How to come up with an effective recruitment business plan

If you are thinking about starting a recruitment business, you will need to think carefully about your recruitment business plan. This will be necessary to persuade potential investors and your bank, to support your venture. Coming up with a recruitment business plan is not very difficult, but it needs some consideration.

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These are the steps you should take before starting your business: -

  • Identify your target market after doing some thorough research in your local area.
  • Download a free template from a website and use it to guide you as you write your recruitment business plan.
  • Include a projection of your charges.
  • Have an office which you can use to interview potential clients and employees.
  • You’ll need a website to advertise your services.
  • You will have to set up methods of payment for your services, for example, will you use PayPal and which credit/debit cards will you accept?
  • Use local newspapers to advertise jobs and write thorough job descriptions. You will probably need at least one assistant to help you.
  • Microsoft Office has downloadable templates that are free for you to use to write a sample contract.
  • Identify your training needs and find out where training in business management can be found.

You will need to provide information about how you propose to organise your recruitment business. Also, you will have to write a summary regarding how you will fill a gap that other recruitment agencies have not.

You also need to decide: -

  • How your business will be organised
  • How the company will be structured
  • How to market the services you will provide
  • How you can finance the business
  • What type of personnel you will specialise in recruiting to send to different companies
  • Which software tools you will need for your business
  • Make use of free resources from the government’s business website
  • If you will use a virtual assistant who works remotely or one that is office-based to help you.

Your bank will advise you about how to go about setting up your new start-up company and you should ask an advisor about training courses that would be appropriate for both you and your assistant.

You will probably need an accountant, unless you are one, so you will also need to decide if he or she will be needed on a temporary or permanent basis.

Unemployment is on the increase around the world. Therefore, it is worth your while starting a company which can put jobseekers in touch with employers. Companies are eager to cut their costs and often rely on staffing agencies so that they don’t have to employ many Human Resources personnel.

You might also want to consider screening jobseekers and conducting interviews on behalf of your client.

You will need to decide what niche you want to concentrate your recruitment business in. If you have expertise and experience in a sector, then it would make sense for you to use your knowledge when you make your recruitment business plan. For example, if your experience has mainly been in the catering business, it would be best if you concentrated on seeking catering staff for the catering industry.

Every sector has different needs when it comes to recruitment. You should take time to spy on your competitors to find out how the business works if you only have limited experience in the field you would ideally like to work in.

If you have never worked in a Human Resources department, or have never had to recruit personnel before, you will need to do something to counter this. It might be a good idea to apply for an internship in such a department in order to gain some experience in recruiting staff. Alternatively, try to get an internship in a recruitment agency to discover how it runs.

You will have to hone your people skills if you are going to do the recruiting for companies. Of course, you can employ an assistant who does have the experience you lack. The problem is that you may not be able to afford to employ someone when you are just starting your new business. You will need to have the ability to recognise which jobseeker would best fit job vacancies.

Your business recruitment plan will need to detail your start-up costs. Work out how much it will cost to market your services, pay staff, insure your business, and ensure that you are not going to run foul of the recruitment laws. You will have to have insurance for your business and factor the cost of this in to your recruitment business plan. If you are intent on employing people, then you will need to have insurance for them too.

It will be necessary for you to study all the laws that will affect your business. You may need a business licence to operate a recruitment agency, so find out what the laws are pertaining to such agencies.

You must also understand the equality laws as you would not want to fall foul of these. You may need, for example to employ a certain amount of people with disabilities. This means that the building your business operates in must accommodate the needs of people with disabilities, an added expense that should be factored in to your business plan.

Consider where you will have your office or other business premises. A recruitment agency should have a visible presence in a busy town or city, as clients and jobseekers will need to be able to find it easily.

As soon as your business is set up, you will have to contact companies and register with them as a provider of labour. Describe yourself as a professional recruiter, so that when vacancies arise in your particular niche, you will be contacted.

Your business needs to be well marketed so that potential employers in various companies know that you are a recruiter. Of course, jobseekers will also need to know where you are.

You will need to introduce your services to companies in your local area. A well-written letter must be drafted so that you can introduce yourself and your business to businesses in your area. When you send the letter of introduction, you will have to follow it up by calling the companies. Arrange meetings with appropriate personnel and sell yourself and your services. You can also advertise your services in the local press and advertise on the internet. You need to give your start-up a high profile.

You can write a press release, and contact your local newspaper, offering to give an interview to journalists explaining the concept of your new business venture. Be prepared to answer questions. If you can’t write persuasively and convincingly, you can pay to have a press release written for you, by a journalist or a freelancer.

You will need to organise phone numbers for your business, as well as ensuring that you have internet access as soon as your business is up and running. You may also wish to organise a post office box. It will also be necessary to contact utilities companies, and ideally you should use the cheapest service providers.

You will also need a business website and if you are not too sure how to set one up, you will need technical help from an expert website developer. This could be an added cost. You may also need technical support for your website and Search Engine Optimisation (SEO) services from a digital marketing company. Your website will need to be updated regularly and be maintained well. You will need to ensure, as far as possible that your site gets to a high position in the Search Engine Ranking Pages (SERPS). Of course, it isn’t possible for all sites to be in the much-coveted number one slot, but it should feature in the first 10 pages. Most people don’t bother looking any further down the pages. It is a good idea to advertise in print as well as on the Internet for this reason. You need as much publicity as you can get, as long as it’s all good publicity of course.

Maintaining a website is time-consuming, so you probably will need to employ someone to do this for you. Don’t try to do too much yourself. You will need to learn the art of delegating tasks to responsible, well-qualified staff.

You can use your website to advertise job openings, and you can ask people to send their CVs to you at the site. When you begin recruiting people, make sure that they have worked in a recruitment agency and have the appropriate experience and expertise you need.

You will need, eventually, if not at the beginning, a conference room, a smaller interview room, and a reception area. Apart from rooms, you need a computer (maybe more than one, depending on the number of employees you intend having. Then you will need a business bank account (it’s better to separate your personal and business accounts), a printer, fax machine and a photocopier. You will also require a telephone, perhaps more than one.

To appear totally professional, you should also have business cards. These can be customised for you so think carefully about the design you want. A business card says a lot about a company. Don’t opt for the cheapest ones available. Consider the colour as well as the design.

You will be paid by the company you are recruiting for, not by the jobseeker. You should charge the company a percentage of the successful applicant’s first yearly salary, or, alternatively you could arrange a flat fee.

Don’t forget that by using Skype you can cut telephone costs. You could also begin by working from home, so that you don’t have to pay rent for an office.

Now you should be ready to tackle your recruitment business plan. If you need help to do this, contact us and take advantage of our fully professional and confidential services.

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