What is the cost of setting up recruitment agencies

For some people being their own boss is a life long dream and ambition. This is the same in many industries, however one of the most common dreams for recruitment consultants is to start their own recruitment agency.

Many recruitment consultants who may have the skills to be a success struggle once they go at it alone. The main reason for this is that they have not fully considered all of the costs associated with running their recruitment agencies.If you are in the process of totting up potential figures, some of the best advice I can give you is to over estimate any costs that you have included and under estimate any income that you think you can make. This will give you a better look at the picture when it comes to your first few months to a year of trading.The first cost that you should think about is the cost of where your recruitment agency is going to be based. Many contemplate running their agency from home, but realistically this is not a viable option. Purchasing or renting an office is a much better option as you will need to have somewhere to work from. I would recommend that you rent some office space to begin with as you don’t really need to, or shouldn’t want to commit yourself to owning anywhere just yet.Why would you need an office space if your going to work alone? Well to put it simply, you aren’t. You are going to need to employ somebody to help you, even if it’s in a secretary support role. Recruitment Agencies have a lot of paper work and a lot of incoming calls. These tasks need to be dealt with by somebody else whilst you are trying to secure and place candidates.Apart from your heating and electricity bills, your main expense will likely be your telephone bill. Recruitment Consultants do spend a long portion of the day on the telephone to ensure that they are working to gain placements and opportunities to do so. As well as a landline phone bill, you will find that running your own business does involve you making a lot of calls on your mobile phone – even when your on holiday!The final big regular expense that you will have to incur will be that of your accountant. You should always look to employ a professional accountant to do your number work as it will save you a lot of time and stress.