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When deciding whether or not to take the leap to start your own recruitment agency business, of course how much money you will need is a killer question!

Even though you will more than likely be starting out fairly small - you may have some clients to bring along with you or an existing bank of candidates - it would be unrealistic to try and estimate precise start-up costs for a new agency, but we can certainly provide a good idea and cover the main considerations in preparation.

In the beginning...

Staff costs will most likely be at a minimum until further down the line, so the need for premises to start with is unlikely. Initial equipment needs are minimal and probably items you already have - including a phone, laptop, printer and standard software packages e.g. Microsoft Office.

Monthly charges can be from £30 upwards for phone and internet combined and to register as a limited company on Companies House incurs a £12 charge if it is done directly with them.

Company insurance is a consideration at this point also, research the level you would consider necessary with a reputable provider.


Design and online focus 

To reach your ideal clients and candidates, plus understand how to appeal to them, it is worth researching your target markets thoroughly . Your agency logo and branding identifies and communicates your company's values, so it is worth investing in this area. 

Your online presence will be a crucial part and an extension of your branding, plus your website sets the tone for your business. To register a domain name costs as little as £10.

Building a website is something you could tackle yourself but a well-designed, professional website speaks volumes. It also helps generate leads for your agency and helps attract new business from the get-go.

You can expect to pay from a few hundred pounds for a fairly basic site to a few thousand pounds for a more encompassing and complex site, through an agency or freelancer. Plus they will be able to arrange hosting the site for you also and offer SEO advice - which will be at an additional charge.

Social media is obviously a free tool for you to utilise and maximise. Prioritise, post and engage frequently adopting the 80/20 rule - 80% of valuable, informative content, while reserving the last 20% for promotional and sales activities.


Job Boards

Costs around job board advertising can range from free listings to £1000 plus per month, depending on the frequency of listings, the size of adverts required and if you use a copy writer to make your adverts really stand out.

Job boards are a very popular way of job searching and are an extension of your online presence. They can also help with SEO results, so it is worth leaving budget for these when considering start-up costs.


Recruitment software

A good software solution can form the heart of your business, saving you time and money by managing your invoicing, administration and data, while keeping you compliant.

A Cloud-based, fully integrated pay-and-bill software can streamline your entire business and leave you time to focus on and grow your new business.

Most companies offer free trials and demos, which are essential to make sure the system can deliver what you need and then charge on a monthly basis. 


Back office 

You can outsource your back office at any time, but doing so from the outset has the benefit of ensuring you have efficient processes in place from the start and the time to focus on developing your new agency thoroughly. Your back office tasks are extensive and must be kept up to date to remain compliant. 

As a business owner, you can recruit staff with the requisite skills to fulfil all back office tasks, or you can choose to ‘outsource’ them. As a start-up or small agency, it can be tempting to handle all admin and sales tasks in-house. However, don’t underestimate the burden and responsibility of managing this level of work. It can be at the expense of acquiring new business, which is ultimately at the heart of your growth.



Most start-ups seek funding early on. Even when self funding is available, it is generally not sustainable, especially in the temporary recruitment sector where businesses are required to invoice and make payroll on a weekly basis.

Temporary recruitment agencies in particular can suffer a short fall when payroll commitments dictate they pay recruitment staff before clients have paid their invoices. This has a huge impact on cashflow, the lifeblood of any business.

A cost effective solution that allows you 100% of your funding on a weekly basis, full debt insurance and a transparent fee can set you up for the most successful agency launch and beyond.

This is not an extensive list and day-to-day spends need to be considered on top including salary, expenses, travel, commission etc. But as long as these costs are budgeted for and controlled correctly - often with the help of an industry funding option, allowing you the funds you need when you need them - they don't have to be unmanageable.



How we can help you with  funding your temp recruitment business



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