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Starting the recruitment agency decision

The new recruitment agency needs realistic goals before the founder starts to set the whole agency and its business. Many research questions have to be asked and the answers have to be collected before the founder makes the final decision, which should be GO/NO GO.

The setting of the recruitment agency is about many realistic assumptions. The recruitment agencies disappear quickly and there is no enough business for all of them. The number of job applicants is limited and the number of companies as well. The newcomer does not create a new market; it has to compete with other recruitment agencies for the income.

The founder has to decide about the competitive advantage of the recruitment agency. The competitive advantage has to be set and properly analyzed, why the competitors fail in delivering such an advantage.

Usually, the other recruitment agencies had the same idea at the particular moment of their growth, but they abandoned such a goal or they failed in meeting it. Why? It is the basic question.

The founder has to analyze the potential of the client base to generate enough job vacancies to reach the income, which will allow to pay employees, services and to generate the profit as the recruitment agency should not run as the nonprofit organization.

The number of the job vacancies is always overestimated and the success rate of the recruitment agency is overestimated as well. There is no recruitment agency, which fills all the vacancies. For the business case, it is always better to count with a lower success rate than higher as the business case model in MS Excel differs too much from the reality.