How to start a job consultancy business
Start a job consultancy Business The recruitment (How to start a job consultancy business) services business has also been referred to as the staffing agency. It is a job placement agency that screens applicants for permanent temporary or both types of jobs in any specific niche.
It is a higher return low investment business but it requires a lot of planning and determination if you wish to start your recruitment agency then here’s a step-by-step guide to help you.
|Job consultant Business|
1. Pre-launch process (How to start a job consultancy business)
The pre-launch process is the initial stage of your business, it involves planning and determining each and everything you need to start your business. The stronger your plan is the higher are the end results here are pre-launched steps to begin your recruitment services business.
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2. Qualification And Skills.
Recruitment business doesn’t require any high qualification anyone who is a graduate in any field can start Theory recruitment services business, but before you start your agency you should ask yourself if you have the skills to start a recruitment agency , have you ever worked with any recruitment agency, if the answer is no then to train yourself work with any agency for a few months read webinars training materials and reading article s to strengthen your skills
3. Decide Your Niche.
It is always better to start the business in a niche that you understand or that is successful. So if you graduate in the field of mass communication or journalism start a recruitment firm for the same you already have a knowledge of this industry which will help you understand the requirements of candidates and companies deeply you may already have some contacts and it will help you in setting up your business.
Most successful recruiters are those who work on one niche instead of spreading their legs everywhere.
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4. Decide The Services.
There are different types of recruiting services that your agency can provide here are four common types of agencies.
a) Temp or Staffing Surface.
As the name suggests, these types of agencies place candidates to work for a temporary period in any company.
b) Traditional Recruitment Firms.
These are the most common Recruitment they get paid by the recruiter only if they select their candidate. They usually have a three months contract with the candidate, and in case he drops out before that agencies will offer a free replacement or money-back guarantee.
c) Full-Time Staffing Agencies
Such agencies place candidates on a full-time basis only.
d) Temp and full-time agency’s
view agencies place candidates on both full-time and contract basis.
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5. Understand the competition
Before starting your business you must understand the demands in competition in your niche, if there are too many farms in the market in your niche then it will be difficult for you to carve out a profit.
6. Selection of a location
selection of the location can be based on your reach, whether you are serving in just one city-state across India or worldwide. If you are serving across India or the globe then having your office in Metro cities is best if you have a budget then it is best to have multiple offices in major cities.
7. Basic Inventory (How to start a job consultancy business)
Here’s all you need to start your recruitment firm.
a) A place to work
You will need a proper office to set up your agency. You can start a franchise or starter from home as well your setup will depend on your budget.
Hiring accountants is must, he will be the one to file ITR GST and keeping the record of incoming and outgoing income and expenses, you must hire only qualified CA for the purpose.
c) Other staff
Again the number and additional requirement of staff will depend on your budget. You can start with a minimum of two to three and a maximum of twenty if it is a big setup. You can hire HR staff receptionist IT staff marketing staff and so on.
d) Computers phone and Internet
Well whether you have two employees or twenty you cannot run your agency without computers telephone and internet you’ll have to provide these facilities for all your staff members.
Insurance is a prime requirement of any business, you must get your staff, office and every asset insured
f) Business banking accounts
To deal in any business you need a business banking accounts nowadays many banks have various offers you can start your account with the bank that gives you maximum facilities
g) Website and social media pages
To make your business stand out you must have a website and social media pages, social media is an excellent marketing strategy that can take your business to another level if used wisely.
h) Recruitment software
It is indeed a valuable asset that will help you keep track of all your job orders contracts candidates etc select a simple powerful and web-based tool that offers ample security of data as well.
i) Contract to staff back Office (How to start job consultancy Business)
It will maximize your efficiency and will take care of all the tedious work related to making contract placements.
j) Name logo and other marketing material
You will need a name for your firm and logo as well, it should be registered under the authorized local body signboard business cards, email, and newsletters are also valuable marketing materials.
8. Calculate the amount of investment
The average cost to start a recruitment business with a minimum of 5 staff members is as less than 100,000 rupees or $2,000 phone and includes the cost of rent salaries database phone and in Phil’s, if you want to recruit abroad as well then you need a bank guarantee of 20 lakhs and 25k rupees demands wrapped in India if you’re out of India then contact your bank for guarantee peace.
9. Business structure (How to start a job consultancy business)
You must assign the structure of your business, for example, will it be a sole proprietorship firm partnership firm a limited liability Private Limited company. Once you decide the type of structure to get it registered accordingly a limited liability is considered best for such firms.
10. Launch process
Once you have planned and determined every aspect of the business you are ready to start your launch process, the launch process involves actual money to start the business.
11. Legal requirements (How to Start job consultancy Business)
To begin your launch process you will first require to complete the below mentioned legal formalities
a) Tax Registration (How to start a job consultancy business)
You should have service tax registration or GST registration depending on your yearly turnover. The tax rate is 14 per cent annually on recruitment business.
b) ESI/PF Registration
You will need ESI registration only for business employees more than ten persons, PF registration is required only if you employ more than 20 people.
c) Recruiting agent is a license (How to Start job consultancy Business)
IF you are in India then you will need an RA license if you recruit Indian citizens overseas the agencies that are registered under the ministry of overseas Indian Affairs to provide for Koopmans to Indian citizens abroad are called as recruiting agents the requirements for the same are as follows applying with passport size photos of promoters along with seven supporting documents.
1. rite a demand draft in favour of PAO ma IO New Delhi of 25,000 rupees
2. Past five years of business activities of promoters.
3. certifying signature of developers
4. ITR of promoters
5. Assets and liabilities of promoters
6. Degrees certificates of promoters.
7. Bank guarantee of 20 lakh rupees.
If you are from other countries then you can directly contact your business administration office for getting more help for required documents and fees.
12. Office Setup
It is now time to make a final deal and take the office premise in your possession once you have the office fix the furniture working space computers internet connection purchase and finalise all the essential amenities like website brochures and other tools.
a) Hire your staff (Job consultancy Business)
After you have the office and all the legal paperwork in place start hiring your team.
Once everything is in place you can inaugurate your business and start working.
13. Post-launch ( Job consultancy Business)
Process after the launch you will have to target the market rigorously and for that, you will need to start the marketing plan. Here is a three-step marketing plan that can help you kickstart your recruitment business.
1. make a list of companies you will market your business with and try to grab the exclusive contract.
2. make a database of candidates and assemble it as per their experience qualification position and salary expectation
3. decide how you will market your services nowadays there are many ways to do so you can start with cold calling snail mail and online advertisements
14. How much does the recruitment agency business earn? (How to start job consultancy Business)
This is the final and most important question you might want to know. here’s your answer the fees of the recruitment agency depend on the type of services and position, that you are looking to fill factors that will look at your payment are
1. The industry you’re targeting.
2. The area you are targeting.
3. Number of people you are hiring for A single company.
4. salary of a particular situation
The commission or fees of a recruitment agency may stand between 15% to 25%. It is charged from the total earnings of the first year from the candidate if the position is hard to fill. It may go up to 50% in the case of permanent jobs companies pay a fixed amount to agencies.
If you are hiring an assistant for the junior role whose yearly salary is 5 lakh or $25,000, then agencies fee is 15% then the agency will earn around 75 thousand rupees or three thousand seven hundred and fifty dollars.
Starting a recruiting agency and being an independent recruiter it’s not a get-rich-quick scheme although the process is fairly simple it does require several hours of work each day and as with most things the more time and effort you put into it the more success you will have, however for those who are willing to do the time being a recruiter can be very rewarding both financially and personally once your business is on the floor it’s your knowledge hard work team effort and PR that will make it successful.
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