start recruitment business from homePlanning to start your own recruitment business from home? Then you must know few basics to set up a home based recruitment consultancy. Recruitment is a very vital activity in any sector these days. Generally an organisation or company who find a suitable candidate for your vacant position called as a recruitment Consultancy. And this is surely a luring business in the current market for last couple of decades. Now, how to start a recruitment business from home? And, how much money do you need to start a recruitment agency?

There are many consultancies already operating in the market to provide recruitment assistance to companies. And over the years this sector has grown big in such a way that you have to be ready to fight with the competition.

Here we will discuss and try to explain step by step guide to starting a recruitment agency operating from home and how to run it successfully. This article is categorized based on few key factors like:

  • Who can start a recruitment consultancy
  • First steps towards starting a recruiting business
  • Buying a hosting plan for your business
  • Prepare your recruitment business website
  • Register your recruitment company
  • Open a current account for business
  • Setting up your own recruitment firm with equipment
  • Recruitment firm marketing strategy

How to Set Up a Recruitment Business From Home (Recruitment Agency Startup Checklist)

Before you prepare your start up recruitment agency business plan, you need to analyze the business potential first. If want to research about the scope of business in this recruitment sector, then you will find that there are huge scope although high competition. Majority of the software, consulting firms, service providers are now a days outsourcing their recruitment department to reduce the cost as well as operation burden.

Most of the companies need many resources not only due to new business expansion but also due to high attrition rate (job switching rates) in India. So far in my career I have changed couple of companies. That means I left many positions vacant and also filled up the open positions. So just imagine with my profile only various recruitment firms done a good business so far. So in this regard you can say it’s an evergreen business niche and you can expect a good demand always.

Who can Start a Recruitment Consultancy

Basically if you have enough money to invest, then you can start any business with the help of experts. But here we will see how a common people can start this business from his/her home itself with a minimum investment and minimum experience.

Many people want to know about starting a recruitment agency with no experience. You must keep in mind that, one needs to have some basic knowledge about the recruitment process generally followed by all organisations. Anyone who has similar profiles below can be the best person to start a recruitment consultancy in India, USA, South Africa or any other country.

  • An MBA HR pass out having enough exposure of recruitment market scenarios
  • 2-3 years of recruitment experience, but now want to continue from home itself (e.g. generally for women it’s tough to get back to work immediately after child birth. So those women can plan to start a consultancy from home itself)
  • Your spouse/partner might have some similar experiences and you at the same time know how to convert experience into business
  • A group of friends with a very good network with company HRs can plan a start up. In that case you might learn the techniques of recruitment or hire a recruiter initially to start your company. As time passes you can learn and educate yourself with all facts.

Now let’s check what do you need to start a recruitment agency.

Also Read: How to Start a Beauty Parlour at Home

First Steps Towards Starting a Recruiting Business

For starting a recruitment company from home, first think about a name of your start-up. Don’t just think casually like, let’s start now and if we get success then will think about a good name. This is absolutely a wrong technique. You should plan everything seriously whether it a success or a failure in future. So a proper name is necessary, which will create a brand name in future for your effort.

The name should relate your style of work or industry or your business types etc. Then choose a domain name with your company name. Choose any domain .com or .in that does not matter so much, but do it immediately so that you can get your desired domain name for web existence. This will cost you hardly Rs 500-600/- every year to keep the domain name alive.

Buying a Hosting Plan for your Business

Now your company name and domain is ready. Next big thing is to set up a website for that domain, so that clients/people can find your business and contact details on the web world. For that buy some web hosting plan from the reputed and trusted hosting providers like Bluehost or Hostgator, to avoid any discrepancies in future.

You can take any basic plan, like 1 website hosting plan which will cost monthly Rs 400-500/-. It’s better to start with a monthly plan, as you don’t know whether your business will continue for years or not. When everything will be set up then you might upgrade to a yearly plan to get rid of monthly payment.

Prepare Your Recruitment Business Website

For that you can again take help from professional web designers or if you have some knowledge, you can create a blog/website with minimum 5-6 pages and further attach with your custom domain name (company website name). It’s very simple and less expensive. Here is a step by step guide to start your own website.

Otherwise you can pay Rs 10,000 – 15,000/- if you can afford. Even you can make a good looking websites with images and banner, which will cost you more. But again, for a start up a simple and well arranged website is enough. Just keep in mind to put basic information pages like Home, About Us, Contact Us, Clients Handled, Service Page etc.

Register Your Recruitment Company

Next thing in the recruitment agency startup checklist is to register your company name to run your business legally without any hassle. You can contact local registration office and discuss those facts. There are various types of registration based on your business plan.

You can visit the website http://elagaan.com/ to find out every detail. Even they can help you to register your company name and prepare other legal documents like TAN, Taxes etc. For a single person start-up it’s better to start your business with registering as a Sole Proprietorship.  Just visit http://elagaan.com/ to know more about that.

Open a Current Account for Business Purpose

Next thing is to open a business bank account (current account) with your company name to accept payments from clients. To open a current account, you have to get ready with all your business registration documents. Don’t open an account in your name as the business name will create a good impression and represent your brand as well. And even in future you might expand further and include partners to grow in business.

Must Read: Best Home based Business for Women in India

Setting up your Own Recruitment Firm with Equipment

Next thing is to get access to any job portal like Naukri.com, Monster.com or Timesjob.com. Among them Naukri is most popular. You can get a package from them and start surfing resumes as per your requirement. Initially you can buy access in sharing basis with 2 or more people, as you might not have enough requirements to handle the high cost of Portal access. So look for such opportunities.

Set up your workspace with your desktop or laptop. Take a new mobile number and also a land line number (if you can afford) to handle your daily calls. Analyse and choose a good talk time plan as well. Update both the numbers in your website. Install all required software’s to your computer like MS office, mail server software etc. Create few email IDs with your business domain. Like contact_hr@myfirstcompany.com.

Recruitment Firm Marketing Strategy and Business Development Plan

Next thing is to spread your business and get more and more clients, so just work hard to get better & better. Try to communicate with company HRs and offer them your business proposals. Use social media websites like LinkedIn, Facebook to spread about your company and connect with people of similar industry to grow your network.

You need a good marketing strategy for staffing agency. Also work hard to get clients to run your business smoothly and grow further. The biggest skill required is the networking and convincing skills. The more contacts you have the more the scope of clients you can arrange, means more business.

So now you know how to start a recruitment business from home and make money. Never ignore a small opportunity thinking that may not be profitable. Simply grab all opportunities to spread your business. Start now to create long term wealth for your future.

Please feel free to share your valuable experiences here if you are one who has started some home based business. Also, don’t forget to share this article with your friends who might want to set up a recruitment business from home. Good luck!

85 COMMENTS

  1. I am into hr recruitment activities. want to expand my business. want more clients for increase my turnover. can you suggest or can I tie up with any recuritment company so that I can focus on candidates instead of employers.

  2. Hi santanu. I am Pratyush Mohapatra from Bhubaneswar. Currently i am staying in Pune. I have around 4 years of experience in Sales, Marketing and business development and i have already started working as a HR freelancer. I am looking forward to start my own HR recruitment and training company. I have few doubts in my mind needs to be resolve. If you can help me in doing so i will be thankful. written Below are my questions:
    1) How much investment i have to make to start with?
    2) What are the important aspects on which i have to make investment?
    3) How long it usually takes to reach a operational level?
    4) Is it wise to start a firm in tier two cities like Bhubaneswar or i should opt for markets like Pune?
    5) How much usually i can demand from clients and how do i get clients?

  3. This is a nice blog. Can you please tell the minimum number of people needed to start the recruitment farm and te minimum capital.
    I am sharing a blog where you can read about Apps To Earn Money In India. Hope you will like it.

  4. hi this is mahjabeen want to start a consultancy firm but no idea start from where need your help and all tips and investment figure i have to spent

  5. Hi Santanu,

    Your blogs has always been informative and vital, and you write about current scenarios, which help people I also read your one of the blogs related to finance and insurance which was also very informative and this post as well of how to start a recruitment business from home.

    keep up the good work!!

  6. Hi Admin,
    Really refreshing research article that I have read now. Just after reading your article I can come to know that we can money from starting a recruitment agency.
    Quite a nice new idea of money making, that I have found now. This side Myilraj from Tamil Nadu, full time blogger sticking to native methods in online money making…
    I will gonna try this idea ASAP! because one should have more ways of income for a steady support and this guide will be suitable to start.
    Thanks once again CHARM!

  7. Hi Shantanu

    U r post is very informative & very usefull.
    Myself Santosh. I want to start business. Can u suggest me some good business ideas. I can invest between 5 to 7 lacs. I stay in pune. Pls. reply.

    • I would say first think what you can do, money is not the factor. You have to find the idea as per interest to run the business.
      Please some of your ideas here so that we can discuss on their potentials. Thank you.

    • Hi shantanu and sandhya

      that piece of article was quite informative. thanks a million. well, guys, I’m writing from Ireland on behalf of Invoke Medical and IT limited Ireland. we are an IT recruitment, consulting and marketing company based in Ireland. we are looking to expand our business to India as our clients are looking to hire doctor, nurses and IT talents from India. we are a registered limited company in Ireland and licensed by the Department of Jobs Enterprise and Innovation Ireland. we work directly with hospitals, nursing homes, IT companies as recruitment agents. we are looking to register a branch of ours in different parts of India and are inviting entities with similar interests to be a part of us. so Sandhya if you are interested feel free to contact me on tomjose@imit.ie. you can check us on our website http://www.imit.ie.

      thanks
      Tom Jose
      Managing Director
      Invoke Ireland
      +353 852151970

  8. Hi Santanu,
    Thanks for a nice article. It is really helpful.
    I just started the hiring firm and looking for business expansion.
    I have one query- Which kind of firm I should catch up in the beginning? Is it worth to follow up big companies or look for smaller one with just bread butter in hand?

  9. Hi shantanu,
    Your article is really a great help.
    And ill really like to ask u a question.
    I Graduated this year and I have done BAF and am planning to start an consultancy from home itself .
    Since i dont hold any masters degree as of now can u possibly list few problems I Might face ? Is it a good idea in the first place should i go ahead with it ? And I Do have experience of working with a consultancy for 9 months .
    Please help !

  10. What all steps should i follow to register my firm in Mumbai. I am not providing any resources on my payroll. What all licenses are required? where to approach?

  11. Hi Santanu,

    I am Anubha. I have MBA in International Business and have experience in Sales and Marketing. I want to open a Recruitment Agency. I really liked your article, but i have no experience in HR. So how can i start up. I am working currently but need to expand my wings, so can you please suggest what could be the best option for me

  12. Hi Santanu,
    I have experience into recruitment and want to start my own consultancy in Mumbai. But i am quite afraid if i register the home address for a start up, what will happen if client want to visit. How will i convice them that i have just newly started and give me chance..??
    Waiting for your reply

  13. Hi Santanu
    This is very useful article, I completed MBA in HR&Marketing and I choosed sales as my career(situations demanded). it’s been 6 years I got many recognizations from companies and I have been in No.1 but I am not getting happyness because that’s not what I wanted. I wanted to run my own business like recruitment consultancy. I need your opinion and suggestion in my plan I request you to give valuable suggestion on this.
    I am planing to open a home based recruitment consultancy to recruite sales professionals for sales industry. I know how to get clients and applicants but the thing is I am having doubt about attrition ratio in sales industry it is high compare to other industry, it is useful to me get more business and at same time it’s difficult with my applicants so please guide me in this issue and tell me if I am wrong in choosing one particular industry.
    Waiting for your valuable reply.
    Thank you.

    • I think its you have to decide as per your capacity. But I would say just start & try as this is the best way to know how much capable one is. Learn & grow from your own experiences only. Good luck

  14. Hi sir i’m Srinivas from Bangalore i don’t have any exp on requirement and business field also but i want to start to consultancy for requirement side i have knowledge on developing side .how to consult the companies please help me i want to ur help dara.srinuvasulu84@gmail.com this is my mail sir please sir…………..i’m waiting for ur reply……………..

    • I think should know how that industry is working to start a business. Even if you don’t have knowledge, I think you can start learning and exploring this industry and then plan your business…

      • sir What is Learning & exploring .. & How it works ?
        Please give me Idea.. Actually Sir I am Want to start Consultancy for requirement .. But i have not enough money . that’s why i start this business at home but what is first step & How i meet HRs .. This questions are so Important so Please give me Suggestion ..
        Thank you Very much

  15. Hi Santanu, i am Aparna Mari from hyderabad, wanting to start a recruitment business, the above info which you have posted is very helpful, as well i am already referring candidates for different positions which i started a month back from home, but want to go further in a professional way, if anyone from hyderabad wanting to do the same or is already going further, i word like to join them, pls advise

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  17. Hi sir myself Ravi from Hyderabad ur article is very impressive for me to start my own requirement business.. I was thinking from long back to start up my own requirement business and the people who are unemployed ND facing a problem for getting a job by gap of experience to give them good opportunity ND slove there problem.. In ur article very thing is clear sir bt tell me how to approach the companies ..client to fill there requirements its very important sir. Reply

  18. Hi Santanu,

    The article was good. I do not have much experience in HR field however i am in software field for the past 15+ years. With out background of HR is it possible we start consultancy. please provide your suggestions

  19. Hi Shantanu,,
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  20. Hi Santanu
    First i want to thanks you for your valuable suggestion given by you.
    My name is Deepak Sharma I have left the job in March but still not able to get another job .
    Pls suggest a business which can be start with less money.

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  22. hello Santanu Sir,
    Firstly thanks for your suggestion about consultancy business. My self gitika sony I completed MBA I decided about start consultancy business your article is very helpful for me.

  23. Hi Shantanu,
    First of all thanks for doing such a wonderful job, your ideas are valuable. I am an engineering graduate previously working for a mnc organization. Presently i left the job due to some issues, now i have planned to start a recruitment consultancy from home. I am living in a small district of bihar, “can i do it from there?”. How can we generate revenue from this business?

    Thanks
    Abhishek

    • Do you have some contact or any link to get business? Initially you really have to work hard to get some new clients for your business. There is huge competition man. In fact companies are starting reducing recruitment budget. So I think you have to think something different in this industry to get a kick start.

  24. Hi santanu,
    Ur information is very useful… N I need ur suggestion also..
    I m a btech+marketing graduate n currently I m not working… I want to open a recruitment consultancy from home..bt I don’t have any experience in this field.so I hve no idea from where n how I start this business..should I join any consultancy firm to gain experience before starting my own consultancy? Pls suggest.. awaiting for ur valuable reply

  25. Hi Santanu,

    It’s really helpful your details regarding home based recruitment, but I would like to ask if I start from home Client may ask for official address and sometimes they want to see the office. How will I handle that time.

    Regards,
    Arya

    • Hi Arya, Now ther are many companies in India, who are actually providing office spaces on demand. Means you can contract with them and they will provide you office space whenever you need. Not only that, they will also help you to get a office address if you need.

  26. Hi Sir
    Your article was really informative. I am an MCA graduate and was working as a software engineer. At present I am a homemaker and I am learning web development courses from home. I would like to work as a freelance web developer. Please guide me in this regard

  27. Hello, Sir.

    Your post is very helpful to me. I am also a blogger and management student and we (me & my friend) planned to start a new startup or job portal like monster.com and naukari.com but, we don’t know about how start this business. We have a technical knowledge and we hire a software company in Delhi for making our website but, we don’t know about any legal process or how to register or isn’t it necessary to register a company name ?

    I awaiting for your reply. You can also tell about those links where I can go to get this information.

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  29. Hi,
    I’m planning to start a recruitment business from home.i have enquired about registring firm, website I spoken to naukri and timesjobs .i m planning to register in justdial also but the problem is nobody is there to support me only I have to do whole work.if I appoint anybody I don’t how much I can success.i have 6 years of recruiting experience but have gap in courier nearly 8 years.this is the reason I’m thinking a lot to start a business.please suggest me what to do.

    • Don’t worry about what will happen. You are ready to hit the business, just start it. As per my experience I can say, first few month you have to manage everything your own only, as you don’t know how much work volume you will be able to gather.
      Problems will always be there in business, but you should not stop for that.
      Start immediately and rest leave up to almighty. 🙂
      Let me know if your progress.

      • Hi Nisha,
        I am planning to setup a New placement Agency In New Delhi. I am also looking if someone can come with and help me so we can start it together.

  30. hey Shantanu,
    thanks a lot!
    I have recently been planning to open my consultancy with my sister who is having a good 8 yrs experience as the HR head of a recruitment co.
    we really needed the info u gave above… it was so easy to understand the steps u mentioned above.
    thx a lot, wish us luck
    Akta

  31. Hey Shantanu, your article is really helpful for people like us (mothers….no longer wish to struggle at offices) ..lets see if we can work on something similar! Thanks!

    • Good Luck Shilpi,

      I am sure you will be able to kick start your first consultancy soon. Share your experience and difficulties with us here about your journey. 🙂

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  32. Hi

    I am interested to start foreign recruitment for indian clients and hence what additional legal formality i have to obtain considering i already have a sole proprietorship registered.

    Kindly help.

  33. Hi Shantanu,

    Surely your information has helped more in crux. Being a retail professional and been in the industry for last 9+ years, have known how important the gap of human resources are in an organisation….had been thinking on the same since a long time… now execution will be more simpler…thanks

    • This is really nice to hear that my effort help you to start your own business.
      Do you want to share your further experience and the challenges you have faced? How much amount you have to spend to prepare the initial start up? May be it will be very much useful for the readers as they will also be able to get some reply from a real-time consultant.

  34. Hi Santanu,
    This is Kumarjee this end. Your article was very knowledgeable. Thanks for the same. In fact I’m a retired govt. employee. I retired as a manager & have various experience to my credit like you know accounting, sales, organizing events like national/International Fair/Exhibitions /Workshops/seminars/Interviews of candidates for various posts.
    My son is already doing HR. Business from Delhi.
    I would, in fact, want to do business of supplying manpowers like maid servants/cook/drivers/baby sitters etc etc. Could you kindly suggest me that what will be the minimum budget requirement and how should I start my work with minimum investment.
    Thank you,
    Looking forward to the pleasures of hearing from you.

    • Thanks Kumarjee for finding my efforts useful.
      May be I can’t provide the 100% accurate information regarding your question, but I think you can proceed like below
      1) First be ready with a website, where you will share your service (e.g. http://www.ramukaka.com) – Cost for that could be around 15-20k max (hosting, domain,content building)
      2) Then find out people and add them in your database (You may have to give some amount to keep people in your team)
      3) Promote your service/website (Required local newspaper ad. This will be your max investment. I think on a regular basis you have to do that)
      4) Need a contact number and a team of 2-3 people who will get call, schedule meeting between client and worker.

      I think with a budget of 3-4 lac you can start on a small scale. Later on as per your business demand you may increase size. I have never done any sort of such estimate, these are my own guess. No idea about the ground reality.

      I hope when you get some rigid data you will update me back. Keep visiting my blog, thanks….:)

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