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:
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 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.
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 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 using financial projections, identified opportunities and strategies used in your business plan.
Choose the structure of your business (sole proprietorship, partnership, LLC, etc.).
Apply for an Employment Identification Number.
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 to ensure startup expenses are accurately accounted for.
Determine the tax classification your company falls into and decide which tax payment structure you’d like to follow (monthly, quarterly, etc.).
Apply for business licences for your city and state. Search “apply for business licence in (city)(state)” to apply online.
These are the tasks you must complete and the milestones you must reach to have a successful launch for your recruiting company.
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 identity that is appropriate for the clients you serve and the main industries you work in.
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 the recruiting and business tools you will use by scheduling demos and signing up for free trials.
Choose the city that gives you the biggest advantage for your operations (high candidate density, industry concentration, etc.).
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.
Complete trademarking your company name by registering with the US Trademark and Patent Office.
Create a service level agreement, replacement guarantee, recruitment project contracts and other documents for clients to sign.
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 companies that will be a perfect recruiting partner for your business in your city, metro area, state and beyond.
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 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.
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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 all employees, especially recruiters and managers.
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 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 assistance from happy clients in the form of feedback in satisfaction surveys, case studies and testimonials.
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 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 required for your company’s state/federal income and payroll taxes.
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.