Checklist for Starting a Recruiting Company

There are quite a few details to manage and quite a few boxes to check when starting a recruiting company, so we created this checklist to help you out!

Here are some other articles that go into more detail about starting a recruiting company:

• What to do Before you Open a Recruiting Agency
• How to Start an Executive Search Firm
• Sample Executive Recruiting Business Plan
• How to Start a Recruiting Business from Home

Initial Planning and Preparation

By thoroughly planning and preparing, your company can hit the ground running! Just be sure not to “over-plan” at the cost of a delayed launch date.

Write your Business Plan

Write a business plan that defines you company’s strategy and the advantages you will use to capitalize on identified opportunities. Your business plan should include a discounted cash flow projection based on your business model and a realistic work volume for your new company.

Strategize with Business Partner and Secure Buy-In

Show your business plan to your business partners and co-founders, so you can strategize solutions to identified challenges and so you can secure their buy-in for your company’s launch plan.

Begin Trademarking Your Company Name

Begin trademarking your company name by getting a domain name for your company’s website and creating a basic “coming soon” web page for your domain using Wix, Squarespace or another free website builder.

Develop Your Pitch and Pitch Deck

Develop your pitch and pitch deck using financial projections, identified opportunities and strategies used in your business plan.

Choose Business Structure

Choose the structure of your business (sole proprietorship, partnership, LLC, etc.).

Apply For an EIN

Apply for an Employment Identification Number.

Secure Funding for Startup

Engage investors, business contacts and lending institutions in the opportunity of investing in your company using your business plan and pitch deck. Private investors will want to see a Capt Table, Term Sheet, Discounted Cash Flow Projection, Balance Sheet and a Corporate Director Agreement if the investor would be a board member of your company.

Open a Bank Account for Your Business

Open a bank account for your business to ensure startup expenses are accurately accounted for.

Determine Your Tax Classification and Tax Payment Structure

Determine the tax classification your company falls into and decide which tax payment structure you’d like to follow (monthly, quarterly, etc.).

Apply for State and City Business Licenses

Apply for business licences for your city and state. Search “apply for business licence in (city)(state)” to apply online.

Pre-Launch

These are the tasks you must complete and the milestones you must reach to have a successful launch for your recruiting company.

Create your Company Website and LinkedIn Profile

Build out the “coming soon” site you created for trademarking purposes with information on your company’s recruiters, industries served, recruiting technology used and other info clients will want to see.

Create a Logo and Brand Appropriate for Your Company and Clients

Create a logo and brand identity that is appropriate for the clients you serve and the main industries you work in.

Nurture Connections in Candidate, Client and Recruiter Networks

Nurture connections that you, your partners and your recruiters have with potential candidates, clients and recruiters who are a good match for your business.

Test Technology and Begin Business Tool Subscriptions

Test the recruiting and business tools you will use by scheduling demos and signing up for free trials.

Choose Your City of Operation and Secure Office Space

Choose the city that gives you the biggest advantage for your operations (high candidate density, industry concentration, etc.).

Choose an Insurance Policy

Choose an insurance policy that protects your company, backs up replacement and other quality guarantees, meets workers comp requirements and satisfies the insurance requirements of your company.

Trademark Your Company

Complete trademarking your company name by registering with the US Trademark and Patent Office.

Create SLA, Replacement Guarantee and Other Client Documents

Create a service level agreement, replacement guarantee, recruitment project contracts and other documents for clients to sign.

Hire Employees Required for First 3 Months of Operation

Source the talent you will need for your first 3 months of operations and set their start date just before your official launch to onboard new hires.

Identify Potential Clients and Engage Them

Identify companies that will be a perfect recruiting partner for your business in your city, metro area, state and beyond.

Post-Launch

These are the tasks that you need to perform post-launch, to ensure that your company is set up for success now, and in the future.

Evaluate Recruiting and Business Tools

Evaluate the recruiting and business tools you have been using. Look out for clear advantages they provide (or fail to provide), time they save (or waste) and bottlenecks they remove (or introduce) in operations.

[Learn More: Executive Recruiting Software]

Optimize Use of Business Tools and Automate Manual Processes

Find alternatives for business and recruiting tools that are not performing optimally and automate time consuming manual processes by integrating tools and using tools with automation features.

Provide Mentorship and Training to Employees

Provide mentorship and training to all employees, especially recruiters and managers.

Track Recruiter Performance and Present Stats to New Clients

Track the success of your recruiters (placements made, success rate, time to fill, etc.) and present these performance stats to new clients to win business and increase new client confidence in your company.

Update Pitches for New Clients and Post Launch Investors

Update your pitch with performance figures from your first few months of operations. These stats will build investor confidence in your financial projections and the value of the investment opportunity you’re presenting.

Get Feedback Surveys, Case Studies and Testimonials from Happy Clients

Get assistance from happy clients in the form of feedback in satisfaction surveys, case studies and testimonials.

Ask Clients for Referrals At the Close of Projects

Ask clients for referrals in their industry and beyond at the conclusion of successful recruitment projects. Happy clients can be one of your biggest sources of new business.

Write Thought Leadership Posts on LinkedIn to Build Industry Stature

Write thought leadership posts on LinkedIn to build the strength of your brand, to elevate your personal industry stature and to create writing samples that interest client industry and recruiting blogs/magazines.

Allocate Income for Tax Payments

Allocate income required for your company’s state/federal income and payroll taxes.

Final Thoughts: Checklist for Starting a Recruiting Company

After you’ve gone through this list, make sure to schedule a demo of Loxo. Loxo is the industry’s leading recruiting software for agencies of all sizes with features that help you multiply and scale your efforts.