How to Start and Run a Manpower Agency/Recruitment Agency

Starting your own recruitment agency?

Oh Yes! You will be able to start and run your won recruitment agency in less than 3-4 weeks with these simple steps.

Plan of actions:

1. Register 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. Hence, please check with your local business authority before you start any business activities.

2. Register with your other 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 “conditions.” For example, in Singapore, you will need to get approval from the Ministry of Manpower before you operate a recruitment agency, businesses are not able to run a recruitment agency without the license.

3. Deciding where to rent an office or work at 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 ratio, I will strongly advise you to work at home. You can still use “virtual office” and work at home if your finance is just “starting out”, many successful recruitment agency started off working from home too.

4. Getting 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 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 Linkedin, facebook or twitter to reach out to potential clients.
  • Business Networking
  • Attend training course, seminars and get to know more potential clients or candidates,etc.
  • Talk to your previous clients and suppliers from similar or other industries.

5. Getting 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 portal if you have sufficient budgets.

6. Controlling 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.

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