How to start a recruitment business

If you think you’ve got what it takes to identify unrealised talent, nurture it to its full potential and then direct it towards a suitable outlet, you may want to consider starting a recruitment franchise.

Today, we explore why you should start a recruitment business and the steps you would take to run your own. Later on in the article, we examine two exciting recruitment franchise opportunities looking to expand their UK network.

>> Read more about: Start a Recruitment Franchise in the UK: The Top Opportunities In 2019

Recruitment industry in the UK

There are over 8,000 recruitment businesses helping individuals achieve their dreams in the UK. There’s clearly a high demand in the £26 billion industry, so this presents a lucrative opportunity to aspiring business owners.

Why start a recruitment business?

Searching for a job is a tiring, stressful process that not many of us enjoy. However, it is a necessary process in order for us to progress through different careers. It’s particularly prominent in today’s society, where millennials change jobs much more frequently than older generations. And so, more and more individuals and businesses are seeking the help of recruiters.

If you a natural salesperson, an excellent communicator and enjoy working with people, starting a recruitment business could be your next business venture.

How to start a recruitment business

1. Assess your personal skills. Starting a business in any sector is challenging, so you need to make sure you possess all of the following personality traits: confidence, motivation, organisation, as well as problem solving, time management, team working and negotiation skills.
2. Get ready to work hard. Running a recruitment business is hard work. You might have to work long hours in order to fit around the working hours of clients. This means the classic 9am start and 5.30pm finish may be off the cards. Therefore, in order to be successful, you will need to be incredibly dedicated to the role so you can provide every client with impeccable service.
3. Choose your business location. One of the perks of starting a recruitment business is that you are able to run it from your own home, saving substantial start-up costs. But if you would rather buy an office space and hire a large team of employees, choose a location which is easily accessible and make sure you get insurance.
4. Find a niche. We have already established that there is an abundance of recruitment businesses already, so you need to highlight to potential customers what makes you stand out. Find a USP or specialise in certain industries, for example.

What recruitment franchises are there in the UK?

Though there are numerous different franchises in this sector, we’ve chosen two that we believe are particularly promising. Both Driver Hire and CNA International are established franchises with a reputation for excellence and exemplary performance records.

Driver Hire

Established in 1987, Driver Hire has gone from strength to strength over the past 30 years, growing to encompass a franchise network of over 100 units across the UK. The franchise has won the HSBC Franchisor of the Year award five times. In the 2017/2018 financial year, Driver Hire’s average franchise unit turnover was three times the UK average.

Franchise basics

Driver Hire is a management and recruitment franchise that specialises in driver recruitment and staffing for businesses in a wide array of industries. It supplies qualified and capable drivers, as well as logistics staff, to both the public and private sectors. Whether it’s international haulage, distribution drivers, governmental authorities or parcel delivery, Driver Hire can supply any organisation with the drivers they need to get the job done. By ensuring that they've got a diverse range of skilled drivers at their disposal, Driver Hire has developed a reputation for excellent service, reliability and trustworthiness.

Minimum investment required

To become a franchisee, applicants will need to raise a minimum initial investment of £32,000. However, the franchise does run a tiered investment scheme that allows you to up your level of investment for greater perks and benefits. Franchise resales are also a popular means of acquiring a franchise, though the price for a resale unit can vary drastically depending on its historical performance, potential and market size. In the past, franchise resales have been bought for as little as £40,000 and as much as £500,000.

What you get in return for your investment

In return for your investment, franchisees are provided with pre-launch franchise support, marketing materials with advice on how to use them and six weeks of basic training. This ensures that you’re absolutely 100 percent prepared for your franchise unit’s opening and know what challenges to expect with the business. Franchisees also receive financial planning assistance that will help you plot a path through the first three years of business and calculate how much working capital is required to get the unit up and running. Ongoing guidance and advice are provided by the central franchising team, and every franchisee is equipped with all the tools and equipment required to operate Driver Hire's unique business model.

What kind of franchisee is Driver Hire looking for?

Driver Hire isn't necessarily looking for individuals with experience of the transport or logistics industries. Instead, it wants applicants who demonstrate excellent people management skills, who are able communicators and who are self-motivated and ambitious.

CNA International

Founded in 1992 by Albert Wilde, CNA International now operates in 20 countries and has more than 50 global offices, including franchise sites in India, the US and Central and Eastern Europe. It is currently looking to establish franchise partnerships in several different regions, with an emphasis on the UK, Germany, France, Spain, individual states within the US, the Middle East and various South American nations.

Franchise basics

CNA International is a recruitment franchise with a difference. Rather than using job boards or other types of traditional recruitment strategies, it utilises its years of accumulated expertise and experience to headhunt the most talented professionals their clients could hope for. Using a custom methodology known as Candidate Aspiration Based search (CABs) that was designed by the organisation’s founder and refined over years of operation, the franchise is unique in its field and remains one of the world’s most sought after recruitment specialists. The organisation’s constant innovation has ensured it is always one step ahead of the game and continues moving forward with determination and vision.

Minimum investment required

If you’re considering owning a franchise, you’ll need to raise a minimum initial investment of £30,000. CNA International is also attempting to find suitable individuals who are willing and able to take on the role of master franchisee in several new markets. This is a relatively low start-up cost, particularly when you compare it to other franchise companies in similar industries and especially when you consider that franchisees can expect to earn a gross profit of £100,000 per annum.

What you get in return for your investment

In return for their investment, franchisees will receive full training and ongoing support and guidance from the experienced franchisor management team. CNA argues that a condensed two-week training programme (which is how they used to deliver their training) is counterproductive and not the best way to prepare franchisees for their new roles. Consequently, franchisees undergo training for the duration of their franchise contract, with regular workshops, lectures and seminars organised to ensure that they understand exactly what’s expected of them. Franchisees will also be granted access to the franchise’s digital systems and can work from home.

What kind of franchisee is CNA International looking for?

CNA International is looking for individuals who demonstrate a willingness to learn, a desire to succeed, specialist industry expertise, a wide array of contacts and the ability to independently finance their business for at least six months.

Conclusion

Both CNA International and Driver Hire are fantastic franchise investment opportunities. Both are widely respected in the recruitment industry, and both are excellent examples of how the franchise model can be used to facilitate incredible growth and expansion. However, there are many differences between the two, and both franchises are searching for slightly different applicants. To make an informed decision about which franchise suits you best, it will be necessary to conduct some thorough research, contact the franchisors and speak to existing franchisees.

Another recruitment franchise opportunity in the UK

Prima Ardelle Associates

This franchise is a leader in supplying permanent placements in niche markets, particularly in property and automotive sectors. Franchisees can make the most of Prima Ardelle’s proven systems that have ensured it’s seen success since it was established over 15 years ago.

Having previous recruitment experience isn’t a requirement, as long as you have a can-do attitude, are passionate about the brand and have excellent customer service skills.

Training takes place at the head office in Kent and is followed up by hands-on operational training in the particular franchise territory for at least one week.

To become a Prima Ardelle Associates franchisee, you will need to have access to a minimum investment of £5,000 and a total investment of £20,000.