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11 Tips on How to Start and Run a Manpower, Recruitment & Staffing Agency

Updated 5th Feb 2017

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Starting your own manpower agency, recruitment business or staffing agency?

Good day, my name is Dougles Chan and I have been helping business owners, individuals in advising recruitment business setup, running a profitable recruitment agencies for over 10 years and I am also a third party advisor for many recruitment business owners, startup or established award winning agencies in their business process, marketing and branding.

Here we go, so you are interested to setup your own manpower, recruitment and staffing agency and you would like to know how to do so, with these simple steps, you will be able to start and run your own manpower, recruitment or staffing agency less than 3-4 weeks. I will be using “recruitment business” or “recruitment company” to talk about the same topic so you should not get too confused. It is basically about the same.

Plan of actions for starting a recruitment  agency:

1) Deciding a name for your recruitment business – Choose a name that is good to represent the business and industry you are focusing on, it should be professional and yet CLEAN, when I mean clean it should be short and less fanciful, remember the recruitment industry is a professional industry, you will need to put in some efforts to have a good name.

2) Logo Design for Your Recruitment Company –  Once you have decided the name of the recruitment business, you will need to get a professional designer to get a logo done for you, tell them your concept, your preferred color and how this logo will represent you and your company. Just a reminder that it is important not to design your own unless you are a graphic designer by professions, you may find to be good but in the eyes of the public, usually it will look quite bad. Below are some sample logos that are consider decent and clean.

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banner

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3) manpower-agency-businessRegister a business or company with your local authority, please ensure that you have register a legal entity so that you will not get into trouble, in certain countries, if you were to carry out a business without a legal business entity, it will be consider illegal, you may get fined or jailed because of this. Hence, please check with your local business authority before you start any recruitment business activities.

4)   Additional licenses needed – Register with your other relevant government authority involving in manpower and recruitment agency, do check with your local authority whether you will need any special license to carry out your own recruitment agency as it is a professional business where requires you to have a certain level of “requirements.”

For example, in Singapore, you will need to get approval from the Ministry of Manpower before you operate a recruitment agency, they used the term “employment agency”, (EA). Registered businesses, companies or individual are not supposed to operate a recruitment agency without the license. Penalties can be up to a fined of S$80,000 or jailed up to 2 years.

5)      recruitment-agencies-businessDeciding whether to rent an office or work from home. If you have sufficient capital, it will be good to have a small office as you will look more professional and it will be easier to use them to interview candidates.

A basic rule of thumb, you must have sufficient capital for your operating expense for the next 6 months without any sales! If you do not have the required “safe” ratio, I will strongly advise you to work from home. You can still use “virtual office” services to make your address looks better and work from home if your finance is just “starting out”, it is not shameful to start small, many successful recruitment agency started off working from home too.

6)      business-branding-for-recruitment-agenciesGetting clients for your recruitment agency – Use the following techniques to get new clients, the list is not exhaustive though:

  • Using telemarketing to call potential clients
  • Use emailing marketing to reach out to potential clients.
  • Door-to-door knocking, though this is a very old way of doing, it works in certain time.
  • Using social media such as LinkedinFacebook or Twitter to reach out to potential clients.
  • Business networking
  • Attend training course, seminars etc, get to know more people.
  • Ask from candidates whether they know anyone who is hiring, this is one of a better way if you have a good relationship with the candidates.
  • Talk to your previous clients and suppliers from other industries.

7) recruitment-business-staffing-agenciesGetting candidates for your recruitment agency – This will be the key factor in deciding in the quality of your “product” to your client, hence you need to get the best quality at the right salary to your clients. For a start you can also use social media such as Linkedin, Facebook or twitter to reach out to potential candidates. You can also advertise on newspapers, magazine or online portals if you have sufficient budgets. Of course you can use free online advertisement portals but do bear in mind that usually such websites have poor number of traffic, hence your effort might not bear good fruits.

8) Closing the deal – Apparently, you need to present the best candidates to your client so that they will be a potential closure, the idea is this. Many people may not agree with me but this is the SECRET to success in the recruitment business. Make sure you get the BEST DEAL for your candidates, treat your candidates like a KING or QUEEN, make sure they are getting a deal that the candidates are happy about.

recruitment-agencies-manpower-companiesRemember this formula – GREAT CANDIDATES are HARD to find, if you get a GREAT candidate that loves you so much that he or she recommends their own circle of friends to you (Usually they are of similar quality.), you will have consistent good quality candidates and even the clients will be very happy to do business with you.

9)    Remember to control the cost – In every business, especially for a recruitment agency, you will need to ensure your cost is to the minimum, ensure that every dollar you spend is worth it. But if the ROI is not good enough, usually the investment will not be worth it.

For example, you don’t have to spend $3,000 to get a high-end laptop for your business, even a $1,000 or $500 worth of laptop is good enough. You don’t have to spend thousands of dollar per year for  a CRM recruitment software, an excel sheet will likely be good enough for a start if your volume is not high. You don’t need to subscribe to a 1 year job board advertisement package where you are pay slightly more monthly and keep your cashflow healthy.

10) Focusing on larger value – If given a choice, try to focus your effort on higher salaried placements, the process, time and effort taken for a $5,000 salaried candidate and a $2,500 salaried candidates are basically the same, and the rewards for placing a $5,000 salaried candidate will be usually far much more in placement fees. Although one can argued that it is easier to get job orders that are lower salaried, it can also mean that it is easier for your customers to find the candidates themselves and also meant that if the same job order is given to some of your competitors, they will also be able to find a suitable candidate for your client.

11) Putting at least 4-6 solid hours per day – Assuming you are working from Monday – Friday, you will need to put at least 4-6 hours per day on your recruitment business, whether to search for clients, or to search for candidates, interviewing, filtering, having coffee with candidates or clients, you will just need to put in the hours to ensure that things are working and you will feel the momentum. Do not expect minimum effort and hope for a good return, usually it does not work that way.

Hope your journey in starting your own recruitment agency exciting and fruitful! Cheers and good luck!

Need an advisor or a mentor to show you the route to success in recruitment business, drop me an email at dc@dougleschan.com or buzz me at +65-93880851 (Whatsapps/wechat), let me see how I can help you to build your business to another level. I have worked with small agencies and large agencies globally so no job is too small or too huge for me.

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Here are some motivational quotes for you, you should need them when you are learning how to start a recruitment agency, here they are:motivational-quotes-on-how-to-start-a-recruitment-agency-1 motivational-quotes-on-how-to-start-a-recruitment-agency-1 motivational-quotes-on-how-to-start-a-recruitment-agency-2 motivational-quotes-on-how-to-start-a-recruitment-agency-3 motivational-quotes-on-how-to-start-a-recruitment-agency-4 motivational-quotes-on-how-to-start-a-recruitment-agency-5 motivational-quotes-on-how-to-start-a-recruitment-agency-6 motivational-quotes-on-how-to-start-a-recruitment-agency-7 motivational-quotes-on-how-to-start-a-recruitment-agency-8 motivational-quotes-on-how-to-start-a-recruitment-agency-9 motivational-quotes-on-how-to-start-a-recruitment-agency-10 motivational-quotes-on-how-to-start-a-recruitment-agency-11 motivational-quotes-on-how-to-start-a-recruitment-agency-12 motivational-quotes-on-how-to-start-a-recruitment-agency-13 motivational-quotes-on-how-to-start-a-recruitment-agency-14 motivational-quotes-on-how-to-start-a-recruitment-agency-15 motivational-quotes-on-how-to-start-a-recruitment-agency-16 motivational-quotes-on-how-to-start-a-recruitment-agency-17 motivational-quotes-on-how-to-start-a-recruitment-agency-18 motivational-quotes-on-how-to-start-a-recruitment-agency-19 motivational-quotes-on-how-to-start-a-recruitment-agency-20 motivational-quotes-on-how-to-start-a-recruitment-agency-21 motivational-quotes-on-how-to-start-a-recruitment-agency-22 motivational-quotes-on-how-to-start-a-recruitment-agency-23 motivational-quotes-on-how-to-start-a-recruitment-agency-24 motivational-quotes-on-how-to-start-a-recruitment-agency-25 motivational-quotes-on-how-to-start-a-recruitment-agency-26 motivational-quotes-on-how-to-start-a-recruitment-agency-27 motivational-quotes-on-how-to-start-a-recruitment-agency-28 motivational-quotes-on-how-to-start-a-recruitment-agency-29

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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.

11 Comments

  1. juliaroberts
    August 20, 2012 at 6:25 am — Reply

    “Private Employment Agency” means any person, independent of government bodies, which performs one or two of the following employment services without directly or indirectly receiving payments from the worker.
    employment agency

  2. April 15, 2013 at 9:08 am — Reply

    I want to start own company in Republic of Soouth Africa

    • April 17, 2013 at 10:50 pm — Reply

      u can contact me directly via email @ dc @ dougleschan.com

  3. April 15, 2013 at 9:08 am — Reply

    I want to start own company in Republic of Soouth Africa

    • April 17, 2013 at 10:50 pm — Reply

      u can contact me directly via email @ dc @ dougleschan.com

  4. shamni
    September 5, 2013 at 5:21 pm — Reply

    i wish to start a man power agency in Malaysia. I don’t have any knowledge in this field . Kindly advise me what are the things i need to do to start this business. I don’t have much money in my hand to invest in this business as well. how should i find the way to get the vacancies in company ? I wish to bring over people from India to Malaysia for the post of engineering in electrical company. Is there any suggestion by your side ? I really need your kindly guide in accessing this matter. Much appreciate n thanks in advance.

    • September 7, 2013 at 3:32 am — Reply

      You will need capital to start a business in Malaysia, also you will need a business and manpower license.

  5. shamni
    September 5, 2013 at 5:21 pm — Reply

    i wish to start a man power agency in Malaysia. I don’t have any knowledge in this field . Kindly advise me what are the things i need to do to start this business. I don’t have much money in my hand to invest in this business as well. how should i find the way to get the vacancies in company ? I wish to bring over people from India to Malaysia for the post of engineering in electrical company. Is there any suggestion by your side ? I really need your kindly guide in accessing this matter. Much appreciate n thanks in advance.

    • September 7, 2013 at 3:32 am — Reply

      You will need capital to start a business in Malaysia, also you will need a business and manpower license.

  6. vijay
    October 15, 2013 at 4:22 am — Reply

    Sir,
    very glad to chat with u,we are having licence for man power recruitment, but we are not getting proper information regarding this. so pls kindly inform me what you having for me.

  7. vijay
    October 15, 2013 at 4:22 am — Reply

    Sir,
    very glad to chat with u,we are having licence for man power recruitment, but we are not getting proper information regarding this. so pls kindly inform me what you having for me.

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