Recruitment Agency Business Plan in Nigeria + Startup Manual
Recruitment Agency Business Plan in Nigeria – Are you interested in starting a recruitment agency in Nigeria? Do you need a start-up guideline or sample recruitment agency business plan in Nigeria to help you work through the process of starting the business? If your answer is “YES” to any of the questions, then you should read on.
A recruitment agency, alternatively known as a staffing or employment agency is one of the fastest rising, most lucrative businesses of this century. You do not need a soothsayer or statistician to tell you that all over the world the ratio of graduates churned out by universities yearly to the available jobs is a landslide. Good business acumen tells one to take advantage of this phenomenon as a source of income. All over the world recruitment agencies are cropping up with the intent of connecting qualified graduates to hiring companies at a fee.
Several big companies are interested in hiring the services of recruitment agencies as it helps them reduce the cost of running a human resource department. The agency is thus saddled with the responsibility of making the connection to the eligible candidates, conduct screening exercises, interviews, handle new staff documentation before finally handing over the new hiring company. Trust me these companies pay quite a large sum to make this happen, meaning good profit for the agency. I am sure you are beginning to nurse an interest in this field already. Join me as I elaborate on starting a recruitment agency in Nigeria, it promises to be exciting and educative.
How to Start a Recruitment Agency in Nigeria
- Decide on what niche you want to focus on. There are several industries that make up the economy such banking and finance, agriculture, foods and beverages, telecommunication, etc. You must understand that you cannot delve into all these industries when you want to start up your agency. It is expedient to decide which you want to focus on and create a niche for yourself there. This is very important to note because each industry has its own peculiar staffing needs and till you grow to become a mega agency, it will be wise to stick with one so you can create a good reputation for yourself grow fast enough.
- Learn from predecessors. It is not a crime to seek advice from people that have gone ahead of you in a business line, either directly or indirectly. You either meet them to ask questions or be more subtle and take note of what they do in quiet; anyways make sure you get some information from them as it will help you not to make several avoidable mistakes.
- Gain experience. If you have not worked in the recruitment sector before, it is advisable that you seek some experience before starting up yours. Searching for suitable candidates to fill positions and the rest of the recruitment process can be really tasking and someone without prior experience is likely to create a major blunder if proper care is not taken. You can gain experience by applying for internship with an already established recruitment agency and work there for a while.
- Become skilled in the process. It is one thing to gain experience, it is another ball game entirely to know the theoretical aspect of the job. You will be the bridge between graduates and hiring companies, it is advisable that you get some training to help you understand the needs of your industry so you can hire the right people for the job. Also get one or two human resource certificates, there are several websites that can provide you with online training at little or no cost.
- Run an encompassing feasibility study. This will cover everything you need to have as a recruitment agency. You do not want to start up your agency and then crash before you even hit the scenes. Starting a recruitment agency requires quite an amount of capital, you will need to get an office, properly equip it, employ staff, register your business, publicize your business and several other things. Make proper findings and make a list, this will enable you plan properly.
- Find out about recruitment laws. Find about regulations guiding recruitment in your state and also the industry you have decided to focus. This is important so you do not break laws and get penalized unnecessarily. Being penalized can cause you to spend some crazy amount of money on fines or even cause your agency to be closed down altogether. Before you get involved, research and get acquainted with the laws, it is non-negotiable. In line with this, also research about the employment laws existent in your location. Each state or country has specific laws guiding several aspects of employment like creating a balance between the number of male and female employed in an organization, laws against discrimination of disabled or handicapped people, laws against stigmatization of sick people (e.g. people living with HIV/AIDS) and more. Lack of knowledge about these laws will not be an excuse if you are caught trivializing any, you could lose your license in the process.
- Get your business registered along with other necessary licenses. It is imperative that before you begin any activities at all you register your business with the country’s register of companies, the Corporate Affairs Commission (CAC). Along with this registration ensure you find out all the necessary licenses you should possess as a recruitment agency and invest in getting them. This is important so you eliminate any obstacles to operating a reputable agency.
- Office location. Since what you are selling is services, it is important that you carefully seek out a place to site your office. Being hidden in obscurity or the back side of town will not allow your business thrive, look for a place around the center of town where several firms are located. This way you are in view of both your clients and jobseekers.
- Come up with a detailed business and marketing plan. If after doing all the major work in ensuring your recruitment agency kicks off you do not have a concrete business plan, you can rest assured the business will most likely end before it has even started. Understand that you have competitors, some of whom have been in existence long before you even thought of starting your agency. A business plan will put you on a level playing ground or even give you an edge over your competitors, it will also give investors an opportunity to understand what direction your company is going and thus give them reasons to invest in your growing enterprise. Having a marketing plan is nonnegotiable, you will need to come up with ways of reaching your target market, firms and jobseekers alike. It is important that you draft introduction letters to firms around telling them who you are and why they should choose you to carry out their recruitment process rather than some other agency. You might also need to run jingles, effectively use social media and other publicity tools to ensure that you are in the face of jobseekers so they can choose to register with you.
- Go digital. In this era of technological advancement it is important that you catch up with the age, get a website. Doing this firstly shows how serious you are as an agency, then it helps you reach out to a wider market as people from all over can see what you do, as long as they have access to the internet. You can post job vacancies on your website, collect jobseekers data, sort out resumes, conduct trainings, tests and interviews via your website. Technology has made life easy, enjoy its benefits.
- Recruit staff for your agency. There is so much work to be done in a recruiting firm, honestly, you cannot do it all by yourself. Consider how many people you need to employ, seek out people who are experienced in the field of recruiting or who are ready and able to learn fast and employ them to fill your predetermined positions. This will help you focus more on building the business while they assist you with carrying out other simpler tasks.
- Open a business account and get insured. It is expedient for any business to open an account in the name of the business, get one for your agency so you can receive remunerations for services rendered directly into that account. From this account staff salaries can be paid, logistics can be sorted out and then you can easily monitor how the business is thriving financially. Alongside getting a business account, get insurance. This is something most businesses in this part of the world ignore. Insurance protects a business against unforeseen negative occurrences like fire outbreak, theft, and losses of any kind. In the case of eventualities, you do not want to bear the brunt all by yourself.
What Equipment Do You Need to Start Your Agency?
Here is a list of equipment and facilities you will need when starting your agency, it is just a list and it is not limited to these alone.
- Computer systems, the number depends on how many you can afford.
- Wireless network for internet connection
- Testing software
- Business cards
- Your office venue should have conference rooms suitable for running interviews and trainings, as well as a reception for receiving guests.
How Profitable is a Recruitment Agency in Nigeria?
Since what is being sold is a service and a product, the profitability of the business largely depends on how well the service is being offered, how satisfied the service receiver is and how wide the reach of the agency spans. Some recruiting agency make a net yearly profit of above #20,000,000 while some can barely even boast of #500,000 a year. Understand how the business runs and put in as much effort as you can, you can be sure to make some cool money from it.
Recruitment agencies do not charge job seekers, rather they strike deals with the hiring companies to take a fraction of the first year salary of the newly employed staff or they may also decide to receive a one-off payment for their services. In the event that you want to start your agency but lack adequate capital, all hope is not lost. Several recruiters run their offices from home using the internet as their major tool, they can reach out to several people while conducting interviews using Skype or regular phone calls. You can do likewise till you can raise enough money to get you your desired office.
I hope this article has been educative and enlightening giving you a reason to invest in starting your own recruitment agency. You can order for our recruitment agency business plan.
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