How To Start A New Consultancy (recruitment Firm)

sajidshaikh400
Hi guys,
I am going to start my new venture (recruitment firm) with my friend, can you please tell me how can we move forward
Srinath Sai Ram
Dear sajid,
Starting any venture without any basic Knowledge, is not advisable.You and your partner should acquire necessary qualification/Skill required for the venture.Later on you may go ahead with your plan.You may get in touch with Business Mentors with proven Track Record to prepare project Report/Costing Report etc
aussiejohn
Sajid,

I have posted many many times on this subject as it comes up almost every week. Here is my standard reply.

If you are having to ask us how to open and build a business, then you are not yet ready to do this as it appears that you have not done any planning whatsoever.

Start first with a thorough SWOT analysis of both yourself, your friend, and the business idea. After that put together a very detailed and comprehensive Business Plan that sets out exactly how the business is going to be set up, what funding you have, how you will operate, how you will market, and where the clients will come from.

From reading CiteHR, it seems that half of India is setting up businesses in HR placement consulting. I have no doubt that there are probably hundreds of placement businesses in Pune at the moment. That's a lot of competition to fight.

What is going to be different about you and your business?

How are you going to find clients, when all the other outsourcing businesses around you are seeking the same clients?

How are you going to support yourselves (and your families if applicable) while you try to establish the business and make it profitable to pay salaries?

What capital and ongoing finance do you have to start this business, hire and pay staff, rent office accommodation, pay for marketing and advertising etc etc??

How many other similar businesses are there right now in the area around you that you will be competing with?

As a general rule of thumb, you need to work out what your total living expenses are for a year, and put that money to one side. That relieves the pressure to some extent while you try to establish the business. At least you can then maintain a roof over your head, continue to eat, and pay for all your living expenses, though of course, you may need to live more frugally.

Secondly you will need to work out what it is going to cost to set up the business from scratch, then how much money you will need to run the business for at least a year. Very very few businesses ever make any money in the first 12 months, so if you are counting on this generating income as soon as you open the doors, then I seriously advise you to rethink this idea NOW.

We have so many postings here on CiteHR of people who have started their own businesses, and are now desperately seeking clients etc, because the business is failing. I'll guarantee that none of these people did any research first, or made sure they had funds in place to live on.

FAILURE TO PLAN IS PLANNING TO FAIL.
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