Fraud Blocker

Article published on: 12/12/22

To help give your start up temporary recruitment agency the best chance of early success and avoid some of the more common pitfalls, read on for the top reasons why temp agency start ups can fail early on.


Insufficient planning

It is essential to research the area you are looking to launch into. Thoroughly exploring the existing market and trends in your chosen industry. Looking at target audiences and direct competitors already established.

A business plan for your recruitment agency can help with how to structure and run, plus grow your new business. It's an organised way to detail all of the key elements of how your business will run. It also allows you to set key initial goals and stay focused on them.


Insufficient recruitment agency funding

Not fully understanding the potential costs and incomings vs outgoings can allow for issues pretty quickly in a temp recruitment agency start up. Lack of suitable funding and a good understanding in this area, can be a very common reason for temp agency owners to run into problems. A realistic cash flow is essential to meet and manage the demands of weekly paid workers, against the long and often standard payment terms of clients.

Research the best industry specific options for your business, what they offer and what service level is promised too. A tailored invoice finance service for recruitment agencies is ideal to allow you the flexibility to to grasp any opportunities that come your way for sustainable business growth.

Cash management has to always remain a top priority as a new agency owner.


Insufficient marketing

A flourishing small agency needs a frequent flow of clients and candidates and to achieve this, a marketing plan is needed. There are various ways to successfully market a small business on a budget, but certain tools are essential.

A website can be built cost effectively even if outsourced to an agency to create for you, if kept fairly straight-forward and social media can be a great free communication channel to not only attract new business but retain loyal customers too.

More traditional methods – for example mail shots and advertising – can be successfully utilised with budgets allowing.

Whichever methods are selected,  ensure results are measured and analysed to avoid wasting important resources.


Insufficient adaptation

Whether it is external issues, for example interest rate fluctuations or legislative changes, or more personal concerns due to illness for instance, how you diversify and respond to the challenges you are facing, can impact how well you manage the process.

Keeping on top of internal and external factors effecting your recruitment agency, can allow for you to react quickly as and when necessary.


Insufficient technology

Not being organised with your own recruitment agency growth and success, can also be a reason for business failure. Knowing what facilities you will need in place for example industry software.

Cloud-based temp recruitment software allows you a smoother journey for your clients and candidates, and enables you to manage your day-to-day tasks much more efficiently. Software can also keep you compliant, ensures security of data and crucially frees up your time for business development. It can also allow you to scale your usage quickly and easily, allowing much more flexibility.