Start-up capital vital in recruitment

Before starting a recruitment agency, first think about your finances. If you are going to need start-up capital, check with small-business financiers after establishing how much money you will need.

Before starting a recruitment agency, first think about your finances. If you are going to need start-up capital, check with small-business financiers after establishing how much money you will need.

Then discuss pricing structures for staffing searches with people who are in the same business in your area. It is also advisable to check with other businesses that have used an employment agency about the fees they paid. This will give a clear indication of how much you can charge your clients.

Contact your local municipality and ask questions about legalities that need to be put in place before you start a business. For example, in South Africa there are certain criteria you have to meet.

For most businesses, location is an important factor to consider. You must get a good spot if you want to make money.

The location must be accessible by both public and private transport and be convenient for applicants.

Taking into account that you will bear the costs when starting up, you should consider getting an inexpensive office.

Also check local laws if it would be possible for you to start operating from home because that is the cheapest space you can access. A variance can be given, but it must be brought before the city council.

Call your local telephone company. You will need a good telephone line for the business.

If you will be working from home, it is also important to make a decision as to whether you want business calls to come to your home number after hours. If not, you must get an answering service to take care of those after-hours calls.

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