recruitment business startup... first challenging step?
August 3, 2014 10:27 AM Subscribe
I have worked in recruitment for all of five months. Having previously run a less than successful but still operating and now growing charity, I missed the security of a regular paycheck. They like my sales experience but are not as experienced in teaching one how to recruit for their sector. I have had a few offers but have not closed a sale in two months for a flat fee recruitment advertising (no headhunting) product they are halfheartedly experimenting with. Out of 22 staff, I am only the only salesperson for it. I do earn a small monthly salary and could earn a commission. Out of left field, a family friend has come forward with a big recruitment opportunity with a software company. I am currently working on a split commission deal with a work colleague on a software role but do no recruiting, only manage the business communication. I feel ashamed about it and feel I could be of better service as an independent recruiter. However, I need some advice about starting up and feel I can't really get an objective account from senior leaders in the field.
posted by anonymous to Work & Money (2 answers total)
I am guessing it will take me eight to twelve weeks to get my first placement and then eight to twelve weeks for the rebate period to be over so I can realize profits. So, probably five months before I earn a salary. My spending is small, but I give my partner about $800 a month for childcare and household expenses. I have saved about $1,600 and plan to give my SO my next paycheck entirely to pay forward expenses for the next three months and replenish her savings. She also works.
More importantly, a college acquaintance with software team management experience has offered to help me source candidates and interview them in exchange for a commission on placements. That is ultra useful since I know from experience what it is like to recruit a field one knows practically nothing about.
It will cost around $2000 in startup costs and I could do a lot of recruiting through referrals and social media instead of always buying ads. I have found a great domain name and am looking for a nearby and experienced accountant but have a tiny business plan and know how to set up a business and a business bank account. I think after travel and before phone, accounting will be my biggest monthly cost. I am going to focus on local clients and try to poach some big companies.
What am I clearly missing? What could I try or implement differently? How much should I put aside for this business to work from my dining room table? I have already quit smoking pot to get more focused and recruited help. I know I cannot always be 100% ready but want to think about challenges now before I am stuck in them.