Fraud Blocker

Article published on: 4/10/23

Circa 6,000 new recruitment agencies are registered each year in the UK currently and the UK recruitment market value reached £141.2 billion in 2022, a strong £20.1 billion increase since 2019. So, in such a busy marketplace, what are the key steps that every new recruitment agency should take?


1. Stay flexible: While it's important to be ambitious, it's equally crucial to be realistic. Avoid long-term contracts at the beginning of your entrepreneurial journey. Consider renting office space on a rolling contract or even working from home initially. With cloud-based software systems and access to the internet, you can save money by not committing to office space right from the start.

2. Offer competitive pricing: Instead of simply undercutting your competitors, focus on providing a more valuable and durable solution to attract clients. Undercutting prices will not only reduce returns for the recruitment industry as a whole but also for individual agencies.

3. Manage your budget and cash flow: One of the biggest risks for new recruitment agencies is overspending before they have accounted for their income. Remember that a significant portion of your earnings will already be allocated to other business expenses, such as taxes. It's crucial to prioritise cash flow and consider finance options to ensure you can pay your temporary workforce before receiving invoice payments from clients.

4. Create detailed and personalised contracts: Avoid using outdated contracts or internet samples as templates. Ensure your contracts cover up-to-date regulations and clearly state your payment terms. Explain to your clients the steps you will take if these terms are not met to avoid potential disputes.

5. Focus on growing your business: As a recruitment start-up, your priority should be making new placements and expanding your agency. Streamlining the hiring process is vital, especially when facing the challenge of accommodating a growing number of clients. Cloud recruitment software, like Flo, can help manage your temporary recruitment agency efficiently. It can handle administration tasks such as bookings, timesheets, invoicing, and compliance management. By utilising such a solution, start-ups can save time and resources, allowing them to focus on building their business.

6. Build a strong network: Arguably the most important aspect of starting a temporary recruitment agency is having a robust list of contacts. Cultivate relationships with both clients and candidates, as they will be crucial in your first twelve months and for the growth of your business. Using a recruitment software platform that can easily manage and store contacts to save time and avoid the hassle of sifting through heaps of paper-based documents, can be a great move.

By following these six essential steps, new recruitment agencies can lay a solid foundation for success and navigate the competitive recruitment landscape with confidence.

If you would like to learn more about how Flo can help you grow your temporary recruitment agency, you can contact us on 01827 438065 or