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.
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.
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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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:
The company name | The name of the recruiter in your field | My comments |
Company name | Recruiter name | This recruiter has a well-established presence in this market, however they have less of a presence in UX/UI roles, which is a market I feel I can pick up |
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 percentage fee agreed with the client:, my predicted average fee:, my predicted average placements per month, my projected revenue over 12 months.
Year | 2023 | 2024 | ||
Quarter | Q2 | Q3 | Q4 | Q1 |
Personal revenue ($SGD) | $0 | 61,600 | 92,400 | 92,400 |
Number of placements | 0 | 2 | 3 | 3 |
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.
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.
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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.
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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Written by Dave Lavinsky
Business Plan Outline
Start Your Staffing Agency Plan Here
You’ve come to the right place to create your staffing agency business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their staffing agencies.
Below are links to each section of your staffing agency business plan template:
Next Section: Executive Summary >
What is a staffing agency business plan.
A staffing agency business plan is a plan to start and/or grow your staffing agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your staffing agency business plan using our Staffing Agency Business Plan Template here .
There are many types of staffing agency companies. Some staffing agencies will focus on a particular industry, such as clerical jobs. Other staffing agencies focus on executive job placement, while others will offer a wide range of services across all industries. Some even offer human resource functions, such as payroll, benefits administration and risk management.
The primary source of revenue for staffing agencies are the fees it charges clients to place them in a job and the revenue it receives from businesses that hire them to find and recruit suitable staff for their business.
The key expenses for a staffing agency business are the costs to market the business, as well as payroll for the support staff. Other expenses will be the rent, utilities, and overhead costs for the physical office space.
Staffing agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources. This is true for an employment agency business plan and specialities like a healthcare staffing agency business plan.
Starting a staffing agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Staffing Agency Business Plan - The first step in starting a business is to create a detailed staffing agency business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your staffing agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your staffing agency business is in compliance with local laws.
3. Register Your Staffing Agency Business - Once you have chosen a legal structure, the next step is to register your staffing agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your staffing agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Staffing Agency Equipment & Supplies - In order to start your staffing agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your staffing agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful staffing agency business:
You can download our staffing agency business plan PDF template here . This is a business plan template you can use in PDF format.
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.
Utilize the Business Plan Workbook to:
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.
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:
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:
…. costs to start your recruitment desk are minimal compared to starting from scratch
Set measurable goals to work towards, such as:
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.
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:
The values that guide your agency will shape your culture and brand.
Examples include the following:
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.
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.
Performing market research for your recruitment agency is essential for understanding your target market, competitors, and industry trends.
This involves the following activities:
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.
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.
After gathering data, analyse it to identify opportunities and establish a competitive advantage. Look for unmet needs or new trends to capitalise on.
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.
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:
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.
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.
An excellent recruitment business plan example outlines how it plans to generate leads.
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.
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.
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:
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.
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.
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.
Invest in a robust technology infrastructure, including the following:
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 .
To create a comprehensive recruitment agency business plan, it’s essential to determine funding sources and estimate projected returns on investment.
Note: With Recruiter Startup, your upfront fee is only £750 + VAT per month, a far lower expense than starting your own recruitment agency.
Consider the following factors in doing so:
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.
To secure funding, present a well-developed business plan with solid financials and explain how the investment will drive growth and profits.
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:
When designing your recruitment agency business plan, anticipate challenges and develop solutions.
Common risks include the following:
Compliance with legal regulations is vital for your agency’s reputation and success.
To achieve this, ensure you do the following:
Failing to comply with legal obligations can result in fines, reputational damage, or even forced closure. Hence, prioritise compliance from the outset.
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:
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!
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:
Yes, the recruitment industry can be challenging due to several factors, including the following:
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%
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!
Let's talk about starting your recruitment desk.
Additional Resources
01277 822668
Park Wood Technical Centre, Park Wood Doddinghurst Road Brentwood, Essex, CM15 0SN
Download the pdf.
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 .
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:
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.
Get started to learn more about partnering with AtWork to launch a business in the staffing industry.
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Find the AtWork temporary staffing agency most convenient for you. Choose from nearly 100 offices across the country.
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Download this recruitment agency business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.
Our recruitment agency business plan template gives you the structure to write a professional plan.
Not accustomed to writing business plans? Our recruitment agency business template will turn a typically challenging process into a total breeze.
Modelled on a complete business plan of a recruitment agency in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.
Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.
7 day free trial. No credit card required. Recruitment agency business plan template available with paid plans only.
Edit the recruitment agency business plan template online, or download it.
There are 3 ways to use this template:
This template includes a complete recruitment agency business plan example, with a financial forecast and the following sections:
The executive summary gives the reader a clear and concise overview of your business idea.
Our recruitment agency's executive summary is formed of the following subsections:
This section lays out the structure of your business, including its location, management team and legal form.
Our recruitment agency business plan template's company section is formed of the following subsections:
The products and services section is where you will present the different types of services offered by your recruitment agency.
In our recruitment agency business plan template products and services section, we cover:
The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
Our recruitment agency business plan example's market analysis section is formed of the following subsections:
This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.
Our recruitment agency business plan template strategy section is formed of the following subsections:
This part lays out the company's operational organisation, including the recruitment plan.
Our recruitment agency business plan operations section is formed of the following subsections:
This section presents the expected financial performance of the recruitment agency over the next 3 years.
Our recruitment agency business plan example's financial plan is formed of the following subsections:
This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
Our recruitment agency business plan template's appendices include:
Executive summary, business overview.
Cavine Recruit will be a recruitment agency specialising in the hospitality sector.
Our primary aim is to help cafés, hotels and restaurants in and around Caen's city centre hire "last minute" temporary staff.
We will also help those hospitality businesses find qualified personnel who are willing to join them on a permanent contract.
Cavine Recruit will be a limited liability company, managed by Catherine V. and Vincent A. with a share capital of €5,000.
Our offices, located at 34 Quai de la Londe in Caen, are walking distance from the Vaugueux (an area where most of the restaurants in Caen are located). This is ideal for increasing our visibility.
Both managers have known each other for over a decade. Together they have 20 years' experience in hotel and restaurant recruitment. They decided to start their own recruitment agency together to combine their skills and passion.
National Market
The recruitment agency market in France
According to the 2016 Prism'Emploi report, there are 7,257 recruitment and temporary employment agencies in France. The market was valued at €17.7 billion (turnover) that year.
46% of recruitment agency clients are SMEs and recruitment agencies generated €147.7 million of turnover in 2016.
Market leaders in the interim and recruitment agency market include Adecco, Randstad, Manpower and Hays Recruitment. Despite their dominance, many independent and niche firms remain competitive in the market.
When it comes to sectors where a specific profile is desired, companies tend to favour headhunters or independent recruitment agencies specialising in that industry to find the perfect candidate.
Mandates entrusted to independent recruitment agencies are mainly fixed-term and permanent contracts.
How recruitment firms find staff:
According to the 2017 report by the Ministry of Labour, 34% of companies use recruitment intermediaries to recruit employees. This process has a success rate of 15%.
It's not only companies that use recruitment agencies. They have become an ideal springboard for those seeking employment. APEC estimates that 128,159 young executives and graduates used recruitment agencies to find jobs in 2018.
Local Market
The 2018 Calvados Tourism Observatory report estimates that both the City of Caen and its surroundings are prevalent in the hotel sector - accounting for 49% of all hotels and 34% of overnight stays in the county of Calvados.
It's also estimated that 41% of tourist revenue in Normandy in 2016 came from hotels, cafés and restaurants.
According to the FAFIH, there were 9,300 businesses, 12,500 seasonal workers during the summer and 2,900 in winter in Normandy in 2018. 90% of hospitality companies were also micro-enterprises.
The sector mainly consists of:
A tool set up by Carif Oref Normandie, which deals with training and employment, identifies staff shortages in terms of supply versus demand. Caen lags behind in this aspect in both the hotel and catering sectors.
53% of the recruitment projects recorded in 2018 were assessed as difficult, and 55% were destined to be seasonal jobs.
We expect to be profitable in our first year of activity with sales of €95,775 and an EBITDA of €6,056 (with a 6.32% margin) for year 1.
We expect to be able to continue to grow our business to reach €105,375 in sales and €13,572 in EBITDA (with a 12.88% margin) by year 3.
Cash generation should be positive over the duration of the plan.
The business should be sufficiently capitalised to enable us to meet our loan repayments while retaining sufficient headroom to deal with unforeseen circumstances.
We estimate that we need a total of €30,000 to open our recruitment agency.
Our partner will contribute €20,000 (67% of the total amount).
We would like to obtain a bank loan of €10,000 to complete the financing.
Easy to get started with and well-guided throughout. Lots of business plan templates to help you and writing is easy because there are explanations at each step of the process.
Quite frankly excellent because I was able to finalize my business plan in less time than expected. This software offers a very coherent and complete approach to writing your project.
It is a very well designed software that allows you to visualise each step of your project, understand if the idea is viable or not and think about the steps needed to start your business.
The software is just impeccable. Of course, it meets the requirements of people starting a business. In addition to having a tool for putting together a proper financial forecast, there is also a tool to help write the business plan.
There’s only one way to make up your mind about a new service - by trying it out for free. So we’re offering a free trial run on our platform for 7 days.
Recruitment agency business plan template faq.
A recruitment agency business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.
It consists of two main parts:
The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a recruitment agency, writing a business plan is a must-have in order to reduce the risk of failure of your project.
Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your recruitment agency.
Writing a recruitment agency business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:
Luckily for you, The Business Plan Shop's online platform and recruitment agency business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.
Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.
Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.
And with our forecasting software all the calculations are done for you, without errors.
The budget to start and run a recruitment agency will depend on the exact concept and location.
An online recruitment agency that does not have physical offices would probably have much lower startup costs than one that isn't fully remote. This is because staffing costs, rent and other overheads would be minimal or non-existant. Hiring a specialist website designer would also increase startup costs considerably.
As an example, in our recruitment agency business plan template the total initial funding requirement amounted to €30,000 (c. $32,000 or £26,000), with the founders contributing €20,000 (c. $21,400 or £17,000).
In order to assess the exact budget for your recruitment agency idea, you need to do a financial forecast using a financial projection tool such as the one we offer .
The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:
But you shouldn't take our word for it: try our solution for free and make your own opinion!
The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.
Some features are limited during the free trial, the main limits are:
You can create your account and start your free trial here .
Access to our template is included with all our paid subscriptions.
Please visit our pricing page to learn about this in more detail.
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.
Below are links to each section of your staffing agency business plan template:
Next Section: Executive Summary >
What is the easiest way to complete my staffing agency business plan, where can i download a staffing agency business plan pdf, what is a staffing agency business plan, 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.
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
A sample recruitment business plan revolves around basically three words that describe your business philosophy. 3 min read updated on November 02, 2020
Business Niche
Creating a business plan involves making some decisions upfront. This means choosing a niche. By doing so, you'll be deciding the type of recruitment agency to start and the industry to serve.
Observing Competitors
Observe how your competitors' work provides an excellent opportunity and how its recruitment process works.
Gathering Experience
Starting a recruitment agency requires the experience that a recruiter uses to find the perfect match for a company's needs. Examples of what you need to know include:
To acquire the type of experience necessary to operate a recruitment agency, it's recommended that you register with a reputable recruitment agency to experience, firsthand, some basic training in how an agency operates.
Building Skills
Keep in mind that part of a recruiter's job is testing the skills of potential candidates for jobs. So, your own skill level must be up to the task. It's equally important that you're able to recognize someone with potential even though they may not possess a lot of experience. You also need the insight to place the right person in the right position.
Evaluating Start-Up Costs
A recruitment agency isn't a cheap business venture to initially get started. You'll need a checklist of all things needed and the cost of each item. Things to include are staff payroll, marketing, insurance, and basic business expenses.
Researching Recruitment Laws
Study and become familiar with the recruitment laws in your state to ensure you aren't in violation. Each has guidelines that may include requirements for specific industries.
Obtain a Business License
Check with your local city and county office as well as the state to find out if or what type of business license is required to operate a recruitment agency. Obtain the license prior to opening for business.
Research Employment Laws
Laws guiding the rules of employment in each state are also in effect and something you must become familiar with. Examples include laws against discrimination and equal opportunity employment .
Business Location
Select a business location that's visible and easily accessible for clients and job applicants.
Register With Recruiters
Register with other companies as a recruiter. This is a way to bring in business should a company need to fill a position and contact you to fill the position.
Create a Marketing Plan
Create a marketing plan that outlines your business and its services. Make a list of businesses to contact and send a letter of introduction letting owners/managers of these businesses know about your company and what it has to offer. Also, follow up on each letter. Take advantage of the internet and newspapers by placing ads to highlight your business.
Create a Business Website
In today's fast-paced world, having a website is the standard operating procedure. A website is a gateway to advertising job vacancies. It's also a way for potential job seekers to provide resumes and conduct online interviews.
Hire Support Staff
A recruitment agency requires lots of paperwork, and you'll need to hire qualified staff to help with the tasks. This means bringing staff on board who have previous recruitment experience.
Contact insurance companies about purchasing liability insurance for your business.
Business Bank Account
Open a business account that's separate from your personal account for accepting payments for services from clients.
Equipment Necessary for a Recruiting Agency
The office space should include a reception area for greeting applicants and receiving applications. There should also be a conference room where you can conduct interviews. Necessary equipment includes:
On average, a recruitment consultant has the potential to earn between $65,000 and $75,000 annually. Charges for placing a candidate can range between 14 and 20 percent. Charges for your services may be based on a percentage of the candidate's first annual salary. The other option is charging a flat fee to the company you're recruiting for.
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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.
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.
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.
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.
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.
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.
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.
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 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.
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
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.
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.
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.
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.
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.
Put yourself in the shoes of your ideal customer. What is going to make them choose you over another agency?
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.
If you still need some help coming up with objectives, you can consider some of the following:
Along with each objective you should provide a plan, as to how you expect them to be achieved.
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:
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.
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?
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.
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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.
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
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.
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.
Complete recruitment agency business planning package.
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Starting a recruitment agency can be a lucrative venture, but success hinges on meticulous planning and strategic execution. In the fast-paced world of talent acquisition, having a well-thought-out business plan is not just a formality but a blueprint for prosperity. This article delves into the essentials of crafting a recruitment agency business plan, exploring its significance, funding sources, and a step-by-step guide on how to create one.
A recruitment agency business plan is a roadmap that outlines the goals, strategies, and operational details of a staffing firm. It serves as a comprehensive document guiding entrepreneurs through the intricacies of establishing and growing a successful agency. The plan typically includes sections on market analysis, service offerings, financial projections, and marketing strategies.
1. Strategic Roadmap
A well-crafted business plan provides a clear roadmap for your recruitment agency. It outlines short-term and long-term goals, helping you stay focused on your objectives amidst the ever-evolving landscape of talent acquisition.
2. Investor Attraction
Investors are more likely to support a venture with a solid business plan. It instills confidence by showcasing your understanding of the market, competition, and potential for growth. This document becomes a persuasive tool when seeking funding for your recruitment agency.
3. Operational Efficiency
A business plan forces you to think critically about your agency’s operations. It helps identify potential challenges, allowing you to devise strategies for overcoming them. This proactive approach enhances operational efficiency and minimizes the risk of unforeseen obstacles derailing your progress.
4. Adaptability to Market Changes
In the dynamic world of recruitment, market conditions can change rapidly. A business plan equips your agency to adapt swiftly to shifts in demand, technological advancements, or changes in the regulatory landscape.
Establishing a recruitment agency requires capital for various purposes, including office space, technology infrastructure, and initial marketing efforts. Understanding the potential sources of funding is crucial for turning your business plan into reality.
1. Personal Savings and Investments
Many entrepreneurs kickstart their recruitment agencies using personal savings or investments. This approach offers autonomy and flexibility but comes with the risk of personal financial exposure.
2. Bank Loans
Traditional bank loans are a common source of funding for small businesses. Ensure your business plan includes a detailed financial projection to convince lenders of your agency’s viability and repayment capability.
3. Angel Investors and Venture Capital
Angel investors and venture capitalists are interested in high-growth ventures. If your recruitment agency has a unique proposition and strong growth potential, seeking investment from these sources might be a viable option.
4. Government Grants and Subsidies
In some regions, governments offer grants and subsidies to encourage entrepreneurship. Research and explore whether your recruitment agency qualifies for such financial support.
Crafting an effective business plan involves a systematic approach. Here’s a step-by-step guide to help you create a compelling document for your recruitment agency:
1. Executive Summary
Provide a concise overview of your recruitment agency. Include mission and vision statements. Highlight key objectives and unique selling propositions.
2. Company Description
Detail the history, structure, and ownership of your agency. Define your agency’s mission, values, and target market. Present your agency’s legal structure and location.
3. Market Analysis
Conduct a thorough analysis of the recruitment industry. Identify your target market and competitors. Highlight trends, opportunities, and potential challenges.
4. Services and Solutions
Clearly define the services your agency will offer. Explain how your services meet the needs of clients and candidates. Highlight any proprietary technology or unique methodologies.
5. Organization and Management
Outline the organizational structure of your agency. Introduce key team members and their roles. Include information on advisors or consultants.
6. Marketing and Sales Strategy
Detail your agency’s marketing and sales approach. Identify target clients and outline promotional strategies. Include a pricing strategy and sales forecast.
7. Financial Projections
Develop detailed financial projections for the next 3–5 years. Include income statements, balance sheets, and cash flow statements. Provide assumptions and rationale behind your financial forecasts.
8. Funding Requirements
Clearly state the amount of funding required. Specify how the funds will be utilized. Provide a detailed repayment plan for loans or investment returns.
9. Risk Analysis
Identify potential risks to your agency’s success. Outline strategies to mitigate or manage these risks. Demonstrates a realistic understanding of challenges.
10. Appendices
Include any additional supporting documents. Attach resumes of key team members. Provide references, case studies, or endorsements.
In the competitive realm of recruitment, a meticulously crafted business plan is your compass to navigate challenges and seize opportunities. Whether you’re seeking investors, applying for loans, or simply guiding your own endeavors, a well-structured business plan sets the stage for success. Assemble your roadmap wisely, and watch your recruitment agency thrive in a talent-driven marketplace.
How do I start a recruitment startup?
To start a recruitment startup, develop a business plan, research the market, get necessary licenses and insurance, secure funding, find clients, hire recruiters, and market your services.
How do you write a business plan for recruitment?
A recruitment business plan should include an overview of services, target markets and clients, competitor analysis, marketing plan, projected finances and costs, staffing needs, and growth goals.
How do recruitment agencies generate revenue?
Recruitment agencies generate revenue by charging client companies a percentage of the salary or hourly wage when a referred candidate is hired, or through retainer fees.
Hello, I'm Ivan Smith, a graduate with a Bachelor of Business Administration in Marketing. Currently, I'm actively engaged in practicing business plan writing.
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An Ultimate Recruitment Agency Business Plan is your roadmap to success, detailing strategies and goals. It encompasses objectives for growth, financial projections, and key performance indicators.
Crafting a robust introduction for a recruitment agency’s business plan presents the clear vision and mission as its backbone. Within this plan, an agency elucidates its targeted niche, sales and marketing approaches, and an outline for acquiring top talent. It is not merely a document but a strategic blueprint designed for steering the recruitment business towards its desired milestones.
A well-conceived plan ensures that the agency stays on course, makes informed decisions, and adapts to the ever-evolving job market, all while adhering to its core values and objectives. For recruiters ready to navigate the competitive landscape, this plan becomes an indispensable guide that aids in fostering sustainable growth and operational efficiency.
Starting a recruitment agency often brings excitement and challenges. Success calls for a clear roadmap. This guide dives into the importance of a business plan and key components that shape a thriving recruitment agency. Get ready for a journey towards building a solid foundation for your business!
A well-crafted business plan is pivotal for every recruitment agency. It serves as a blueprint for operations, financial health, and growth strategies. A robust plan not only charts a path to success but also attracts investors and top talent.
Your recruitment agency’s success hinges on several critical elements. A dynamic team, efficient recruitment processes, and cutting-edge tools form the core of a winning agency. Let’s explore these essential ingredients.
Gearing up for success in the recruitment industry requires a deep dive into its complexities. Crafting a stellar business plan begins with analyzing the landscape where talent meets opportunity. Grasping the current environment and recognizing potential hurdles lays the groundwork for a thriving agency.
The recruitment sector continues to evolve swiftly, led by several standout trends. Firms that adapt to these movements secure a competitive edge. Chief among these are:
These trends shape strategies and push agencies toward innovative solutions.
To thrive, one must not only ride the wave of trends but also navigate through common challenges:
Competition Intensity | Differentiation is key to standing out. |
Technological Advancements | Continuous learning and investment required. |
Economic Fluctuations | Adaptability is crucial for stability. |
Regulatory Changes | Staying updated is mandatory for compliance. |
Being aware of these factors equips agencies to proactively address and overcome them.
Embarking on a business venture requires a clear blueprint for success. For recruitment agencies, it begins with a well-defined purpose. A powerful mission and vision set the stage for the agency’s aspirations and guide its strategic direction.
The mission statement is the core of your recruitment agency’s identity. It states why the business exists and who it serves . Creating a mission statement involves reflection and careful thought. It should be clear, concise, and meaningful . Focus on the value your agency brings to clients and job seekers alike. Mention the commitment to quality, efficiency, and integrity . The mission will become the foundation upon which all other strategies are built .
Where do you see your agency in the future? Setting visionary goals shapes a roadmap for growth and success. A vision statement should inspire and motivate . It outlines a future where the agency has made a significant impact in the recruitment world. Think in terms of market leadership, innovation, and excellence . List the milestones that align with the agency’s aspirations to encourage progress and measure success.
A vision might include:
Both the mission and vision should be revisited regularly. They should evolve as the agency grows. With a strong mission and vision, your recruitment agency is positioned for prosperity.
Crafting the ultimate business plan for a recruitment agency involves a crystal-clear outline of the “Services Offered and Value Proposition” . This section is the heart of your plan. It explains what your agency will do and why clients should choose you over competitors. Let’s dive into the specifics.
A successful recruitment agency knows its strengths. It offers services that stand out in the marketplace. These unique services not only meet client needs but exceed them. Identifying exceptional services sets your agency apart and captures attention.
Your value proposition is your promise to clients. It is a statement that sums up the unique benefits your agency offers. It tells clients why they should work with you.
Essential Elements | Examples |
---|---|
Deep understanding of tech industry hiring trends | |
Quick turnaround for urgent staffing needs | |
Tailored recruitment strategies for each client | |
Rigorous screening process ensures top talent | |
Follow-up services to ensure candidate success |
Remember to communicate your value proposition in all marketing materials. Let it resonate with potential clients and define all your interactions.
The success of a recruitment agency hinges on understanding who needs its services. Identifying the right target market and segmenting potential clients ensures a focused approach. It allows your agency to tailor strategies for various market segments.
Knowing who your ideal clients are forms the base of your business plan. You must outline clear characteristics of the businesses you aim to work with. Here’s a simple break-down:
Creating a client avatar helps visualize the perfect match for your services.
To effectively penetrate the market, you need actionable strategies. These are key:
Implement these steps methodically. Observe how they boost your agency’s visibility and client base.
Every recruitment agency needs a strong plan to attract clients and talent. Key to that plan is having smart marketing and sales strategies. These strategies help agencies build a powerful brand. They also create ways to sell services better. Here we will explore branding that turns heads and sales tactics that really work.
In a crowded market, your brand needs to shine. A memorable brand sticks in people’s minds . Think about what makes your agency different. Are you fast? Do you have rare skills? Use these traits in your marketing.
Here are some steps to build your brand:
Sales are the engine of your business. A good sales strategy converts leads into lasting partnerships. Craft a sales pitch that speaks to the needs of your clients.
Try these sales tactics:
An efficient Operational Plan and Recruitment Process define the backbone of a successful recruitment agency. It’s crucial to orchestrate every step to ensure recruitment tasks smoothly flow from one to the next. This meticulous planning often differentiates thriving agencies from the rest.
Every recruitment agency aims to run like a well-oiled machine. A focused operational plan ensures that. Simplifying complex processes can lead to better productivity and client satisfaction.
Modern recruitment tools and technology are vital for achieving efficiency. Innovations in software help agencies match the right candidates quickly.
Tools such as Applicant Tracking Systems (ATS) and Customer Relationship Management (CRM) software allow for:
Tool | Function |
---|---|
Manage and track job applications | |
Maintain relationships with clients and candidates | |
Facilitate seamless interaction |
Investing in these tools keeps a recruitment agency ahead in the fast-paced hiring market.
Mapping out your agency’s financial future is crucial for success. The Financial Projections and Funding section of your business plan gives a crystal-clear insight into the financial blueprint of your recruitment agency. It’s where numbers take the center stage, elucidating your anticipated earnings and expenditures. Also, it outlines the capital required to kickstart and maintain your business operations. Let’s deep dive into the projected numbers that can propel your agency towards profitability.
Your revenue and cost projections act as a financial compass. Smart forecasting sets you up for stability and growth. Start by estimating your initial earnings , considering factors like market size and services offered. Then, list your expected expenses , which may include:
Keep your projections realistic and data-driven . Utilize industry benchmarks to validate your numbers. Craft a compelling table to showcase your projection.
Year | Revenue | Costs | Profit |
---|---|---|---|
Year 1 | $100,000 | $50,000 | $50,000 |
Year 2 | $150,000 | $75,000 | $75,000 |
Year 3 | $200,000 | $100,000 | $100,000 |
Having a robust plan is just the start. Securing the necessary funds can make or break your agency. Explore diverse avenues for funding:
Prepare a pitch that highlights your agency’s potential. Your plan should convince funders that their investment is sound. Build trust using detailed projections and clear strategies. Ultimately, the right funding can be the catalyst that launches your agency to new heights .
Behind every successful recruitment agency is a team that drives that success. Your agency’s team is its heartbeat. It’s where performance and culture collide. Careful planning in the beginning sets the stage for a winning team. Let’s dive into how to cherry-pick the best and foster a workspace where they thrive.
Finding the right people is critical. You need individuals who not only possess exceptional skills but fit the agency’s ethos too. To hire top talent:
Remember, a team of A-players attracts more A-players. Your first hires are crucial as they set the bar for future recruits.
Once you have your team, instill a culture of success . A positive work environment encourages productivity. Here’s how to build this culture:
Happy employees mean happy clients. A culture that champions success pays dividends in morale and the bottom line.
Embarking on a journey with a recruitment agency business involves navigating through storms of uncertainty. Risk management and compliance are the anchors that keep your ship steady. They protect your business and build trust with clients and candidates.
Identifying potential risks
Recognizing risks is a step towards secure operations. A successful recruitment agency identifies and appraises potential risks regularly. This proactive approach minimizes disruptions and ensures a smooth sail.
Ensuring legal and ethical compliance
Adhering to laws and fostering ethical practices are non-negotiable. Compliance shields your agency from pitfalls and maintains a reputable image.
Compliance Area | Key Actions |
---|---|
Stay updated with changing regulations. | |
Enforce anti-discrimination policies. | |
Implement robust security measures. |
Conducting regular audits ensures ongoing compliance. Training staff upholds ethical standards.
Growth strategy and scaling are key to a recruitment agency’s success. A solid business plan must include a roadmap for expanding your client base and growing your team . This section pinpoints how to plan and scale effectively.
Understanding market trends is crucial for planning your agency’s growth . Analyzing these trends helps predict demand and identify new niche areas .
Year | Milestone |
---|---|
Year 1 | Establish brand identity |
Year 2 | Expand into new markets |
Year 3 | Enhance digital presence |
Set clear milestones to measure your agency’s growth. Always review and adapt your strategy based on what you learn.
Scaling is about optimizing operations while maintaining service quality. The right systems, processes, and tools ensure you scale without compromising performance .
Use data-driven insights to make informed decisions . Monitor key metrics to ensure business health as you grow.
Remember: Sustainable scaling balances growth with stability . It solidifies your agency’s future in a competitive recruitment landscape.
Embarking on the journey to launch your recruitment agency requires careful planning and execution. As you stand on the precipice of a new beginning, understand that your business plan is your roadmap. It charts the path to growth, financial stability, and success in the competitive world of recruitment.
Before you unveil your agency, ensure that all systems are go. This checklist is your pre-launch lifeline to avoid any last-minute hiccups. Refer to it often:
You’re almost there! Remember, launching your recruitment agency is just the beginning of an exciting journey. Keep this momentum alive:
Your hard work will soon pay off. Take a deep breath, trust your plan, and launch with confidence!
How do i write a business plan for an agency.
Begin by summarizing your agency’s purpose and services. Outline your market analysis, management structure, marketing strategies, financial projections , and funding requirements. Be clear, concise, and focus on your business’s unique value proposition. Use bullet points for easy readability.
Define a niche to specialize in and understand the market. Create a robust recruitment and screening process. Develop strong relationships with both clients and candidates. Invest in marketing and branding to stand out. Stay compliant with employment laws and regulations.
A staffing agency recruits employees for businesses needing temporary, part-time, or permanent workers. They match qualified candidates with appropriate job openings, streamlining the hiring process for companies.
Begin with an executive summary outlining your agency’s purpose. Detail your market analysis, organizational structure, and services offered. Include marketing strategies, financial projections, and funding needs. Always focus on the unique aspects of your healthcare staffing agency to set it apart.
Crafting your recruitment agency business plan is the first step towards your entrepreneurial journey. With the sample provided, you’re well-equipped to tackle the market’s needs. Remember, a clear strategy sets the foundation for success, so refine it as your agency evolves.
Start your planning now and pave the way for a triumphant future.
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Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
All About People (AAP) began out of the desire to contribute to this community, just as communities have fed All About People’s proprietor over the years. Although originally from a larger market, the proprietor realizes the need in the southern Willamette Valley for a personnel agency that fills a void left by other temporary and permanent placement agencies. AAP matches specifically skilled workers with clients, saving businesses time and money, while providing for its employees with honesty and honor. This requires a high level of communication. It means asking open-ended questions and listening, not talking. This means knowing the local market so AAP can really serve each client and employee, not just “sell” them our goods. AAP is quality service.
The long-term vision includes a number of offices throughout the southern Willamette Valley. The proprietor sees the challenge in this vision, not in the growth itself, but in training and encouraging all AAP personnel to treat each client and employee with the same care and with the same level of communication.
Managing our Growth AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan. During the past couple of years the proprietor provided all services. In Year 1, the company will add a part-time office staff person and an employment specialist. In response to this growth, AAP will have a procedures manual for in-house staff to assure that the information is clear. In addition, AAP will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. Year 2 projections include a receptionist, another employment specialist, and a field representative. In Year 3, AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.
The Market AAP is structured like other temporary and permanent placement agencies. However, it will serve clients with needs for select, specialized professionals rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people, but there are none for the Willamette Valley. AAP has five divisions, targeting the following areas of expertise:
Event Planners
Graphic Artists
Services AAP will handle recruiting, including reference checks, skills evaluation, preliminary interviewing, and screening of all employees for its clients. AAP acts as an extension of the client’s human resource department, assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.
Financials The company’s start-up requirements are $55,464, of which $7,600 will be provided for by the owner’s personal investment. The rest will be obtained through loans.
We expect to be able to charge a 50% markup to our business clients. Thus, if an employee is being paid $10 per hour, we are charging the client $15 per hour. The company predicts that it will be able to produce sales of approximately $300,000 by Year 3. The company does not have any direct cost of sales; we track payments to placed individuals as regular payroll.
AAP is structured like other temporary and permanent placement agencies. However, we serve clients with needs for select specialized professionals, rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people. AAP followed the model of one placement firm described below.
A contract engineering firm places temporary workers who are hardware and software engineers. Employees earn between $80- $100 per hour and approximately seven employees are placed per month. The firm recruits through its website, advertises in newspapers, magazines, and trade publications. Incentives offered to contingent workers include medical, dental, and disability insurance, 401(K), and a reference finder’s fee for placement referrals. They find their employees are 60 percent male, 40 percent female, and ages spread evenly.
AAP serves the business client by locating a professional worker, interviewing and screening that worker, setting up interviews if necessary, and administering all hiring paperwork. The company runs payroll and bills the client bi-monthly. AAP will also manage the professional, staying in close contact with the client and communicating with the worker regarding any personnel issues that may arise.
The professional worker is served with employment opportunities at no cost; pay rates that are within industry standards; and health insurance may be purchased, if a worker becomes eligible, at a group rate starting at $124/mo. AAP will pay $65/mo for any coverage chosen from the group package.
All About People’s mission is to contribute to the community by filling a need for specialized, professional, contingent workers. The company will provide workers with a safe and independent environment. It will also provide businesses with a high-caliber of employee available for project or permanent work. All About People listens to individual needs and customizes personnel solutions for both businesses and workers.
AAP is a temporary and permanent placement personnel agency working solely with skilled, professional workers and Willamette Valley businesses. AAP differs from other temporary and permanent placement agencies because of our skilled workers. The company believes that the temporary industry pays only cursory attention to providing businesses highly qualified workers for permanent and non-permanent positions. AAP has five divisions, targeting the following areas of expertise:
AAP does not provide general clerical, light industrial, engineers, accountants, nurses, or other medical technicians.
AAP does the following for each client:
AAP conducts regular evaluations: AAP checks in with the supervisor and the worker during the first week on the assignment. AAP then checks in as agreed with the client. AAP acts as an extension of the client business’ human resource department assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.
Prior to opening our doors, research showed support for the development of a personnel agency working solely with professional contingent workers and Willamette Valley businesses (see topic 7.3 Supporting Research).
According to the Oregon Department of Employment, Lane County has 31 temporary agency firms with 3200 individuals employed. Total employment figures for Lane County are 250,000; therefore, we support between two and four percent of the population.
Through connections in a variety of areas, AAP is able to locate qualified workers not only through advertising, but through a channel of networking. This past year has shown that qualified, willing workers are certainly available as we currently have hundreds on staff willing and able to work.
AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan.
The sole proprietor, Sarah Wayland, can be reached at AAP’s office, [contact information omitted in this sample plan].
Projected start-up figures are shown in the chart and table below.
Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $100 |
Stationery etc. | $100 |
Brochures | $164 |
Insurance | $300 |
Rent | $800 |
computers, printers, software | $8,000 |
Total Start-up Expenses | $9,464 |
Start-up Assets | |
Cash Required | $46,000 |
Other Current Assets | $0 |
Long-term Assets | $0 |
Total Assets | $46,000 |
Total Requirements | $55,464 |
Start-up Funding | |
Start-up Expenses to Fund | $9,464 |
Start-up Assets to Fund | $46,000 |
Total Funding Required | $55,464 |
Assets | |
Non-cash Assets from Start-up | $0 |
Cash Requirements from Start-up | $46,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $46,000 |
Total Assets | $46,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $2,720 |
Long-term Liabilities | $45,000 |
Accounts Payable (Outstanding Bills) | $144 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $47,864 |
Capital | |
Planned Investment | |
Owner | $7,600 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $7,600 |
Loss at Start-up (Start-up Expenses) | ($9,464) |
Total Capital | ($1,864) |
Total Capital and Liabilities | $46,000 |
Total Funding | $55,464 |
The company is uniquely positioned to take advantage of this market opportunity because of the management and field expertise of the proprietor. Sarah Wayland worked in the temporary employment industry for three years with ADIA Personnel Services (now ADECCO) as Area Account Manager (in training as a branch manager): building business relationships; hiring employees; handling employee issues; working with clients during the implementation of ADIA; and opening an additional office in Beaverton, Oregon.
For one year the proprietor was a District Sales Manager at Columbia Distributing, showing a 10% increase on $3.5 million in annual sales. Managing a staff of nine in sales and customer service, she had the opportunity to delve further into hiring/firing, reviewing, incentives outside of salary, and personnel issues.
Most recently, she has spent several years as Funds and Contracts Manager at the Oregon University System; managing four grants totaling $1.5 million annually and all personal service and interagency contracts as well.
The proprietor’s most notable success was bringing the second branch of Cellular West located in Portland, Oregon, from running in the red, to breaking even within four months of its opening. She accomplished this by using motivational tools and providing the sales force with extensive training.
Changing labor market conditions threaten the concept of full-time permanent employment.
AAP provides a complex blend of services to distinct populations. The company serves businesses through connecting them with the professional contingent work force. It also serves the worker by connecting them with businesses, at no charge, and providing benefits not often provided by other employment agencies.
All About People (AAP) is a local firm that costs less than a consultant or agency, provides for both project and long-term needs, and has an easy, pay and billing rate system that covers employee payroll and worker’s compensation insurance.
There are a variety of reasons why businesses may need AAP’s services:
According to economic forecasters, employment agencies and financial services are expected to have the largest industry growth over the next 25 years. The trend toward businesses cutting back on employees and their benefits due to high costs creates the demand for AAP’s services.
Just consider the time, energy, and resources an employer may spend trying to employ a person for a 20-hour task.
In addition to the already lucrative temporary industry, several companies in the Portland Metro Area place professional contingent workers, but the southern Willamette Valley is not currently being served.
The company approaches businesses primarily through networking and cold calls. Our intention is to utilize a PR agency for more coverage as soon as possible. AAP is a member of the area Chamber of Commerce and actively participates in as many activities as possible, the proprietor is a member of the Women’s Business Network, the Professional Women’s Organization, and we are in the process of connecting with the Society for Human Resource Management. Prior to start-up, AAP also surveyed several area businesses about their use of contingent workers. The company will use its website and other marketing materials that describe what services we provide and explain how simple it is to work with us.
AAP advertises in local papers and trade magazines when absolutely necessary, but most often uses the Oregon Employment Department, both community college and university campuses, and the networking groups we are members of to search out the right employee. Prior to the sole proprietor start-up, the company started recruiting by administering twenty personnel surveys and advertising locally to create a staff of qualified contingent workers. This staff will be unaffected by AAP’s corporate restructuring.
The market can be broken down into two segments: the business market segment, and the employee market segment. Both of these segments are lucrative.
Business market targets: The company targets the University of Oregon, Lane Community College, the nonprofit organizations, the publishing industry, the advertising industry, and other large businesses.
Employee market targets: Editors/writers, graphic artists, computer specialists, event planners/fundraisers, and language translators/interpreters working in the business target markets listed above, as well as any applicants with unusual skills and talents.
These charts demonstrate the types of workers employed, the type of qualified professionals on file to work for the company, and the types of businesses who have used AAP’s services. These statistics cover the 15-month sole proprietorship period from July 1, 1998 through September 30, 1999.
Types of workers employed by or signed up with AAP
| ||
Computer | 34 | 24 |
Editor/Writer | 20 | 25 |
Event Planner | 13 | 10 |
Graphic Artist | 10 | 13 |
Language Interp/Trans | 13 | 17 |
Other | 10 | 11 |
Types of employers using AAP
High Tech | 14 |
Nonprofit | 39 |
Manufacturing | 18 |
Publisher | 11 |
Service | 18 |
Each and every contact is entered into the database-either in the professionals file if they are a potential candidate, or in the contacts file if they are another type of contact. The client and jobs files utilize the contact and client numbers to automatically fill in the information from the contact or client files. This means no duplicate typing. In addition, the contacts, clients, and professional files all have follow-up sheets attached making daily follow-up easy. Simply pull the file up for that day and all calls that need to be made that day will be marked.
Searching is easy. The check boxes within each professionals file allows us to check for singular or multiple skills and experience with a click and a return.
First form filled out from the moment the candidate calls. Three screens constitute one file: Personal Information; Job Information; Skills. The professional and contact files have a conversation record that will allow easy follow-up with a list daily of those records needing a call.
Interview Form
Directly from the employee forms the Employment Specialist can select the appropriate interview form. This form consists of three sheets: Basic Questions; Other Information/Recommendations; and Reference Checks.
Employee Profile Sheet
From the above information, a profile sheet is generated in hard copy for the inside of each file. This is our second backup system (besides the tape drive) in case of a power outage, etc.
This form is used for all other contacts. From here, a contact can be turned into a client by merely typing the contact number in on the client sheet, automatically bringing in all of the information.
The client sheet is easily created by filling in the contact number. All pertinent information is automatically entered. The client sheet has its own contact sheet attached generating a daily follow-up list. The client files can also be pulled into a handy contact list.
AAP is completely service minded, customizing personnel packages and offering the most it can to both employers and employees. The company brokers professional workers to Willamette Valley businesses. Because we serve two distinct groups of people, both businesses and employees will be considered equally important to AAP.
The company consists of five divisions, targeting the following types of workers and needs in businesses:
Computer Division
Editor/Writers
Language Interpreters and Translators
Within these categories, we originally set up a system of single sheets on card stock and filed them in binders. Since then, an electronic database has been created by one of our professionals. With the push of a button, AAP can search for a client or an employee needed.
Businesses and employees will be able to communicate with AAP via both new technological and traditional methods. Our Web page provides information about AAP including what professional fields we serve, what clients we are working with, and what services we offer. A second-generation Web page will provide information about employees for businesses through a password-protected area. AAP forwards candidates’ resumes and other information through a variety of methods: phone, fax, personal visit, mail, and the Web page.
In August 1999 we moved the offices to the center of town. Accounting is handled electronically by the proprietor through QuickBooks, with the complex needs handled by our CPA. All payroll is generated through the payroll service, Paychex. The office is furnished with all of the technology needed to operate on a daily basis, increase market share, and serve clients.
When a business is contacted and expresses interest in contingent employees that the company can provide, the following procedures will be followed:
When an employee seeks to work with the company, the following procedures will be followed:
Our sales forecast projections are presented in the chart and table below. Three years annual projections are shown in the table. The chart shows first year monthly forecast. First year monthly table is included in the appendix.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Placement Fees | $94,248 | $175,000 | $300,000 |
Other | $0 | $0 | $0 |
Total Sales | $94,248 | $175,000 | $300,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Placement Fees | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |
The pay rate data will be determined by changing market factors including business demand.
Our experience shows that the following is true in regards to pay and bill rates. A “good deal” for most temporary agencies is a 50% of pay rate markup. Thus, if the pay is $10, the bill is $15. However, we have traditionally used a flat markup that seemed appropriate. Pay and bill rates generally are outlined as follows:
Editors Most editors require between $25 and $35 per hour, and our history has shown a $10 per hour markup is acceptable. One exception is in the technical arena, garnering between $45 and $55 per hour pay; again a $10 per hour markup is typical.
Writers The only writing we have done is creative for [client name omitted], and we paid $15 with a $10 markup.
Event Planners Event planners often will work for between $12.50 and $25 per hour, depending on the length of the job, requirements, and experience needed. We find a $5 per hour markup on the $12.50-$17.50 is reasonable, and a $10 per hour markup on anything over $17.50 per hour.
Fundraisers Fundraisers can start at $10 per hour (nonprofit) and go up to $20 per hour. This usually depends on client and length of assignment. Bill rate markup for nonprofits is $5 per hour, others between $7.50 and $10 per hour.
Graphic Artists Entry level beginning at $12.50 per hour, intermediate at $15 per hour, and a top of the line professional at $25 per hour. The exception may run about $50 per hour. Bill rates are between $7.50 per hour markup ($12.50-$15), and $10 markup.
Language Interpreters This is a tricky arena. Pricing depends on the language (typical/atypical) and the length of the assignment. Interpreters have been known to work for as little as $15 per hour and for as much as $35 per hour. A $10 per hour markup is acceptable.
Language Translators This division is difficult as each language and situation varies slightly. Translators tend to work by page or by word. Technical translation can be as much as $.30 per word. Other translation can be $10 per hour (an hour a page). We are unsure of markup at this time, but would suggest 50% of pay rate.
Computer Specialists:
When determining the bill rate, additional expense factors to remember above the pay rate are 15% employer taxes, advertising, and staff time to fill the position.
The company has an outstanding client list and an incredible number of qualified employees available. AAP has a good reputation for providing qualified people in a timely manner.
In a variety of settings the proprietor of AAP has strong management experience. The proprietor has the skills to not only listen well, drawing out a person’s needs through open-ended questions, but also has the ability to recognize people’s strengths and weaknesses. She will draw upon this extensive successful experience in addition to the knowledge collected over a period of 18 years working professionally. Much of the “people” skills have been developed during the seven years spent in management roles. This experience, along with a varied background, supports AAP’s goals.
AAP’s objectives are threefold:
The long-term goal of the company is to franchise and/or to become multi-location, and eventually sell this business.
Management is a style, a belief, and a strategy.
In managing our clients, AAP will communicate regularly with them, setting up a schedule that meets their needs. The company will set goals for retention of clientele and strive to reach those goals by building relationships, listening to the client’s needs, and meeting those needs with a smile on our faces. We will take responsibility for our errors and the outcome.
In managing our workers, AAP will communicate regularly with them, providing them with an employee manual to minimize their confusion, and offer them the best pay and benefits possible. AAP will set goals for retention of employees and strive to reach those goals by treating each employee with respect, provide protection when appropriate, and do everything within our power to assure a healthy working environment.
This is a relationship business. AAP will manage all clients and employees through relationship building.
During 1998-99 the proprietor provided all services. In 2000 the company will add a part-time office staffer and an employment specialist. In response to this growth, we will have a procedures manual for in-house staff assuring that the information is clear. In addition, we will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. 2001 projections include a receptionist, another employment specialist, and a field representative. In 2002 AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Placed Employees Personnel | |||
Placed Workers at 2/3 of Sales | $51,836 | $99,750 | $171,000 |
Other | $0 | $0 | $0 |
Subtotal | $51,836 | $99,750 | $171,000 |
General and Administrative Personnel | |||
Office Employees | $10,929 | $25,000 | $30,000 |
Other | $0 | $0 | $0 |
Subtotal | $10,929 | $25,000 | $30,000 |
Total People | 0 | 0 | 0 |
Total Payroll | $62,765 | $124,750 | $201,000 |
All About People runs its payroll twice a month. Each professional will be given a check schedule when they work with AAP. Each check covers the previous two weeks.
In order to process payroll; AAP must receive a professional’s signed invoice the Wednesday prior to payday. The invoice, must be on AAP letterhead and include: name, social security number, mailing address, dates of work completed, location worked (at home, at the client’s office), one or two sentences describing what tasks were completed, and how much time was spent each day. At the bottom there must be a place for the client to sign and date in acceptance of the work to date. The original will be submitted to AAP, the client will receive one copy, and the professional will keep a copy.
AAP is unable to provide payroll advances. If a check is lost in the mail, we must wait seven days from the date of mailing, and then if the check has not arrived we will stop the check at the bank and have one reissued.
Because we value our employees, we have employee group health insurance available, and contribute a major portion of the monthly premium. According to the Insurance Pool Governing Board (IPGB) employees must work at least 17.5 hours per week. Employees who work intermittently or who have worked fewer than 90 calendar days are not eligible. IPGB also states that all carriers may decline to offer coverage to the business or to any employee.
Technically, All About People is employer of the professionals we place. This means that we are responsible for covering the worker’s compensation insurance, running payroll, and that we are the ones to whom each employee is responsible. We understand that this can be tricky when employee professionals are working with a client, so we want to describe the expectations of this relationship:
AAP does not guarantee either work or wages when you join us to become an AAP employee. We will, of course, strive to keep you as busy as possible. AAP is also not able to guarantee an hourly wage prior to the assignment beginning. If you work on a job, and complete the work successfully, you will be paid at the agreed rate.
This employment relationship differs from others because you, AAP, or the client may end your employment with or without notice and with or without reasons. However, if you accept a job with AAP, we do expect you to finish the assignment.
AAP’s target market is both businesses and professional workers. Phase one of the marketing plan will target the University of Oregon, the technology industry, and the top 500 businesses in Eugene through networking and cold calling. Phase two will target small businesses with less than five employees because smaller businesses may not have the in-house capability to locate, evaluate, and hire potential professional contingent workers through a small PR campaign.
We began marketing the businesses through several personnel surveys. The University of Oregon Alumni Association, University of Oregon Foundation, and University of Oregon Human Resources Department, as well as Symantec’s Human Resources director were approached for information regarding their need for professional temporary and permanent workers. These initial interviewees have all (with the exception of U of O HR Dept) become clients within the first year of business. After these personnel surveys were complete, we adjusted our recruitment of professional workers to meet the demand.
Another tactic was joining multiple business groups. AAP became a member of the Eugene Chamber of Commerce and attends the weekly greeters meetings; the Women’s Business Network and attends the monthly meetings; the Professional Women’s Organization and attend the monthly meetings; as well as the City Club, keeping a pulse on what is happening in the community, attending as the proprietor sees fit.
The next approach is face-to-face cold calls. The tools for these calls are simple-a business card and a brochure. The information collected during the cold call is vital: how many employees does the business have; in what areas have they experienced a need for professional contingent employees; and who is the appropriate contact.
Our beginning point in marketing to workers was approximately 30 personnel surveys to professional contingent workers, building the foundation of our database. AAP intends to recruit workers through advertising in the newspaper and appropriate trade magazines, trade shows, the University of Oregon career center, and by referral. We have found that each division within the company requires a different approach for recruitment. We try not to depend on newspaper advertising as we find the results are moderate. Results are far better with the employment department for some areas, with the U of O for others, and also through a series of developed contacts for the other divisions.
In order to build trust with both businesses and employees AAP will follow through as promised. We will treat each business, employee, and ourselves, with integrity. AAP will communicate clearly, asking businesses to specify the needs for follow-up service during the time that they employ our contingent worker. We will work with employees to assure that they have a clear understanding of what AAP offers and what we expect of them.
“A fading model of employment in the United States envisions a business enterprise with full-time employees who can expect to keep their jobs and perhaps advance so long as they perform satisfactorily and the business continues. Changing labor market conditions threaten the concept of full-time permanent employment. As reported by the Conference Board in September 1995, contingent workers account for at least 10 percent of the workforce at 21 percent of the companies surveyed, or almost double the 12 percent of respondents with that number in 1990. Writing in the Monthly Labor Review in March 1989, Belous estimated that contingent workers constitutes 24 to 29 percent of the labor force in the United States. In August 1995, however, the U.S. Bureau of Labor Statistics (BLS) estimated the size of the contingent labor force at 2 to 5 percent of the total workforce. However, BLS did not count long-term part-time employees, who constitute 90 percent of part-time workers.” — Society for Human Resource Management, The Contingent Worker: A Human Resource Perspective, by W. Gilmore McKie & Laurence Lipset taken from Chapter 1, What Is a Contingent Worker?
AAP is a service company providing businesses with customized personnel solutions by connecting them with the professional contingent work force. Research suggests that 2000 is an opportune time to be in the Eugene market with this service. Even with all of the evidence that contingent work is the wave of the present, and of the future, the niche of placing contingent workers who are paid $12.50 to $40 per hour is untapped in the Eugene area. However, a few companies place high-end contingent workers in the Portland area.
There are many reasons why businesses are turning to contingent workers. The Economic Policy Institute’s article “ Contingent Work ” by Polly Callaghan and Heidi Harmann explains that:
“Growth in involuntary part-time employment is causing total part-time employment to grow faster than total employment. Another indication of the shift toward part-time workers: hours for part-time workers are growing faster than hours for full-time workers. Temporary employment has grown three times faster than overall employment and temporary workers are being used for more hours. Contingent employment is growing faster than overall employment. Part-timers are disproportionately women, younger, or older workers. There has been a shift away from manufacturing toward trade and services. These structural changes help explain the growth in part-time employment.”
Because of the changing nature of jobs themselves, AAP’s services are desirable to employers of all sizes. Unlike five or ten years ago, many positions are so diversified, or specialized, that it is not financially feasible for an employer to hire a person to fill one position, requiring several areas of expertise. This is not financially wise for the business because of the pay range required to recruit and hire such a talented person (especially in areas such as graphics, design, etc.). The cost of payroll, taxes, benefits, and other miscellaneous staff required to run employees add to the burden of a downsized staff. Contacting AAP and using a professional contingent worker for each portion of a position as needed will solve this dilemma. Currently most businesses locate needed “qualified” workers by word of mouth. With one phone call, e-mail, or connection with our Web page, AAP makes the task easy.
In addition, Oregon’s economy is expected to continue growing, and employment, total personal and per capita income, and population growth rates are expected to exceed the national average (according to the 1997-98 Oregon Blue Book). Although Oregon’s economy is among the best there is an obvious group of contingent workers available to build an employee labor pool. The company draws from a labor pool of qualified contingent workers which consists of people who work at home, retirees, others who wish to work part-time. According to the Oregon University System, approximately 33% of bachelor’s degree graduates will be unable to find jobs in Oregon each year. So, recent college graduates are also a part of AAP’s labor pool.
Research shows that a large percentage of workers who tend to work more than one job are well-educated individuals who have a higher degree of education. According to Oregon Employment Department’s Occupational Outlook Quarterly , Spring 1997, 9.4% have Ph.D.’s; 6.5% a Professional degree; 9.1% a Master’s degree; 7.9% a Bachelor’s degree; 7.9% an Associate degree; and the remaining 15.8% lesser education. According to a Personnel Journal article “ Contingent Staffing Requires Serious Strategy ,” April 1995, there are also many retirees that enjoy doing contingent work.
The following sections contain the financial information for All About People. Tables show annual projections for three years. Charts show first year monthly figures. First year monthly tables are included in the appendix.
The financials of this plan are predicated on the following table of assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% |
Tax Rate | 0.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
Profit and Loss figures are projected in this table.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $94,248 | $175,000 | $300,000 |
Direct Cost of Sales | $0 | $0 | $0 |
Placed Employees Payroll | $51,836 | $99,750 | $171,000 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $51,836 | $99,750 | $171,000 |
Gross Margin | $42,412 | $75,250 | $129,000 |
Gross Margin % | 45.00% | 43.00% | 43.00% |
Operating Expenses | |||
Sales and Marketing Expenses | |||
Sales and Marketing Payroll | $0 | $0 | $0 |
Advertising/Promotion | $1,165 | $1,200 | $2,500 |
Bank Service Charges | $1,019 | $1,000 | $1,500 |
Contributions | $255 | $300 | $300 |
Dues & Subscriptions | $887 | $250 | $500 |
Total Sales and Marketing Expenses | $3,325 | $2,750 | $4,800 |
Sales and Marketing % | 3.53% | 1.57% | 1.60% |
General and Administrative Expenses | |||
General and Administrative Payroll | $10,929 | $25,000 | $30,000 |
Marketing/Promotion | $6,516 | $6,500 | $12,800 |
Depreciation | $0 | $0 | $0 |
Telephone & Pager | $4,168 | $4,800 | $5,000 |
Recruitment | $1,573 | $1,575 | $2,000 |
Referral Fees | $170 | $250 | $500 |
Rent | $6,102 | $9,600 | $10,000 |
Office Supplies | $2,114 | $2,000 | $3,000 |
Postage | $1,062 | $1,250 | $1,500 |
Printing | $3,362 | $4,000 | $5,000 |
Professional Fees | $6,941 | $5,000 | $7,500 |
Payroll Taxes | $0 | $0 | $0 |
Maintenance and Repairs | $311 | $750 | $2,000 |
Total General and Administrative Expenses | $43,248 | $60,725 | $79,300 |
General and Administrative % | 45.89% | 34.70% | 26.43% |
Other Expenses: | |||
Other Payroll | $0 | $0 | $0 |
Consultants | $0 | $0 | $0 |
Misc. | $1,050 | $500 | $1,000 |
Total Other Expenses | $1,050 | $500 | $1,000 |
Other % | 1.11% | 0.29% | 0.33% |
Total Operating Expenses | $47,623 | $63,975 | $85,100 |
Profit Before Interest and Taxes | ($5,212) | $11,275 | $43,900 |
EBITDA | ($5,212) | $11,275 | $43,900 |
Interest Expense | $3,046 | $2,678 | $2,363 |
Taxes Incurred | $0 | $2,579 | $12,461 |
Net Profit | ($8,257) | $6,018 | $29,076 |
Net Profit/Sales | -8.76% | 3.44% | 9.69% |
Our cash flow estimates are shown in the chart and table below. The owner expects to invest further amounts in the business over the next two years to finance continued growth.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $23,562 | $43,750 | $75,000 |
Cash from Receivables | $58,112 | $120,477 | $208,324 |
Subtotal Cash from Operations | $81,674 | $164,227 | $283,324 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $10,000 | $20,000 | $0 |
Subtotal Cash Received | $91,674 | $184,227 | $283,324 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $62,765 | $124,750 | $201,000 |
Bill Payments | $37,123 | $43,357 | $67,812 |
Subtotal Spent on Operations | $99,888 | $168,107 | $268,812 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $2,720 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $4,500 | $4,500 | $4,500 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $107,108 | $172,607 | $273,312 |
Net Cash Flow | ($15,434) | $11,620 | $10,012 |
Cash Balance | $30,566 | $42,186 | $52,199 |
Three year annual balance sheets estimates appear below.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $30,566 | $42,186 | $52,199 |
Accounts Receivable | $12,573 | $23,346 | $40,022 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $43,139 | $65,533 | $92,221 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $43,139 | $65,533 | $92,221 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $2,761 | $3,635 | $5,747 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $2,761 | $3,635 | $5,747 |
Long-term Liabilities | $40,500 | $36,000 | $31,500 |
Total Liabilities | $43,261 | $39,635 | $37,247 |
Paid-in Capital | $17,600 | $37,600 | $37,600 |
Retained Earnings | ($9,464) | ($17,721) | ($11,703) |
Earnings | ($8,257) | $6,018 | $29,076 |
Total Capital | ($121) | $25,897 | $54,973 |
Total Liabilities and Capital | $43,139 | $65,533 | $92,221 |
Net Worth | ($121) | $25,897 | $54,973 |
The table below presents important business ratios from the help supply services industry, as determined by the Standard Industry Classification (SIC) Index code 7363, Help Supply Services.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 85.68% | 71.43% | 9.00% |
Percent of Total Assets | ||||
Accounts Receivable | 29.15% | 35.63% | 43.40% | 28.80% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 44.00% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 76.30% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 23.70% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 6.40% | 5.55% | 6.23% | 44.00% |
Long-term Liabilities | 93.88% | 54.93% | 34.16% | 17.50% |
Total Liabilities | 100.28% | 60.48% | 40.39% | 61.50% |
Net Worth | -0.28% | 39.52% | 59.61% | 38.50% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 45.00% | 43.00% | 43.00% | 0.00% |
Selling, General & Administrative Expenses | #NAME? | 39.56% | 33.31% | 82.20% |
Advertising Expenses | 1.24% | 0.69% | 0.83% | 1.50% |
Profit Before Interest and Taxes | -5.53% | 6.44% | 14.63% | 2.40% |
Main Ratios | ||||
Current | 15.63 | 18.03 | 16.05 | 1.64 |
Quick | 15.63 | 18.03 | 16.05 | 1.31 |
Total Debt to Total Assets | 100.28% | 60.48% | 40.39% | 61.50% |
Pre-tax Return on Net Worth | 6817.49% | 33.20% | 75.56% | 4.40% |
Pre-tax Return on Assets | -19.14% | 13.12% | 45.04% | 11.50% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -8.76% | 3.44% | 9.69% | n.a |
Return on Equity | 0.00% | 23.24% | 52.89% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 5.62 | 5.62 | 5.62 | n.a |
Collection Days | 57 | 50 | 51 | n.a |
Accounts Payable Turnover | 14.40 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 26 | 24 | n.a |
Total Asset Turnover | 2.18 | 2.67 | 3.25 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 1.53 | 0.68 | n.a |
Current Liab. to Liab. | 0.06 | 0.09 | 0.15 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $40,379 | $61,897 | $86,473 | n.a |
Interest Coverage | -1.71 | 4.21 | 18.58 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.46 | 0.37 | 0.31 | n.a |
Current Debt/Total Assets | 6% | 6% | 6% | n.a |
Acid Test | 11.07 | 11.60 | 9.08 | n.a |
Sales/Net Worth | 0.00 | 6.76 | 5.46 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Placement Fees | 0% | $3,660 | $4,769 | $5,965 | $7,226 | $9,471 | $12,554 | $12,237 | $10,216 | $3,692 | $7,458 | $7,059 | $9,941 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $3,660 | $4,769 | $5,965 | $7,226 | $9,471 | $12,554 | $12,237 | $10,216 | $3,692 | $7,458 | $7,059 | $9,941 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Placement Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Placed Employees Personnel | |||||||||||||
Placed Workers at 2/3 of Sales | $2,013 | $2,623 | $3,281 | $3,974 | $5,209 | $6,905 | $6,730 | $5,619 | $2,031 | $4,102 | $3,882 | $5,467 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $2,013 | $2,623 | $3,281 | $3,974 | $5,209 | $6,905 | $6,730 | $5,619 | $2,031 | $4,102 | $3,882 | $5,467 | |
General and Administrative Personnel | |||||||||||||
Office Employees | $0 | $213 | $350 | $350 | $350 | $466 | $700 | $1,500 | $1,750 | $1,750 | $1,750 | $1,750 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $213 | $350 | $350 | $350 | $466 | $700 | $1,500 | $1,750 | $1,750 | $1,750 | $1,750 | |
Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total Payroll | $2,013 | $2,836 | $3,631 | $4,324 | $5,559 | $7,371 | $7,430 | $7,119 | $3,781 | $5,852 | $5,632 | $7,217 |
General Assumptions | ||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $3,660 | $4,769 | $5,965 | $7,226 | $9,471 | $12,554 | $12,237 | $10,216 | $3,692 | $7,458 | $7,059 | $9,941 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Placed Employees Payroll | $2,013 | $2,623 | $3,281 | $3,974 | $5,209 | $6,905 | $6,730 | $5,619 | $2,031 | $4,102 | $3,882 | $5,467 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $2,013 | $2,623 | $3,281 | $3,974 | $5,209 | $6,905 | $6,730 | $5,619 | $2,031 | $4,102 | $3,882 | $5,467 | |
Gross Margin | $1,647 | $2,146 | $2,684 | $3,252 | $4,262 | $5,649 | $5,507 | $4,597 | $1,661 | $3,356 | $3,177 | $4,474 | |
Gross Margin % | 45.00% | 45.00% | 45.00% | 45.00% | 45.00% | 45.00% | 45.00% | 45.00% | 44.99% | 45.00% | 45.01% | 45.00% | |
Operating Expenses | |||||||||||||
Sales and Marketing Expenses | |||||||||||||
Sales and Marketing Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Advertising/Promotion | $12 | $0 | $0 | $23 | $10 | $111 | $27 | $72 | $30 | $599 | $102 | $179 | |
Bank Service Charges | $0 | $57 | $3 | $73 | $539 | $106 | $38 | $3 | $8 | $48 | $129 | $15 | |
Contributions | $0 | $0 | $0 | $100 | $5 | $0 | $0 | $100 | $0 | $0 | $0 | $50 | |
Dues & Subscriptions | $43 | $30 | $54 | $0 | $0 | $21 | $275 | $94 | $0 | $250 | $60 | $60 | |
Total Sales and Marketing Expenses | $55 | $87 | $57 | $196 | $554 | $239 | $340 | $268 | $38 | $897 | $291 | $304 | |
Sales and Marketing % | 1.50% | 1.82% | 0.95% | 2.71% | 5.85% | 1.90% | 2.78% | 2.63% | 1.02% | 12.03% | 4.12% | 3.06% | |
General and Administrative Expenses | |||||||||||||
General and Administrative Payroll | $0 | $213 | $350 | $350 | $350 | $466 | $700 | $1,500 | $1,750 | $1,750 | $1,750 | $1,750 | |
Marketing/Promotion | $213 | $236 | $331 | $691 | $756 | $656 | $592 | $441 | $154 | $1,149 | $784 | $514 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Telephone & Pager | $226 | $88 | $416 | $125 | $374 | $220 | $439 | $638 | $697 | $240 | $616 | $90 | |
Recruitment | $115 | $77 | $189 | $220 | $71 | $147 | $106 | $251 | $45 | $192 | $65 | $95 | |
Referral Fees | $0 | $20 | $0 | $50 | $0 | $100 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $195 | $195 | $195 | $195 | $195 | $195 | $983 | $788 | $788 | $788 | $788 | $798 | |
Office Supplies | $92 | $188 | $96 | $197 | $49 | $62 | $116 | $442 | $24 | $670 | $177 | $0 | |
Postage | $9 | $49 | $55 | $107 | $133 | $94 | $36 | $99 | $8 | $175 | $89 | $209 | |
Printing | $0 | $2 | $669 | $26 | $290 | $350 | $175 | $224 | $832 | $179 | $520 | $94 | |
Professional Fees | $240 | $170 | $664 | $988 | $367 | $270 | $0 | $528 | $844 | $342 | $2,013 | $516 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Maintenance and Repairs | $0 | $0 | $103 | $100 | $0 | $25 | $0 | $39 | $0 | $0 | $44 | $0 | |
Total General and Administrative Expenses | $1,090 | $1,239 | $3,068 | $3,049 | $2,585 | $2,585 | $3,146 | $4,949 | $5,142 | $5,485 | $6,845 | $4,065 | |
General and Administrative % | 29.77% | 25.97% | 51.43% | 42.19% | 27.30% | 20.59% | 25.71% | 48.45% | 139.28% | 73.55% | 96.97% | 40.90% | |
Other Expenses: | |||||||||||||
Other Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Misc. | $40 | $0 | $44 | $244 | $90 | $240 | $159 | $0 | $40 | $20 | $173 | $0 | |
Total Other Expenses | $40 | $0 | $44 | $244 | $90 | $240 | $159 | $0 | $40 | $20 | $173 | $0 | |
Other % | 1.09% | 0.00% | 0.74% | 3.38% | 0.95% | 1.91% | 1.30% | 0.00% | 1.08% | 0.27% | 2.45% | 0.00% | |
Total Operating Expenses | $1,185 | $1,325 | $3,168 | $3,488 | $3,229 | $3,064 | $3,645 | $5,218 | $5,220 | $6,403 | $7,309 | $4,369 | |
Profit Before Interest and Taxes | $462 | $821 | ($484) | ($236) | $1,033 | $2,585 | $1,862 | ($621) | ($3,559) | ($3,047) | ($4,132) | $104 | |
EBITDA | $462 | $821 | ($484) | ($236) | $1,033 | $2,585 | $1,862 | ($621) | ($3,559) | ($3,047) | ($4,132) | $104 | |
Interest Expense | $283 | $281 | $260 | $258 | $256 | $254 | $251 | $245 | $243 | $241 | $238 | $236 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | $180 | $540 | ($744) | ($494) | $777 | $2,332 | $1,610 | ($866) | ($3,802) | ($3,287) | ($4,370) | ($132) | |
Net Profit/Sales | 4.90% | 11.32% | -12.48% | -6.84% | 8.21% | 18.57% | 13.16% | -8.47% | -102.97% | -44.08% | -61.91% | -1.33% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $915 | $1,192 | $1,491 | $1,807 | $2,368 | $3,139 | $3,059 | $2,554 | $923 | $1,865 | $1,765 | $2,485 | |
Cash from Receivables | $0 | $92 | $2,773 | $3,607 | $4,505 | $5,476 | $7,180 | $9,408 | $9,127 | $7,499 | $2,863 | $5,584 | |
Subtotal Cash from Operations | $915 | $1,284 | $4,264 | $5,413 | $6,873 | $8,614 | $10,240 | $11,962 | $10,050 | $9,363 | $4,628 | $8,069 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $10,000 | |
Subtotal Cash Received | $915 | $1,284 | $4,264 | $5,413 | $6,873 | $8,614 | $10,240 | $11,962 | $10,050 | $9,363 | $4,628 | $18,069 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,013 | $2,836 | $3,631 | $4,324 | $5,559 | $7,371 | $7,430 | $7,119 | $3,781 | $5,852 | $5,632 | $7,217 | |
Bill Payments | $193 | $1,465 | $1,449 | $3,089 | $3,388 | $3,125 | $2,863 | $3,222 | $3,954 | $3,752 | $4,923 | $5,699 | |
Subtotal Spent on Operations | $2,206 | $4,301 | $5,080 | $7,413 | $8,947 | $10,496 | $10,293 | $10,341 | $7,735 | $9,604 | $10,555 | $12,916 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $2,220 | $0 | $0 | $0 | $0 | $500 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $2,581 | $4,676 | $7,675 | $7,788 | $9,322 | $10,871 | $10,668 | $11,216 | $8,110 | $9,979 | $10,930 | $13,291 | |
Net Cash Flow | ($1,666) | ($3,392) | ($3,411) | ($2,375) | ($2,449) | ($2,257) | ($428) | $745 | $1,940 | ($616) | ($6,303) | $4,777 | |
Cash Balance | $44,334 | $40,942 | $37,530 | $35,156 | $32,707 | $30,450 | $30,022 | $30,767 | $32,707 | $32,091 | $25,789 | $30,566 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $46,000 | $44,334 | $40,942 | $37,530 | $35,156 | $32,707 | $30,450 | $30,022 | $30,767 | $32,707 | $32,091 | $25,789 | $30,566 |
Accounts Receivable | $0 | $2,745 | $6,230 | $7,931 | $9,744 | $12,342 | $16,282 | $18,279 | $16,534 | $10,176 | $8,270 | $10,701 | $12,573 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $46,000 | $47,079 | $47,172 | $45,462 | $44,900 | $45,049 | $46,732 | $48,301 | $47,301 | $42,883 | $40,361 | $36,490 | $43,139 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $46,000 | $47,079 | $47,172 | $45,462 | $44,900 | $45,049 | $46,732 | $48,301 | $47,301 | $42,883 | $40,361 | $36,490 | $43,139 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $144 | $1,419 | $1,347 | $2,976 | $3,283 | $3,030 | $2,756 | $3,090 | $3,831 | $3,589 | $4,730 | $5,604 | $2,761 |
Current Borrowing | $2,720 | $2,720 | $2,720 | $500 | $500 | $500 | $500 | $500 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $2,864 | $4,139 | $4,067 | $3,476 | $3,783 | $3,530 | $3,256 | $3,590 | $3,831 | $3,589 | $4,730 | $5,604 | $2,761 |
Long-term Liabilities | $45,000 | $44,625 | $44,250 | $43,875 | $43,500 | $43,125 | $42,750 | $42,375 | $42,000 | $41,625 | $41,250 | $40,875 | $40,500 |
Total Liabilities | $47,864 | $48,764 | $48,317 | $47,351 | $47,283 | $46,655 | $46,006 | $45,965 | $45,831 | $45,214 | $45,980 | $46,479 | $43,261 |
Paid-in Capital | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $7,600 | $17,600 |
Retained Earnings | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) | ($9,464) |
Earnings | $0 | $180 | $719 | ($25) | ($519) | $258 | $2,590 | $4,200 | $3,334 | ($467) | ($3,755) | ($8,125) | ($8,257) |
Total Capital | ($1,864) | ($1,684) | ($1,145) | ($1,889) | ($2,383) | ($1,606) | $726 | $2,336 | $1,470 | ($2,331) | ($5,619) | ($9,989) | ($121) |
Total Liabilities and Capital | $46,000 | $47,079 | $47,172 | $45,462 | $44,900 | $45,049 | $46,732 | $48,301 | $47,301 | $42,883 | $40,361 | $36,490 | $43,139 |
Net Worth | ($1,864) | ($1,684) | ($1,145) | ($1,889) | ($2,383) | ($1,606) | $726 | $2,336 | $1,470 | ($2,331) | ($5,619) | ($9,989) | ($121) |
Fill-in-the-blanks and automatic financials make it easy.
No thanks, I prefer writing 40-page documents.
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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 COVID-19, these qualities are more important than ever and we’re seeing an increase in the number of agencies asking for such a document.
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 these challenging times, 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 or even getting rejected.
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.
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 COVID-19, my competition, my personal revenue projections over 12 months and lastly a suggested solution to reducing my cost during COVID-19.”
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.
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:
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 during COVID-19 and how you predict hiring activity to shift post-COVID-19 recovery.
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.
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:
A similar section to candidate strategies but geared towards clients. Arguably more important than candidate strategies during COVID-19 as the market is currently 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:
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.
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.
This section is a new one in response to current market conditions 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. You can refer to this article if you want some tips on how to adapt to recruiting during COVID-19.
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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:
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 COVID-19. 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 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.
This is not a standard component of a business plan but is included in response to COVID-19. As mentioned in my previous article , if you demonstrate your willingness to share the pain of your cost with an employer, it will go a long way.
To help recruiters through these challenging times, 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 click this link and you’ll be redirected to the template.
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 job!
I specialises in senior rec2rec searches in Asia. Get in touch with him to discover opportunities.
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If you’d like to enquire about our services, please feel free to get in touch with our team.
Do you need help starting a staffing agency? If YES, here is a sample recruitment agency BUSINESS PLAN SAMPLE.
A recruitment agency provides a vital service to businesses that need to hire qualified personnel. Are you interested in setting up one? If you are, we will help you.
This recruitment agency business plan sample has been written with aspiring entrepreneurs in mind.
Although it is summarised, it highlights the essence of a plan. By going through this sample, you can avoid the most common mistakes many entrepreneurs make.
As always, our advice to new entrepreneurs is never to have zeal without knowledge. By adhering to this advice, it saves them from making costly mistakes.
You can start several service industry businesses if you have the skill.
However, the purpose of this article is not to dwell on the many available opportunities. We seek to focus on one: a staffing agency business.
Thousands of job seekers stream aimlessly to different offices and business settings to find a place to work. How do you think such ones will feel if you’re doing the work of matching them to their preferred work?
A staffing agency is all about surveying them and matching employees to employers. This is easier said than done.
I present to you all that is needed to start a staffing agency, and in the end, you should be equipped enough to create your staffing agency.
This article will also provide a staffing agency business plan sample. This is targeted at aspiring entrepreneurs interested in this business area. All you need to do is follow to the end to understand better how plans are written.
With the rise in the unemployment sector, you will realize that many people are looking to venture into various businesses to improve their standard of living.
In contemporary times, recruitment agencies are created to curb the rising unemployment rate in society.
Starting up a staffing agency can guarantee a source of second income for you by connecting companies that have vacancies with job seekers.
To ensure that you build a cordial relationship and continuous partnership, you must thoroughly examine employment seekers to ensure they meet your client’s requirements.
If the need arises, you will need to register with them as a recruiting agency, and they, in turn, inform you when there is a need to hire.
In this post, I will be giving a few tips on how you can start a recruitment agency to help curb the unemployment problem.
Here is a sample business plan for starting a recruitment firm.
To start up an employment agency business or staffing franchise like Adecco and AtWork, first, you need to pick a field that you think would work for you; you can decide by observing your interest and building upon it; it could be Agriculture or Banking and finance.
Whichever you decide to venture into, you must realize that every industry has its staffing needs. A consultant should prioritize these needs when developing your business proposal and objectives.
In this part of the world, no one is taught how to start up a recruiting agency in school. This is why it is necessary first to learn all there is to know about recruitment agencies.
The information you will gather most importantly would be what recruitment agencies do, how they work, how to build a customer line, how to make a profit or should I say, the employment plans available that make for sure that there is profit in this sector of business.
One requirement to run a recruiting agency is to have the ability to identify raw talents when you see them, and different people with different expertise from diverse places are the people you will be dealing with.
Therefore, you, on your part, will need to be sound in mind and understand to succeed in this sector.
This is a venture that is capital intensive, and to be able to run the recruiting company successfully, there has to be reserve money for payment of your staff, having enough cash to cover business expenses and advertisement of your business.
This is to say, you need to be financially prepared before venturing into any employment business model.
What are the documents needed to start a recruitment agency?
• Find out if a business license is required. Consult your local government agency for requirements. • Find out about laws related to advertising for employees . • Learn about taxes and the rates required. Get to know the amount and due dates of payroll and income taxes. • Research on the legal requirement related to insurance.
For employees and employers to agree that your business is legal or in a valid business setting, you must register your business with the required agency. Writing your business will help you become informed about everything necessary to run a successful business.
Many companies offer business registration depending on your location or where you reside. To find a reputable company and register your business is very essential.
A well-scripted business plan is needed to set up and run a successful business. A business plan will help a staffing agency know what they need to survive.
The plan will clearly state its unique business name, niche, mission, and vision; it will contain its financial plans, the services it wants to render, and the SWOT analysis.
A good business plan will give dimension and help your business have a clear purpose.
Location is one major factor for your business, which will be determined by the branch or field you want to venture into. This, on the other hand, is dependent on your target market. While choosing a location, take into consideration how profitable it would be to open up this business at whatever location you’re considering,
Creating a recruitment company business marketing plan and strategy would be best. You need to make a list of clients and prospective clients, and this selection can be made based on the industry your online recruiting firm focuses on.
You can create contact by making calls, writing and sending emails to prospective companies, and placing adverts in newspapers, magazines, and online job sites.
You need to design a suitable logo to show how severe and sincere your job agency is; a website is also required to help with marketing, business cards, and newsletters that would be able to send to your clients to help them have enough information about your placement agency and what you generally do.
This business cannot be run by just one person handling every department, which is why employing the service of others who are specialists in the field should be one area you also have to work on in the business.
To run a recruitment consulting agency successfully, you should look out for individuals who would, in their departments, help you build your business and have a tremendous increase in profits and a boost with clients.
You would need staff specializing in administrative work, staff with superb communication skills, and also staff in accounts. These are necessary to help build your business and guarantee its success.
Situations might arise where applicants need to be cautioned; in this situation, a lawyer will be the best person to accomplish this.
There must be terms and conditions, rights, and responsibilities that applicants must fulfill so that you will be getting them their required job. To prevent stories that touch or cases of not honoring agreements, you need a legal practitioner to make everything official and valid under the law.
A reasonable level of insurance is needed for your business to be termed original. Most clients will want to be assured that there is a measure of insurance if one of your clients damages their properties while on site.
So, getting an insurance company that understands your business and is ready to help cover expenses incurred by your clients at any time is very important.
Having filled an order, you need to plan how you will pay your employees: weekly, semi-weekly, or monthly. Rules guiding the payroll system that you must understand as long as you want to be successful in the business; these may include plans for overtime payment and vacation pay, amongst other payments.
You need also to sort out their taxes and remit them to the required governmental body or agencies. Most of the time, hiring payroll administrator personnel is the best option.
Having done all the above, it is time for you to start the business; by now, you must have secured a good location and purchased all the needed tools and equipment for the office, at least the basics. Your business must be registered at this point, and all financial calculations must be done and ready for carrying out.
Starting a staffing agency is just as easy as starting any business when you get those points right, and if only you wish to become successful in the field, failure to understand and adopt those points might be catastrophic.
To start an employment agency, you must understand how it works and your market size. Your feasibility study should take care of that.
Best Hire® is a new Human Resource agency business that seeks to contribute to developing a reliable database for businesses and companies looking for competent and qualified workforce.
As a small start-up, our size doesn’t matter as we are well-placed to penetrate the market by deploying industry best practices. The quality of our workforce counts in our favor.
The proprietor has been engaged at the highest levels of human resource recruitment for major multinational companies. His experience will be crucial to providing world-class recruitment services to our clients.
We will be involved in all types of employee matching services for our clients, including major corporate entities and small businesses. We consult with each client to find the right kind of employee.
We do the hard work while our clients concentrate on running their business. We deeply understand Ohio’s local market and seek to allocate human resources where they would perform best.
At Best Hire®, we are driven by a vision to contribute to the development of Ohio’s business landscape. This we seek to achieve through matching the correct type of employees to businesses.
These include both skilled and unskilled. In the next five years, we see ourselves among Ohio’s top 5 most preferred recruitment agencies.
Our mission is driven by providing unbeatable services to all types of businesses. We are satisfying a growing demand for capable and skilled hands.
Our recruitment agency will make sourcing the best hand easier, allowing our clients to commit to their business growth.
We are a sole proprietorship business sourcing for start-up capital through applying for a bank loan. $900,000.00 is required, and we have met the necessary conditions.
The loan will attract an interest rate of 9% monthly, with the principal sum due for payment in 4 years.
Our strengths, weaknesses, opportunities, and threats have been tested. The company contracted for this job is a reputable business solutions provider.
The study has allowed us to reorganize our business for the most impact and growth.
It has also helped us exploit opportunities and develop a contingency plan for threats.
For a better understanding of our findings, the results are included below;
This recruitment agency business was conceived to serve a market needing a competent human resources database.
Our strength is our ability to quickly connect businesses to the correct type of employees. The proprietor is experienced and knowledgeable in handling all business labor issues.
Our weakness arises from our current size. Our small size will limit our ability to get across to significant clients.
These clients usually look out for long-established and extensive recruitment agency businesses. This is a weakness we currently face as a small and new firm.
Opportunities abound in the form of increasing businesses that need our services. We are well adapted to providing the solutions they need. A significant part of this opportunity is that our clients recommend other businesses due to our commitment to providing excellent services.
When there is an economic recession, businesses no longer hire but downsize their workforce. This is bad for our business and will lead to a total halt in demand for our services. This threat is real. However, the good news is that economic recessions do not always happen.
We can project the demand for our services through a study of the current situation in the recruitment market. There is clear growth potential. This has enabled us to draw a sales projection covering three years, as reflected in the table below;
Our competitive advantage can be attributed to the extensive network of businesses our proprietor has established during his active years of service. This includes those with big businesses as well as with small business owners. We are using this advantage to leverage our capacity to deliver quality services.
We must use the most effective information dissemination channels to reach the business community.
This will include visiting our target clients to discuss our services and what we can offer. We will also advertise in newspapers, distribute fliers, and mount billboards that advertise our services.
This recruitment agency business plan sample has been summarized to show you the most relevant information. You can follow this plan to write your comprehensive staffing agency business plan .
You should avoid trying to hasten things up. Going slowly and getting it right is much better than speed.
You can consider this a guide or template against which you can make comparisons when writing your plan. It must be stated that no matter how useful you find this sample, it will be of little value to you if you have not done a proper feasibility study of your business.
Corporate Resource LLC is a company located in Atlanta, Georgia. Our staffing agency provides businesses and corporate entities with a workforce. We offer consulting and training, helping businesses find a suitably qualified workforce. Whatever the staffing needs of our clients, we are up to the task.
We will offer highly skilled, semi-skilled, and unskilled labor consultancy services. We seek to provide the best solutions to our esteemed clients. We understand that our clients do not have the time to get into the nitty-gritty of staff employment.
We handle the problematic aspect of the job by identifying and categorizing our human resource pool. These are provided with added job-specific training to increase efficiency. To enable us to get the job done, we are highly experienced personnel with many years of experience as recruiters. Our clients will include both domestic and foreign corporate entities.
Consulting entails many processes to match vacancies with the right type of people. Given this, our staffing agency will be involved in staffing for all businesses and industries.
These include the provision of staffing for the healthcare sector, the oil and gas, the provision of training services for specific positions, and the provision of temporary or contract-based staffing services.
Having the right crop of staff is essential to any business. We understand this and are fully equipped to provide such services to our clients. We are focused on eliminating the difficulties businesses face in getting the correct type of labor.
This will enable them to concentrate on efficiently running their businesses while we do the job.
Our staffing agency seeks to provide highly professional services, which will be second to none in the industry. Our reputation means the world to us. Hence, we are committed to building a reputation hinged on excellence. This will be achieved by performing beyond our client’s expectations.
We will need adequate financing to ensure a smooth take-off. We have done the necessary analysis on the capital required; this is more than $800,000.00.
We will be applying for a $1,200,000.00 bank credit. We are hoping to obtain such loans at single-digit interest rates. However, our negotiations will determine the outcome.
We have analyzed our competitiveness for a smooth take-off of our staffing agency. This focuses on vital areas that include our strengths, weaknesses, opportunities, and threats. The following are the results obtained;
We have been careful in choosing our staff. As a staffing agency business that seeks to make a positive impression, we have sought to become an example of the services we will offer.
We have selected professionals with the right experience. Some have served in significant staffing agencies as recruiters, while others have the required skills.
These will work in various capacities, including our recruiting department, training, marketing, and customer service providers.
We are a new entrant into the industry. This means it will take some time before we begin attracting clients and building a steady clientele flow.
In addition to providing staffing services to businesses, we have included training. This allows us to work closely with businesses to provide the correct type of training.
By outsourcing their training, our clients can focus on their business by allowing us to handle one of the most challenging aspects of hiring.
Competitors are a steady threat to this type of business. These are made up of other staffing agencies which will compete for our clients. Another threat is in the form of unfavorable government policies. Such situations are harmful to doing business. The biggest threat among these is a global economic meltdown.
This will lead to businesses shedding off their workforce, creating an unfavorable employment climate. This will directly impact our business as businesses will no longer be looking to hire but to survive.
Over the years, economic growth in the United States has influenced a rising employment rate. This is good for staffing agency businesses like ours.
Using this, we have done a sales projection for our business. This has revealed a positive outcome over three years, as shown below;
We welcome competition as it enables us to innovate better ways of serving our clients. Our pride lies in the quality of our management staff. These are composed of thoroughbred professionals who have contributed in no small measure to making the employment industry what it is.
Their impressive experience gives us a greater advantage in excelling over our peers.
We have identified several businesses and industries as potential targets in providing high-value staffing services.
These include the public sector, blue-chip companies, the real estate sector, financial institutions, the manufacturing industry, the healthcare industry, small start-ups, and the educational sector,
As a new staffing agency business, marketing is crucial to attracting a steady stream of clients. We are adopting several effective marketing strategies.
These include placing ads in newspapers and business magazines, bidding for all types of staffing agency contracts, using the internet to make our business more visible, and providing staffing services for all categories of businesses.
This staffing agency business plan sample has been written with the aspiring entrepreneur in mind. You can review its content and better understand how your plan should be organized.
We have summarized this to allow you to grasp its general structure in the shortest time possible.
Home » Blog » 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:
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.
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.
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.
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!
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.
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.
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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.
What does it take to grow a recruitment business in these uncertain economic times? In this blog, originally published in The Global Recruiter, Rhys looks at what it takes to grow a recruitment business in 2023.
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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Leadership or management - what's more important to a growing recruitment business, why business owners should never take their staff for granted., what is recruitment factoring and why do we do ours in house, how to choose a crm for your new recruitment agency, useful links.
Table of Contents
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.
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A startup's guide to choosing a recruiting agency.
Alex Wu, is the Founder of CFO Advisors , a leading Fractional CFO practice serving startups from pre-seed to Series C.
The startup ecosystem is riddled with challenges. Whether it's product development, fundraising or scaling operations, there's one foundational pillar that plays a pivotal role in a startup's journey: hiring the right talent.
When startups enter the realm of rapid growth, they often turn to recruiting agencies to identify and onboard their most valuable asset—their people. As someone deeply entrenched in advising burgeoning startups, I'd like to shine a spotlight on the intricacies of leveraging recruiting agencies for hiring.
For early-stage startups, the initial team usually comprises individuals who have either collaborated with the founders previously or are personally known to them. But post the first five hires, as the organization gears up to scale, especially post a fundraise or when there's a need to tap into uncharted roles, recruiting agencies become the knight in shining armor.
These agencies don't merely serve as talent finders. They dig deep into a startup's ethos, culture and story. By grasping the founder's vision, they become brand evangelists, ensuring that the talent they onboard not only fits the job description but also resonates with the company's culture and objectives. By leveraging tools, platforms and networks, they cast a wide net, narrowing down a sea of candidates to a select few who stand out. It's precision meeting passion.
When it comes to payment, recruiting agencies primarily use two models: contingency and retained. While the ballpark figure for both is often between 20-30% of the candidate’s annual cash compensation, the payment structures differ. The contingency model, as the name suggests, is a success-based model—payment is made upon successful placement. The retained model, on the other hand, is more staggered, with a portion upfront and the remainder spread over the engagement.
A crucial note for startups is the potential behavioral economics at play. For contingency models, there's an inherent incentive for recruiters to fill roles swiftly. If startups dawdle, be it through unresponsiveness or drawn-out interview processes, it may prompt the recruiter to redirect top-tier candidates to more decisive clients.
There's an art to picking the right recruiting agency. Top-tier agencies aren't just adept at recruitment; they're also master storytellers. Before entering a long-term commitment, startups can run a simple "trial." Engage multiple agencies for a single role, evaluate the candidates they present and, based on this, select your long-term partners. Investing in a few solid relationships ensures a smoother flow of quality candidates and efficient placements.
While the allure of recruiting agencies is evident, startups must be cautious of common missteps:
1. Speed of hire: Especially for non-senior roles, elongated interview processes can be detrimental. Quick, efficient cycles ensure that startups remain competitive in the talent market.
2. Legal hurdles: With laws around hiring practices evolving, startups must remain vigilant. In many jurisdictions, for instance, inquiring about a candidate's past compensation can land companies in hot water. Similarly, candidates in various states can legally demand information on compensation bands.
In conclusion, as startups navigate the complex maze of growth, finding the right recruiting partner can make all the difference. The key lies in understanding their methods, cost structures and potential pitfalls to ensure that the collaboration is both fruitful and legally sound.
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For any business looking to take their recruitment efforts to the next level, having an effective plan of action is a must. The #1 Recruitment Business Plan Template & Guidebook offers an easy-to-follow framework for creating a step-by-step recruitment strategy that will get results. This comprehensive guide includes everything you need to know to develop an actionable plan backed by best practices and insightful tips from industry experts. Let's explore what this powerful tool can do to help you increase your hiring success.
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1. describe the purpose of your recruitment business..
The first step to writing your business plan is to describe the purpose of your recruitment business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a recruitment business:
Our mission is to provide world-class and innovative recruitment solutions that help organizations find and hire the best talent to increase their competitive advantage. We strongly believe in the power of bringing together the right people and nurture a culture of employee satisfaction, growth and development.
The next step is to outline your products and services for your recruitment business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
If you don't have a marketing plan for your recruitment business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your recruitment business includes the following elements:
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
The second part of your recruitment business plan is to develop a management and organization section.
This section will cover all of the following:
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup Costs
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a recruitment business varies based on many different variables, but below are a few different types of startup costs for a recruitment business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your recruitment business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your recruitment business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your recruitment business plan:
Why do you need a business plan for a recruitment business.
A business plan for a recruitment business is important because it serves as a roadmap outlining the objectives, strategies and action plans for the business. It can also help to identify potential risks, as well as ways to manage those risks, and establish financial goals. Furthermore, a business plan can help to attract potential investors or lenders and provide a basis for evaluating the success of the business.
You should ask for help from an experienced recruitment consultant, business consultant, or a professional business coach. They can provide you with valuable advice and resources to help you create a successful business plan. Additionally, you may want to consult with a lawyer or accountant who have expertise in the recruitment industry.
Yes, it is possible to write a recruitment business plan yourself. However, it may be more beneficial to consult a professional business plan writer to ensure the plan meets industry standards and contains all the necessary components. A professional also has experience in writing successful plans, which can greatly increase the chances of success.
We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
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This includes current statistics and the identification of emerging trends within the industry, as illustrated in our recruitment agency business plan template. Your business plan should articulate your vision clearly. Define your target market (such as tech startups, healthcare providers, or financial institutions), and establish your agency's ...
Writing a staffing agency business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the whole ...
The most important component of an effective Recruitment Agency business plan is its accurate marketing analysis. If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this Recruitment Agency business plan sample or other Recruitment Agency business plans available online. Start Writing here...
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.
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 […]
You've come to the right place to create your staffing agency business plan. We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their staffing agencies. Below are links to each section of your staffing agency business plan template: 1. Executive Summary. 2. Company ...
A business plan has 2 main parts: a financial forecast outlining the funding requirements of your recruitment agency and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.
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.
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 ...
This template includes a complete recruitment agency business plan example, with a financial forecast and the following sections: Executive summary: the executive summary gives the reader a clear and concise overview of your business idea. Company: this section lays out the structure of your business, including its location, management team and ...
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 ...
Potential Recruiter Salary. On average, a recruitment consultant has the potential to earn between $65,000 and $75,000 annually. Charges for placing a candidate can range between 14 and 20 percent. Charges for your services may be based on a percentage of the candidate's first annual salary.
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 ...
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.
The #1 Recruiting Agency Business Plan Template & Guidebook is designed to provide aspiring entrepreneurs with a comprehensive set of instructions and templates for planning, drafting, and launching their own agency. This guidebook provides strategies to consider and steps to take as you develop your plan to start or continue building your own ...
A recruitment business plan should include an overview of services, target markets and clients, competitor analysis, marketing plan, projected finances and costs, staffing needs, and growth goals.
An Ultimate Recruitment Agency Business Plan is your roadmap to success, detailing strategies and goals. It encompasses objectives for growth, financial projections, and key performance indicators. Crafting a robust introduction for a recruitment agency's business plan presents the clear vision and mission as its backbone. Within this plan ...
Event planners often will work for between $12.50 and $25 per hour, depending on the length of the job, requirements, and experience needed. We find a $5 per hour markup on the $12.50-$17.50 is reasonable, and a $10 per hour markup on anything over $17.50 per hour. Fundraisers.
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.
This recruitment agency business plan sample has been summarized to show you the most relevant information. You can follow this plan to write your comprehensive staffing agency business plan. You should avoid trying to hasten things up. Going slowly and getting it right is much better than speed.
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 ...
Why a business plan is important; Provide direction; Minimise risk ; Reduce spending; How to write a business plan for a recruitment agency; Market research ; Budgeting and financial planning; Examples of SWOT analysis for a recruitment agency; Strength; Weaknesses; Opportunities ; Threats; How Countingup can benefit your recruitment agency
While the allure of recruiting agencies is evident, startups must be cautious of common missteps: 1. Speed of hire: Especially for non-senior roles, elongated interview processes can be detrimental.
How to Write a Recruitment Business Plan in 7 Steps: 1. Describe the Purpose of Your Recruitment Business. The first step to writing your business plan is to describe the purpose of your recruitment business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
The "Time is Money" initiative is being launched as Vice President Kamala Harris prepares to unveil her presidential campaign's first economic policy plans.