Hi there, I am Mayuresh, I have one shop which is enough space for a recruitment agency and I have some jobseekers database also (latest), I want to start my own recruitment agency in Mumbai itself. I have few questions, I hope you people will answer...
Questions
1. What kind of license I need for starting a recruitment firm?
2. How can I approach a company so that I can get paid for provding them best candidate? Do I need to email them or have to visit a company?
3. Is there anything that i am missing?
Also, I DO NOT want to charge candidates, I want money from the companies itself like other recruitment agencies are doing, so can anyone provide me information about it?
Thanks in Advance...
From India, Badlapur
1Questions
1. What kind of license I need for starting a recruitment firm?
2. How can I approach a company so that I can get paid for provding them best candidate? Do I need to email them or have to visit a company?
3. Is there anything that i am missing?
Also, I DO NOT want to charge candidates, I want money from the companies itself like other recruitment agencies are doing, so can anyone provide me information about it?
Thanks in Advance...
From India, Badlapur
Hi Mayuresh,
You have to professionally represent your company to clients. To do that you have to either incorporate under companies act or create a partnership firm to show that your company is a legal entity.
Secondly you will have to promote yourself aggressively and at the same time understand the market sentiments. Any client will ask you as to what value addition are you bringing to the table for them. If you can answer that question then you will win the client to your side and they will definitely pay for the services you provide.
Best wishes
From India, Chennai
You have to professionally represent your company to clients. To do that you have to either incorporate under companies act or create a partnership firm to show that your company is a legal entity.
Secondly you will have to promote yourself aggressively and at the same time understand the market sentiments. Any client will ask you as to what value addition are you bringing to the table for them. If you can answer that question then you will win the client to your side and they will definitely pay for the services you provide.
Best wishes
From India, Chennai
Thank you for your response FredAnth... Can you tell me How can I approach a company so that I can get paid for provding them best candidate? Do I need to email them or have to visit a company?
Thanks in advance!!!
From India, Badlapur
Thanks in advance!!!
From India, Badlapur
If you are having to ask us how to open and build a business, then you are not yet ready to do this as it appears that you have not done any planning whatsoever.
Start first with a thorough SWOT analysis of both yourself and the business idea. After that put together a very detailed and comprehensive Business Plan that sets out exactly how the business is going to be set up, what funding you have, how you will operate, how you will market, and where the clients will come from.
From reading CiteHR, it seems that half of India is setting up recruitment businesses. I have no doubt that there are probably hundreds of similar placement businesses in Mumbai at the moment. That's a lot of competition to fight.
What is going to be different about you and your business?
How are you going to find clients, when all the other outsourcing businesses around you are seeking the same clients?
How are you going to support yourself (and your family if applicable) while you try to establish the business and make it profitable to pay you a salary?
Whilst you have a shop, what capital and ongoing finance do you have to start this business, hire and pay staff, fit out your office accommodation, pay for marketing and advertising etc etc??
How many other similar businesses are there right now in the area around you that you will be competing with?
As a general rule of thumb, you need to work out what your total living expenses are for a year, and put that money to one side. That relieves the pressure to some extent while you try to establish the business. At least you can then maintain a roof over your head, continue to eat, and pay for all your living expenses, though of course, you may need to live more frugally.
Secondly you will need to work out what it is going to cost to set up the business from scratch, then how much money you will need to run the business for at least a year. Very very few businesses ever make any money in the first 12 months, so if you are counting on this generating income as soon as you open the doors, then I seriously advise you to rethink this idea NOW.
We have so many postings here on CiteHR of people who have started their own businesses, and are now desperately seeking clients etc, because the business is failing. I'll guarantee that none of these people did any research first, or made sure they had funds in place to live on.
FAILURE TO PLAN IS PLANNING TO FAIL.
From Australia, Melbourne
Start first with a thorough SWOT analysis of both yourself and the business idea. After that put together a very detailed and comprehensive Business Plan that sets out exactly how the business is going to be set up, what funding you have, how you will operate, how you will market, and where the clients will come from.
From reading CiteHR, it seems that half of India is setting up recruitment businesses. I have no doubt that there are probably hundreds of similar placement businesses in Mumbai at the moment. That's a lot of competition to fight.
What is going to be different about you and your business?
How are you going to find clients, when all the other outsourcing businesses around you are seeking the same clients?
How are you going to support yourself (and your family if applicable) while you try to establish the business and make it profitable to pay you a salary?
Whilst you have a shop, what capital and ongoing finance do you have to start this business, hire and pay staff, fit out your office accommodation, pay for marketing and advertising etc etc??
How many other similar businesses are there right now in the area around you that you will be competing with?
As a general rule of thumb, you need to work out what your total living expenses are for a year, and put that money to one side. That relieves the pressure to some extent while you try to establish the business. At least you can then maintain a roof over your head, continue to eat, and pay for all your living expenses, though of course, you may need to live more frugally.
Secondly you will need to work out what it is going to cost to set up the business from scratch, then how much money you will need to run the business for at least a year. Very very few businesses ever make any money in the first 12 months, so if you are counting on this generating income as soon as you open the doors, then I seriously advise you to rethink this idea NOW.
We have so many postings here on CiteHR of people who have started their own businesses, and are now desperately seeking clients etc, because the business is failing. I'll guarantee that none of these people did any research first, or made sure they had funds in place to live on.
FAILURE TO PLAN IS PLANNING TO FAIL.
From Australia, Melbourne
Thank you for your great advices aussiejohn. I have some funds and I am planning this firm with my freind and we both will be working in it. I am doing research for this business from few weeks... And did swot analysis of myself and my business idea! Thanks once again for making me think again and MORE SERIOUSLY about my decision.
It will be great if you answer my question >> How can I approach a company so that I can get paid for provding them best candidate? Do I need to email them or have to visit a company?
Thanks in Advance :)
From India, Badlapur
It will be great if you answer my question >> How can I approach a company so that I can get paid for provding them best candidate? Do I need to email them or have to visit a company?
Thanks in Advance :)
From India, Badlapur
Mayuresh,
Having no sales or marketing experience, I am not really in a position to give advice on approaching companies.
However, I would say that visiting them for a face to face discussion offers more chance of success, than a cold, anonymous email.
Speaking with potential clients gives you the opportunity to explain how you will provide the best candidate, why your company is different to others in the market, and of course, your fees and charges. Being on the spot also allows you to answer questions and counter any concerns the client has.
BUT, and there is always a BUT, you must have your pitch honed to perfection. You must know everything about your business and how you operate etc. You must be able to answer every question about your service, and you must be able to tell the client why YOU are better than your competitors - with convincing reasons. You will get only ONE chance to persuade the client that you can provide the service. It has got to be right first time. It goes without saying that you need to turn up at the client's premises looking professional in your dress and manner. In addition, your brochures, and fee schedule, and other materials to leave with the client, should be professional looking as well.
From Australia, Melbourne
Having no sales or marketing experience, I am not really in a position to give advice on approaching companies.
However, I would say that visiting them for a face to face discussion offers more chance of success, than a cold, anonymous email.
Speaking with potential clients gives you the opportunity to explain how you will provide the best candidate, why your company is different to others in the market, and of course, your fees and charges. Being on the spot also allows you to answer questions and counter any concerns the client has.
BUT, and there is always a BUT, you must have your pitch honed to perfection. You must know everything about your business and how you operate etc. You must be able to answer every question about your service, and you must be able to tell the client why YOU are better than your competitors - with convincing reasons. You will get only ONE chance to persuade the client that you can provide the service. It has got to be right first time. It goes without saying that you need to turn up at the client's premises looking professional in your dress and manner. In addition, your brochures, and fee schedule, and other materials to leave with the client, should be professional looking as well.
From Australia, Melbourne
Mayuresh, writing to the company or visiting them is only one part of the business cycle. Your approach should be strategic and tactical...if you are a Biz Dev person you will understand what I mean.
From India, Chennai
From India, Chennai
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