Read our top tips for starting up a recruitment agency:

• Don’t just rely on the advice from banks and accountants – although it’s easy to access, it can be quite general and not specifically geared to the recruitment sector

• Read all the recruitment trade press – it’s a great source but also spread your intelligence gathering net wider to include new business sites, marketing journals, business advice columns, local networking groups, Business Link and industry gurus

• Particularly in the current economic climate, make sure the packaging and pricing of your service is correct by testing it thoroughly with potential clients and business introducers

• Make sure that any finance is sustainable in line with your projected business growth and don’t be tempted by sales offers that aren’t backed up by evidence of great client service

• The Internet is awash with general business start up advice – be wary of companies just pushing product without understanding the specific requirements of the recruitment sector and insist on seeking out tailored recruitment support

• Asking clients to do business with a new brand in the market requires much trust on their part – take the time ahead of setting up to network like crazy and use all your existing contacts, and their contacts, to raise awareness of your new venture and offering

• Be single minded – choose your market carefully, fully understand what you are offering and focus on making it better than competitors operating in the same recruitment niche

• Stick to your plan – don’t even think about moving into new markets or developing new recruitment services before breaking even

• Be patient – don’t expect to make lots of money quickly – good businesses take time to build credibility and a sound reputation, especially people-based businesses like recruitment

• Cashflow is one of the main concerns for people contemplating setting up in recruitment – make sure you research the alternatives and get an effective solution in place before it becomes too late – avert a cashflow crisis!

• Understand your opportunities and risks within the wider context of what’s happening out in the markets – for example the need for drivers in distribution may be lower due to decreased demand so don’t put all your eggs in one basket

• In reviewing potential suppliers, really quiz the sales person you meet – do they echo the professional, corporate, friendly image you might be looking to achieve in your own business and can you trust their knowledge of practical issues in the recruitment sector?

• All our clients in this position tell us the same: Seize the opportunities presented by any redundancy and take the plunge to set up on your own – you won’t regret it!

Written by Oriel Group, providers of support services for new start up recruitment agencies.