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Is the Staffing and Recruiting business a wise second career?

Due to the flexibility of the Staffing and Recruiting Profession, many individuals enter this profession as a second career or after they have retired.  This is a relationship building profession and lifetime established contacts can payoff in the Recruiting Profession.  Once you master this profession, all you need is a smart phone and computer to generated unlimited income.  It is important to realize however that Staffing and Recruiting is a sales profession on both the recruiting and marketing side of this business.  If you see yourself selling, this is an outstanding second career.

 

How many people do I need to hire?

The answer to this question depends 100% on your experience and budget.  If you have recruiting experience and are confident that you can generate job orders, contracts and assignments, it would be wise to hire individuals who could help you recruit talent.

If you have a large budget, it might also be wise to hire if you first take the time to develop processes, systems and complete your training, so you can train your team.  You don’t want to overextend yourself and limiting your initial overhead can give your time to establish a profitable business.

If you have a limited budget, begin your business from home,  learn the profession and place some candidates in jobs before you hire.  When you have generated too many job orders, contracts or assignments to cover, that is a great time to hire.

What is the best time to open a Staffing and Recruiting business?

The best time to open a Staffing and Recruiting business is when market conditions are positive and you have decided to control your own destiny.   There is a tremendous shortage of top talent worldwide and baby boomers are retiring one every six seconds.  Those are just two drivers that are very positive for the Staffing and Recruiting Profession.

You should also have some money put aside to cover expenses for five to six months.  If you are stressed out about paying your bills, you will not be able to focus on your new business.  You will generate revenue from your new business in approximately five or six months, due to the length of hiring processes and the time it will take to process your invoice.
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Can I work Virtual?

The answer to this question depends to a great extent, on your niche or area of specialization.  If you are placing individuals that need to be interviewed in person or tested, it is necessary to have an office.  Most firms who place lower level positions i.e. light industrial temp workers, call center employees, … also have a physical office.

Technology has changed the way interviews are conducted with many being done by telephone, SKYPE or other online tools.  This has allowed many recruiters to work virtual, which of course greatly reduces your overhead.

As a new business owner, I would advise you to work from home until you are profitable for at least 3-6 months before considering an office.  Often an “executive suite” is an excellent choice because you are only renting one office but have use of a reception room, conference rooms, and give off the impression of a much larger company.
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How much Money do I need?

The cost of establishing a Staffing and Recruiting Business is low compared to most other businesses.  Your initial expenses will include:

• Computer
• Smart Phone
• 2 Land Telephone Lines
• Cost of Incorporating
• When you open, the cost of an ATS System (under $100 per month)

There will be a delay from the day you open your business until you generate revenue.  The average hiring time frame is currently five weeks from the time you write the requisition until you receive an offer.  Your candidate will hand in a two week notice and the client will pay you in 30 days.  It is for that reason that you need enough money put aside to pay your bills for at least four or five months.
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