How High Can A Recruitment Business Setup Cost?
A recruitment business remains relevant even if it gets shaken by the economic growth or crisis. More and more people are always looking for jobs alongside the growth a number of SMEs as well as short term projects. There is always a high demand for supply workers where companies could find in qualified recruitment agencies. Due to this scenario, a lot of entrepreneurs are getting interested in putting up their own recruitment business.
Industry leaders say that while learning the ropes of a recruitment business set up is not as challenging as it is with other businesses, planning for the capital and operating expenses must be importantly considered. So, if you're thinking of launching such a business, prepare yourself because this business usually has high start-up costs due to the following reasons:
1. It requires a spacious office. You definitely can not use your home office even if you're starting out small. One thing you need to make sure of is that the office is big and comfortable enough to accommodate all your employees and clients, as well as the equipment you need for daily operations.
2. You have to have an eye for a good location. This must be an easily accessible place. Prime locations are always expensive regardless of whether you're buying or just renting.
3. It needs highly qualified and competent employees right away and you need to pay them according to their professional value (which is usually higher compared to other employees) and make sure they get their benefits. This includes insurance, medical benefits, and others (as mandated by the law) – even if your business does not generate enough income for the first few months.
4. Setting up communication technology is necessary too, especially if you want to properly cater to clients and market your services effectively. You will need multiple phone lines, fax machines, photocopiers, printers, computers, and other equipment that expedite day-to-day processes.
5. A properly designed website can be a lot of help, too. You're simply not doing this business right if you do not have a website, especially with more and more people conducting their employment search online.
6. Just like any other business, there will be respective taxes to pay.
7. Marketing also needs a significant portion of your budget. Boosting your marketing efforts can attract an initial batch of job seekers.
Indeed, a lot of money is involved, but the good news is that you can recover your investment easily, especially if your marketing efforts and good quality service draw in clients for the business right away.