Why another Recruitment Agency?
The recruitment agency can be the best start of the HR Business on the market, but the competition among the recruitment agencies is extremely tough and the newcomer to the market does not have a good position against the competitors.
The recruitment agency is not a safe business. One day you have a lot of job vacancies to be filled and the second day the clients go to a different recruitment agency, which offers better conditions.
The recruitment agency has no chance to have the exclusivity with its clients. The clients want to choose the best job candidate and they do not accept to be limited by any kind of the contract.
The recruitment agency cannot plan the cash flow during the year. The number of the job vacancies cannot be predicted and the recruitment agency can just have some kind of the probability and a very basic projection of the future income.
The recruitment agency has to beat the competition in the quality of the provided services to clients, which can limit the income in the beginning as the recruitment agency is not able to fill as many job vacancies as desired by the founders. On the other hand, the quality of the service and the quality of communication with the clients is the real key success factor.
Why to start a new recruitment agency in town?
The recruitment agency can be a real success, when the founders know, why the recruitment agency should exist and they find a hole in the market. The recruitment agency has to be filled by the attractive job openings and the job candidates have to know about it.
The marketing costs are always underestimated, but the new recruitment agency consumes most of its financial resources on the marketing activities. It has to offer the services for free to selected employers and it has to run the marketing campaign to attract the people to visit the website to see the interesting job vacancies.
When setting the recruitment agency and you are really serious about that, you cannot count on running the recruitment agency from your home. You need to be recognized and you have to have the offices to be visited.