How to Start a Recruitment Agency [Ultimate Guide]

If you are in the recruitment business, we are sure that you have thought about starting a recruitment agency at some point. Being your own boss is great but starting and running your own business is not easy. 

A recruitment agency is a complex business that requires a lot of effort, manpower, clear goals, and a business plan to lead you to that goal. Recruitment agencies are great because they are highly driven and focused on client satisfaction.

Running a recruitment agency will allow you to choose your own path, goals, and clients. To properly start a recruitment agency, you need to take a few necessary steps before you start phoning up candidates. In this post, we will show exactly how to start a recruitment agency.

Know what you are getting into

Running your own recruitment agency is not the same as your typical 9-5. Because many of your candidates are already employed, you should expect to be working in the evenings if you want to make it. 

That is why it is crucial to start using a recruitment platform to help you out. Make sure that the platform can be used on the go unless you want to spend your evenings in the office.

As you start your own recruitment business, you need to familiarize yourself with many laws governing the recruitment industry. The legislations differ between countries and sometimes even industries, which means that you need to set aside considerable time to do your research and learn the ins and outs of your local employment legislation.

The step-by-step guide on how to start a recruitment agency


Now that you have familiarized yourself with the most important things before starting a recruitment agency, you are now ready to start learning how to start a recruitment agency. 

Step 1: Determine your niche.

The first thing you need to do when you seriously consider starting a recruitment agency is determining which type of recruitment agency you want to be. You could be a tech/focused agency or you could focus on staffing other kinds of companies, such as retailers.

You can also examine your current network and see where your strengths are, and choose a market to provide your recruitment services. Another thing you should consider when picking your niche is to consider which type of candidates you have the most substantial connection with.

Do you feel more connected to recent graduates or those in the business for some time now?

These answers to these questions will help you better position your business.

Step 2: Assess your competitors.

The second step in how to start a recruitment agency process is to assess the current market and see what other staffing agencies you are competing with. 

You can do a few simple analysis such as SWOT (strengths, weaknesses, opportunities, threats) and 4Ps (product, place, price, promotion) to see how you stack up against your competitors and what you need to do to improve your game.

Step 3: Plan out your finances.