitment startup.

What should my business plan contain?

• A clear and concise executive summary
• Details about your new recruitment business
• An analysis of the market and your competitors
• Your plan for sales and marketing
• How you will manage the business
• A detailed breakdown of your operations plan
• Your financial projections and requirements

Want to know more about SSG?

SSG gives rocket fuel to entrepreneurial recruiters. By taking the financial risk and administrative hassle out of launching your own recruitment start-up, SSG lets you concentrate on what you love doing: making great placements.

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Recruitment Agency Business Plan: How to Write One

Launching a recruitment agency demands a solid foundation, and crafting a detailed business plan is the cornerstone. Get started on your recruitment agency business plan with our guide. We will walk you through all the details.

The United States, Japan, and the United Kingdom dominated the recruitment and staffing industry in 2022, generating 55% of its revenue. Global revenue for the staffing industry jumped 4% to $648 billion, according to a report from Staffing Industry Analysts . The current job market, characterized by rapid technological advancements and shifting workforce demographics, is creating a market for flexible staffing solutions.

To cut costs and improve the efficiency of human resources, businesses are turning to staffing and recruitment agencies to secure talent. The rise of the gig economy and the preference for contract or temporary positions among workers seeking greater work-life balance is helping fuel the industry’s growth. Nearly 23% of working Americans also have a side hustle, according to a recent study by Pymnts .

Your Business Plan’s Key Elements

Whether you are a seasoned professional in the staffing world or a newcomer to the field, you need to start with a recruitment agency business plan. Creating a business plan requires gathering a significant amount of information. Start by researching the staffing industry, including market size, growth trends, and regulatory considerations. Network with industry professionals, attend relevant conferences, and utilize online resources to gain knowledge. Financial projections should be based on realistic market assumptions and comparable business models.

Keep in mind you will need a business plan at various stages of your business journey. Initially, it will guide your startup phase, helping you to secure funding and establish your business structure. As your agency grows, revisiting your plan can help you to scale your operations and enter new markets.

A comprehensive startup business plan for a recruitment agency should include:

• Executive summary: Start with a clear and concise overview of your business — your elevator pitch. Highlight your business goals, mission statement, and the services you plan to offer.
• Market analysis: Conduct thorough research on the staffing industry, focusing on your niche. Identify your target market, analyze your competitors, and outline the trends and challenges in the industry to understand your unique selling proposition.
• Services: Detail the types of staffing services you plan to provide. Whether it is temporary staffing, permanent placement, or executive search, be clear about your offerings, the verticals you will serve, and how they meet the needs of your target market.
• Marketing plan: Outline how you will attract clients and candidates with your marketing plan and sales strategy. Identify the channels you can use to build your brand and reach your audience.
• Operations: Describe the day-to-day operations of your agency, including the recruitment process, the technology, the tools you need, and how you plan to maintain quality and compliance.
• Financial plan: Make detailed financial projections, such as startup costs, revenue forecasts, and a break-even analysis to understand the financial viability of your business.
• Management: Highlight your team’s expertise and the organizational structure of your agency. If you start solo, outline your experience and any external support you can leverage.

Partnering With AtWork: A Shorter Path to Your Goal

If you are considering opening a recruitment agency, partnering with AtWork to start a staffing franchise can significantly streamline the startup process. By joining forces with a proven brand, you can cut down on startup costs and bypass many of the hurdles of starting from scratch. AtWork’s recruitment agency business plan also allows you to take advantage of the Work Opportunity Tax Credit (WOTC) to lower your operational costs.

AtWork provides comprehensive knowledge, training, and tools essential for launching your staffing business. As a franchise owner, you get in-depth training on running a successful staffing agency, including sales, operations, and compliance. AtWork has state-of-the-art technology and operational tools to simplify day-to-day management, and marketing campaigns to effectively promote your agency and attract clients and candidates. Its support staff also handles all your payroll, allowing you to concentrate on scaling the business.

Learn More About AtWork

Get started to learn more about partnering with AtWork to launch a business in the staffing industry.

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Recruitment is a simple business at its core: get a phone, call people, make placements. But if you’re researching how to start a recruitment agency, one thing’s not so simple: cost.

There’s no general rule on the cost of starting a recruitment agency. Location, agency structure, and even what your business can skip out on (e.g. no rent for a remote team) will affect the calculation.

In this article, we’ll assume that you want to get a lean new recruitment agency off the ground quickly. We’ll cover a recruitment agency’s start-up costs in the UK versus ongoing costs to budget for. Plus we’ve got some tips on business plans, cash flow, and more. 

Once the basics are clear, you can make the right investment decisions (or find ways to save). Get started with our rule-of-thumb guide to the costs of setting up a recruitment agency.

How much does it cost to start a recruitment agency in the UK?

Set-up costs, company registration: £12.

Make your new agency official by registering with Companies House. This should only cost as much as a fancy sandwich, and will get your company legally created within a day.

There are a few steps to prepare for company registration:

• Choose an agency name
• Appoint a director
• Choose at least one shareholder
• Note any PSCs (“people with significant control”)
• Create articles of association

You can complete these steps online and use templates for legal documents. Note that if you bring in multiple shareholders or a business partner, getting legal advice is a must.

Recruitment website: Free - £15,000 for design, £3 for hosting, or all-inclusive £250-900 per mo.

For a recruitment website design, costs can come in low:

•  The free DIY option
• £100 for a quick build by a friend or freelancer

In the mid-range, you could get a bespoke design for £2500 - £15,000. And the prices go up to £45,000 for a multinational enterprise website (though you’ll probably skip this one as a start-up).

That’s just for design alone. Budget in a few extras for your live website:

• Domain name registration: £7 – £12 p.a.
• Site hosting: £2-12 per mo.
• SSL certificate: ~£4-20 p.a.

With a SaaS model website like Access Volcanic , costs will come in around £250 - 899 per month. This includes most website expenses (like domain name, hosting, and design) in one set price.

A branded website with strong SEO will be a magnet for candidate and client attraction. And it saves on job ad spend later if you set up your own job board. For more on recruitment website features and costs, check out this overview .

Branding and social media: £80-2400

If you’re confident in your design skills, you can create a business logo for free with Canva .

For the less artistically inclined, a logo and visual style guide should be a one-time cost of £80-2400. The range depends on whether you work with a freelance designer or a marketing agency.

On the plus side, social media is free. Setting up your agency’s official LinkedIn page is the next logical step. (Though LinkedIn also has its costs, as we’ll cover below).

Ongoing costs

Recruitment technology: £2,800 - 11,920+ p.a. minimum.

“Recruitment technology” is a broad term. It could cover:

• Client Relationship Management (CRM)
• Applicant Tracking System (ATS)
• Timesheet management
• Pay & bill software
• Recruitment analytics tools
• Video interviewing
• CV screening

The most essential rec tech tools are CRM and ATS platforms . Automating candidate and client relationships saves on admin headache and cost. It’s a much better alternative to Excell hell.

A CRM comes in around £25 per user per month with a vendor like Zoho Recruit, to £80-160 per user per month for an enterprise platform like Bullhorn.

And for an ATS, average costs start at £2,500 p.a. (but can get up to £10,000 p.a. ).

It’s hard to generalize on rec tech costs because the right system depends on what you want to get from it. With that said, we’d recommend investing in tech that:

• Is specifically designed for recruitment
• Includes ATS / CRM at a minimum
• Provides reporting on business performance and financial forecasting

For some more guidelines on tech investment, read our CRM Buyer’s Guide .

LinkedIn Recruiter: £1345+ p.a. per license

For a small startup agency , Recruiter Lite (~£1345 p.a. per license) could be a good choice. Its downside is the limits on data ownership and InMails.

The Professional Services and Corporate plans don’t have publicly listed pricing, but they do come with more benefits. For more details on the differences between these tiers, you can read LinkedIn’s guide .

Insurance: £60-300+ per employee p.a.

To protect your agency, sign up for Employers’ Liability insurance. Once you hire one person, it’s legally required to have coverage for up to £5m. 

The cost for EL goes up with every employee. On average, you can expect to spend £60-300 per employee p.a.

You might also consider public liability insurance. This would cover any accident, injury or property damage related to contractors’ work.

Public liability insurance costs depend on coverage and the risk level of candidates’ work. We’d recommend getting a quote to find if this is a worthwhile investment.

Job board ads: £70-239 per post

Here’s a small sampling of UK job board costs:

• Glassdoor: £149 for 30 days
• Monster: £130 for 30 days
• Career Builder: £239 for 30 days
• Reed: £150 per posting for six weeks

If you can’t stomach the thought of spending that much to post a JD, consider:

• Adding a job board to your own recruitment website
• Investing in an ATS that comes with job portals

Office costs: £207+ per mo.

There are huge savings to be had if you start up a remote recruitment agency. But if you’re looking to create an in-office agency, the benefits stand out:

• Meeting space for clients and candidates
• More collaboration in-person
• Increased productivity
• Training opportunities for juniors

What it takes to go in-person is:

An office space. If you’re setting up a new recruitment agency, it’s easier to start with the flexibility of a co-working space. A hot desk in London will be around £273 per month on average, while in the rest of the country it’s closer to £202 .

Traditional office rent is between £35-120 per sq ft in London alone. Your business might also be on the hook for office equipment. If you’re focused on a quick start, this may not be the best option.

A virtual phone line. Having your own office phone number costs around £5-40 per mo.

Industry memberships: £8.69-249+ per mo.

Networking isn't just for job seekers. Joining a professional network can be a boost to your business.

Popular examples would be the REC (starting at £104 p.a.) and The Recruitment Network ( £249 per mo. ).

Payroll: £31,462+ per consultant

According to Glassdoor , average salaries for UK recruiters come in at around £31,462. And the business will be paying out commission to consultants, likely in the range of 10-40%. 

There are also management and support roles to consider. At the beginning, you may have to focus on hiring billers before spending on admin support. This means wearing many hats as a leader and asking your team to do the same.

Paying your team (not to mention yourself as an owner) can be an enormous expense. Hire lean and be prepared to rely on external funding, i.e. a bank loan, self-funding, or angel investors.

Accountancy: £150-600+ per mo.

Accountants in the UK will charge in the range of £150-600 per month, depending on the size of the company’s accounts.

Getting an accountant to cover payroll services, tax returns and more will add another couple of hundred pounds per month to the bill.

3 things to consider before setting up an agency

Creating a business plan.

From sticking to guidelines to securing a bank loan, a business plan helps guide the way.

Here are a few steps to help you get on the right foot:

• Define your business: To start, put down an executive summary (about the agency, its purpose, and strategy) and a personal summary (why you’re qualified to run it). This is the first step to persuading lenders and clients why they should work with your business.
• Identify your niche: Choose your agency’s recruitment specialism and industry. It’s better to stick close to your own experience, as industry knowledge and connections will come in handy later.
• Set goals: Add in a market and competitor analysis. Explain how your agency will fit in to the current market - what solutions can only your team provide? It’s also a good idea to outline your management team and agency structure.
• Forecast finances: Outline your agency’s costs and forecast what the business might bring in over the next few years.

Maintaining cash flow

Realistically, it could take months or even a year to bring in enough cash to cover agency expenses.

With a few tips, you can get extra cash flow sooner:

• Set up a payroll system to collect on invoices quickly
• Stick to hiring plans to keep in-house payroll under control
• Track average days to invoice payment and include in financial forecasting
• Offer discounted rates for clients who pay within a set number of days

Legal requirements

The most relevant law for UK recruitment agencies is the Employment Agencies Act 1973 .

Your business should follow these guidelines:

• Agencies can’t charge candidates for finding them work
• Candidates must be provided with a written contract
• Agencies can’t withhold candidate pay
• Agencies must check that the candidate is suited for the role
• In job ads and candidate communication, be clear that it’s an agency offering the role

Final thoughts

Starting a recruitment agency isn’t for the faint of heart. But with some tips and a plan for cost overhead in mind, you can set up a plan for success.

At the beginning, start-up costs are low. It only takes £12 to register an agency, and you can keep it cheap and cheerful with branding, social media, and recruitment website set-up.

But once your business gets rolling, the costs will add up. New bills will come due: payroll and accountancy, insurance, recruitment technology, and job ad spend, to name some.

Some of these costs can be used as leverage. For example, a CRM/ATS is near-mandatory to track relationships and keep business humming. 

On the other hand, you don’t have to pay for everything just because it’s “needed” for recruitment. Expenses like job board spend can be cut with savvy social media strategy and job ads on your own website.

With these cost ranges set out in front of you, order what your business needs like off a set menu. Best of luck with your new agency.

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How to write a business plan for your recruitment agency.

Starting a recruitment agency is a great idea because it provides a valuable service to employers and job seekers alike.

It is a great way to bridge the gap between the two and facilitate successful career placements.

But, first thing first, you need a business plan.

A business plan is essential for any new project, as it allows you to clearly define your goals, objectives, and strategies for success. It also provides a roadmap for the future, helping to ensure that your project is successful in the long term.

In short, a good business plan will help make sure your recruitment agency is profitable .

What information should you put into the business plan of a recruitment agency? What's the basic outline for the structure? What financial metrics should be included? What steps should I follow to write a business plan efficiently?

Stay with us: we'll tackle all these questions!

One last thing, you don't have to start your business plan from scratch.

Feel free to download our detailed business plan for a recruitment agency and customize it for your business.

Mapping out a business plan for a recruitment agency

Do you need to develop a business plan for your recruitment agency.

Yes, you need to develop a business plan for your recruitment agency.

Crafting a well-structured business plan will help you to:

• get familiar with the recruitment agency market
• be aware of new consumertrends and apply them to your project
• recognize profitability factors for a recruitment agency
• understand the hiring needs, job requirements, and talent preferences of client companies
• come up with a winning value proposition for your staffing services agency
• identify potential competitive threats
• find distinctive competitive edges for your recruitment agency
• find a business model that delivers consistent positive financial outcomes
• formulate an airtight strategy to maximize business growth
• evaluate potential risks specific to a recruitment agency, including client satisfaction, candidate vetting, and legal compliance

Our team has created a business plan for a recruitment agency that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a recruitment agency?

Inside a business plan, you'll find a lot of important information and details. It must be presented in a structured format, to make easy to read and digest.

When we built and designed our business plan for a recruitment agency , we made sure to structure it propertly.

We've categorized it into 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The section number one is titled "Market Opportunity."

In this section, you will find valuable data and insights about the recruitment agency, helping you understand the market landscape and assist companies in finding and hiring top talent.

We constantly update all the data there.

2. Project Presentation

The second part is dedicated to the "Project" of your recruitment agency. Here, you can outline the industries you specialize in, recruitment services offered, candidate sourcing strategies, screening and selection processes, client partnerships, and the unique value proposition that connects top talent with the right job opportunities.

Also, provide a self-introduction at the end of this section.

Discuss your expertise in talent acquisition, your range of recruitment services, and how you plan to provide comprehensive and tailored staffing solutions to clients. Highlight your industry knowledge, your network of professionals, and your dedication to matching the right talent with the right opportunities through your recruitment agency.

We drafted some language for you in our business plan. Adjust it to suit your idea perfectly.

3. Market Research

Then, there is the "Market Research" section.

In this section, you will find a detailed market segmentation analysis for your recruitment agency.

It includes a presentation of other recruitment agencies in the area that will be competing with you. Your agency's expertise in talent acquisition and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section outlines a comprehensive 3-year action plan, detailing the initiatives and steps needed to transform your recruitment agency into a highly profitable endeavor.

Additionally, there's a marketing strategy, a risk management strategy, and a Business Model Canvas available in this section.

5. Finances

In the end, you'll find the "Finances" section, which provides a comprehensive overview of the financials for your project.

How to make an Executive Summary for a recruitment agency?

The Executive Summary serves as an introduction to the business plan for your recruitment agency.

Keep it concise and ensure it fits within 2 pages. Highlight only the necessary details.

When you present your business plan to investors, this is the section they will read first. It needs to grab their attention and make them want to explore the rest of the plan.

In the Executive Summary of your recruitment agency, address the following queries: what services does your recruitment agency offer? who is your target market? are there other recruitment agencies in the industry? what sets you apart from them? what funding do you require?

How to do the market analysis for a recruitment agency?

Analyzing the market for your recruitment agency allows you to gain insights into factors such as client demands for talent acquisition, competition within the recruitment industry, and emerging trends in HR and staffing.

By conducting a thorough market study, a recruitment agency can understand client hiring needs, offer effective recruitment solutions, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a larger client base, increased job placements, and a prominent position in the recruitment industry.

Here is what you can expect to find in the "Market Research" section of our business plan for a recruitment agency :

• market trends and data about recruitment agencies, including job market analysis, talent acquisition strategies, and industry-specific hiring trends
• a list of potential customer segments for a recruitment agency
• the competitive comparison
• the potential competitive advantages for a recruitment agency

The key points of the business plan for a recruitment agency

What's the business model of a recruitment agency, business model of a recruitment agency.

A recruitment agency's business model revolves around connecting employers with qualified candidates for job openings. Revenue is generated through fees or commissions based on successful placements.

The business model focuses on understanding clients' hiring needs, conducting candidate sourcing and screening, effective marketing to attract employers and job seekers, and building strong client and candidate relationships based on trust and expertise in recruitment.

Success depends on building a robust candidate database, delivering suitable talent for job openings, fostering positive client and candidate experiences and recommendations, and continuously adapting to changing recruitment methods and job market dynamics.

Business model ≠ Business plan

Make sure you differentiate between "business plan" and "business model."

A business model describes how a company generates income and operates successfully.

In a business plan, you articulate your business model through a framework known as the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a recruitment agency .

How do you identify the market segments of a recruitment agency?

Market segmentation for your recording studio involves dividing your potential clients into different groups based on their recording needs, music genres, and preferences.

These categories may include factors such as music artists, voice-over artists, podcasters, or clients seeking specific recording services or equipment (e.g., vocal recording, sound mixing, podcast production).

By segmenting your market, you can offer specialized recording services and facilities that cater to each segment's specific requirements. For example, you might focus on music artists and provide state-of-the-art recording studios equipped with instruments and production tools for music production, offer professional voice-over recording services for clients in need of high-quality voice recordings for commercials, audiobooks, or animations, specialize in podcast production and provide podcasters with dedicated recording spaces and podcast editing services, or focus on specific recording services or equipment such as vocal recording, sound mixing, or audio mastering.

Market segmentation allows you to effectively target your marketing efforts, communicate the capabilities and technical expertise of your recording studio, and provide a creative and professional recording environment that meets the unique needs and preferences of each client segment.

In the business plan for a recruitment agency , you will find a comprehensive market segmentation that will help you better understand your potential customers.

How to conduct a competitor analysis for a recruitment agency?

Without surprise, you won't be the only recruitment agency in your market. There will be other agencies offering staffing and talent acquisition services to organizations.

Understanding your competitors' strengths and weaknesses is critical when developing your business plan.

Identify their weaknesses (such as limited industry connections, inadequate candidate screening, or poor client communication).

Why is it important to address these elements? Because these weaknesses can impact the effectiveness of recruitment agency services.

By focusing on these areas, you can offer a wide network of qualified candidates, provide efficient and thorough recruitment processes, and deliver personalized and attentive client support, positioning your recruitment agency as a trusted and preferred partner for businesses seeking top talent and successful staffing solutions.

It's what we call competitive advantages—develop them to make your business stand out.

Here are some examples of competitive advantages for a staffing agency: extensive network of qualified candidates, personalized recruitment solutions, timely placements.

How to draft a SWOT analysis for a staffing agency?

A SWOT analysis can help identify the strengths, weaknesses, opportunities, and threats of a recruitment agency, enabling informed decision-making and increased success.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a recruitment agency

The strengths for a recruitment agency

When we talk about the "S" in SWOT, we mean Strengths, which are the project's internal capabilities or unique strengths.

For a recruitment agency, possible strengths could include an experienced team, a strong network of contacts, an extensive database of candidates, and a comprehensive understanding of the recruitment market.

The weaknesses for a recruitment agency

W stands for Weaknesses, referring to the project's areas or aspects that have room for improvement.

For a recruitment agency, potential weaknesses include difficulty in finding suitable candidates, lack of access to a large pool of qualified applicants, high cost of advertising to attract talent, and potential clients not trusting the agency.

The opportunities for a recruitment agency

The letter "O" in SWOT signifies Opportunities, highlighting the favorable conditions or chances for the project's progress.

In the case of a recruitment agency, potential opportunities include providing executive search services, offering temporary staffing solutions, providing online job postings, and providing career coaching services.

The threats for a recruitment agency

When we use the "T" in SWOT, we're referring to Threats, which are the external risks or challenges that the project may encounter.

How to develop a marketing plan for a staffing agency?

A marketing strategy is a key factor in acquiring customers and increasing revenue, so include it in your business plan.

A well-crafted marketing strategy will attract companies and job seekers to your recruitment agency, emphasizing your expertise in matching the right talent with the right job.

Companies won't hire your recruitment agency without effective marketing; showcasing your talent pool and personalized approach is crucial.

Are you utilizing marketing tactics to attract clients to your recruitment agency? Consider building strong relationships with local businesses and job seekers, offering specialized recruitment services, and utilizing digital marketing strategies to showcase your expertise in the industry.

Don't let a lack of ideas for your project's marketing strategy discourage you.

How to build a solid financial plan for a staffing agency?

A solid business plan must include financial data to provide an accurate assessment of the business's potential success.

Obviously, you should estimate the projected revenue for your recruitment agency.

It's crucial for this revenue forecast to be clear and straightforward.

Our financial plan for a recruitment agency is easy to use and includes built-in checks to help you identify and correct any assumptions, ensuring you create reliable projections with confidence.

Without a doubt, you'll need to come up with a basic budget for starting your recruitment agency. Make sure to include every expense (by the way, they are all listed in the financial plan we've made).

The break-even analysis is central in the financial plan as it will tell you whether your recruitment agency will generate profits or not.

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What are you looking for, how to start a recruitment agency.

• Brought to you by AAT Business Finance Basics

• 1. What is a recruitment agency?
• 2. Why start a recruitment agency?
• 3. Which sectors should I specialise in?
• 4. How do I price my services?
• 5. What laws and regulations are there?
• 6. What costs are involved?
• 7. Startup costs calculator
• 8. Do I need insurance?
• 9. Download: How to start a business in 20 days ebook

People are often cited as the most valuable part of a business, and that’s why recruitment agencies provide such an important service seeking out and placing candidates for job roles. With industry turnover increasing year on year, even with Brexit uncertainty, the market demand shows no sign of waning. So, if you’re looking to start your own recruitment agency business, what do you need to know?

What is a recruitment agency?

We’re all familiar with the general concept of a recruitment agency – matching jobseekers to employers. It sounds simple but in reality, recruitment involves specialist research and networking skills, patience and a lot of hard work to ensure new hire benefits both parties.  

What’s also often overlooked is how recruitment agencies act as invaluable sources of market intelligence for both candidates and companies. They serve as a great source of career information, while helping companies devise job descriptions to ensure they’re getting exactly what their business needs from the hire. It’s an industry that takes on a large amount of responsibility – from shaping people’s livelihoods to steering business success with people placement.

Why start a recruitment agency?

It’s clear there’s a strong requirement for recruitment agencies. The total industry turnover increased by 11% year-on-year in 2017-18 (Source: The Recruitment & Employment Confederation ), reaching a record £35.7bn. There was also a 10% rise in the number of recruitment enterprises, which is pretty impressive given the current political and economic uncertainty.

One of the biggest reasons for using a recruitment agency is time. Millennials are likely to jump from job-to-job more frequently than past generations, using agencies as a quick way to discover exciting new roles that fit with their career plan. For employers, finding quality candidates can require a substantial amount of time that they don’t have due to other business responsibilities. Specialist research skills, a meticulous eye for analysing CVs and access to resources and networks are all additional benefits.

Be prepared to work long hours to get your agency off the ground. Many candidates will only be available outside of work hours so you’ll need to be mindful that calls and meeting times will need to be flexible.

Which sectors should I specialise in?

Businesses across all sectors require quality employees to make them a success, so when it comes to choosing the sectors your recruitment agency specialises in, the options are vast. Here are some of the main sectors:

• Pharmaceuticals
• Real estate
• Financial services
• Professional services
• Hospitality & leisure
• Property & construction
• Oil and gas
• Telecommunications

Focusing on one or a handful of sectors will give your agency a specialism, which can attract clients who are looking for candidates with specific skills and experience. It will also give your agency an identity amongst competitors, helping with branding and ensuring you don’t spread yourself too thin.

You might want to also consider looking at a specific functional focus for your agency, such as:

• Board/CEO/Non-executive Directors
• Product Management
• Data Management/Information Management

“Having a clear niche is really important for building a strong brand, as recruitment agencies’ reputations are built on their knowledge of particular markets and how well they’re networked within them. Their worth is also measured by how well placed they are to advise clients on hiring for specific sectors and/or functions. My best advice would be to stick with what you know” Gemma Hale, Digital Recruiter at The Up Group

Competition is also a key consideration – are there any sectors that have less competition from other agencies? Or are there any sectors where you think you can offer a better service than your competition?

How do I price my services?

The recruitment industry is extremely competitive, so pricing tends to be a pretty creative exercise. While it’s important to have a basic structure, it’s wise to be flexible to allow room for negotiation to secure clients. This is particularly important when you’re starting up and trying to build a reputation. The more clients on your books, the more opportunity for placements you’ll have. The more placements you make, the quicker your reputation will grow.

You can decide to work on a success fee ‘contingent’ basis, or a ‘retained’ one.

Contingent model

If you become a contingent firm, you usually won’t get paid until your client makes the hire. This is a common structure for firms making hires at junior through to middle management level. The end fee is usually a percentage of the salary. “Percentages vary wildly and tend to go up with the reputation of the firm,” explains Gemma. “Firms working on high volumes of hires e.g. very junior roles, tend to be able to charge less. Broadly, the contingent market can vary as much as 10-30% of salary depending on the firm’s focus and reputation.”

It’s worth noting that this pricing structure puts all the risk on the agency rather than the client, as in most cases the client will engage multiple contingent firms and let them race to make the hire.

Retained model

Retained firms traditionally charge clients their fee in three stages:

• On beginning the search
• After the delivery of a candidate shortlist
• On placement

Typically this fee is also a percentage of the candidate’s salary and is often billed in equal thirds. This model allows the recruitment firm to share the risk with the client. Retained search firms tend to be more focused on senior level hires (Director through to C-suite and board level). Their fees vary in line with the level of seniority of the hire, though percentages tend to start at around 33%. Again, retained firms will negotiate in order to secure a search, so be creative with the billing process or fee if required. For example, some clients prefer a fixed fee rather than a salary percentage so be mindful of the need to create different options for clients that you really want to work with.

Earn Your Fee

Clients are willing to pay for the right candidate so the more thorough you are as an agency, the more likely you will be to succeed with a placement and earn your fee. Ensure your team receives the best training and everyone is on the same page in regards to your fee structure and any flexibility within it. If your agency retains a consistent quality of service, it’s more likely to go from strength to strength as placements rise and your reputation grows.

What laws and regulations are there?

You don’t need any official training or qualifications to set up your own recruitment agency. However, as with any craft, it’s worth attending some training sessions to get you off to the best start (especially if you have no previous experience). The REC provides training for all levels, covering essential skills, legal training, sales techniques and more.

Read the REC’s full A-Z of training courses

There are, however, some extremely important laws and regulations you must be aware of. For example, what information you’re allowed to share between the jobseeker and employer, anti-discrimination, maternity pay, etc.

The Chartered Institute of Personnel and Development (CIPD) is a useful resource when ensuring your agency acts within the law. (Please note some of its content is members-only access.)  

Read through the CIPD’s recruitment guidance

There is no single Act governing recruitment and selection, but there are a number of Acts that deal with the employment relationship that have an impact on pre-employment issues. A significant example is the Equality Act 2010 , which makes it unlawful for employers to discriminate against job applicants (and existing workers) because of a ‘protected characteristic’, namely:

• Gender reassignment
• Religion or belief
• Sexual orientation
• Marriage and civil partnership
• Pregnancy and maternity

Read the full list of legislation governing the law on recruitment in the UK

Employment law

It’s important you’re aware of and comply with Employment Law, such as:

• New and amended statutes and statutory rates
• Recruitment legal requirements, checks and processes
• Terms and conditions of employment
• Data protection
• Working hours and pay
• Health and safety regulations
• Maternity and parental rights
• Discrimination
• Discipline, grievance and dismissal procedures
• Whistleblowing
• Employment tribunals

Read more about employment law

One of the most important Acts to be aware of is the Employment Agencies Act 1973 , which regulates the conduct of employment agencies that recruit and manage temporary and permanent labour. The Act covers areas such as what information you can disclose to the client and worker, how you advertise the job, how you deal with candidates under 18, how you deal with employing candidates abroad, and more.

New regulations were introduced under the Conduct of Employment Agencies and Employment Businesses Regulations 2003 ,  which applies to employment agencies that introduce workers to a client who then contract directly with the worker (e.g. recruitment agencies) and employment businesses that enter into contracts with workers and supply their services to a client e.g. agency companies.

General Data Protection Regulator (GDPR)

A hot topic in recent years, this is important to be aware of if you’re starting a recruitment agency as you’ll be holding personal data of individuals, as well as sensitive data on clients and their businesses. You absolutely can’t afford to get this wrong. Be mindful if you’re recruiting internationally, as data protection laws can vary country to country e.g. did you know it’s illegal to ask a candidate for their salary details in several cities and states in the US?

Code of Professional Practice

  The REC has established a Code of Professional Practice to ensure their members conduct their businesses ethically, to the highest standards and promote good practice.

Download the REC’s Code of Professional Practice

What costs are involved?

There are many varying factors that can affect start-up costs – from premise location to the number of staff. In the beginning, starting up your own recruitment agency can be a pretty affordable business to run. All you essentially need is a phone, computer, internet access and banking. You can even open a free business bank account to keep your overheads low.

Beyond that, here are some of the elements you need to consider when forecasting costs. 

Unless completely necessary,  it would be wise to avoid committing to premises in the very early stages of starting up your agency if you have no staff and can work remotely with internet access. 

Find out more

If essential, renting flexible office or  coworking  spaces is a popular option for startups as opposed to a costly conventional  leased space . The average per-person monthly cost for renting flexible office space in the UK’s top cities in 2018 was £650-1500 in London, £350-500 in Bristol, £200-450 in Leeds, £300-400 in Manchester, £250-450 in Birmingham, £250-550 in Edinburgh and £150-£300 in Liverpool (Source: Instant Offices ).

Branding and website

Clients need to trust that you are professional and qualified, so your agency will need a  name  and  logo  that reflects this. Start with  Companies House Name Checker  then check a website domain is available for it ( GoDaddy domain search  is good for this). Once you’re happy with your name, approach a handful of designers/logo companies for a quote. Don’t scrimp on this, as your logo is an important investment.

When it comes to building your website , keep it simple at the beginning; you can always add snazzy features down the line. Consider Squarespace – a DIY website builder. It’s extremely user-friendly and offers end-to-end service. Choose from pre-built templates and utilise the drag-and-drop website features within them. You’re looking at £15 per month for a DIY subscription package, or £400-£10,000 if you get a professional to build it for you. 

You’ll need a database to store candidate contact details with a tagging system so you can easily search through them. Popular options include cloud-based executive search software FileFinder ,  Invenias  and  Cluen . These systems can offer benefits such as saving you time on data entry, providing automation, capturing your communications, managing GDPR, executing reports and more.

LinkedIn Recruiter is another platform for finding, connecting with and managing candidates. 

Accounting software  such as  Xero  and  Sage  will also help organise and schedule important financial tasks such as payments, payroll and taxes.

If you want to get your brand out there, you’ll need to consider allocating some budget to marketing. Before you spend any money, it’s worth thinking about your overall  business marketing strategy  and your specific tactics (ie your  marketing plan ). The key to success is working out who you’re targeting and where you can find them online (and in some cases, offline).

For example,  digital  and  social marketing  will offer you a range of highly targeted and measurable online tactics. But, you might find more traditional tactics such as print advertisements are also effective at raising brand awareness. Adopt a  test and refine  method to quickly understand your most effective channels.

Subscriptions

Depending on your sector focus, you’ll want to sign up to the associated news sources to stay up-to-date on any developments. For example, if your niche is technology, technology news sites such as  Techcrunch  offer free membership, while the  Financial Times  covers most sectors and offers some of the most accurate and reliable financial market information, helping you stay aware of the emerging trends in your industry. 

An  FT  subscription starts from £3.99 a week, but there are  other packages available  that might better fit your business requirements. If you’re unsure what to subscribe to, speak to someone you know who works in your niche sector and they can provide a good steer.

A big financial commitment so it’s worth considering whether you need to  hire staff  at the very beginning. An average recruiter salary is around £25k (Source:  PayScale) .

An alternative option is to outsource work to freelancers and contractors as this can be more flexible than taking on full-time staff. Also, you might consider hiring an apprentice . 

In the beginning, your equipment essentials will be a laptop and a phone. 

The more staff you have, the more equipment you’ll need so be mindful of this when looking to expand your team.

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Do I need insurance?

You must have an Employers’ Liability Insurance policy of up to £5m if you have one or more employees. If you’re not employing anyone, you don’t need this. This is the only insurance every business needs by law. 

Depending on the nature or size of your business, it would be worth considering motor insurance (if your business operates a vehicle/s), Professional Indemnity Insurance (business insurance, particularly if you provide a service or offer advice to clients) and Public Liability Insurance (protection against compensation claims so it’s important if you regularly interact with customers).

Download: How to start a business in 20 days ebook

We get it. There’s a lot to think about when you’re starting a business . That’s why we’ve created this free eBook that will provide you with a focused and 100% manageable action plan.   

From budgets to social media, our how to start a business in 20 days eBook is the smart guide to getting your business up and running. 

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Business Plan Template for Recruitment

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Recruitment agencies and talent acquisition businesses know that success in the competitive industry hinges on strategic planning. That's where ClickUp's Business Plan Template for Recruitment comes in!

This comprehensive template allows you to outline your recruitment strategies, set objectives, define your target market, project your finances, and establish operational processes. With ClickUp's Business Plan Template for Recruitment, you'll have a roadmap to guide your growth and ensure your business thrives in the ever-changing recruitment landscape.

Don't leave your success to chance. Get started with ClickUp's Business Plan Template for Recruitment today and take your talent acquisition business to new heights!

Business Plan Template for Recruitment Benefits

A business plan template for recruitment offers numerous benefits to recruitment agencies and businesses in the talent acquisition field, including:

• Streamlining operations and ensuring consistency in recruitment processes
• Setting clear objectives and goals for the agency's growth and success
• Identifying target markets and defining strategies to reach and attract top talent
• Creating a financial roadmap, including revenue projections and expense management
• Providing a comprehensive overview of the agency's competitive landscape and positioning
• Guiding decision-making and resource allocation to achieve long-term sustainability and profitability.

Main Elements of Recruitment Business Plan Template

Create a winning business plan for your recruitment agency with ClickUp's Business Plan Template for Recruitment. This comprehensive template includes:

• Custom Statuses: Track progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring every task is accounted for in your recruitment business plan.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add relevant information and organize your recruitment strategies, financial projections, and operational processes.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to get a comprehensive overview of your recruitment business plan and easily navigate through different sections.

With ClickUp's Business Plan Template for Recruitment, you can streamline your planning process and set your recruitment agency up for success.

How To Use Business Plan Template for Recruitment

If you're looking to create a business plan for recruitment, ClickUp has a template that can help you get started. Here are four steps to effectively use the Business Plan Template for Recruitment:

1. Define your business objectives

Before you start creating your business plan, clearly define your objectives and goals for your recruitment agency. Are you looking to specialize in a particular industry? Do you want to focus on temporary or permanent placements? Understanding your business objectives will help shape the rest of your plan.

Use Goals in ClickUp to define and track your business objectives for recruitment.

2. Identify your target market

Next, identify your target market and the types of clients and candidates you want to attract. Consider factors such as industries, job levels, geographic locations, and any specialized niches you want to focus on. Understanding your target market will help you tailor your recruitment strategies and services accordingly.

Use the Board view in ClickUp to create columns for different target markets and track your progress in attracting clients and candidates.

3. Develop your marketing and recruitment strategies

Once you have identified your target market, it's time to develop your marketing and recruitment strategies. Consider the channels and platforms you will use to promote your agency, such as social media, job boards, and networking events. Determine how you will attract candidates and clients, and outline your approach to sourcing, screening, and placing candidates.

Use Automations in ClickUp to streamline your recruitment processes and save time on repetitive tasks such as sending follow-up emails or scheduling interviews.

4. Create a financial plan

Lastly, create a financial plan for your recruitment agency. This should include your projected revenue, expenses, and profitability. Consider factors such as fees, commissions, and any additional services you plan to offer. It's also important to set financial goals and milestones to track your progress and evaluate the success of your business.

Use the Gantt chart in ClickUp to create a timeline for your financial goals and milestones, and track your revenue and expenses over time.

By following these steps and using the Business Plan Template for Recruitment in ClickUp, you can create a comprehensive and effective business plan for your recruitment agency. Good luck with your venture!

Get Started with ClickUp’s Business Plan Template for Recruitment

Recruitment agencies and businesses can use the ClickUp Business Plan Template for Recruitment to create a comprehensive roadmap for their growth and success in the competitive recruitment industry.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create your recruitment business plan:

• Use the Topics View to outline and organize the different sections of your business plan, such as objectives, target market, financial projections, and operational processes
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of your business plan's timeline, allowing you to set deadlines and milestones
• The Business Plan View provides a comprehensive overview of your entire recruitment business plan, allowing you to easily navigate and review all sections
• The Getting Started Guide View will provide step-by-step instructions and tips on how to use the template effectively
• Utilize the custom fields Reference, Approved, and Section to add additional information and categorize different aspects of your business plan
• Update statuses and custom fields as you progress through each section, ensuring that all team members are aware of the current status and any required revisions
• Regularly review and analyze your business plan to ensure that it aligns with your recruitment agency's goals and objectives
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05 October, 2023

Main Steps to Start a Recruitment Agency in the UK

As of 2018, over 8,000 recruitment agencies were registered in the United Kingdom (UK), and five years from then, more agencies are fully functional. Owing to growing recruiting challenges, firms prefer to streamline their hiring process, and more people will start a recruitment agency in the UK between 2023 and 2025.

These numbers may seem scary if you’re planning to open a recruitment agency in the UK. However, you must know that job opportunities are increasing, and most employers depend solely on recruiting agencies to find candidates to fill vacancies in their company. 

The need is rising, and there’s no reason why you shouldn’t latch into the market if you have a knack for finding great talents. So, in this article, we provide comprehensive details into the recruitment industry in the UK and a step-by-step guide to help you kick-start your staffing company. Let’s begin!

Is There an Increasing Demand for Recruitment Agencies in the UK?

The demand for recruitment agencies in the UK labor market in 2019 was promising, especially considering the decline in the following year. It was a slight increase from 2018 because companies were just starting to adapt to the evolving nature of recruitment in the digital age. 

The following year wasn’t exactly the best due to the COVID-19 outbreak and the general elections between January and March of 2020. The recruitment agency industry, alongside many others, was faced with the significant challenge of adapting to remote workflow. Even though they still made significant contributions to the UK economy, we can say that the industry travailed in one of the most difficult recessions ever recorded.

After the pandemic, the industry continued to grow, and by the end of 2021, the recruitment agency sector surpassed the rates of 2019. With an average of about 1 million monthly job vacancies in 2023, there’s no better time to run your own recruitment agency in the UK than now. Let’s find out how exactly to get started.

Number of job vacancies in the UK. Photo credit: Statista

A Step-by-step Plan to Successfully Launch a Recruitment Agency in the UK

Starting a recruitment agency in the UK means joining a fast-growing industry with lots of financial prospects. But if you’re unsure where to start, the steps to establish a UK recruitment agency below will enable you to launch a recruitment agency in the UK successfully.

1. Determine Your Niche

Like every other establishment, recruitment firms have niches they can serve. But why is it necessary to define the activity scope, and how is niche defined for this sector? The answer is simple! Defining the scope of activity and niche for your new staffing business is important because it lays the foundation for its identity, strategy, and success. 

The key distinction you’ll come across when considering launching a recruitment agency in the UK lies between generalist and specialist agencies. Specialist firms offer staffing solutions to specific industries, skill sets, or job categories. They have more industry knowledge and have years of experience finding the best talents for such companies.

On the other hand, generalist agencies recruit candidates across various industries and job functions. They provide various services but sometimes lack in-depth expertise in specific fields. Nevertheless, their wide coverage doesn’t make them less efficient than specialists. 

2. Assess Your Competitors 

The UK hiring market experienced a significant employee shortage that affected small, medium-sized, and large businesses in April 2023. Unsurprisingly, this decline led to reduced productivity and output and increased the current employee workload.

It goes without saying that though employee jobs increased in 2023, it is still challenging for companies to find the right talent to fill a job vacancy in their establishments without any help. Most of these businesses used a recruitment firm in the past, meaning that they may still want to stick to their old partners.

Convincing them will be difficult, and that is where studying your competitors, their strategies, and clientele comes in. While doing this, your main focus should be on their limitations. Analyse these shortcomings and proffer relevant solutions that address the client's pain points.

3. Evaluate Your Finances

During their first year, startups can fail for various reasons, including lack of funding, poor management, and bad financial decisions. To successfully create a recruitment agency in the UK and scale through, you'll need a realistic evaluation of your finances. This analysis lays the foundation for a solid business plan and money decisions you'll make. Here are seven common costs you should consider:

• Business Registration : To register a recruitment agency in the UK, you must provide the company name, registered address, and other relevant details. Registering a business in the UK costs between, £12 - £40, depending on the mode of registration you opt for.
• Business Bank Account : Setting up a business bank account is free, and it is another important step to separate your business money from personal funds. A business account will help you automate your bookkeeping, protect you from business debt liability, and make you eligible for a loan or government support .
• Office Space : If you're running an on-site business, a workspace or physical location is another factor that can tamper with your finances if you don't have a proper financial plan. So, evaluate office space costs against other expenditures to find the best location within your budget.
• Equipment and Technology : You'll need equipment, computers, software, or other technology. These costs can add up, so plan for them ahead.  
• Marketing and Branding : Marketing is the only way to let people know what you do and whom you do it for. You'll need to budget an average of £5,000 for things like a logo, website, advertising, and promotional materials. 
• Insurance : Depending on the insurance company and package, you may spend an average of £150 to cover your business. This fee protects your company from damages covered in the insurance package. 

Ongoing Costs: After paying for your company's upfront needs, you'll need to evaluate how you'll handle daily and seasonal operations, like electricity bills, rent, maintenance and repairs, salaries, etc. Have a budget for all these to avoid making rash decisions or taking out loans to pay debts.

4. Research Laws and Regulations

Legal troubles and lawsuits are some factors that take businesses down, even before they kick off. The truth is that almost every successful company has been sued at least once (some yearly), and a lot of these cases are not resolved until trial. One of the major cases businesses in the United Kingdom and other parts of the world get sued for is discrimination. 

Towards the end of 2022, the UK employment tribunal had 493,000 outstanding discrimination claims. These losses are avoidable if you commit time to understand the laws and regulations guiding the recruitment industry.

This effort will protect your company from losses and promote fair and ethical hiring processes, protecting employers and job seekers from discrimination and exploitation. Here are common regulations for you to follow: 

• Don't charge job seekers for finding them jobs.
• Avoid discriminating against people in job advertisements.
• Ensure that the ad indicates that it is a staffing agency advertising and not the company directly.

In addition, when you set up a recruitment agency in the UK, you must comply with the Employment Agencies Act 1973, the Conduct Regulations 2003, the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2015, and the Equality Act 2010.

5. Set Up Business Goals

Just like evaluating your finances can clarify your financial decisions and protect your company from monetary woos in the future, business goals give you a clear focus. So, if you’re learning how to start a recruitment agency in the UK, goal setting is one area you should never ignore.

Aside from setting goals for stakeholders to follow, it can also provide you with metrics to see if your business is succeeding or not. In cases where your recruitment firm is failing, it will be easier to locate the problems and proffer solutions and strategies that will help you get back on your feet.

6. Develop a Marketing Plan

You can have a great business plan, all the experience in the world, and a budget to realise your ideas, but what is the point if no one notices you? Invest in excellent marketing strategies if you want to build a strong online presence, enhance your agency's credibility, and showcase expertise in matching talent with the right opportunities.

7. Invest in Tech Tools

For your recruitment agency to succeed in the 21st century, you must have an active digital presence because almost all job searches are now done online. What's more, people got a taste of remote work and its convenience and now prefer working from home, at least partially. To not lose these prospective job seekers, you will need to invest in the necessary tech tools, as it streamlines the virtual hiring process. This efficiency saves time and cost, allowing employees to focus on more complex tasks.

8. Invest in Talents

Once you launch a recruitment agency in the UK, investing in employees is the next step to building a successful staffing firm. This goes past benefits, beer parties, and salaries; investing in people can include: 

• Giving them access to opportunities for career growth
• Providing courses and mentorship for advanced training
• Creating a comfortable work environment
• Compensate employees competitively

Besides that, when starting a recruitment agency in the UK, ensure you create an effective feedback culture and encourage employees to suggest the best ways you can invest in them. Also, workers should be free to leave comments on what they think about the current talent growth strategies you are incorporating.

What Are the Challenges of Launching a Recruitment Agency? 

Launching a recruitment agency in the UK may not be a ride in the park and can pose many challenges. From finding clients to building a strong brand that companies and job seekers can trust, you need to understand the common pitfalls to expect before you start your own recruitment agency in the UK.

1. Attracting the Right Clients

To open a recruitment agency in the UK and get it up and running, you need clients who trust your recruitment process and the candidates you bring on board. But as a new bee in the industry, finding the right client, or any client at all, can be daunting. Nevertheless, when you work with a few companies and deliver as expected, they'll become your advocates and increase your visibility through referrals combined with your marketing efforts.

2. Financial Issues 

Most startup recruitment agencies exhaust funds in the first few months or years of being in business. This could happen for many reasons, including making the wrong financial decisions, lack of funding, and not evaluating your finances properly and early enough. To run a recruitment agency in the UK that is financially sustainable, consider all the relevant monetary factors that were discussed earlier.  

3. Building a Strong Brand

Most people prefer to go into business with well-known brands, but as a startup, it can be difficult to get the word out there. The best strategy to focus on is creating a consistent profile across relevant social media platforms and having a properly optimised website that showcases what you do, how you do it, why you're the best, and testimonials, if you have any. This will foster trust, and with consistency, you'll build a reputable recruitment brand.

Consider The Hoxton Mix as Your Trusted Partner

The challenges new recruitment firms face revolve around the tools and strategies necessary to help them grow above their competition. Navigating the sector and standing out is the goal. However, increasing your visibility and building credibility on your own is a daunting task.

To do it right, you need every help you can get, especially as it pertains to your office space and all it entails. Working with a UK-owned virtual business address provider is your first step to securing your digital future. 

The Hoxton Mix is one of the leading virtual business address providers in London. Apart from helping you secure a cheap and reputable virtual company address in a prime location, The Hoxton Mix will help you handle your mail, give you a London 020 phone number, and provide you with a virtual meeting space, amongst other things.

These will not only help you reduce the stress of starting your recruitment agency in the UK but will also help position you on the path to success. Send an inquiry today to learn more about how we help limited companies increase their online visibility. 

Is it hard to start a recruitment agency in the UK?

Starting a recruitment agency in the UK can be challenging, especially when you lack proper guidance. However, with the step-by-step guide provided in this article, you will be able to not only set up your company but also get new clients, gain trust and credibility, and manage your agency effectively.

Are recruiters in demand in the UK?

Yes, recruiters are in demand in the United Kingdom, and the UK recruitment market value was £141.2 billion in 2022. The need is on the rise because virtual hiring firms have provided a working system that companies can rely on to hire new and qualified talents. 

How are recruitment agencies paid in the UK?

Usually, employers pay recruitment agencies in the United Kingdom when their candidate successfully starts a role. As a job applicant, you shouldn't pay any staffing company for roles they advertise.

What are the legal requirements for setting up a recruitment agency in the UK?

Every recruitment agency in the UK must be registered at Companies House to be recognised as a business under the Companies Act 2006. In addition, you’ll also need a license in some cases to operate as a legalised company in the UK. 

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Recruitment Plan Template

What is a recruitment plan.

A recruitment plan is a strategic document outlining the systematic approach an organization takes to attract, evaluate, and hire qualified individuals for job openings. It encompasses various elements, such as defining job requirements, sourcing candidates, conducting interviews, and finalizing offers, with the goal of acquiring the right talent to meet organizational needs.

Recruitment plan template: https://www.aaronwallis.co.uk/employers/advice/recruitment-planning/recruitment-planning-sales-recruitment-checklist/

A recruitment plan is imperative to ensure that you recruit the right talent for your business. It may sound like common sense; however, many companies don't have a plan, and they just run through a process, and by luck, they manage to tick all the boxes that are necessary.

Having a road map of the necessary stages within the recruitment process could ensure that you get that 'A grade' candidate for your business, rather than settling for B or C. Planning a recruitment campaign takes time. You're probably looking at dedicating half a day or a day to getting it right.

The difference in your approach to recruiting will be huge. Many people think that working to a checklist is a waste of time. But look at the consequences of getting it wrong.

We estimate that the wrong recruit will cost your business around 3.75 times their basic salary. Add onto that the impact it will have on your client base of a changing account manager.

Add onto that the impact it will have on the rest of the team. And the cost is enormous.

So by just dedicating half a day, looking at your recruitment process to get it right is not a waste of time. To help you put together the checklist to get recruitment right, we've put together a 48-stage recruitment checklist.

You may be thinking, 48 stages? Is that really necessary? Probably 35 of these you'll be doing anyway. But I hope that there are some steps in there you haven't thought of that will assist you in making the right hiring decision.

Ethical Interviewing

Navigate our advice on recruitment planning:

by clicking the following icons:

Recruitment Planning Sales Recruitment Checklist

Devising A Sales Job Specification

How To Shortlist Candidates For Interview

Using Aptitude Testing In Recruitment

Interview Best Practice

Why Recruit With Aaron Wallis Sales Recruitment?

• 12 Month Rebate Scheme - a sliding scale protecting your investment in new staff
• Psychometric Profiling - on all candidates to ensure they will fit into your organisation
• Bespoke Interview Questioning - to help you get the most out of interviewing
• Ability and Skills Tests - we offer a wide range of tests as standard
• Dedicated Account Manager - who will work with you from the start to the very end of your process

Aaron Wallis are a national specialist sales recruitment agency comfortable across many sectors, however more recently the majority of our clients utilise the below offerings:

• IT Sales Recruitment
• SaaS Sales Recruitment
• Technology Sales Recruitment
• FMCG Sales Recruitment
• Industrial Sales Recruitment
• Construction Sales Recruitment
• Technical Sales Recruitment
• Engineering Sales Recruitment

Date published: 6th March 2024

Recruit sales staff

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by Rob Scott

Managing Director

About the author

Please call us to discuss your vacancy

Milton Keynes

01908 061 400

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01454 320400

0113 243 4400

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What to Wear to a Sales Interview in the Post-Covid Era

Our employers say...

I can't fault Sam or AW! Sam was a pleasure to work with and provided great support from the start. Sam always provided me with timely updates when required and provided outstanding candidates!

Director, Waste Managed Ltd

George came recommended by a colleague and has been a pleasure to work with. He was great at updating us on his progress and ensured a great experience for both client and candidate.

HR Manager, Annapurna Recruitment Ltd

Rob’s knowledge of the recruitment industry and his thoughts and how to make it better for his clients have always been eye opening. I would recommend Rob to anybody who is looking for a professional, knowledgeable and flexible recruitment specialist.

CEO, Friday Ad Online Services

Thanks for all your help during the recruitment process. I have been extremely impressed with Aaron Wallis especially when compared to other agencies we have dealt with. I really felt you grasped the type of person we required and found strong candidates.

UK Sales Manager, Nexcom

George is a rare find in the world of recruitment - communicative without being pushy or over-bearing. He listens and understands what the customer needs as gets to know the business to ensure he provides fully competent candidates who fit.

HR Manager, Big Dug

I could not suggest anything I would like you to do better. The service you provided materially exceeded my expectations. I would especially like to commend Simon Bonner; he is easily the best recruitment consultant I have ever dealt with. I particularly valued his advice and guidance throughout the recruitment process. 

UK Sales Manager, BTS Holdings Limited 

I have always found Rob to be very knowledgeable about our industry sector, and it is refreshing to see after all of these years that Rob continues to quickly and accurately understand my requirements.

HR and General Manager, THK

Giles is highly professional and was a pleasure to work with. He achieves excellent results through his personable skills and tenacity. I have no hesitation in recommending Giles to anyone who considers employing his services.

Commercial Director, G4S Government & Outsourcing Solutions

Generally good standard of candidates. Especially liked the personality profile. Overall good value for money and will certainly use you again.

Managing Director, Medicash

Rob is a true recruitment professional that goes the extra mile that I have never experienced from any other recruitment agency before. If you need sales people call Rob or someone in his team, as they really are experts in sales recruitment.

Sales Director, Inside Business

We appointed Aaron Wallis in February and the successful candidate, out of the six which Aaron Wallis introduced, was able to join Alphametrics before the end of April. The whole process took less than three months. I would recommend Aaron Wallis' services to others without hesitation.

Chief Financial Officer, Alphametrics

Thank you for your dedicated help during the recruitment process - we came to you after unsuccessfully searching elsewhere, and hired, not one, but two! Quick response times, and a really personal approach, without being pushy.

Managing Director, Accora Ltd

I just wanted to thank you for your help with our recruitment process which went very smoothly and has – we hope – found us just the person for the job!

Managing Director, Citrefine International Ltd

George is a joy to work with, and I'd recommend him to anyone seeking that unicorn hire - he found me mine, and I'm delighted!

Director, Education Support

Understood the type of person we were looking for and good follow ups - not too frequent.

Managing Director, bigHead Bonding Fasteners Ltd

We were impressed not only by the quality of candidates you found for us but also the level of information, preparation and qualification you put into the process. You continually kept us informed of each person’s feelings about the process, which is very important but often overlooked. I am looking forward to working with your company again in the future.

Commercial Director, Incentive Facilities Management

In an industry where people over promise and under deliver, Rob and his teams have consistently provided a high-quality service. It is great to deal with someone that has an excellent understanding of UK industry, and a passion for sales.

Sales Manager, TR Fasteners

Giles Phillips is a rare find in the minefield of sales recruitment; an honest and thoughtful recruiter who considers the needs of both the client AND the candidate to create perfect role matches. I look forward to working with him again in the future.

Marketing Director, City of London Police

I found Aaron Wallis to be very professional and efficient, taking time to understand the role and the type of candidate we were looking for. The candidates they put forward met our criteria and were of a high standard. The service they provided was exemplary and I would have no hesitation in recommending them, and will certainly consider using them again in the future.

HR Assistant, Fischer Connectors Ltd

I really liked the YouTube presentations which made the service seem both simple and accessible. The company came to see me, and my management team, at short notice to present their service and I liked the support and advice that I received about maximising the results from the applicant.

Managing Director, Leisuresec plc

Really good service. Just the right amount of contact and easy to deal with.

HR Manager, Zircon Software Ltd

I have used Aaron Wallis to fill a number of our Sales Development Manager roles and I have found them to provide a very professional service. I will use their services again in future recruitment campaigns.

HR Business Partner, Greene King

As always we were extremely impressed with Rob's understanding of the role and our specific needs.

Managing Director, Speck & Burke

Sophie did a great job at understanding our business and our needs, she is extremely professional and we hugely benefitted from her experience and expertise.

HR Manager, The Data Privacy Group Ltd

Aaron Wallis has continuously provided us with suitable candidates that have been proactively sourced. Having used countless recruitment companies, Aaron Wallis are the only company that I can count on to deliver.

Managing Director, JARK Healthcare Recruitment

Very professional service and will certainly be in contact for future recruitment.

Director, Blakedown Sport & Play Ltd

Since joining DSGi, Rob has been a supplier of permanent staff and has performed to an extremely high standard, successfully filling 98% of roles he has worked on. If anyone is looking for a good sales and marketing based consultancy with an informal yet professional approach, I would recommend Rob.

Senior Recruitment Consultant, DSG International

More info on our sales recruitment service

Our candidates say...

Rob was really helpful when I was putting together a presentation for the second stage interview. Overall their communication was great and kept me updated of any progress

J. McGrattan, Candidate

Excellent service, very professional and friendly, would and have, recommended Aaron Wallis.

E. Heley, Candidate

George Humphries was a complete professional at every point, from our first phone conversation to his “good luck tomorrow” text on Sunday before I started in my new role.

E. Fry, Candidate

I had the absolute pleasure of working with George Humphries on finding a placement best suitable for me.

A. Van Der Mescht, Candidate

Very polite and friendly and was very helpful finding me my next new role.

K. Craggs, Candidate

I have to say coming across and having dealings with Aaron Wallis proved to be very successful. Being highly experienced did not seem to count for much during my job search bit a conversation with Robert Scott gave me a real confidence boost and enabled to get a position at the age of 63. Great service!!!

D. Burgess, Candidate

Perfect from start to finish. Simon deserves a shout out. Best recruiter there is. If you need a job, this guy will get you one. He's like the super man of recruiters. Top man, can't recommend him enough.

M. Crisp, Candidate

Sam was by far the most professional and helpful of any individual I've ever dealt with through a recruitment agency. He was supportive and thorough throughout the process. He definitely goes the extra mile for you. A pleasure to deal with. I would highly recommend him. An asset to Aaron Wallis

M. Wyer, Candidate

The most professional recruitment agency I've ever worked with. Robert Scott was extremely proactive and send me a detailed briefing before each interview, ensuring I was well prepared.

D. Bermant, Candidate

Very good advice and support was given during the course of the interviewing process. Potential job seekers would be well advised to use this company whilst looking for their new career.

R. Speakman, Candidate

Fantastic customer service, communication was brilliant, happy polite people to talk to, made everything a lot easier and smoother. Thank you for all your help getting me back in the work force, Keep up the good work :-)

K. Everitt, Candidate

For anyone looking for work, I can't recommend Aaron Wallis highly enough.

C. Rockliffe, Candidate

I would highly recommend thank you to Darren for helping me secure my new job role! Excellent service all round!

G. Thompson, Candidate

Good swift process with Aaron Wallis, informative regarding the role and the process was moved at a good pace with healthy interaction. Would recommend them to anyone pursuing a change.

S. Bartlett, Candidate

The detail put into the preparation for interviews and the detail of the job description was first class. Rob and Simon in particular are amongst the best I've ever dealt with.

K. Peacock, Candidate

Darren at Aaron Wallis was really encouraging and helpful. He was very responsive and regularly made phone calls to explain the job opportunities available, and guided me through the application process.

A. Brown, Candidate

When talking with Simon you felt relaxed cared to help you find a position that suited your needs

D. Pinder, Candidate

I have to say using Aaron Wallis Recruitment has been nothing but an absolute pleasure. I've used many agencies over the years as the client and the candidate and its not always been a pleasurable experience!

L. Knowles, Candidate

Excellent experience. Knowledgeable staff and really went the extra mile. Found my ideal position and I couldn't be happier. Special shout out to Sam and George: who made the process smooth and easy for me. Highly recommend.

K. Pearce, Candidate

The service provided by Aaron Wallis has been just great. I was constantly informed about what was going on with the process interview and the agent has always been supportive and kind to me.

L. Colagrossi, Candidate

Less than two weeks after joining Aaron Wallis I was offered my new job. I got a £10,000 rise in my basic salary, car allowance, a laptop and many other perks, which will help to further my career. I definitely would not have found my dream job without the help of Aaron Wallis.

C. Hoy, Candidate

George above and beyond to make sure I had everything I need to secure my new role. Outstanding Professional.

A. Kirkland, Candidate

Wanted to say a huge thank you to Simon Bonner who has just helped me secure my new role. He was one of the most professional recruiters I have ever worked with he was supportive really quick at replying and really put me at ease.

J. Marcinkiewicz, Candidate

I had a very good experience with Aaron Wallis. The company itself is offering great content for all things related to the hiring process. I definitely recommend.

J. Ostermeier, Candidate

I had a great experience. Helped me every step of the way to get my new job. Sophie was very polite, kind and helpful!

J. Parnham, Candidate

The staff at Aaron Wallis were fantastic. Throughout the process, they maintained excellent communication and I always knew where I stood.

M. Owusu, Candidate

Fantastic service, helped me find my ideal job quickly and smoothly. Would highly recommend them.

C. Caine, Candidate

Sophie helped me secure a new role I have been searching for. She took her time to explain clear and concisely all I needed to succeed at the interview stage. Thanks again Sophie!

O. Oladejo, Candidate

Friendly, proactive, communicative. Overall a really positive experience.

R. Houston, Candidate

Managed to get me placed within a week! Really friendly and easy to deal with. Always available for a call and my biggest challenge was I was in work at the time I was looking for my next opportunity (which is stressful) but Sam made that easy.

P. Fitzsimons, Candidate

The Recruitment agent I used, Simon, was extremely helpful and really went the extra mile to ensure all of my questions were answered, and that I felt as comfortable and prepared as possible. Very professional company and would definitely recommend to others. Thank you Aaron Wallis!

A. Callaby, Candidate

George is a fantastic recruitment agent and provides a great service. It was a pleasure I thoroughly recommend George to anyone.

C. Beaugie, Candidate

I can honestly say that the time and expertise you gave me was way beyond any other recruitment consultant I dealt with. You are a rarity in your industry.

S. Akers, Candidate

Professional and responsive from start to finish. I would highly recommend. Special thanks to Sophie J for her help and support throughout.

N. Leney, Candidate

Sophie contacted me about a role explained the details clearly and made sure I was ready for the interview. She kept in touch every step of the way till I started the job. Thank you Sophie for a great experience.

S. Powell, Candidate

I would highly recommend Aaron Wallis Recruitment, Darren was extremely helpful and provided me with plenty of advice and support throughout the whole process.

D. Bretherton, Candidate

Sophie has been fantastic and always so attentive, highly recommend.

T. Ashbourne, Candidate

Simon was knowledgeable on his clients history, background and what their requirements were and he worked around time zones, holidays and a pandemic to get the right result.

J. Tooze, Candidate

A great recruitment company to work with. Excellent experience with Aaron Wallis through the entire recruitment process. The team was really professional and extremely helpful. Darren was a pleasure to work with. He was friendly, supportive and gave me great advice. Thank you very much!

A. Bauchet, Candidate

Aaron Wallis Sales Recruitment are a very friendly and professional recruitment organisation who listen to your needs, work with you and act on your behalf which sets them apart from many of their competitors who in my experience are willing to throw anything at you. We discussed my history, my preferences and my wishes - one opportunity was introduced. It was perfect. I start at the end of June.

R. Buckley, Candidate

Aaron Wallis (and in particular Rob Scott) have been fantastic throughout the recruitment process, and even a few months down the line, still continues to care. Rob clearly cares about each individual and has a wealth of knowledge and expertise, which shows in the work he does. Each candidate is not just a number, and the support received from Aaron Wallis has helped me get a career which I truly enjoy.

M. White, Candidate 

Wanted to say a huge thank you to Simon Bonner who has just helped me secure my new role. He was one of the most professional recruiters I have ever worked with.

Aaron Wallis is an outstanding recruitment agency specialising in high calibre sales positions. I was working directly with Darren Dewrance who went above and beyond my expectations in sourcing me my perfect role. I was kept in regular communication with Darren and he worked extremely hard to secure my dream job. Highly recommended and Thanks Darren for all your expertise and hard work.

R. Sealy, Candidate

Staffing Agency Business Plan Template

Staffing agency business plan.

If you want to start a staffing agency, recruiting agency, nurse staffing agency, or temp agency or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 8,000 entrepreneurs and business owners create business plans to start and grow their staffing agency businesses, employment agencies and recruitment agencies.

How to Write a Staffing Agency Business Plan

Below are links to each section of your staffing agency business plan template:

Next Section: Executive Summary >

Staffing Agency Business Plan FAQs

What is the easiest way to complete my staffing agency business plan.

Growthink's Ultimate Staffing Agency Business Plan Template allows you to quickly and easily complete your Salon Business Plan.

Where Can I Download a Staffing Agency Business Plan PDF?

You can download our staffing agency business plan PDF template here . This is a business plan template you can use in PDF format.

What Is a Staffing Agency Business Plan?

A staffing agency business plan provides a snapshot of your staffing agency as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for a Staffing Agency?

If you’re looking to start a staffing agency, or grow your existing staffing agency, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your staffing agency business in order to improve your chances of success. Your staffing agency business plan is a living document that should be updated annually as your company grows and changes.

This is true for an employment agency business plan, a recruitment agency business plan, a healthcare staffing agency business plan or a plan for any type of staffing agency.

What Are the Sources of Funding for Staffing Agencies?

With regards to funding, the main sources of funding for staffing agencies are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Angel investors are also a common form of funding for staffing agencies. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a staffing agency. This is because most venture capitalists are looking for extremely fast growth and millions of dollars in return when they make an investment, and staffing agencies, while great businesses, don’t fit this criteria.

STAFFING AGENCY BUSINESS PLAN OUTLINE

• Staffing Agency Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Staffing Agency Business Plan Summary

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