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A guide to starting your own recruitment agency

2020 has turned into a turbulent year for every industry, including recruitment. 

The economic shock caused by the pandemic has acted as a catalyst for change. Look back at the recruitment industry before and after major economic downturn, and you’ll notice one thing: a surge of new start-up businesses. There’s no reason to believe this one should be any different; indeed, start-ups launched during a downturn tend to be more resilient, as they naturally have to be more flexible and innovative in challenging times.

In March 2020, nearly 800 new recruitment businesses were registered with Companies House – a sure sign that the more enterprising talent out there sees this as a great motivation and opportunity to do their own thing, and even look at recruitment in new ways.

Often though, new recruitment agencies struggle – around 20% grow to have a staff of more than 10, while approximately 40% eventually fail. Why? Because they’re not used to managing all the aspects that come from running a business (administration, marketing, compliance), all while complying with regulations. Hardly surprising, given that these tasks usually fall to the very consultants who should be focusing on finding new business. 

All our start-up know-how, all in one place.

At Back Office we’ve been working with new start-ups for over 20 years now, which means we’ve got a huge amount of knowledge and experience that can help you. So, we’ve put together a comprehensive guide based on what we’ve learnt working with hundreds of start-ups.

There are sections on everything from registering your business name, setting up business banking and insurance and choosing the right CRM and accountancy package. You’ll also find details on how to develop your business plan and budgeting, recruitment legislation and even creating your branding and website. 

Support for start-ups. 

“Had we not begun working with Back Office as and when we did, our growth would have been much slower.”

Karyn Wilkins, Managing Director, Avocet Strategic Resourcing

As a new business, one of your biggest challenges might well be cash flow – your Contractors and Temps will expect to be paid immediately, but clients have up to 90 days to pay invoices. At Back Office, we’ll support you with 100% funding to ease your financial pressures and we’ll protect you against bad debt too. Simply, we’ll take care of your business’s admin so you can focus on getting it going.

Setting up your own recruitment business gives you the freedom to be your own boss, a chance to shape your future and to realise your ambitions. It also requires lots of careful thought and planning. We hope you find our guide to help get your fledgling agency off to a flying start invaluable. Visit to download your guide.

To talk to any of our team, just give us a call on 01260 280290 – or if you prefer, drop us an email: We’ll be only too pleased to help in any way we can.

In the meantime, good luck with your new venture


Back Office Support Services

01260 280290