Small recruitment agency for outsourcing firms

Outsourcing and business process companies that hire often and want a reliable hiring partner.

Placement fees on successful hires, often with repeat clients, and sometimes retained searches where part of the fee is paid up front. Recruiters are usually paid a salary plus commission.

• Business development and account management
• Managing and coaching recruiters
• Understanding the roles outsourcing firms hire for

• Check state and local rules on employment agency or staffing licensing
• Once you hire, check workers' compensation, payroll tax and employee vs contractor rules for your recruiters
• Get general liability and professional liability insurance, and check what cover your clients expect
• Cash flow is tight because you pay recruiters before fees come in, so keep a cash cushion
• Depending on a few big clients is risky, so spread your accounts

Startup costs are typically around $5,000 to $25,000, depending on your office or coworking space, software, marketing and how many recruiters you bring on at the start.

Monthly revenue is typically around $6,000 to $30,000, depending on your client accounts, the number of placements and your fee levels. Cash flow can be tight because you pay recruiters before fees come in.

Check state and local rules on employment agency or staffing licensing. Once you hire, check workers' compensation, payroll tax and employee versus contractor rules. Also look at general liability and professional liability insurance and what cover your clients expect.