If you’re passionate about connecting people with jobs they love and helping businesses find top talent, launching a
recruitment agency could be the perfect career move.
Whether you want to work as a freelancer or build a full-scale agency, the ongoing skills shortage means your services will always be in demand.
If you're wondering what it takes to start a recruitment business, this guide covers everything you need to know.
What is a
Recruitment Agency?
A recruitment agency is a business that partners with companies to help them find and hire the right candidates for their job vacancies.
It also supports job seekers by matching them with suitable roles.
Recruiters typically earn a commission paid by the employer when a successful placement is made.
Do You Need a Licence to Start a Recruitment Agency?
Most recruitment agencies in the UK do not require a licence. However, if your agency specializes in agriculture, horticulture, or food processing/packaging, you’ll need a licence from the Gangmasters and Labour Abuse Authority (GLAA).
If you're recruiting for the healthcare sector, a Care Quality
Commission (CQC) licence may also be required.
Should You Specialise in a Niche Market?
With nearly 28,000 recruitment agencies in the UK, focusing on a niche market can help you stand out from the competition.
Choosing a sector where you have industry knowledge and experience can:
✅ Build your credibility faster
✅ Strengthen relationships with clients and candidates
✅ Position you as an expert in your field
While it may seem limiting at first, specialising in a specific industry increases your chances of becoming the go-to recruiter in that space.
What Do You Need to Start a Recruitment Agency?
Starting a
recruitment agency doesn’t require a large investment. At the most basic level, you’ll need:
✔ A laptop
✔ A website
✔ A mobile phone
✔ Step-by-step training from a recruitment expert
How Much Does It Cost to Start a Recruitment Agency?
Your startup costs will depend on several factors,
including:
- Will you work from home or rent office space?
- Do you plan to hire employees immediately?
- What marketing strategies will you use?
- Will you outsource tasks like IT support or HR?
- What type of business insurance do you need?
For a personalised breakdown of costs, you can book a one-on-one strategy call with our Founder & CEO.
👉 Watch the introduction video and schedule your strategy call HERE.
What Are the Different Types of Recruitment Models?
Choosing the right business model is key to your agency’s success.
Here are some common options:
🔹 Contingency Recruitment – Earns 15%-30% of the candidate’s salary upon successful placement. Great for lifestyle businesses.
🔹 Exclusive Search – The client works solely with your agency to fill a role.
🔹 Volume Recruitment – Helps large companies scale quickly during periods of hyper-growth.
🔹 Retained or Executive Search – You get paid for your work upfront, not just per successful placement.
🔹 Recruitment Process Outsourcing (RPO) – Your agency takes over a company’s entire talent acquisition process, often working on-site.
🔹 On-Demand Recruiting – Charges clients on an hourly or project basis rather than per placement.
Get Hands-On Training from a Recruitment Industry Expert
Starting a recruitment agency is exciting, but having the right guidance is crucial.
Get one-on-one training from an expert with 40+ years of experience in the recruitment industry.
Ready to launch your agency? Book your strategy call today!
Watch A 15-Minute Video Presentation
If earning a substantial monthly income, and working from the comfort of your home running a recruitment agency appeals to you, then the next step is to click on the link above to watch a short 15-minute video presentation covering three key topics:
Why Now’s a perfect time to start a home-based recruitment agency…
Why It’s is virtually impossible for your recruitment agency to fail…
And how you can generate an additional £10,000 to £15,000 per
month…
And much, much more….
I look forward to hearing from you.
Joe Davis FREC
CEO & Founder
0800 622 6877
