Hey people, Has anyone got any advice for starting a local job recruitment agency? How do you start up a business like this, are they profitable? I'm experienced in web design so i can create a job site, logo e.t.c. How do these businesses make money?
you are paid by the company requesting your temp agents and you pay your employees who go out and work for the company. You take a cut of what wages they earn which is typically a $1 to $5 per hour of a difference from there regular entry level employee that didn't go through the temp service. one catch is after 90 days the company can hire them or no longer need there services.there is also temp companies that focus on short term day to day kind of work. most of the time its monkey work that temp agencies deal with.
When I worked at Tesco they had about 1/5 of staff from agencies, the agencies were paying their staff £5-6/h and Tesco were paying the agencies £15/h. Wether or not there's a suitable market for this will depend entirely on your area, many medium-large businesses use agencies for some of their staff but there might be too much competition, though as you can see the money is there. One idea I had was start with a job search site with a catchy name, have the brand recognised by advertising it in my local area and get it in everyone's head, if all worked well then eventually move to an agency by getting an office, any applicable licensing and whatever else, then work under that brand I'd already built, syphoning employees from the site's member base. Also I'm currently on a (mandatory) training course, the government department send me to a company who outsource and send me to another company then they send me out to work, and get paid for doing so, you might want to look into this and branch out a bit so it's just not recruiting you're doing, I've no idea how much money is in it but you could easily work through a number of bodies, being that the company taking them on for work has labour at no cost it's attractive to them, while allowing the worker to gain experience.
These businesses can be very very profitable. However getting established is key... do you have a good brick and motar location and do you have any point of difference on why a client will use you? i'd be happy to talk with you if you are thinking about a recruitment agency, maybe i can help. I do run jobboards but this is new territory for me, so i'd also be happy to swap ideas. my jobboard is over a year old and is starting to get some good traffic, but again its not easy to get established... i'd always say look at the long term and always consider quality.
Generally having design skill is not enough coz you must have networking to help you build up your business.Having a nice designed job site will not bring you any client if you don't have networking. You need to have a lot of worker resume so that when a company using your service to get staff then you can give them the worker resume. This kind of site earn commission such as you earn $10/each staff
get Local, establish yourself first, unless you're going to be doing some outsourcing. Start with a business plan. PM me your email address and I can suggest more ways to get started.