For Recruitment Agencies

How to Build and Expand Your Recruitment Business


Business Expansion In Recruitment Agencies

How to build and expand your  

Starting a recruitment business is very easy as long as you go through the proper process in getting the business set up and follow the rules, it should be pretty smooth sailing in the setting up process and I will not touch based on technical aspects but focus more on the expansion of the business itself.

To build and expand your recruitment business you will need to consider the following factors:

1)      Excess capital – Your total cash available must be at least 5-6 times your current liability (Your monthly cost), assuming if all your running cost including rental and salaries total up are $10,000, you ought to have $50,000 – $60,000 in your bank. We need to take into account that IF for that next 5-6 months there are absolutely no sales….what will happen? At least there are still enough cash reserves for you to hold on. If your ratio is 10 times or more, you will be pretty safe at this point.

2)      Ensure that your recruitment consultants are at their maximum capacity. They should be busy fulfilling the job orders rather that looking for new clients, if some of your consultants are still looking for new clients, if means you are not ready to expand the business.

3)      Watch the economy: is the economy picking up? If yes, it’s a good time to enter the market, if the market is slow and or are going down, do not take your chance to go against the trend and very likely you will not be able to make it. The stock markets of USA and Europe are a fairly good indication on how the market will be heading.

4)      Check the rental market- If the office rental is at the peak, it will not be good to expand your business now, it is always better to be safed than to be sorry. Start small and expand slowly. I have seen many aggressive businessmen expanded their business too fast and flopped in less than a few months due to the inability to control cost.


Having Your Own Niche in Recruitment Agencies

5)      Market niche – Are you able to specialised in certain industry or you prefer to focus on the general? If you focus on the niche, usually you will be able to charge higher price compared to general placement. With more specialisation, you will have lesser competition.

6)      Watch what the big players are doing, it’s always good to pay attention on what the big player are doing because they have all the resources and manpower to do what you are not able to do. They might have some information that could be critical. Watch out for their recruitment campaign, are they expanding or are they maintaining? If they are not expanding, why not? Do they have information that you do not have? Watch out on their Google pay-per-click (ADWORDS) advertisement, are they doing it or absolutely not into it….check anything and everything, it can save you and also make you a lot of money in your recruitment business.

7) Have you created your BRAND? Do you have a consistent logo everyone knows, are you located in most of the social media? If not please get the extra efforts to do so, saving money on this area will not bring you higher in BRANDING and STATUS.

That’s all for today, I will touch based again other day.



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Dougles Chan - Digital Marketing Guru

Dougles Chan - Digital Marketing Guru

Advisor for SME, MNCs and listed companies in their digital marketing campaigns and branding. Created VIRAL SEO marketing, a new marketing technique that brings over 100,000 visitors every month to almost any website at the minimum marketing cost.

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