How to Start a Manpower Business
With the country’s abundant supply of jobseekers, starting a manpower business could very well spell profit.
If you want to try a business with huge potential, then the Manpower Agency business is for you. The service you will be marketing is the skill and labor of our workforce of which there is more than an abundant supply in our country. Note, however, that the kind of workers needed is rapidly changing. Now more and more of the job orders abroad are for those with professional training like nurses, engineers, and teachers. Lower wage countries like India are taking over more of our traditional markets for low cost labor. There are basically two kinds of manpower agency with regards to the registration requirements. One is for the local and the other is for the international market. To make it clearer I list the respective requirements separately.
For Manpower Agencies that will cater abroad:
1. Register your business name with the Department of Trade and Industry (DTI) for single proprietor or with the Securities and Exchange Commission (SEC) for corporations or partnerships. 2. Get a barangay clearance and then proceed to the Municipal or City hall to get your business permit. 3. Register with the Bureau of Internal Revenue and get your TIN, Certificate of Registration, and authority to print receipts. 4. Apply for license with the Philippine Overseas Employment Agency (POEA). Some of the critical requirements here are: a. At least 75 percent of the company must be owned and controlled by Filipino citizens. b. Proof of substantial capital and/or investment. c. Proof of marketing capability as supported by the following: i. Duly executed Special Power of Attorney and / or duly concluded Recruitment Agreement authenticated by the Philippine Embassy nearest the prospective employer; ii. Manpower request or visa certification from new employers for not less than 100 workers duly verified by the Philippine Overseas Labor Office nearest the jobsite; iii. Certification from the POEA Pre-Employment Services Office d. Proof of possession by the single proprietor, partners, the company President or the Chief Executive Officer, as the case may be, of a Bachelor’s Degree and three years of business experience. e. NBI clearance issued not earlier than 6 months prior to filing of application and clearance from the POEA Anti-illegal Recruitment Branch of the proprietor, partners or members of the Board of Directors, as the case may be, officers and employees who will be involved in recruitment and placement activities. Foreign directors or partners shall submit clearance from their country of origin in lieu of the NBI clearance. f. At least a 100 square meter size office as evidenced by a contract of lease or proof of building ownership. g. Proof of publication in a newspaper of general circulation on the notice of the application with the name of the proprietor, partners, incorporators and officers. h. Attendance of Pre-licensing seminar conducted by the POEA. i. Payment of filing and license fee.
For Manpower Agencies for the domestic market only:
Follow the steps in numbers 1 to 3. You no longer need to get a license from the POEA. Here’s the other requirements that must be submitted: 1. Submit a duly accomplished and notarized application form with undertaking (2) copies at the Department of Labor and Employement (DOLE).
2. Contract of Lease for two (2) years or Owner’s Certificate / Title of Office Location.
3. Updated NBI Clearance of the partners in the case of partnership or all the officers and members of the Board of Directors in the case of corporation.
4. Organization structure and list of all officers and personnel with their respective bio-data and ID pictures and detailed description of duties and responsibilities.
5. Sworn statement of assets and liabilities or duly audited financial statement, as the case may be.
6. Proof of payment of surety bond (valid for 2 years).
7. Payment of fees: Filing fee, license fee, cash bond. Note that the rules may change especially for those who want to deploy abroad. It is advisable to always check on the POEA website before proceeding. For those who wish to go into this business, unless you already have sure clients abroad, I advise that you first try the local market before you invest the substantial amount needed to put up a manpower agency for foreign placement.
*Originally published by the Manila Bulletin. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.
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Employment Agency Business Plan
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All About People
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
All About People (AAP) began out of the desire to contribute to this community, just as communities have fed All About People’s proprietor over the years. Although originally from a larger market, the proprietor realizes the need in the southern Willamette Valley for a personnel agency that fills a void left by other temporary and permanent placement agencies. AAP matches specifically skilled workers with clients, saving businesses time and money, while providing for its employees with honesty and honor. This requires a high level of communication. It means asking open-ended questions and listening, not talking. This means knowing the local market so AAP can really serve each client and employee, not just “sell” them our goods. AAP is quality service.
The long-term vision includes a number of offices throughout the southern Willamette Valley. The proprietor sees the challenge in this vision, not in the growth itself, but in training and encouraging all AAP personnel to treat each client and employee with the same care and with the same level of communication.
Managing our Growth AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan. During the past couple of years the proprietor provided all services. In Year 1, the company will add a part-time office staff person and an employment specialist. In response to this growth, AAP will have a procedures manual for in-house staff to assure that the information is clear. In addition, AAP will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. Year 2 projections include a receptionist, another employment specialist, and a field representative. In Year 3, AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.
The Market AAP is structured like other temporary and permanent placement agencies. However, it will serve clients with needs for select, specialized professionals rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people, but there are none for the Willamette Valley. AAP has five divisions, targeting the following areas of expertise:
- Event Planners
- Graphic Artists
Services AAP will handle recruiting, including reference checks, skills evaluation, preliminary interviewing, and screening of all employees for its clients. AAP acts as an extension of the client’s human resource department, assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.
Financials The company’s start-up requirements are $55,464, of which $7,600 will be provided for by the owner’s personal investment. The rest will be obtained through loans.
We expect to be able to charge a 50% markup to our business clients. Thus, if an employee is being paid $10 per hour, we are charging the client $15 per hour. The company predicts that it will be able to produce sales of approximately $300,000 by Year 3. The company does not have any direct cost of sales; we track payments to placed individuals as regular payroll.
AAP is structured like other temporary and permanent placement agencies. However, we serve clients with needs for select specialized professionals, rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people. AAP followed the model of one placement firm described below.
A contract engineering firm places temporary workers who are hardware and software engineers. Employees earn between $80- $100 per hour and approximately seven employees are placed per month. The firm recruits through its website, advertises in newspapers, magazines, and trade publications. Incentives offered to contingent workers include medical, dental, and disability insurance, 401(K), and a reference finder’s fee for placement referrals. They find their employees are 60 percent male, 40 percent female, and ages spread evenly.
AAP serves the business client by locating a professional worker, interviewing and screening that worker, setting up interviews if necessary, and administering all hiring paperwork. The company runs payroll and bills the client bi-monthly. AAP will also manage the professional, staying in close contact with the client and communicating with the worker regarding any personnel issues that may arise.
The professional worker is served with employment opportunities at no cost; pay rates that are within industry standards; and health insurance may be purchased, if a worker becomes eligible, at a group rate starting at $124/mo. AAP will pay $65/mo for any coverage chosen from the group package.
All About People’s mission is to contribute to the community by filling a need for specialized, professional, contingent workers. The company will provide workers with a safe and independent environment. It will also provide businesses with a high-caliber of employee available for project or permanent work. All About People listens to individual needs and customizes personnel solutions for both businesses and workers.
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8 Steps for Starting a Recruitment Agency in the Philippines
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The labor market is healthy and active in the Philippines, making it a great time to consider starting a recruitment agency. With a rich outsourcing market and 64% of the population at working age (between 15 and 64 years of age), the country is in a great position to provide local talent for domestic industries and foreign companies over the coming years.
The elections in 2022 have also boosted optimism about economic prospects in the Philippines.
As of October 2022, employment levels in the country have rebounded to pre-pandemic levels, with unemployment falling to 4.5% . This is down from 7.4% in the same month of the previous year.
Between October 2021 and October 2022, the government also reported that the following sectors experienced the largest increase in employees:
- wholesale and retail trade, repair of motor vehicles and motorcycles,
- transportation and storage,
- accommodation and food service activities,
- administrative and support service activities.
With an increasing demand for workers across multiple industries, recruiters will be sought after by employers to fulfill talent needs efficiently. Recruiters who adopt automation, AI, and other technological advancements in their business will have an advantage in helping employers fill vacancies and make strategic hires to fuel their business goals.
These combined factors create a rich environment for a new recruitment agency to succeed. If you are ready to start a recruitment agency in the Philippines, taking these eight steps will help your business get off to a strong start.
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Identify Your Niche
The first step in the process of starting a recruitment agency that aspiring agency owners can take is researching the landscape to identify a niche to help the business stand out in the industry.
This decision should be based on your existing relationships with potential clients and candidates, the employment landscape, and the viability of certain agency models.
In addition to local employers, many international companies outsource labor to the Philippines due to the favorable costs, the skill level of the local population, and their general English proficiency. Foreign workers also relocate to the Philippines for local employment opportunities, and many Filipinos obtain jobs overseas. This provides many options in terms of the candidate population and client base you can plan to engage in your business.
Another factor is the agency model and determining whether to operate as a temp or contingency agency. Temp agencies place contract workers in jobs for specific projects during a set amount of time, while contingency agencies typically source candidates for permanent employment positions with employers.
Lastly, you will need to decide whether the business will have a generalist or specialist focus. Generalist agencies have a broad focus, which allows them access to a wider pool of applicants. These agencies primarily fill entry-level jobs or roles that do not require a lot of experience. While this will provide more flexibility in response to changes in the market, it may not provide you with the relationships to source candidates for senior roles or jobs in specialized, hot industries.
Specialist agencies, on the other hand, may have more knowledge of a select number of industries or focus primarily on recruiting for senior-level positions that generate higher fees from clients.
These agencies may have more insight into employers’ hiring needs and deeper relationships with candidates in particular fields, which can be an advantage over large and international agencies. However, a shift in market demand or a slowdown in hiring in your chosen area can negatively impact business growth.
Assess Your Competition
The process of starting a recruitment agency also requires research into the competitive landscape. This will help you understand which companies are succeeding and identify gaps that your agency can fill in the market.
The top Filipino recruitment agencies like Staffhouse, Manilla Recruitment, and IPAMS, as well as international recruiters, are worth studying to create a roadmap for your business.
As the Philippines struggles to source highly-skilled workers and faces double-digit percentages of underemployment, there could be an opportunity to offer differentiated services that other agencies may not. For instance, your recruitment agency could include a service that provides upskilling opportunities for candidates before placement. Another feature to consider for your agency could be online recruitment, especially as the government works to eliminate illegal operations impacting job seekers.
Create Goals for Your Business
To ensure the success of your recruitment agency, it is imperative to start with a clear vision for how your agency will operate today and in the future. Business plans may also be required to obtain certain types of licenses and to register the business, so it should take place before the agency is up and running.
A clear strategic vision encourages you to imagine all of the potential paths your business may take and potential issues it could face. This ensures that you have a business model that is scalable, agile, and clearly defines the values that will guide employees to meet their goals.
Understand Local Laws and Regulations
Another aspect of starting a recruitment agency that you should understand before getting started is the regulatory landscape. Recruitment agencies are required to obtain a license to operate in the Philippines. Agencies must register with the Department of Labor and Employment as a Private Employment Agency (PEA) and foreign companies seeking to recruit Filipinos to work overseas must obtain a license from the Philippine Overseas Employment Administration (POEA).
Of course, all companies must also follow labor laws to avoid fines and other negative consequences. Business owners should also have insight into any pending new legislation that may affect their business.
More countries, including the Philippines, have passed laws in the last decade regarding the proper storage and use of personally identifiable information. Therefore, it is essential to remain aware of the laws that govern recruitment agency operations and determine what personnel you may need to maintain compliance.
PODCAST: EP22: Prioritizing Organizational Culture and Pivoting in Times of Change (with Signe Linneboe, Head of People & Organization, Lift Relations)
RESOURCES: Browse through our guides and templates to kickstart your recruitment
Calculate the Costs
A crucial step in starting a recruitment agency is determining the full cost of setting up your company and keeping it in operation. Among the fees associated with setting up and operating a recruitment agency are the license, business registration, insurance, phone and internet services, office space, business hardware and software, and relevant subscriptions.
Failing to consider all of these costs can create liquidity issues if it is not weighed against the agency’s potential earnings based on the business model. In a contingency recruitment model, for example, the agency is typically paid a one-time fee equivalent to a percentage of the role’s annual salary (usually 15-20%) by the employer.
However, that amount is only paid if your agency provides a successful candidate. Agencies are not allowed to charge job seekers any fees for obtaining a job in the country. Overseas workers can be charged a placement fee equivalent to one month’s salary, except in countries that prohibit the collection of fees from workers, such as the United States, Canada, the UK, and the Netherlands.
License: A PEA license requires a 5,000 peso filing fee, a 15,000 peso license fee, a 50,000 cash bond, and a three-year 100,000 surety bond. The POEA license requires a licensing fee of 50,000 pesos, a 10,000 filing fee, and a minimum of 5,000,000.00 pesos in paid-up capital. The full details for obtaining a PEA license can be found here , and details for a POEA license are here .
Business registration: The Philippines also requires entrepreneurs to register their business with the Department of Trade and Industry, the Securities and Exchange Commission, the local government, the Bureau of Internal Revenue, the Social Security System, and the Department of Labor and Employment. Full details and links for registration can be found here .
Bank account: The next steps are to open a bank account. While the process is fairly simple for Filipinos and expats, each bank has its own requirements. Consider the accessibility of the bank (i.e., availability of branches and mobile banking options), minimum deposit and spending conditions, and bank fees. You will generally need to provide your business certifications, registration, and license information, ownership information, and personal identification to open an account.
Insurance: Although this piece is often overlooked by small businesses, you should also plan to purchase business insurance to protect your enterprise. The type of coverage will be determined by the size of your organization, the number of employees, and any assets your company owns. Policies available for business owners in the Philippines include business interruption, business liability, and cyber liability.
Phone and internet service: Purchasing a phone line and internet service is essential for a recruitment agency, especially if online recruiting will be part of the business model. There are a variety of options, so select a provider that fits your budget and offers reliable service.
Office space: The location of your agency will be important to build the reputation of your business, so make sure to select an office space that aligns with your budget and company size. For a small business, it might be worthwhile to consider establishing your enterprise in a coworking space. The overall costs are lower than maintaining your own office, and there are opportunities to network with other business owners.
Business hardware and software: The technology setup of the agency can also be a huge advantage. Starting off as a digital-native, cloud-based enterprise puts your agency in a position to prepare for the future and allows you to take advantage of current industry trends, especially as legacy companies work to transform their business systems.
In terms of hardware, you can choose to allow any employees to bring their own devices to work and provide software that allows them to connect to the business network. Office workers may also need printers and scanners to conduct day-to-day operations.
Software should be purchased with the aim of simplifying day-to-day operations and improving the client experience. Apart from the operating system subscription and applications such as a Microsoft or Google office suite and accounting programs, a customer relationship management (CRM) tool and industry solutions such as an applicant tracking system (ATS) are essentials that should be factored into business costs.
Subscriptions and memberships: Along with the upfront costs of purchasing software, you will also need to account for the cost of maintaining subscriptions for these services as well as the fees for posting on job boards, LinkedIn premium membership, and advertising job vacancies. Memberships in professional associations should also be included.
Personnel and support services: Small businesses will also need employees and professionals to help support business functions such as finance and accounting, IT, marketing, and legal. Recruiters can be hired as full-time staff or as independent contractors; however, make sure to understand the labor laws surrounding each type of hire. Support functions can be in-house functions or outsourced to business process outsourcing firms. This choice depends on your budget and ongoing needs. RELATED: How to Choose the Best Hiring Tools to Start Your New Agency
Create a Marketing Plan
Whether you handle marketing responsibilities on your own or hire a professional, creating a plan for marketing the agency is critical to getting the word out about your new business. A website, social media accounts, and advertising are valuable tools to achieve your marketing goals.
The costs of setting up a website and managing an online presence for your business can vary depending on if you go the DIY route or hire experts. Social media accounts are free to create and operate; however, hiring a social media manager will be an ongoing expense to factor in for your agency.
The way that your recruitment agency is marketed can have a substantial impact on the company. A marketing plan provides the blueprint for how your recruitment agency will be presented to clients and job seekers.
Creating authentic, customized messages for your target audience will help you build a loyal following and a positive reputation. Equally important is minimizing negative candidate and client experiences so that your agency can have a chance of long-term success. These are crucial aspects of building a thriving business.
Invest In Technology
Technology adoption is catching on fast in the Philippines, and investing wisely in the latest solutions can have a noticeable impact on your recruitment agency. As one of the fastest-growing digital economies in the ASEAN region, there is significant interest in developing strong technological capabilities in the country.
As President Marcos said in a recent speech, “The landscape change accelerates faster, compelling us to be even smarter, even bolder in finding digital solutions to many problems.”
Investing in solutions such as AI, cloud computing, automation, and advanced data analytics may also entice talent to join the agency. Clients may also be convinced to try your agency for the efficiency and for effective job placement services you will be able to offer.
Along with solutions that are dedicated to business support functions, recruitment agencies should consider prioritizing investments in cloud-based CRM and ATS solutions to simplify daily tasks, speed up candidate sourcing and hiring processes, and provide intelligence about how the business is functioning.
Focus on Hiring and Retaining Great People
Since the pandemic, companies have quickly learned that people are their truly most valuable asset. Happy employees have a positive impact on the bottom line, and they are less likely to leave for other opportunities. To ensure that you attract and retain the right talent for your recruitment agency, it is vital to provide career development and training opportunities, create positive and diverse work environments, listen to the needs and concerns of employees, and consider their well-being, happiness, and workload.
The Philippines offers tremendous opportunities for starting a recruitment agency today. With a robust, young workforce, talent acquisition needs will be strong for a long period. If you are ready to take the plunge, employers will be keen to seek your expertise to make lasting hires.
To help strengthen your recruitment agency in its first steps, having an efficient recruitment tool at hand is critical. A fine-tuned digital tool like Manatal comes with innovative features, including Applicant Tracking System and Recruitment CRM, that are designed to push your process to its maximum potential.
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Manpower Agency Business Plan
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Need a business plan for a new start up manpower agency in the Philippines. Should include all baseline plan requirements. To include marketing and capacity plan, market/sales projections, OPS strategies, projected capital and operating expenses, P & L, ROI, project IRR/NPV and time table. This document will serve as one of the documents provided to the POEA which is the agency which approves the license to operate.
PROJECT DESCRIPTION - The project is for the production of a business plan to be presented to Philippine Overseas Employment Administration (POEA) http://www.poea.gov.ph/ in the application for our license as a duly registered Manpower/Recruitment Agency in the Philippines. The business plans to set up recruitment company in the Philippines, sourcing for Filipino workers for all land based skill areas except domestic services for foreign employers. PROJECT RESULTS/OBJECTIVES - The business plan shall highlight key aspect of the operations, present its stakeholders, and action plans, including financial projections for the envisioned business. The business plan shall be present the strategies and action plans envisioned business venture to ensure a smooth and efficient market penetration in the Philippines. The Key Results/Objectives of business plan are as follows: 1. Advise on the marketing plan/strategy for the business. 2. Determine the global Philippines potential, the Manila potential. 3. Advise on the possible strategies and organization to adapt and recommend an overall operations strategy/ies to complement envisioned establishment of the business. 4. Prepare high-level financial forecasting and analysis primarily to be used for the evaluation of the project. 5. Determine and provide the most efficient and strategic business model and market entry plan. 6. Provide market and sale projections. Note POEA requires a marketing capacity plan. 7. Determine total projected capital expenditures for the establishment of said project. 8. Determine total projected operating expenses for the business. 9. Prepare a 5-year financial projection for the business which will include a a. Total investment requirements/project cost b. Manpower expense projections c. Capital expenditure projections d. Projected 5-year profit and loss statement e. Projected 5-year income statement f. Projected 5-Year cash flow g. Projected return on investments h. Projected IRR/NPV 10. Determine timetable of activities for planning and eventual operations of the business; 11. Evaluate the selected (two separate) office locations to determine specifically; a. Environment scanning b. Competitive analysis c. Project implementation d. Financial highlights and projections e. Strategies (Marketing, Organization / Staffing) 12. Findings and Recommendations 13. The final output shall serve as one of the documents to be presented to POEA in the application for a License as a duly registered Manpower/Recruitment Agency
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Tips: 1. Attend job fairs organized by several companies. You can get tons of information from them that can then be useful to your business. 2. Encourage students and young professionals to submit applications, which would definitely allow you to create a list of potential candidates. 3. Contact businesses in your area to determine the need for workers. Another benefit of choosing a niche for your workforce business is that you can offer specialized training. A medical recruitment agency, for example, has a better knowledge of the healthcare industry and market demand than an agency that serves multiple industries. Requirements: (to be submitted to the BIR District Income Office, where the company is located) For example, New York City requires an employment agency license for any business that helps employers find employees or arranges jobs or engagements for job seekers. The only exceptions are temporary employment agencies, artist management companies and executive search companies. Companies that fall into these categories do not need a license to operate, but must comply with certain regulations.
Getting a state tax number is just as important as figuring out where you pay state and local taxes. Depending on your location, you can request or receive it online when you register your business with the state. In addition to these requirements, you must also open a business bank account and purchase both liability and business insurance. Here are some steps on how to start a recruitment agency: Step 1. Identify your niche. You need to look for potential competitors in the area and determine which other agencies are missing and have filled that niche. Areas and services where no other recruitment agency offers can be your target and you can even focus on services that very few agencies offer. This will set your business apart from other agencies. Step 5. Find your customers. As a newly created recruitment agency, the best way to make your company known to employers and companies and how they can use your services is to issue flyers, brochures and send them letters.
It is important to include the pros and benefits of why they should use your services. One advantage for employers is that recruitment agencies can easily and quickly pre-screen qualified candidates without having to run an ad, read hundreds of resumes, and fill out all the paperwork for newly hired employees. This means that employers know that it pays to outsource the selection and interviewing of candidates for their company. Good article, can this guide be used if you want to create a recruitment agency in London or Europe? I have a lot of readers who want to start an agency in the UK, your guide will be of great help to them. webstartupsolutions.co.uk/portfolio/how-to-start-a-recruitment-agency-business/. Other steps you should cover in your article include website design, startup loans, marketing, client research, employment contracts, liability insurance and protection, finding the right accountant, finding a lawyer to review your contracts, choosing a niche market to provide candidates to clients, Unlike many other startup ideas, the cost of starting a recruitment business doesn`t have to be expensive. Most entrepreneurs start their recruitment agency at home or in a small office in a shared space. Step 2. As with most other businesses, it`s important to have a well-thought-out business plan.
It helps you set financial goals, including financing options, short- and long-term business goals, and a step-by-step plan to achieve your goals. Here is an example of a business plan 7 for starting a recruitment agency. Payment of fees: registration fees, license fees, cash deposit. Note that the rules may change, especially for those who want to be deployed abroad. It is advisable to always check on the POEA website before proceeding. For those who want to get into this business, unless you already have safe clients abroad, I recommend that you try the local market first before investing the large amount needed to set up a placement agency abroad. Those who want to build their own local labor business. III. Registration of work a. Sole proprietor b. The personnel agencies of corporations in the United States hire about 16 million temporary and contract workers each year, reports the American Staffing Association. If you`re ready to start a recruitment business, now is a good time to do so.
With millions of Americans actively looking for a job, you`ll have access to a huge talent pool. Do you like this business idea to make money? then subscribe to our RSS feed and have the new articles sent directly to your inbox. (After entering your email address, you`ll need to log in to your email account and click the link to confirm your subscription).) Licensing requirements, taxes, and other legal aspects are determined by your location and business model. That`s why it`s important to plan your business in advance. For example, an employment agency that only offers temporary work may be subject to different rules than those that offer temporary and permanent employment opportunities. This will give your business the right direction to move forward. You need to carefully consider the different hiring challenges in different industries before taking the last call. Consider starting a niche recruitment agency instead of an agency that serves multiple industries.
By choosing a niche, you can better match candidates with potential employers and stand out from the competition. InCorp Philippines is a respected management consulting firm in the Philippines with expertise in providing transparent and transparent business solutions. The next step is to apply for licenses and business approvals. There is no staffing license or personnel agency license. Any company that provides human resources services must be registered as an employment agency or licensed as an employment agency, according to the Commonwealth of Massachusetts. I. Organization of the company a. Establishment of business objectives b. Capitalization required to start a local workforce business There are many business financing opportunities with banks and independent financial institutions such as TBOS and Boomerang Funding, both of which specialize in finding recruitment agencies. Step 6.
Human resources database. It is an important tool in the management of a recruitment agency. Here you will find candidates` information about their educational qualifications, training and previous work experience, which will help you effectively manage and retrieve profiles when needed. .
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Staffing Agency Business Plan Template 
Staffing Agency Business Plan Template
If you want to start a Staffing Agency, Recruitment Agency, Employment Agency or expand your current Staffing Agency, you need a business plan.
You can download our Staffing Company Business Plan Template (including a full, customizable financial model) to your computer here.
The following Staffing Agency business plan template gives you the key elements to include in a winning staffing agency business plan, employment agency business plan or a recruitment agency business plan.
Below is an outline of each of the key sections of a staffing agency business plan.
I. Executive Summary
Located at the heart of [City], [Company Name] is a recruiting and staffing agency that helps local businesses to find talented staff across different fields like accounting, banking and finance, administration, marketing, and information technology. It specializes in talent pooling and acquisition and provides assistance with hiring new employees for temporary and long-term positions.
[Company Name] was founded by [Founder’s Name] in [Year] when he decided that he needed to take a break from just enforcing company policies and practices as an assistant Human Resource Manager for a known company in [Location]. He realized that there is a growing need for an agency that would help more job seekers find the companies that would maximize their potential and benefit from their expertise.
Putting the best interest of both the employers and job seekers, [Company Name] performs extensive background checks to make sure that they have a network of competent and highly qualified job seekers that matches the needs of companies in different industries.
[Company Name] will be able to provide clients with the following services:
- General recruitment
- IT Recruitment
- Business and Finance recruitment
- Contract Staffing
- Manpower Outsourcing
- Staff Augmentation
- Executive Search and Selection (ESS)
You can download our Staffing Agency Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] will primarily serve the residents who live within a 15-mile radius. The demographics of these customers are as follows:
- 78,827 residents
- 2,500 workers
- Average income of $65,000
- 41% married
- 49% in Mgt./Professional occupations
- Median age: 26 years
The most valuable asset of [Company Name] is the expertise and experience of its founder, [Founder’s Name]. He has been working in the human resource management field since [year] and was one of [Other Company Name]’s top employees. He also has a degree in Human Resource Management and is SHRM-certified. Thus, he is highly qualified and credible to manage the staffing agency.
The team also includes a his highly-skilled and professional assistant manager who will help manage the company’s operations. He will be trained in all the important company processes and operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that there is indeed a need for reliable staffing agencies in the area.
- Majority of our location’s residents and workers are job seekers who are either fresh graduates or professionals who are looking for a new work environment.
- The management team has a track record of success in the human resource and staffing industry.
- The staffing agency business has proven to be a successful business in the United States.
[Company Name] is seeking a total funding of $200,000 of debt capital to open its staffing agency. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Location design/build: $100,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
II. Company Overview
Who is [company name].
[Company Name] is a recruiting and staffing agency located at the heart of [City] that helps local businesses to find talented staff across different fields like accounting, banking and finance, administration, marketing, and information technology. It specializes in talent pooling and acquisition and provides assistance with hiring new employees for temporary and long-term positions.
[Company Name]’s History
[Company Name] was founded by [Founder’s Name] in [Year] when he decided that he needed to take a break from just enforcing company policies and practices as an assistant Human Resource Manager for a known company in [Location]. He realized that there is a growing need for a staffing agency that would help more job seekers find the companies that would maximize their potential and benefit from their expertise. With the connections that he built through his years of experience in human resource management, and his passion for promoting career development, he was able to start [Company Name]. It didn’t take long before the company was able to gain the trust of [x] companies and [x] job seekers.
Since incorporation, the Company has achieved the following milestones:
- Found office space and signed Letter of Intent to lease it
- Established their company as a limited liability company (LLC)
- Developed the company’s name, logo and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting excellent job seekers from different fields.
[Company Name]’s Products/Services
Iii. industry analysis.
Over the past five years the Staffing Agency industry has recorded growth due to a growing US labor market and overall economic improvements. Unemployment rates had dropped to historical lows. As a result, industry revenue increased rapidly as the national unemployment rate declined 14.2%. The number of temporary employees increased throughout the current period, bolstering demand for industry services. Overall, industry revenue is projected to increase an annualized 1.6% over the next five years.
Corporate profit is anticipated to grow an annualized 10.4% over the next five years, driving businesses to expand operations. Corporations will look to preserve their profit and look to temporary employees. Workers looking to rejoin the labor force will likely continue to present an opportunity for industry operators, since they will remain open to temporary roles in hopes of securing a permanent position in the future. Overall, industry revenue is expected to increase an annualized 2.3% to $201.7 billion. Similarly, industry profit is expected to increase slightly to 5.6%.
IV. Customer Analysis
Demographic profile of target market.
[Company Name] will serve the residents of [company location] and the immediately surrounding areas in a 15-mile radius. The area is populated mostly by several startup companies and expanding businesses in need of highly-skilled labor force; as a result, they have the budget to spend for a staffing agency.
The Company will primarily target the following customer segments:
- Job seekers: These are individuals with extensive and reliable work experience who are looking for either short-term or long-term employment.
- Offices: These are workplaces that are in need of administrative employees, accountants, IT personnel, maintenance personnel, and other skilled workers.
- Businesses: These are establishments in need of manpower services for their daily business operations.
V. Competitive Analysis
Direct & indirect competitors.
The staffing agency’s competitors will be other staffing & recruitment agencies, such as: Rand Corporation Rand is an HR consulting and staffing business. Founded in 1960, the company has over 4,000 offices across 38 countries. They also placed more than 649,00 people in temporary or permanent employment, with about 318,500 workers placed into temporary positions last year. The company provides services through three key business divisions: staffing, professionals and in-house solutions. It screens temporary employees for the industrial and administrative sectors.
Express Staffing Express Staffing is a staffing company that provides work for some 566,000 employees each year. It operates on a franchise business model from a network of more than 800 employment agency offices across the US and Canada. It helps fill full-time, temporary, and part-time positions in a range of sectors that span Professional, Light Industrial, and Office Services. Professional employment includes accounting, engineering, IT, sales and marketing, HR, and legal sector positions, while Light Industrial covers assignments such as assembly, maintenance, and warehousing. Bob Funk and Bill Stoller founded the firm in 1983. Since its founding, Express Employment Professionals has put more than 7.7 million people to work. M
Woodly Personnel Services Established in 1988, Wood Personnel Services (WPS) is a staffing and employment agency serving the southern states. It works to tailor staffing solutions to its clients’ and candidates’ unique needs. WPS operates two divisions: Professional Staffing Services, IT Placement and Executive search.
[Company Name] enjoys several advantages over other staffing agencies. These advantages include:
- Client-oriented service: [Company Name] will have full-time professional consultants always ready to keep in contact with its clients and answer their questions.
- Detail Oriented: The company attends to the smallest details of both the job seekers and the companies to make sure that their needs are met and delays and unnecessary stress are avoided.
- Efficient online service: With the use of its online tracking system, [Company Name] assures that it will deliver its services on a timely basis and keep its clients up-to-date of their application status. This also promotes transparency and trust.
- Management: [Founder’s Name] has been extremely successful working in human resource management and will be able to use his previous experience to assure clients of the care that [Company Name] will take to do the job right. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: Having lived in the community for 10 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
VI. Marketing Plan
The [company name] brand.
The [Company name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Client-focused documentation, recruitment, and deployment services, that treat each client according to their needs.
- Well-trained staff that prioritizes customer satisfaction and excellent results
- Service built on long-term relationships
- Comfortable, customer-focused environment
[Company Name]’s market analysis shows that its target market will be individuals working and/or living within a 15-mile radius of its location, as well as businesses. [The Company’s] promotions strategy to reach these individuals includes:
Local Publications [Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, sports programs, and similar channels will be a major promotion effort.
Community Events/Organizations [Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
Commuter Advertising We will drive attention to [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Internet [Company Name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy staffing agency that it is.
VII. Operations Plan
The Company intends to employ [X] working staff and [A] recruitment consultants. [Company name] anticipates having [Z] customers on a monthly basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles.
- Finding clients in need of qualified staffing
- Recruiting and vetting individuals looking for employment
- General & administrative functions including marketing, bookkeeping, documentation, etc.
- Human Resource functions- Hiring and training staff
[Company Name]’s long term goal is to revolutionize the staffing agency industry and become the best in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.
VIII. Management Team
Management team members.
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. He has been in the human resource management and staffing industry since [year] and was one of [Other Company Name]’s top employees. He also has a degree in Human Resource Management and is SHRM-certified. Thus, he is highly qualified and credible to manage [Company Name].
[Company name] will also employ an experienced assistant manager to manage the company’s operations and help with the business planning process. He will be trained in all the important company processes and operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].
In order to launch the business, we will hire the following employees:
- Recruitment consultants: 3 full-time employees to manage the day to day job application and consultations
- Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.
IX. Financial Plan
Revenue and cost drivers.
[Company Name]’s revenues will come primarily from the general recruitment and consultations.
The major costs of [Company Name] include:
- Lease on business location
Moreover, ongoing marketing expenditures are also notable cost mechanics for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $200,000 of debt capital to open its staffing agency. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses, other startup costs and working capital.
The following table reflects the key revenue and cost assumptions made in the financial model:
5 Year Annual Income Statement
5 Year Annual Balance Sheet
5 Year Annual Cash Flow Statement
Click below to see each section of our free staffing agency business plan template. You can also click here to get our staffing agency business plan pdf .
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How To Start A Recruitment Agency
- Business Ideas
However, when starting a recruitment agency , it is inevitable to take proper planning, well thought processes and strategies into considerations. Preparing a good business plan will ensure that you are in the right direction in reaching your goals.
Also, one must remember that the main key for starting a recruitment agency is getting connected with employers as well as the employees and applicants. Having a good professional relations and contacts with employers, employees, and applicants alike will eventually make your business succeed.
Here are some steps on how to start a recruitment agency :
Step 1. Identify your niche. You must look for any potential competitors around the area and determine what other agencies are missing out and filled that niche like if you want IT Staffing in Seattle then you must companies do IT recruitment. The areas and services that no other recruitment agency is offering in may be your target and you may even concentrate on services that very less agencies provide. This will set your business apart from other agencies.
Step 2. Like most any other businesses, having a well-thought-out business plan is important. It will help you set financial goals including financing options, short- and long-term business goals, and a step-by-step plan for accomplishing your goals. Here is a sample of Starting a Recruitment Agency business plan
Step 3. Register your business. Before you can do business with other companies, you must be a duly registered business entity. This will not only make your business legal but it will also boost your credibility as a legal recruitment agency. Basically, you will have to get a business permit (Brgy. clearance, police clearance etc.), SEC, DTI, BIR, Dole and other agencies. Here is the link on how to get a Business permits and Licenses .
Step 4. Capital/ Funding. Before plunging into this kind of business, you have to make sure that you have enough money in place to support your business. This is very important if you are planning to run both permanent and temporary workers because many new agencies fail due to having to pay temporary workers before the agency is paid by the client. Depending on the contract, most temporary workers expect to be paid on a weekly basis, whereas most clients expect a minimum of thirty day payment terms.
Step 5. Finding your clients. As a newly established recruitment agency, the best way to make your business known to employers and companies and how they can avail of your services is by giving out fliers, brochures and by sending out letters to them. It is important to include the advantages and benefits as to why they should avail of your services. One advantage for employers is that recruitment agencies can easily and quickly pre-screened qualified applicants without the hassle of running an ad, reading hundreds of resumes and completing all of the new-hire paper work. With this, employers will know that it is cost effective to outsource the screening and interview of applicants for their company.
Step 6. People management database. This is an important tool in running a recruitment agency. It is where you will find the information of applicants regarding their educational qualifications, trainings, and previous work experiences that will help you to efficiently manage and retrieve the profiles when needed. It is used primarily to much the requirements and qualifications for the positions set by your clients.
Step 7. Once the recruitment agency has paired the right candidate with an open position, the candidate will have a final interview with the employer. When the employer selects a candidate, it has two options. The employer can directly hire the candidate or it can hire the job candidate on a temporary basis. If hired temporarily, the employer pays the recruitment agency, which then pays the employee’s agreed upon salary until the employee is hired permanently. Most recruitment agencies charge a one-time fee based upon the candidate’s first-year annual salary. This fee is paid by the employer after the guarantee period, the set of time agreed upon by the recruitment agency and employer to make sure the employee is the right match for the position.
Tips: 1. Join job fairs that are conducted by several companies. You may get tons of information from them, which then can be useful for your business. 2. Encourage college students and young working professionals to submit job applications, which would certainly enable you to make a list of potential applicants. 3. Get in touch with companies in your locality regarding any workforce requirements.
Sources: ehow.com, startarecruitmentbusiness.co.uk, buzzle.com
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This is a very detailed post. Thanks for sharing!
Great Post! This is a very informative & great Post. I got too much information about recruitment process outsourcing from this post. Thanks for sharing such a helpful post. Keep Posting!
Thank you for your excellent job you are doing
Great article, can this guide be used if you want to setup a recruitment agency in London or Europe ? i have alot of readers looking to start an agency in UK, your guide will be a great help to them. https://webstartupsolutions.co.uk/portfolio/how-to-start-a-recruitment-agency-business/ . Other steps to cover in your article are website design, startup loans, marketing, finding clients, employment contracts, public liability insurance and protection, finding the correct accountant, finding a lawyer to review your contracts, choosing a niche market to provide candidates to clients
What kind of permits/licenses etc. are required?
sir , i am from India above said process for registration is same in India or it will vary. can you help me?
Starting A Recruitment Agency is not that tough as compared to other business unless few important stuffs taken care. You need few potential clients, few bucks and some good networking. Well, if you are looking for important tips then book "How To Start An HR Consultancy Company?" might be very useful. As, it's written by Sangita Singh, a famous entrepreneur/owner of recruitment firm. The book describes the need of HR recruitment firm and its benefits for the employers and job seekers. It also provide an insight into the inner working of the consultancy and how to tackle the problems that can be associated with the business. See more at: http://www.gsjobpoint.com/how-to-start-a-hr-consultancy-company.php
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Recruitment agency business plan template
Download this recruitment agency business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.
Discover our recruitment agency business plan template
Our recruitment agency business plan template gives you the structure to write a professional plan.
Not accustomed to writing business plans? Our recruitment agency business template will turn a typically challenging process into a total breeze.
Modelled on a complete business plan of a recruitment agency in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.
Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.
7 day free trial. No credit card required. Recruitment agency business plan template available with paid plans only.
How to use this recruitment agency business plan template
Edit the recruitment agency business plan template online, or download it.
There are 3 ways to use this template:
- Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software
- Download in PDF: if you're just after a little inspiration, you can download the recruitment agency business plan template in PDF to read over it
- Download in Word format: want to edit your plan on Word? Simply export the recruitment agency business plan template to Ms Word (.docx) format
Recruitment agency business plan template content
This template includes a complete recruitment agency business plan example, with a financial forecast and the following sections:
- Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
- Company: this section lays out the structure of your business, including its location, management team and legal form
- Products and services: here, you'll give an overview of the services offered by your recruitment agency (express and classic recruitment services)
- Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your recruitment agency through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
- Strategy: this section highlights your recruitment agency's game plan when it comes to pricing, marketing and mitigating risks along the way
- Operations: this step lays out your recruitment agency's operational organisation, including the recruitment plan
- Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements)
- Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.)
Executive summary for a recruitment agency business plan
The executive summary gives the reader a clear and concise overview of your business idea.
Our recruitment agency's executive summary is formed of the following subsections:
- Business overview: in this subsection, we outline who the recruitment agency founders are, what legal form they've chosen for the business, and the rationale behind the choice of their location
- Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the recruitment agency's owners and explain what industries (hospitality) and business types (cafes, restaurants, hotels) they aim to target
- Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the recruitment agency over the first 3 years of operation
- Our ask: in this subsection, we outline the amount of financing required to start the recruitment agency and how it's going to be funded (the founders are seeking a bank loan to start their recruitment agency)
Company overview included in our recruitment agency business plan sample
This section lays out the structure of your business, including its location, management team and legal form.
Our recruitment agency business plan template's company section is formed of the following subsections:
- Structure & Ownership: in this subsection, we outline who the recruitment agency's shareholders are and what legal form they've chosen for the business
- Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
- Management Team: in this subsection, we give an overview of the background of each of the recruitment agency's founders, explain how they met and why they decided to start a company together
Products and services offered by the recruitment agency
The products and services section is where you will present the different types of services offered by your recruitment agency.
In our recruitment agency business plan template products and services section, we cover:
- Express service: characterised by speed, this service aims to help hospitality businesses find skilled replacements last-minute (within 24 hours)
- Classic service: a stock-standard service that helps hospitality businesses find skilled workers on a permanent basis
Market analysis for the opening of the recruitment agency
The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
Our recruitment agency business plan example's market analysis section is formed of the following subsections:
- Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
- Target market: in this subsection, our founders explain who they view as their ideal customers (our recruitment agency business plan template targets cafes, hotels and restaurants)
- Competition: in this subsection, we take a look at the direct (independent recruitment agencies nearby) and indirect (other ways of hiring staff) local competition to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of a new recruitment agency
- Regulation: in this subsection, we give an overview of the main regulation applicable to our recruitment agency
Setting the strategy for our recruitment agency
This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.
Our recruitment agency business plan template strategy section is formed of the following subsections:
- Pricing: in this subsection, we explain how we set the prices of our main categories of services (express and classic recruitment) and the rationale behind our choice
- Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among our recruitment agency customers
- Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
- Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our recruitment agency and outline how we intend to mitigate them
Operations section of the recruitment agency business plan template
This part lays out the company's operational organisation, including the recruitment plan.
Our recruitment agency business plan operations section is formed of the following subsections:
- Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsibilities of each of staff member in our recruitment agency
- Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
- Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them
Financial plan included in our recruitment agency business plan template
This section presents the expected financial performance of the recruitment agency over the next 3 years.
Our recruitment agency business plan example's financial plan is formed of the following subsections:
- Start-up funding: in this subsection, we list the cost of each item required to launch the recruitment agency
- Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the recruitment agency's financial forecast
- Sales forecast: in this subsection, we detail the expected revenues and growth rate for our recruitment agency in the coming years
- Cost structure: in this subsection, we list all the expenses required for our recruitment agency to operate smoothly
- Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our recruitment agency over the next 3 years
- Projected cash flow statement: in this subsection, we analyse the expected cash generation of the recruitment agency
- Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet
Appendices of the recruitment agency business plan template
This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
Our recruitment agency business plan template's appendices include:
- A maturity profile chart showing the principal repayments of their loans over the next 3 years
- A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations
Recruitment agency business plan template sample
Executive summary, business overview.
Cavine Recruit will be a recruitment agency specialising in the hospitality sector.
Our primary aim is to help cafés, hotels and restaurants in and around Caen's city centre hire "last minute" temporary staff.
We will also help those hospitality businesses find qualified personnel who are willing to join them on a permanent contract.
Cavine Recruit will be a limited liability company, managed by Catherine V. and Vincent A. with a share capital of €5,000.
Our offices, located at 34 Quai de la Londe in Caen, are walking distance from the Vaugueux (an area where most of the restaurants in Caen are located). This is ideal for increasing our visibility.
Both managers have known each other for over a decade. Together they have 20 years' experience in hotel and restaurant recruitment. They decided to start their own recruitment agency together to combine their skills and passion.
The recruitment agency market in France
According to the 2016 Prism'Emploi report, there are 7,257 recruitment and temporary employment agencies in France. The market was valued at €17.7 billion (turnover) that year.
46% of recruitment agency clients are SMEs and recruitment agencies generated €147.7 million of turnover in 2016.
Market leaders in the interim and recruitment agency market include Adecco, Randstad, Manpower and Hays Recruitment. Despite their dominance, many independent and niche firms remain competitive in the market.
When it comes to sectors where a specific profile is desired, companies tend to favour headhunters or independent recruitment agencies specialising in that industry to find the perfect candidate.
Mandates entrusted to independent recruitment agencies are mainly fixed-term and permanent contracts.
How recruitment firms find staff:
- Professional directories
- Approaching profiles on social networks such as LinkedIn
- Advertising on their website
- Advertising on third-party sites such as Reed or Indeed
- Other internet-based methods
According to the 2017 report by the Ministry of Labour, 34% of companies use recruitment intermediaries to recruit employees. This process has a success rate of 15%.
It's not only companies that use recruitment agencies. They have become an ideal springboard for those seeking employment. APEC estimates that 128,159 young executives and graduates used recruitment agencies to find jobs in 2018.
The 2018 Calvados Tourism Observatory report estimates that both the City of Caen and its surroundings are prevalent in the hotel sector - accounting for 49% of all hotels and 34% of overnight stays in the county of Calvados.
It's also estimated that 41% of tourist revenue in Normandy in 2016 came from hotels, cafés and restaurants.
According to the FAFIH, there were 9,300 businesses, 12,500 seasonal workers during the summer and 2,900 in winter in Normandy in 2018. 90% of hospitality companies were also micro-enterprises.
The sector mainly consists of:
- Traditional catering (49%)
- Hotels (22%)
- Catering services (15%)
- Others (14%)
A tool set up by Carif Oref Normandie, which deals with training and employment, identifies staff shortages in terms of supply versus demand. Caen lags behind in this aspect in both the hotel and catering sectors.
53% of the recruitment projects recorded in 2018 were assessed as difficult, and 55% were destined to be seasonal jobs.
We expect to be profitable in our first year of activity with sales of €95,775 and an EBITDA of €6,056 (with a 6.32% margin) for year 1.
We expect to be able to continue to grow our business to reach €105,375 in sales and €13,572 in EBITDA (with a 12.88% margin) by year 3.
Cash generation should be positive over the duration of the plan.
The business should be sufficiently capitalised to enable us to meet our loan repayments while retaining sufficient headroom to deal with unforeseen circumstances.
We estimate that we need a total of €30,000 to open our recruitment agency.
Our partner will contribute €20,000 (67% of the total amount).
We would like to obtain a bank loan of €10,000 to complete the financing.
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Quite frankly excellent because I was able to finalize my business plan in less time than expected. This software offers a very coherent and complete approach to writing your project.
It is a very well designed software that allows you to visualise each step of your project, understand if the idea is viable or not and think about the steps needed to start your business.
The software is just impeccable. Of course, it meets the requirements of people starting a business. In addition to having a tool for putting together a proper financial forecast, there is also a tool to help write the business plan.
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Recruitment agency business plan template faq.
A recruitment agency business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.
It consists of two main parts:
- A written part that presents, in detail, your recruitment agency business, the team, your strategy, and your medium-term objectives.
- A financial forecast that highlights the expected profitability of the recruitment agency and the initial funding requirements.
The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a recruitment agency, writing a business plan is a must-have in order to reduce the risk of failure of your project.
Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your recruitment agency.
Writing a recruitment agency business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:
- You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
- You may encounter writer's block (especially if it's the first time you're writing a business plan for your recruitment agency)
- You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
- You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
- Any updates to your recruitment agency business plan or financial forecast will need to be done manually
Luckily for you, The Business Plan Shop's online platform and recruitment agency business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.
Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.
Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.
And with our forecasting software all the calculations are done for you, without errors.
The budget to start and run a recruitment agency will depend on the exact concept and location.
An online recruitment agency that does not have physical offices would probably have much lower startup costs than one that isn't fully remote. This is because staffing costs, rent and other overheads would be minimal or non-existant. Hiring a specialist website designer would also increase startup costs considerably.
As an example, in our recruitment agency business plan template the total initial funding requirement amounted to €30,000, with the founders contributing €20,000.
In order to assess the exact budget for your recruitment agency idea, you need to do a financial forecast using a financial projection tool such as the one we offer .
The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:
- Access to one of the best business plan software on the market
- Access to our recruitment agency business plan template which contains a complete example of a written business plan and financial forecast to start a recruitment agency
- Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
- Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily
But you shouldn't take our word for it: try our solution for free and make your own opinion!
The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.
Some features are limited during the free trial, the main limits are:
- You can only create one business plan
- The financials of the first year are visible, but data for other years are hidden
- You can export your plan in PDF but not in Word or CSV
- No access to our business plan templates
You can create your account and start your free trial here .
Access to our template is included with all our paid subscriptions.
Please visit our pricing page to learn about this in more detail.