The Top 7 Reasons New Recruitment Agencies Get Started

Money, dreams of success, a change in lifestyle…

These are the things that make recruiters break out on their own. We’ve heard many different reasons to start an agency from Directors who’ve approached us over the years; we always try to find out what’s motivating them because that’s at the core of their goals for the agency.

Once we know that we can help them build what they want.

Here are our seven favourites:

1. Manage Your Own Time

Once you’re the boss you set the hours you want to work, not your employment contract. You can steadily grow your agency to find the work-life balance you want, although at the beginning you can expect to put in more work than ever until it’s up and running.

2. Now You’re Billing for You

An agency’s top biller is often frustrated at the knowledge of how much of the profit they bring in does into the Directors’ wallets. As an owner, you know you’re now at the top of the chain and while you have to pay out the company’s expenses, deciding what and how to spend the extra can be very rewarding.

3. You Don’t Have to Stand by And Watch Mistakes Get Made

Sadly too many of our clients broke out on their own because they saw their old agency make the same mistakes time and time again, getting frustrated. Having the power to avoid making the same mistake twice is a relief, even though it opens you up to a new set of mistakes; at least you can learn from them.

4. Small Companies Can Be Cheaper

This is one we should warn against; the theory is that because your overheads are much lower you can undercut your competitors with a cheaper service. But watch out; permanent placements made at a lower percentage and offering temps a better rate are both going to hurt you when you grow bigger and your overheads rise. Clients will resist rate increases that are much above the inflation rate.

5. A Chance to Build Something New

Dissatisfaction with your current agency is a big reason to start your own, and it gives the chance to develop a work culture you want – but the way to develop that culture needs to be planned out from the start to succeed.

6. Money Talks

A good recruiter can bring in a lot of money from their placements, earning a salary and hopefully taking home a sizable commission package. As the owner of an agency, though, you have the chance for a second big payoff down the line by selling your agency – although this will take time.

7. See a Niche? Go for That Niche

Recruiting into a niche industry or providing staff with unusual skillsets and CVs to clients who need them makes for a start-up agency which is already automatically in high demand. The trick is not resting on your laurels – you need to build up trust before someone else steals your thunder.

Over the years we’ve helped set up and run many different agencies. Each is unique, shaped by their directors’ reasons to begin. We work to help our agencies focus on their goals and motivation by easing the burdens of back office admin and invoice finance, as well as offering information on agency performance.

To find out more or to take the plunge and get started with TBOS, contact us here, on the phone at 0845 8811 112, or by email at

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