free recruitment agency business plan

Item added to your cart

Download all the resources to start a recruitment agency.

Let's make sure your staffing services agency will be profitable!

Here is a free business plan sample for a recruitment agency

If you're passionate about connecting people with their dream jobs and considering launching your own recruitment agency, you've landed on the perfect page.

In the content that follows, we will present to you a comprehensive sample business plan tailored for a recruitment agency.

As an aspiring entrepreneur, you're likely aware that a strategic business plan is a cornerstone of any successful venture. It serves as a roadmap, guiding you through establishing your mission, objectives, and tactics for your enterprise.

To jumpstart your planning process with ease and precision, you can utilize our recruitment agency business plan template. Additionally, our specialists are on standby to provide a complimentary review and refinement of your plan.

How to draft a great business plan for your recruitment agency?

A good business plan for a recruitment agency must be tailored to the nuances of the staffing and human resources industry.

To start, it's crucial to provide a comprehensive overview of the recruitment market. 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 unique value proposition (specialization in a certain industry, executive search, temporary staffing, etc.).

Market analysis is a key component. You need to have a thorough understanding of the competitive landscape, industry trends, and the needs of both employers and job seekers.

For a recruitment agency, it's important to outline your service offerings. Describe the types of recruitment services you will provide - permanent placements, contract staffing, headhunting services - and how these will address the hiring challenges faced by your clients.

The operational plan should detail the structure of your agency, including the location, the technology and tools for candidate sourcing and client management, and the recruitment and selection process.

Quality of service is paramount in recruitment. Discuss your approach to candidate vetting, compliance with employment laws, and commitment to ethical practices.

Address your marketing and sales strategy next. How will you build relationships with clients and candidates? Consider your approach to networking, brand building, and leveraging online platforms for visibility.

Having a digital strategy, such as a professional website, online job boards, and a social media presence, is vital in the recruitment industry.

The financial plan is another critical element. It should include your startup costs, revenue projections, operating expenses, and the point at which you expect to break even.

In recruitment, understanding your cash flow is essential, as there can be a delay between placing a candidate and receiving payment. For this, you can refer to our financial forecast for a recruitment agency .

Compared to other business plans, a recruitment agency's plan must focus on the intangible aspects of service delivery, such as building a strong candidate network, maintaining client relationships, and the importance of a skilled internal team.

A well-crafted business plan will not only help you clarify your strategy and operations but also serve as a tool to attract investors or secure loans.

Investors and lenders will look for a solid understanding of the recruitment market, realistic financial projections, and a clear plan for day-to-day operations.

By presenting a comprehensive and substantiated business plan, you showcase your professionalism and dedication to the success of your recruitment agency.

To achieve these goals while saving time, you can complete our recruitment agency business plan template .

A free example of business plan for a recruitment agency

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a recruitment agency .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The recruitment industry is a vital component of the global economy, facilitating the connection between employers and potential employees.

As of recent estimates, the global recruitment services market size is valued at over 150 billion dollars, with expectations for continued growth as industries expand and the job market evolves.

In the United States alone, there are thousands of recruitment agencies, contributing to an annual revenue of approximately 150 billion dollars, highlighting the critical role these agencies play in the American labor market.

These statistics underscore the significance of recruitment agencies in supporting business growth and providing essential services for job seekers.

The recruitment industry is experiencing several key trends that are shaping its future.

Technology is playing an increasingly important role, with artificial intelligence and machine learning being used to streamline the recruitment process and improve candidate matching.

There is also a growing emphasis on diversity and inclusion, as companies seek to build more representative workforces and tap into a wider range of talent.

Remote work has become a significant factor, with many agencies now offering services to help businesses find remote employees and manage distributed teams.

Additionally, the gig economy is expanding, leading to a rise in demand for short-term and freelance positions, which recruitment agencies are adapting to accommodate.

Employer branding has become crucial, as companies look to recruitment agencies to help them attract top talent by promoting their culture and values.

These trends indicate how the recruitment industry is evolving to meet the changing needs of the modern workforce and employers.

Success Factors

Several factors contribute to the success of a recruitment agency.

First and foremost, the ability to understand and meet the specific needs of clients and candidates is essential. This includes offering personalized services and maintaining a high-quality talent pool.

Investing in the latest recruitment technologies can provide a competitive edge by enhancing efficiency and the quality of matches between employers and job seekers.

A strong network and industry connections can significantly boost an agency's ability to source candidates and fill positions quickly.

Expertise in niche markets or specialized sectors can also be a differentiator, as clients often look for agencies with a deep understanding of their industry.

Excellent client and candidate service is paramount, as positive experiences lead to repeat business and referrals.

Lastly, adaptability to the changing job market and regulatory environment ensures that a recruitment agency can continue to operate effectively and maintain compliance.

The Project

Project presentation.

Our recruitment agency project is designed to address the evolving needs of the modern workforce and the companies seeking to hire top talent. Situated in a business hub with proximity to corporate offices and tech parks, this agency will specialize in matching qualified candidates with their ideal positions, ranging from tech and finance to creative and healthcare sectors. We will leverage advanced recruitment technologies and methodologies to ensure a precise fit for both employers and job seekers.

The emphasis will be on understanding the unique culture and requirements of each company, as well as the career aspirations and skills of each candidate, to facilitate successful and lasting employment relationships.

This recruitment agency aims to become a trusted partner for businesses and a career ally for professionals, thereby contributing to the growth and success of the local and wider business community.

Value Proposition

The value proposition of our recruitment agency lies in our personalized approach to talent acquisition and our commitment to delivering exceptional matches that benefit both employers and candidates.

Our expertise in sourcing and placing top talent, combined with our dedication to understanding the nuances of various industries, offers a competitive edge to our clients and supports the career progression of our candidates.

We are committed to fostering a dynamic and supportive environment where businesses can find their next star employee and where individuals can take the next step in their professional journey.

Our agency aspires to be more than just a service provider; we aim to be a strategic partner in talent management, contributing to the thriving economy and supporting the professional community.

Project Owner

The project owner is a seasoned recruitment specialist with a keen insight into the complexities of the job market and the challenges faced by employers and job seekers alike.

With a background in human resources and a track record of successful placements across various industries, the owner is dedicated to building a recruitment agency that stands out for its integrity, efficiency, and innovative approach to talent acquisition.

Driven by a vision of connecting people and businesses in meaningful ways, the owner is committed to offering tailored recruitment solutions that contribute to the success of companies and the satisfaction of job seekers.

With a passion for career development and a commitment to excellence, the project owner is the driving force behind this initiative, aiming to transform the landscape of recruitment and make a positive impact on the job market.

The Market Study

Market segments.

The market segments for this recruitment agency are diverse and cater to various needs within the job market.

Firstly, there are companies of all sizes, from startups to large corporations, looking to fill vacancies with the most suitable candidates.

Secondly, the agency serves job seekers ranging from entry-level applicants to experienced professionals seeking new opportunities or career changes.

Additionally, the market includes niche sectors requiring specialized recruitment services, such as IT, healthcare, or executive search.

Lastly, educational institutions and training programs can be a key segment by partnering with the agency to place graduates in relevant positions.

SWOT Analysis

A SWOT analysis of this recruitment agency project highlights several key factors.

Strengths include a robust network of candidates and employers, expertise in talent acquisition, and a strong understanding of market trends.

Weaknesses might involve the challenge of maintaining a high placement success rate and the intense competition from other recruitment agencies and online job platforms.

Opportunities can be found in leveraging technology to improve the recruitment process, expanding into new industries, and offering additional services such as career counseling and training.

Threats may include economic downturns affecting hiring, changes in labor laws, and the rise of in-house recruitment teams and AI-driven recruitment tools.

Competitor Analysis

Competitor analysis in the recruitment industry indicates a highly competitive environment.

Direct competitors include other recruitment agencies, both local and international, as well as online job boards and LinkedIn recruiters.

These competitors strive to offer the most efficient and effective placement services to both employers and job seekers.

Potential competitive advantages include a personalized approach to recruitment, a deep understanding of specific industry needs, and a strong reputation for reliability and success.

Understanding the strengths and weaknesses of competitors is crucial for carving out a unique position in the market and for client acquisition and retention.

Competitive Advantages

Our recruitment agency's competitive edge lies in our personalized and consultative approach to both clients and candidates.

We offer tailored recruitment solutions that align with the specific needs of businesses, and we support job seekers throughout their employment journey to ensure the best fit for both parties.

Moreover, our commitment to staying abreast of industry trends and leveraging cutting-edge recruitment technology sets us apart in the market.

We pride ourselves on our ethical practices, transparency in communication, and our ability to build long-term relationships with our clients, which fosters trust and loyalty to our brand.

You can also read our articles about: - how to start a recruitment agency: a complete guide - the customer segments of a recruitment agency - the competition study for a recruitment agency

The Strategy

Development plan.

Our three-year development plan for the recruitment agency is designed to establish us as a leader in the industry.

In the first year, we will concentrate on building a strong client base and developing relationships with key businesses in various sectors, ensuring a deep understanding of their recruitment needs.

The second year will focus on expanding our services to include specialized recruitment for niche markets and enhancing our candidate training programs to provide more value to our clients.

In the third year, we aim to leverage technology to improve our matching algorithms and expand our reach with remote recruitment services, as well as exploring international partnerships to facilitate global placements.

Throughout this period, we will prioritize client satisfaction, efficient service, and innovative recruitment solutions to adapt to the evolving job market.

Business Model Canvas

The Business Model Canvas for our recruitment agency targets companies looking for top talent and job seekers aiming for their ideal career opportunities.

Our value proposition is delivering personalized recruitment services with a focus on fit and long-term success for both employers and employees.

We operate through a combination of online platforms and direct engagement with clients, utilizing our key resources such as our skilled recruiters and proprietary candidate databases.

Key activities include talent scouting, candidate assessment, and relationship management.

Our revenue streams are derived from successful placement fees, retainer services, and customized HR consulting, while our costs are mainly associated with recruitment operations and marketing efforts.

Access a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on building a strong brand reputation and establishing trust with both clients and candidates.

We plan to engage with industry leaders and participate in networking events to increase our visibility. Our content marketing will focus on providing valuable insights into recruitment trends and career development.

We will also develop strategic partnerships with educational institutions and professional associations to access a wider pool of talent.

Utilizing social media, targeted advertising, and referral programs, we aim to expand our reach and attract top candidates and high-profile clients.

Risk Policy

The risk policy for our recruitment agency is designed to mitigate risks associated with talent acquisition, client satisfaction, and data security.

We will implement rigorous vetting processes to ensure the quality of candidates and maintain a high level of service to our clients. Regular training for our staff will ensure compliance with industry standards and legal requirements.

Cost management strategies will be in place to control operational expenses and ensure financial stability.

We will also invest in robust cybersecurity measures to protect sensitive client and candidate data, with comprehensive insurance coverage to manage any potential liabilities.

Why Our Project is Viable

We are confident in the viability of our recruitment agency due to the increasing demand for specialized recruitment services and our commitment to quality and innovation.

With a strategic approach to growth and a focus on adapting to the needs of the job market, we are poised to become a preferred partner for companies and job seekers alike.

We are prepared to make the necessary adjustments to our strategies to achieve our objectives and are excited about the potential to shape the future of recruitment.

You can also read our articles about: - the Business Model Canvas of a recruitment agency - the marketing strategy for a recruitment agency

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a recruitment agency and our financial plan for a recruitment agency .

Initial expenses for our recruitment agency include setting up a professional office environment, investing in recruitment software and databases, legal fees for business registration and compliance, training for our recruitment consultants to ensure best practices, as well as costs related to brand creation and launching targeted marketing campaigns to build relationships with clients and job seekers.

Our revenue assumptions are based on a thorough analysis of the local and industry-specific demand for recruitment services, considering the current employment trends and the need for specialized talent acquisition.

We anticipate progressively increasing placements, starting modestly and growing as the reputation of our recruitment agency strengthens.

The projected income statement indicates expected revenues from our placement fees, service charges, and possibly retainer fees, minus the costs of operations (salaries, database subscriptions, office expenses, etc.).

This results in a forecasted net profit crucial for evaluating the profitability of our business over time.

The projected balance sheet reflects assets specific to our business, such as office equipment, software, and liabilities including debts and anticipated expenses.

It shows the overall financial health of our recruitment agency at the end of each period.

Our projected cash flow budget details incoming and outgoing cash flows, allowing us to anticipate our cash needs at any given time. This will help us effectively manage our finances and avoid cash flow problems.

The projected financing plan lists the specific financing sources we plan to use to cover our startup expenses.

The working capital requirement for our recruitment agency will be closely monitored to ensure we have the necessary liquidity to finance our daily operations, including marketing efforts, office maintenance, and salary payments.

The break-even point specific to our project is the level of sales needed to cover all our costs, including startup expenses, and start making a profit.

It will indicate when our business will be profitable.

Performance indicators we will track include the placement success rate, the average time to fill a position, the client retention rate, and the return on investment to measure the effectiveness of our capital invested in the project.

These indicators will help us evaluate the financial health and overall success of our recruitment agency.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a recruitment agency .

• Choosing a selection results in a full page refresh.
• Opens in a new window.

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

• Published on June 3, 2020
• Updated on October 6, 2024

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

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

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

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

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

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

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

Introduction

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

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

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

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

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

Your specialisation

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

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

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

Taking a Technology recruiter as an example:

What roles I will specialise in:

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

What industries I will target:

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

What level of seniority I will focus on:

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

What geographies I will cover:

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

Hiring activity trends

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

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

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

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

Candidate strategies

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

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

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

How do I plan to generate candidate leads:

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

Challenges I expect to face:

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

How I will overcome these challenges:

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

Client strategies

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

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

Take these bullet points as a basic example:

How I plan to onboard new clients:

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

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

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

What industries I will target clients in:

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

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

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

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

My methodology

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

How you can adapt to recruiting during a possible economic downturn

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

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

Enjoying this article so far? Join our monthly email newsletter or follow us on LinkedIn

We release new articles, people moves and market intel for the recruitment industry on a monthly basis. To be the first to know when we publish something new, join the  1,000+  recruiters in our recruitment market intel list.

Subscribe to Vocay Replay

Enter your email below to receive the latest articles from Vocay. You can opt out at any time via the unsubscribe link in every email.

By subscribing, you agree to our Privacy Policy and Notification Settings .

My key competitors

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

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

Personal revenue and target projections

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

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

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

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

Take the below as an example:

My predicted average annual salary of candidates:

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

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

The template

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

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

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

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

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

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

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

Subscribe for free

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.

More articles

The business development approach that got me on the PSL of major clients in Singapore

Rec2Rec salary guide Singapore 2024

5 reasons why top billers move to recruitment agency competitors

[email protected]

EA License 20S0396

UEN 202005417W

Copyright © 2024 Vocay. All Rights Reserved.

Follow us on LinkedIn

Don't miss the latest recruitment insights.

Understanding the Importance of a Business Plan

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

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

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

Leveraging the Workbook for Enhanced Planning

Utilize the Business Plan Workbook to:

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

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

The 7 Stages of Writing a Startup Recruitment Agency Business Plan

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

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

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

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

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

To do this, follow the below steps:

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

With a trusted partner like Recruiter Startup…

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

Step #2: Establish your goals.

Set measurable goals to work towards, such as:

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

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

Step #1: Define your purpose.

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

For example:

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

Step #3: Outline your values.

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

Examples include the following:

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

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

Stage #2: Identifying Your Business Model and Services

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

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

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

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

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

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

This involves the following activities:

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

2. Researching Competitors

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

1. Surveying Businesses in Your Area

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

4. Analysing Data for Opportunities

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

3. Tracking Industry Trends

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

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

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

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

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

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

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

1. Define your target market.

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

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

2. Build your online presence.

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

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

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

3. Develop a marketing strategy.

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

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

4. Source great candidates.

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

5. Provide excellent service.

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

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

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

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

Adhering to the following checklist can make your task easier:

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

2. Administrative Support

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

1. Hiring Recruiters

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

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

3. Office Space

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

4. Technology Infrastructure

Invest in a robust technology infrastructure, including the following:

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

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

Stage #6: Defining Financial Projections and Funding

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

2. Finding Funding Sources

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

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

1. Creating Financial Projections

Consider the following factors in doing so:

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

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

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

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

Stage #7: Outlining Risk Assessment and Mitigation Strategies

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

Here are some key areas to focus on:

1. Identifying and Addressing Risks

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

Common risks include the following:

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

2. Meeting Legal Requirements

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

To achieve this, ensure you do the following:

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

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

Saving Time and Cost With the Franchise Recruitment Model

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

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

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

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

Recruitment Agency Business Plan - Frequently Asked Questions

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

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

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

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

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

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

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

Wrapping It Up

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

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

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

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

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

Let's talk about starting your recruitment desk.

Additional Resources

01277 822668

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

Recruitment Agency Business Plan Workbook

Download the pdf.

Staffing Agency Business Plan Template

Written by Dave Lavinsky

Staffing Agency Business Plan

If you want to start a staffing agency or expand your current staffing business, you need a staffing agency 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.

Download our Ultimate Staffing Agency Business Plan Template here >

What Is a Staffing Agency Business Plan?

A staffing agency business plan provides a snapshot of your staffing firm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for a Staffing Agency?

If you’re looking to start a staffing agency, or grow your existing staffing agency, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your staffing agency business in order to improve your chances of success. Your staffing agency business plan is a living document that should be updated annually as your company grows and changes.

This is true for an employment agency business plan, a recruitment agency business, a healthcare staffing agency business plan or a plan for any type of staffing agency.

What Are the Sources of Funding for Staffing Agencies?

With regards to funding, the main sources of funding for staffing firms 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.

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Staffing Agency Business Plan Template and complete your plan and financial model in hours.

How to Write a Business Plan for a Staffing Company

Your business plan should include 10 key sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the type of staffing agency you are operating and the status; for example, are you a startup, do you have a staffing agency that you would like to grow, or are you operating a chain of staffing agencies.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the staffing agency industry. Discuss the type of staffing agency you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of staffing agency you are operating.

For example, you might operate one of the following types:

• Office: this type of staffing agency company provides office workers, on a temporary, permanent, or outplacement basis.
• Industrial: this type of staffing agency specializes in placing blue-collar workers for the manufacturing, transportation, construction, and hospitality sectors.
• Specialty: agencies may sometimes specialize in serving a certain sector (such as healthcare), or in placing specific occupational groups (such as nurses or executives).

In addition to explaining the type of staffing agency you operate, the company analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include placement goals you’ve reached, number of new contracts, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the staffing agency business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the staffing agency industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your staffing agency business plan:

• How big is the staffing agency industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your staffing agency. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your staffing agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: retailers, manufacturers, IT, healthcare, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of staffing agency you operate. Clearly retail customers would want different service options, and would respond to different marketing promotions than IT customers.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the types of businesses you will serve and key functions served (e.g., business owner vs. HR manager).

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining clients.

Finish Your Staffing Agency Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your staffing agency business plan?

With Growthink’s Ultimate Staffing Agency Business Plan Template you can finish your plan in just 8 hours or less!

Finish your staffing agency business plan today.

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other staffing agencies.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes online recruitment websites and in-house recruiting departments. You need to mention such competition to show you understand that not everyone with staffing needs will hire a staffing agency.

With regards to direct competition, you want to detail the other staffing agencies with which you compete. Most likely, your direct competitors will be staffing agencies located in your geographic proximity.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of placement do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to engage your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a staffing agency business plan, your marketing plan should include the following:

Product: in the product section you should reiterate the type of staffing agency that you documented in your company analysis. Then, detail the specific services you will be offering. For example, in addition to temporary employees, will you provide permanent placement, or will you be specializing in a certain sector or occupation?

Price: Document your pricing structure and how it compares to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place: Place refers to the location of your staffing agency. Document your location and mention how the location will impact your success. For example, is your staffing agency located next to an industrial area or near downtown office buildings, etc. Discuss how your location might provide a steady stream of customers.

Promotions: the final part of your staffing agency marketing plan is the promotions section. Here you will document how you will attract new clients. The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Telemarketing
• Reaching out to local websites
• Social media marketing
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your staffing agency, such as serving clients, attracting applicants, processing paperwork, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your 100th applicant, or when you hope to reach $X in contract value. It could also be when you expect to place your Xth permanent employee or launch in a new location.

Management Team

To demonstrate your staffing agency’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in staffing. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in staffing and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement: an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you place 10 workers per week or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets: Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $100,000 on building out your staffing agency, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement: Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $100,000 contract for temporary light industrial workers, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for recruitment, onboarding, service, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a staffing agency business:

• Location build-out including design fees, etc.
• Cost of equipment like software, office equipment and furnishings, etc.
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office design blueprint or location lease or lists of clients you’ve served at past staffing agencies.

Putting together a business plan for your staffing agency business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the staffing-agency business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful staffing agency business.

How Do I Download a Free Staffing Agency Business Plan PDF?

You can download our staffing agency business plan PDF and use our sample staffing agency business plan to write your own business plan.

If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Staffing Agency Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

See how a Growthink business plan consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Recruitment Agency Business Plan

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

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

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

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

Is opening a recruitment agency for you?

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

What's included in our recruitment agency business plan?

• Your free sample recruitment agency business plan template

Summary and recap

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

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

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

You should consider things like:

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

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

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

Key costs of starting your recruitment agency include:

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

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

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

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

Included within our recruitment agency business plan, we offer:

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

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

Download now for only £49

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

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

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

Step 1: Executive summary

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

Make sure to think about these three things:

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

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

Step 2: Company overview

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

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

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

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

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

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

Some other things to consider include:

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

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

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

Instant download for £49

Step 3: Management and key personnel

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

Remember to include:

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

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

Step 4: External analysis (market research)

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

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

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

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

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

Some things that you should think about include:

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

How many recruitment agencies operate in your area?

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

Some things you can think about:

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

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

Step 5: your business objectives

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

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

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

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

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

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

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

Step 6: Services, equipment and amenities

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

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

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

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

Step 7: Financial forecasting and financial projections

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

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

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

The fundamentals you’ll need to provide:

• Sales forecast
• Expense budget
• Cash-flow statement

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

• Purchase estimations
• Hiring costs

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

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

Instant download

Step 8: Funding

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

You might have received funding in the form of:

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

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

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

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

Your free sample recruitment agency plan

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

Included in this template, you’ll get:

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

Download .doc here

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

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

Download the Software

Complete recruitment agency business planning package.

Customer Testimonials

“I needed to put together a long-term business plan to cover all aspects of my new venture. I read a lot of books and attended courses, but I was struggling. Then I came across Teneric and suddenly it was all there in a format I could use and in terminology I could understand. After that, it was plain sailing to the Business Department at my local HSBC Bank”

Jill Shilcock, Managing Director, SEAS Education Advisory Service Limited.

“I wanted ideas for the type of information that needed covering in a business plan, and this gave me a template for the document I submitted to the bank. The business loan we were after was approved. If you have never written a business plan before, then I would recommend your product. It was very straightforward and offered some good advice.”

Gordon Mitchell, UK

“I needed a business plan quickly. The template was easy to use, just fill in the blanks on the wizard and refer to the help guide if I wasn't sure. Your system is good value, and I would recommend them to everyone needing a plan. Attached is the basic plan I threw together in a day for the bank. They specifically wanted cash flow projections, and the Excel spreadsheets were really what I was after from your product.”

John Waterhouse, UK

Recruitment Agency Business Plan: How to Write One

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

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

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

Your Business Plan’s Key Elements

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

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

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

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

Partnering With AtWork: A Shorter Path to Your Goal

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

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

Learn More About AtWork

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

Related Articles

How to Be an Entrepreneur Without an Idea

Visionary entrepreneurs often find inspiration in unexpected places. Pharmacist Caleb Bradham invented the recipe for Pepsi-Cola by experimenting with ingredients at his drug store’s soda fountain. The founders of Warby

Pros and Cons of Starting a Business and Ways to Make it Easier

Entrepreneurship can be rewarding, but launching a business is challenging. Explore the pros and cons of starting a business and learn how to make it easier. The appeal of entrepreneurship

What’s a B2B Franchise? Definition and Examples

What Is a B2B Franchise? Definition and Examples Business-to-business (B2B) franchising relies on building relationships with companies to generate recurring revenue, rather than serving individual customers. It can be a

AtWork Nationwide

Find the AtWork temporary staffing agency most convenient for you. Choose from nearly 100 offices across the country.

Launch Your Business

Find Out About Opening an AtWork Office.

• Search Jobs
• Hiring Process
• Employee FAQs
• Refer a Friend
• Our Services
• Our Approach
• Hire AtWork
• News & Events

Which branch would you like to apply with? Please select your location below to get started.