How to Start a Home-Based Recruiting Business
Starting a home-based recruiting requires assessment of your qualifications and a clear understanding of business startup processes.
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Starting a home-based business is an option for many professionals. The advantage of working from home can result in cost-savings; however, the proper steps must be followed to start your business the right way. Becoming a home-based recruiter is a trend many employment professionals are considering, given the nature of the business and minimal level of contact necessary to recruit for your clients.
1. Jot down your professional expertise and business goals. This enables you to visualize your qualifications, motivation and drive to determine if a home-based business is a suitable endeavor for your talents. The Arkansas Small Business and Technology Development Center advises: “Success in small home-based business is not an accident. It requires both skills in a service or product area and acquisition of management and additional competencies.” Operating a home-based business requires diligence, discipline and initiative. Add to those traits the necessary expertise for operating a recruiting firm, such as knowledge of recruitment and selection practices, fair employment regulations and sales capabilities.
2. Call your local government offices–city hall or county courthouse–for municipal regulations governing home-based businesses. In some areas, home-based businesses must follow certain guidelines, particularly if you have clients and candidates visiting your home-based office. Most cities have licensing requirements for various types of home businesses. Research state and federal agencies for additional regulations pertaining to operating your own business. One such agency is your secretary of state office, which registers new businesses according to the type of organizational structure the owner selects.
3. Conduct research on operating a home-based business, and operating a recruiting or placement agency. Begin searching online sources, and expand your research to include networking with other home-based recruiters. Decide if you want to focus on a certain field, such as health care, or a particular occupation, such as administrative and secretarial positions. Finding a niche may be one of the most important decisions you make because employment trends can impact your success as a home-based recruiter.
4. Contact recruiting agencies seeking employment experts and larger entities that offer franchise opportunities for home-based recruiting companies. Your motivation and expertise will be important factors in determining if you want to purchase a franchise or start an independent recruiting agency. There are pros and cons to franchises of any kind, so consider them carefully if you are tempted to go that route.
5. Discuss your plans with a business mentor or adviser. Universities with well-known business schools often sponsor business incubators. Business incubators guide entrepreneurs through the process of starting a business and sometimes provide mentor-mentee relationships during the initial stages of your business. SCORE is a nonprofit organization that provides support to aspiring business owners and entrepreneurs. It has a well-known reputation for helping to launch new businesses.
6. Draft a business plan that communicates your goals. The key elements in a business include an executive summary, market research, feasibility study results, statement of qualifications, type of services to be rendered and a request for funding. A high-quality business plan takes time to develop as it should provide the framework for your startup activities as well as future business activities once you’re established.