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Seven quirky reasons to start your own recruitment agency

By Tbos

Everyone has their own motivation for setting up their own agency: Whether it’s for money, for a lifestyle change or for future plans.  Over the years TBOS has heard many different reasons from recruiters as to why they want to start their own agency and each time we try to help them achieve the type of agency they want to build.  As long as the director has a clear vision of what they want to build and the motivation to follow it forward then the agency should be a successful one.


Below are seven reasons we have been given by recruiters who have started up their own agency:-


1. You can manage your own time

Being your own boss means you can decide on what hours you want to work and create the work life balance you want instead of being dictated to by KPIs and employment contracts.  Starting later to have a lie in or finishing early to play golf may sound appealing at the start but it is important to realise that a new agency requires plenty of time invested to get off the ground.


2.You don’t have to bill for someone else anymore

The most frustrating part of being a top biller is knowing that a large portion of the profit generated goes to the director’s pocket so when you become an owner yourself you have the satisfaction of knowing all profit goes to you.  Even though as the director you know that not all the profit will end up in your pocket as you have company expenses to pay out for it is the satisfaction of deciding what to spend it on that makes it worthwhile.


3.You don’t want to make the same mistakes as previous agencies

When you start your own agency you want it to be perfect from the start and ensuring you do not make the same mistakes you have experienced in your previous agency is paramount.  However, making mistakes as a director of your own agency can make you a stronger business owner and help you to avoid making the same mistakes again in the future.


4. You can do things smarter and cheaper than larger companies

As a new start up agency you will often have significantly lower overheads than the larger size recruitment agency but you should not feel that you should take this opportunity to deliver a cheaper solution to your competitors.  Making permanent placements at a lower percentage or giving temps a better rate through your agency will end up harming your agency in the long run as your clients will expect these rates in the future.


5.You want to build a new type of agency

Everyone who wants to start their own agency wants it to be different from the next and the only way to do that is to develop your own unique culture which needs to be planned and implemented. Having a clear vision and ensuring this is followed is the only way for your agency to be different from another.


6.You want to make as much money as possible

A good recruiter can make lots of money very quickly making placements but they will only ever receive a salary and commission package. By being a recruitment agency owner instead gives the additional future potential income from the sale of the agency.  Having saleable recruitment agency involves careful planning and growth plans but may not necessarily happen as quickly as you want it to.


7.You are a niche recruiter in your industry

If you are recruiting either into a niche industry or providing hard to find staff to clients then starting up your own agency can mean you are in high demand from the start. This can be a very appealing reason to start your own agency but you need to ensure that you remain unique before another agency provides the same service and provides it better.

TBOS has helped set up and run many different recruitment agencies over the years and each one is unique and tries to meet the directors main reasons for setting up in the first place.  With TBOS help our agencies are able to concentrate on their reason for setting up as TBOS takes away the back office and accounts burden and providing the necessary figures to show how the agency is performing and growing.


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