Setting up a business can be tricky & all-consuming, but life will be a lot easier if you have a clear understanding of why you want to do it (and it shouldn’t be just about making money, that’s simply a byproduct of your organisation). How will your business stand out from the crowd? What will do you better than those already out there? Knowing this will give you a head start with your branding, values & processes.


Action: Start by clarifying your business vision, mission, and objectives. Decide what sectors and job levels you intend to focus on, such as IT, healthcare, etc.


Tools/Resources: Use strategic planning tools like SWOT analysis to identify your strengths, weaknesses, opportunities, and threats.

Sounds basic but make sure there is a demand for what you will offer. How many X-type roles are currently being advertised online? Are there lots of potential candidates in your targeted geographical area/s or will it be clients you will need to look for?


Action: Perform in-depth market research to understand your competition, the demand in your chosen niche, and potential client and candidate bases.


Tools/Resources: Access industry reports, engage with local business networks, and consider using services from market research firms. ONS can be an excellent source of free data around employment statistics for example.

Most would-be entrepreneurs know they need a business plan, but it needs to be a realistic one. Chances are it could take longer than expected before you start placing candidates. How long can you survive before your first fee lands (taking into account notice periods & payment terms)? Unless you are placing contractors it is highly unlikely you will see any incoming funds until month 3 so how are you going to keep the light on until then? Planning ahead is key.


Action: Develop a comprehensive business plan that includes market analysis, marketing strategies, financial projections, and operational structures.


Tools/Resources: Utilize business planning software or templates to ensure all critical elements are covered.

 While the public face of a business should be designed by a designer with expertise in corporate branding, you should, as a bare minimum, start to consider names & how you are going to put the brand out there.


Action: Brainstorm potential names & check available website urls are available before finalising. Develop a branding strategy that reflects your business values and target market. Create a simple brochure style website (to start with) and active social media profiles.


Tools/Resources: Work alongside a branding expert and a web developer or use DIY website builders like WordPress or Squarespace.

Action: Decide on the most suitable business structure (e.g., sole trader, partnership, limited company) and register your business with Companies House.

Tools/Resources: Consult the Gov.uk website for detailed guidance and consider seeking advice from a business advisor.

Do your homework! Different sectors can have different requirements so make sure you do your homework in this regard. Placing contractors can be great but requires paying wages out before a client starts to pay you so the type of roles you place can impact which regulatory structure you go for.

 Action: Ensure compliance with all relevant legal and regulatory requirements, including data protection laws (GDPR), employment laws, and industry-specific regulations.


Tools/Resources: Consult with a solicitor who specializes in employment or business law, and consider joining the Recruitment & Employment Confederation (REC) for additional support. 

Keeping on top of finances should be a priority from day one. You may not have accountancy experience, and that’s; fine but many a business has come unstuck from not allowing for VAT or Corporation Tax bills. If you keep on top of your account from the start life will be a lot less stressful for sure.


Action: Open a business bank account, set up your accounting system, and secure any necessary funding.


Tools/Resources: Look into accounting software like Xero or Sage, and explore financing options such as business loans or investor funding. 

Ensuring you have the right rec tech is key, but perhaps more importantly, when it comes to having multiple pieces of software, is that you understand how they are going to work with each other. The last thing you need is manual transferring of data from one source to your CRM for example.


Action: Invest in recruitment-specific software, such as Applicant Tracking Systems (ATS) and CRM platforms, to streamline your processes, alongside HR and accountancy software. But ensure that whatever you use, you’re not duplicating functionality or data in more than one place as far as possible, and if there is some overlap, understand how you are doing to deal with this. Does any marketing software already have a built-in integration for you CRM for example? Is Zapier something you can use to help smooth processes?

Tools/Resources: Evaluate CRM/ATS options like Bullhorn or Vincere based on features and scalability.  

Marketing today is an endless task with many possibilities. In addition to more traditional methods of face-to-face networking events and mailshotting, digital marketing now consumes the majority of recruitment businesses marketing budgets: Social Media, SEO, PPC and email automations are all key components to consider to get your business off the ground. Don’t forgot you’ll need contact data as a starting point to get going – Zoominfo or Zppollo.io are good starting places.


Action: Create a marketing plan that includes digital marketing, networking, and client engagement strategies. Understand you client personas and how they will hear about your business.


Tools/Resources: Research industry events to network at, and look to get involved with institutions such as your local chamber of commerce etc. Utilize digital marketing tools, attend industry networking events, and possibly hire a digital marketeer to manage campaigns, focusing initially on organic SEO then perhaps later down the line look at PPC options. 

Understanding where your efforts will be targeted initially will help focus your recruitment efforts. It may be you have potential clients to target already, or you may have mapped out a particular sector for marketing comms. Whatever your plan, make sure you don’t spread your efforts too thinly to start with, There’s simply no point in sending out 10,000 speccing emails if your team don’t have enough hours in the day to follow them up…


Action: Start your recruitment activities by connecting with clients and candidates, leveraging your networks, and marketing your services effectively, in tight targeted areas to begin with.


Tools/Resources: Use LinkedIn for professional networking, and consider job boards like Indeed and Monster for broader reach. Utilise marketing software such as Hubspot or plugins that work with your CRM to allow you to track potential client/candidate activity/ warm leads. 

Understand that you will never be 110% ready to go with everything lined up perfectly, 80% ready is good enough to get started! 

Action: Continuously assess the effectiveness of your strategies and make necessary adjustments based on feedback and performance metrics.


Tools/Resources: Use analytics tools to monitor website and marketing performance, and regularly solicit feedback from clients and candidates to understand where your brand is succeeding or failing.

Setting up a recruitment business is an exciting venture that requires careful planning and dedication. But if you put time into planning to be a bigger business from the start (rather than a lone recruiter working from your spare bedroom) then the energy you put in will surely pay off. Good luck!