Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$0

$2,300

Training & Education Expenses

$0

$1,000

Total Startup Costs

$6,136

$41,361

Employment Development Department

edd.ca.gov

251

SEEK

seek.com.au

1,314

ZipRecruiter

ziprecruiter.com

1,336

Staffing Agencies & Recruiters

roberthalf.com

9,639

PNet - Jobs in South Africa

pnet.co.za

13,043

Recruit.net

recruit.net

29,212

Aerotek Recruiting and Staffing

aerotek.com

37,925

Jobs, Staffing, & Workforce Solutions

randstadusa.com

40,691

Creative Staffing Agency

aquent.com

57,397

Etcareers Jobs in Ethiopia

etcareers.com

70,041

Michael Page

michaelpage.com

93,471

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Rewarding work

Starting a recruiting agency can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Meaningful business connections

You never know who you will meet as a recruiting agency. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Recruiting Agencyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With starting a recruiting agency, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your recruiting agency are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the recruiting agency, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a recruiting agency, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

High overhead expenses

With starting a recruiting agency, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article