How Much Money Do You Need To Start A Recruitment Agency From Scratch?

How Much Money Do You Need To Start A Recruitment Agency From Scratch?

You’re starting your very own recruitment agency from scratch; among the many questions you have swirling in your head, we’re here to help with one – how much money do you need to start a recruitment agency?

Now we’re not going to give you a figure because let’s face it, that’s not realistic, but we can help you build a realistic budget for the things that you’re going to have to pay for, invest in and build as you embark on your startup adventure.

Startup Costs

By this we mean all of the essentials for getting started, while these costs can really be kept to a minimum, they’re still worth planning for and laying out in your budget.  You’ll likely have most of the things you need to start your recruitment agency in your laptop or PC and your mobile phone, but you may need some extra software or equipment for the office.

The building of your website is going to cost you more time than money if you decide to take the task on yourself, which with the use of WIX, GoDaddy or Squarespace, there’s no reason you should not.  However, if you’re not feeling up to the task, you can outsource this to a professional, but this will cost you more than the annual fee any of the DIY sites will charge you.


Do you need a whole team to begin with? If the answer is yes, then great – budget for that, however, you might find that in the beginning, you can actually do most of the legwork yourself. Once you’re set up you might want to take on a marketer, accountant and recruiter, but we’d urge you to be frugal with your staffing spend in the early stages of the business, many entrepreneurs will play all roles themselves until they have a few clients secured and know they can pay the extra members of staff.


What overheads might you have, think about costs such as premises(rent), bills associated with said premises (gas/electric)?  Consider when you really need to take on any property and don’t rush into it and increase your costs before you need to.


You need to market your startup to attract your clients, and it doesn’t need to cost a fortune.  Begin with social media marketing; you don’t need to do it all but engage with the platforms which might serve you best. For a recruitment agency, you should at least be looking at Twitter and LinkedIn. The great thing is that these are free to use, they’re free to build an audience, deliver your content and build relationships. You can pay to reach more people and more specific audiences, but you don’t have to until you can.  Your more traditional forms of marketing need to be budgeted for, however perhaps you gradually introduce these as you grow?

Back Office

Do you know how to run a smooth back office? This will be a vital part of your business, processing pay sheets, invoices, P45’s and balancing cash flow.  You want to make your startup life as simple as possible, so having a centralised operations system in place is almost a must, as soon as you’re ready for it.  You may struggle as a startup to gain access to funding, which you’ll need to buffer the transactions between clients paying you and you paying your temps on time.

A back office and recruitment financing solutions service is the answer to funding and a smooth back office, New Millennia offer both of these services and specialise in working with recruitment startups.  They will not ask for proof of credit eligibility, helping startups take the first step.  A back office specialist is an excellent idea in the early years when your cash flow is going to be a little more stretched; you’ll be able to keep clients and candidates happy, paid on time and invoice processing and payroll running smoothly.

This article was provided by iConquer.

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