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How Much Does It Cost to Start a Recruitment Company in 2019?

You’ve decided to take the plunge and go into business as the proud owner of a new recruitment agency. Nevertheless, you’re only now considering exactly how much cash you’ll you need to get things up and running.

For obvious reasons, it’s important to ensure you have sufficient funds to cover not only the initial setup costs, but all additional outgoings until you start making money. The amount of cash you need will be determined by multiple factors, which include the size, nature and location of your proposed business.

Across the board, however, there are certain inescapable costs and outgoings that must be carefully considered, in order to establish the viability of your recruitment company.

Starting Out

For example, you’ll need to factor in all the initial overheads inherent with new business establishment. Do you intend to buy or rent premises for your business? How many employees do you intend to recruit at the start? What kind of office equipment and general supplies do you need to run your business? Ultimately, what’s the bare minimum you can get away with in terms of initial purchases, rentals, hiring and so on?

On top of this, you’ll also need to think carefully about branding and marketing costs. You’ll obviously need a professional website to represent your business online, but you’ll also need to consider logo design, visual branding and so on. If you lack the knowledge and experience necessary to handle things in-house, you’ll need to outsource.

Marketing and Advertising

Aside from these initial business establishment costs, a sizeable marketing investment is inevitable. As a new business, you need to do anything and everything you can to push and promote your recruitment company to its intended target audience. Simply existing isn’t enough to attract enough business to sustain your company.

Marketing and advertising responsibilities can be outsourced, in order to save money on hiring help in-house. A variety of online and offline marketing channels should be explored, such as social media marketing, search engine optimisation, e-mail marketing and any print marketing that may help spread the word.

You may be able to handle some key marketing responsibilities yourself - blogging, posting on social media etc. However, outsourcing means freeing up more time for you to invest in running your business.

Financing

The third and final major cost consideration is that of financing your business during those early weeks and months. Along with ensuring you have sufficient funds to pay your in-house employees, you also need to make sure the temps and candidates you hire are paid on time.

You’ll need some kind of funding solution to work as a buffer, eliminating the prospect of running out of money and failing to meet your payment obligations. For this reason alone, it may be necessary to speak with a recruitment agency finance specialist to discuss the options available.

Just as long as you approach the financial aspects of starting your new business strategically, there’s no reason why it would not succeed. It’s simply a case of accepting when and where expert support is needed - particularly when it comes to covering inescapable initial setup costs.

Article provided by NewMillennia.co.uk

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

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