A Positive

Start
The Ulti mate Gui de
to S tar ti n g a
Recruitme n t
B usi n e s s

Views from 14 experts

Hundreds of years of
industry experience
Over 2 hours of advice
captured in video
interviews
Welcome to
A Positive Start
As I’m sure you can relate
to, before starting my own
business and taking the final
leap of faith, I was constantly
grappling with the mixed
emotions of excitement and
apprehension.
At the time, I was fortunate
enough to have access
to invaluable advice from
seasoned professionals.
Every time I called on their
experience it made my move
feel less like a leap and more
like a small logical step.
Since starting APositive, one
of our greatest pleasures and
obsessions has been helping
start-up recruitment companies
and connecting them with
other like-minded companies
that focus solely on the
recruitment industry.
They have walked the talk
themselves by starting their
own businesses and are also
passionate about helping
Founders get off to a positive DANNY MARLOW
start.
The APositive team has
Co-Founder & CEO
thoroughly enjoyed creating
this guide for you and we hope
it turns your next move into
more of a step than a leap.
All the best on your journey!
Years in the
recruitment industry
20
Number of agencies
Danny Marlow
worked with:
100+

Tapping into our network,

we have assembled a team
of subject matter experts
that have centuries worth of
combined industry experience
across a broad range of
disciplines.

Page 1
CONTENTS Pages Accounting
- Maurice Sucevic
13-14 (Build Growth)

Pages Setting Goals & Business Page Legal

Strategy - Greg Savage - Martin Richardson
3-4 (The Savage Truth) 15 (Ready Set Recruit)

Pages Business Development Pages Payroll Management

- Darren Cottrell
5-6 - Ez Khan (Spencer Lane) & 16-17 (APositive)
Laura Hopes (HopesConsult)

Pages Digital Marketing Pages Finance

- Chris South - Danny Marlow
7-8 (Prominence)
18-19 (APositive)

Page Brand Pages Compliance

- David Wolstenholme - Col Levander
9 (Brand Me Better) 20-21 (Rates Calc)

Pages Personal Development & Pages Insurance

Networking - Tony Hall - Mark Laudrum
10-11 (Navigator Consulting) 22-23 (Brokers Online)

Page Technology Page Measuring Success

- Andrew Rodgers - Nigel Harse (Staffing
12 (recMate) 24 Industry Metrics)
Setting Goals
& Business
Strategy
Starting a business is fraught
with risk. Most new business
owners simply set out to ‘work
hard’ and ‘do their best’. That
attitude is essential, but adding
planning to your preparation
is key. Planning provides the
leader with great clarity and
offers milestones to measure
progress.
No doubt success in business
is the perfect blend of strategy
and implementation. You need
both. This checklist will be a
great platform for starting the
planning process:
1. SANITY-CHECK YOUR
ASPIRATIONS.
Ask yourself, Do you really
want this? For the right
reasons? Are you up for the
challenge?
2. KNOW WHAT YOU WANT
TO BUILD.
Is it a lifestyle business? An
asset you can sell? A legacy?
Page 3
3. THE POWER OF
PLANNING.
A big mistake for most new GREG SAVAGE
owners- ‘Work hard but no
plan’. Planning builds hunger Principal
and resolve. It brings clarity to
outcomes sought, decisions
faced and progress made.
Plan every plank of business
success from client acquisition,
candidate sourcing and Years in the
technology, to people, quality, recruitment industry
marketing and performance. 41
4. UNDERSTAND Number of agencies
‘SUSTAINABILITY.’ worked with:
Consider annuity revenue, 100+
foundation clients, deep
client relationships, multiple
revenue earners, processes
and servitisation, second tier of
management.
5. CLARIFY YOUR TARGET
MARKET.
Your specialisation and
sweet spot, where you have
something to offer, where you
can stand out, where you have
leverage- with both clients and
candidates.
6. IDENTIFY YOUR
DIFFERENTIATORS.
DEFINE YOUR OFFER.
What sets you apart?
Your WOW factor? And it
must matter to clients and
candidates. What problem do
you help to solve? Access to
unique candidates and unique
jobs.
7. BUILD YOUR CA
STRATEGY.
You must be able to access
candidates that clients can’t.
So, relying only on job boards
and LinkedIn is a recipe for
failure, or at best mediocrity.
Consider use of database,
social sourcing, branding,
events, talent communities,
what else?
Page 4
8. SET A ‘CHRISTMAS DAY’
GOAL.
12 to 18 months. Nail the
pathway. What will you look like
and how will you get there?
9. PIN DOWN YOUR 100
DAY SPRINT.
Develop short term, clearly
defined goals. Use action plans.
Must hit. Around activities,
initiatives, people and revenue
10. SET YOUR ‘DASHBOARD
METRICS’ TO GUIDE THE
WAY.
This guides you. Keeps you
on track. Covers financial and
operational imperatives. (See
Savage Truth Blog for details)
11. BUILD A FULL
(SIMPLE) FINANCIAL
KITBAG.
Get help. Clear monthly P&L.
Budget. Cash flow and balance
sheet. Understand them and
use them as a forecaster
and prompter of pre-emptive
action. Not just historical
retrospective.
12. GARNER YOUR
MENTORS.
Build your network. Don’t
abuse it but look for wise
counsel. Repay the favour
where you can. Listen a lot.
Beware of hubris. Eventually
hire skilled advisors.
13. EXAMINE YOUR
‘LEADERSHIP
SCORECARD’.
The business will hinge on this.
Your leadership style. Your EQ
and CQ. Remember, leadership
is action. It’s what you do that
counts. Not so much what you
say.
Business
Development
Congratulations on going out
on your own - no doubt you are
in the wonderful but slightly
terrifying start-up stage where
every day has 1000 learnings
and adventures!
Now that you are your own
agency, you really have the
opportunity to invest in
setting yourself apart from
your competitors and building
a personal brand that really
represents you and your
offering. How do you do this
however when everyone else
you know is focusing on reverse
marketing, cold calling and ad
chasing?
We believe there are four
pillars to creating an awesome
business development strategy
and when you are building a
business from scratch, you
have the perfect opportunity to
embed these practices early on.
Page 5
1. TECHNOLOGY.
Chances are, you’re building
your database from nothing
- and no one yet knows your
business name. Try researching
LAURA HOPES
tech that can support you in
getting your brand out there
in an innovative way. Consider Director
automation tools that can
streamline some of your more
time consuming activities such
as researching new prospects,
building your LinkedIn network Years in the
and building your database. recruitment industry
Herefish, Hinterview and Zero 14
Bounce are just a few products
Number of agencies
to consider.
worked with:
2. CONTENT. 50+
Marketing and Business
Development are now one and
the same.
EZ KHAN
So it’s important to ask Managing Director
yourself, what is your content
and engagement plan? How
will you engage with your
audience to build a strong
brand that is known for adding
Years in the
value?
recruitment industry
10
Number of agencies
worked with:
50+
You need to know what
problems you are fixing
and then fix them through
different types of content and
interactions. Webinars, videos,
networking groups, events,
Q&As, social media comments,
referrals and personal touches
are just a few things to
consider.
3. PLANNING AND
FOLLOW UP.
How will you then create your
content, who will you target
and how will you follow up to
ensure there is an outcome?
Each time you have a content
idea, you need to consider the
following:
• What is it?
• How will you create it?
• How long will it take?
• Who is the audience?
• What is the follow up?
• What is the outcome
expected/desired?
Page 6
Only once you have answered Remember, everything is
the above do you know business development now!
whether it is worth going How do you show up in your
ahead with. It’s especially networks? All interactions
important to consider your could lead to an introduction
follow up and outcome that may be your next client,
strategy here - you still need to your next placed candidate or
actively develop business! even your next employee. How
you show up is your personal
4. ANALYTICS. brand.
Finally, you need to be able
to analyse your data and
track your success. How
do you create a business
development plan over a 3-6
month period? How do you
track your progress with each
client? How do you create
consistency? What different
types of engagement will you
have with them? What makes
them convert? Your database
is key to record all of this, but
you may also want to consider
more visual tools to help you
plan each week and month of
business development.
Digital
Marketing
Starting your own recruitment for either clients or candidates
agency is a big deal, however to make contact.
contrary to popular belief,
marketing should not be one of In addition, ensure you have
your core focuses. Google Analytics set up to
track results. If you have time CHRIS SOUTH
This is not to say you should to do a bit of SEO basics, then
not take care of the basics – go for it – it will help you in Managing Director
you should – however as a the long run. However, do not
start-up, your marketing efforts go overboard here. Trying to
should focus on your personal compete with more established
brand initially. recruitment firms on Google is
going to be very hard initially.
SO, LET US TALK BASICS Years in the
FIRST. Further, integrating jobs recruitment industry
Your business needs a name into the website is not as 10+
and a logo. Most of us are complicated as you may think;
Number of agencies
okay when it comes to thinking WordPress sites have ready- worked with:
of a name, but be aware you made integrations you can
50+
should check that the domain purchase, or these can be built.
name you’re looking for is
available and that no one else
is using a similar name, as
that can become expensive in
the future. My favourite way
of getting a logo together is
to use a service such as 99
Designs. These are inexpensive
and you get lots of different
ideas. From here, you can
either engage one of the
freelance designers to build
this out further or engage a
dedicated agency to do this for
you.

You also need a website, and

this website should have jobs
on it, and, provide an easy way

Page 7
Other key items on the basics say by the time you hire your There are exceptions to this, of
list include business cards, a fourth or fifth recruiter), then it course. I have seen some start-
LinkedIn company page with is time to consider marketing up recruitment agencies invest
the associated branding, your your business in addition to heavily in their brand from day
email signature and some yourself. one, but they are usually those
material that you can send out that have multiple directors and
to prospects (for example, a There are a couple of good strong financial backing.
capability statement). If you reasons for this:
really want to go all out, then
buy yourself a branded t-shirt 1) you will hopefully have a
as well! little bit more time or the ability
to pay someone to assist you,
From a marketing perspective,
if you have chosen to go it and 2) you should have the
alone, you likely have a strong funds available to support a
client and candidate network marketing budget.
already in place. These people
know you because of you – not
because of who you worked
for. I recommend leveraging
the advantage of this brand
capital by continuing most of
your messaging from your own
channels, primarily LinkedIn.
Once you are ready for some
growth and are beginning to
think about hiring (I normally

Page 8
Brand
If you are setting up your own 3. PERSONALITY –
business, then I suspect you are
Your uniqueness, your voice,
already a successful recruiter.
your values, your character,
Things are going to be slightly
beliefs and traits.
different from now on because
you’re dedicating more time to
Packaging this together is key
working ‘on your business’. But in
to effective personal branding.
the early days, your track record,
I would be lying if I said it is DAVID
the service you deliver and how
easy but the more you look
well you sell, and market, are key. WOLSTENHOLME
inwards and the more you plan,
experiment and test online and
You will hear recruiters talking
offline- the better the results. Founder
about ‘building your personal
As the old saying goes - what
brand’. But, how on earth do you
you put in; you will get out.
build your personal brand? Firstly,
you need to dream big.
Some start-ups get fooled into
What is your vision? Why not
thinking content marketing
aim to be the ‘celebrity’ recruiter Years in the
and branding is the answer recruitment industry
in your niche? Get crystal clear
to all your worries. It is not 20
about what you want to be known
sales wins the business, but
for. Think of someone you really
admire who has a brilliant personal
personal branding done well Number of agencies
brand. Study them. They do not
can play the perfect support worked with:
even need to be a recruiter. You
act. And don’t forget, even 50+
the very best recruiters have
will get a sense of what they do
a fear of branding themselves
so consistently well. Then become
on places like LinkedIn. Much you, some will not care about
laser-focused on these three
of it is an ego thing. Take my you, and some might not even
things to build yours: Reputation +
advice- the quicker you get like you, the better you will feel
Visibility + Personality
comfortable with the fact that about making the leap. Wishing
1. REPUTATION - some people are going to love you great success.

Why do people buy from you, the

problems you solve, the impact of
your service and how you make
them feel.

2. VISIBILITY –
You are in the right places where
your ideal clients and candidates
hang out. You are consistent, give
them value and make them feel
like you can take them to a better
place

Page 9
Personal
Development &
Networking
Most owners and leaders of
recruitment companies spend
so much time developing their
teams and nurturing clients,
they leave minimal time and
energy to develop themselves.
Even the most experienced
leaders ‘don’t know what
they don’t know’ and can
always glean new ideas from
recruitment specific growth
and networking programs.
Leaders will often spend way
too much time working in the
business and only come up for
air to work on the business
during holidays or the end of
year break. This is when most
of us actually need to rest and
recuperate so we are fresh
and ready to keep inspiring our
teams and steadily growing the
business.
We then return to work and
quickly get dragged into
firefighting, meetings and the
ever-increasing workload of
administrative tasks that are
important but not contributing
to growth or innovation.
So that we don’t keep doing
the same things the same way,
we need to push ourselves to
attend relevant industry events
and development programs.
Page 10
Even if you think you know
the topic well and have many
years’ experience, you will
TONY HALL
always pick up a few key ideas
or actions that you know you
should implement but have not
Founder
yet done so.
There is so much to learn while
growing a high performing
recruitment company. As
a people-centric business,
recruitment firms are
very hands-on, constantly Years in the
challenging and require recruitment industry
consistent attention and 22
improvement.
Number of agencies
worked with:
Even with more than 22
100+
years of owning, managing,
consulting and researching
dozens of recruitment
companies, I continue to learn
more. I was worried I would
forget all the wonderful ideas, management, operations,
shortcuts, lessons and success quality, finance, technology and
factors, so I used the Covid- succession – all the key areas
driven border closures to that must align to build the
record a 10-part Recruitment very best recruitment practice.
Business Accelerator Program
to capture many years of Over the years I have found
knowledge and pitfalls of that the very best recruitment
growing a high performing leaders are always challenging
recruitment company. the way they are doing
business and are constantly
The low cost, very practical searching for small pearls of
and succinct program covers wisdom that help make their
planning, staffing, performance agency perform better, attract
and retain clients, candidates
and most importantly – quality
new staff.
Networking is the other highly
important activity recruitment
leaders must make time for –
with clients, candidates and
industry peers.
Whether in the emerging
online format or in person,
networking propels us out of
our isolated internal business
environment and helps us build
important relationships.
Networking, personal and
professional development
also contribute to our mental
well-being in many ways –
increasing important human
interaction, reducing the
anxiety associated with
unsolved issues and helping
us to feel we are constantly
learning and growing.
It could be argued that learning
and networking are the most
important activities leaders
should prioritise as it is proven
so many times over that – if we
do the same things the same
way, we will get the same
results.

We can learn more about the

market dynamics we only have
limited exposure to when we
spend so much time in the
office.

Our monthly Captain’s

Table Recruitment Leaders
Forum is designed to bring
together industry leaders to
constantly learn new ideas
for business growth and
improvement in a friendly and
inclusive environment that
combines both education and
professional networking.

Page 11
Technology
Investing in technology isn’t a
decision that you should take
lightly. Ideally, your tech will
be the foundation that holds
your business together and
therefore you need to find the
right toolkit for your agency. No
business is the same, meaning
that each tech stack should
be uniquely tailored to meet
the needs and goals of each
individual organisation.
It’s crucial to first establish
your current business process
along with your future goals.
This will allow yourself and
prospective tech vendors to
align your partnership vision.
As with everything, nobody
plans to fail, but most fail to
plan!
A Customer Journey Map
is a highly effective way to
establish each milestone that
you’re looking to automate,
from prospecting to placement.
This helps you to understand
what needs to be delivered,
who by and finally, how you
can streamline each stage with
your new technology.
Page 12
Wherever it’s possible to
automate low-level tasks
with tech, you should. There’s
so much of your process
that you can workflow and
automate to deliver great
customer service, increase
revenue, maximise ROI and
generally make your life easier. ANDREW RODGERS
Progressive businesses are
taking advantage of the great CEO & Founder
tools available to them in the
recruitment space.
Finally, never be afraid to ask
for help. You are an amazing
recruitment professional - not a
technologist! It’s OK to engage
someone to help you map out Years in the
specific business needs and recruitment industry
advise you on the best tech to 20
make your new business as
productive and profitable as Number of agencies
possible. worked with:
50+
Accounting
BuildGrowth accountants is an
accounting firm that specialises
in partnering with recruitment
and staffing firms to guide
them through their business
journey which starts at the
start-up phase.
When recruiters decide to start
their own business there are
a number of ways they can
structure their business. The
most common question we
get is ‘what is the best way
to structure my business?’.
There is no one size that fits
all. Each client is assessed
individually on what is the best
structure for their business and
individual needs.
The types of common
structures are as follows:
• Sole Trader
• Partnership
• Company
• Trust
• Hybrids of a combination
of the above
Each structure has pros and
cons. We look at the most
tax effective structure for the
business based on their goals
and plans for the future.
Page 13
A common question that we
get asked is ‘when should
a recruitment startup firm
engage an accountant?’
We believe at the start of
their journey. The common
pitfalls that recruitment firms MAURICE SUCEVIC
get themselves in when they
don’t engage an accountant, Founder/Owner
is that they don’t have a
good understanding of the
performance of their business
and ensuring that they are
accounting for all their liabilities
correctly.
Years in the
A common mistake a recruitment industry
recruitment firm makes is that 8
they don’t register for payroll
tax when they exceed the Number of agencies
worked with:
15+
threshold. With temporary
contractors this threshold is
easy to exceed in the first
couple of years of trade.
Another common question
that recruitment startups ask
is ‘what is the best way to pay
myself?’ This comes back to
how the business is structured.
Page 14
With a company structure These services include:
there are three ways to pay
themselves. • Bookkeeping
• Tax Compliance
• Wages/Salaries • Tax Planning
• Dividends • Advisory Services
• Repayment of a Loan if • Virtual CFO services
they put money into the
business
As an accounting firm that
specialises in the recruitment
industry, we are able to provide
a full range of accounting
services.
Legal
Providing temporary services
is different from providing
permanent recruitment services.
Unfortunately, many agencies
start a temporary services
business without thinking about
the longer-term consequences
and risks,and, using cut and
paste legal documents is a tell-
tale sign that an agency does not
recognise the risk that comes
with on-hire models.
Your temporary worker services
are the sourcing, on-hiring and
managing of the temporary
worker. The temporary worker is
usually your employee, or they’re
a genuine independent contractor
running their own business.
Where it gets tricky is who has
responsibility for what?
And, it gets even trickier, because liable to pay for that? Is that
the law on who is an employee
vs. an independent contractor is
very complicated. For instance,
just because you call someone an The ‘legals’ are often left on the
independent contractor doesn’t
mean they are.
As a temporary services
agency, you have a whole raft of
obligations – paying employees
correctly, of course, and
complying with employment,
safety, tax and workers
compensation laws. And,don’t
forget labour-hire licensing.
If you genuinely engage
independent contractors, you will
still have to comply with many of
these areas of law.
Page 15
When it comes to your Terms of
Business and client contracts, the
staffing model complicates who
is responsible for what.
Your services are not what that
temporary worker does for
the client under its direction,
supervision or control.
MARTIN
Not being clear on whether RICHARDSON
you’re legally engaging
employees or independent Founder
contractors and mixing up
your services with the work of
your on-hire workers exposes
agencies to the risk of legal
claims.
Years in the
Think of an engineer provided recruitment industry
as a temporary worker to help 7
a client design a bridge. If that
bridge fell over due to poor Number of agencies
design, should the agency be worked with:
50+
staffing agency an engineering
company? agencies.
Get a plan together and ensure
to-do list. We get it. However, as you grow, your compliance risk
compliance is not something doesn’t also increase.
to think only applies to ‘big’
Payroll
Management
Whether you’re a perm or
contract recruiter, having
the capability to provide a
contractor payroll solution for
your customers is not only
going to support your growth,
but the future value of your
business (you may want to
consider what the end goal is).
However, managing temps
and contractors is never easy,
so my recommendation is to
find a payroll partner you can
outsource this function to.
WHAT ARE YOUR
OPTIONS?
HOW SHOULD YOU
CHOOSE THE RIGHT
PROVIDER?
The first question I am always
asked is, ‘what’s the fee?’
Whilst a competitive price is DARREN COTTRELL
important you should equally
be exploring the services Senior Consultant
and other qualities that your
potential partner will bring.
Remember, they’re going to be
an extension of your business
and will be speaking to and
paying one of your biggest
assets – your candidates. Here Years in the
are some questions to help you recruitment industry
choose wisely: 10

1. CONTRACTOR Number of agencies

MANAGEMENT – worked with:
100+
This is where the outsource
provider will hold the
contractor’s employment, cover
the insurances and manage the
end-to-end payroll.

2. PAYROLL
MANAGEMENT –
This is where you hold the
employment and cover
insurances whilst the
outsource provider manages
the associated admin and
payroll compliance for you.

Page 16
1. DOES THEIR TECH
STACK INTEGRATE
WITH YOUR ATS AND
ACCOUNTING PACKAGE?
This will save you and your
accountant time (and money).
2. WHO’S RUNNING YOUR
PAYROLL?
Ensure the actual person
who is going to be running
your payroll has specific
on-hire payroll experience
and preferably within the
recruitment industry.
Page 17
3. WILL YOU HAVE A
DEDICATED ACCOUNT
MANAGER?
Having one point of contact
makes yours and your
candidate’s life so much easier.
4. DO THEY OFFER
ADDITIONAL SERVICES?
Consider what other services
you require - payroll funding,
bookkeeping, credit checking, ‘
Bad Debt Protection’ (removing
your risk of non-payment).
5. CAN THEY SUPPORT
YOUR FUTURE PLANS?
Do they have the capacity to
fund a larger contractor payroll
or can they move you from an
outsourced payroll to inhouse
etc.
FINAL NOTES.
I hope this provides you with
a helping hand in choosing the
right partner. Implementing
a payroll solution should not
be stressful, and by engaging
a reputable company like
APositive Payroll you’ll be
on your way to building a
successful temp and contractor
agency in no time
Finance
WHAT FINANCE OPTIONS
ARE THERE FOR START-UP
RECRUITMENT & LABOUR
HIRE BUSINESSES?
For those starting up a
recruitment or labour hire
business, there are 2 types of
funding requirements;
• Start up capital - Laptop,
phone, software, and other
set up costs.
• Cash flow.
Bootstrapping is quite common
for those starting with perm
placements but labour hire
and contracting come with
the added burden of having
to fund a growing payroll.
As hiring businesses mostly
trade on a negative cash cycle,
where payroll is paid before the
customers pay their invoices,
funding is needed to cover that
gap. The most common finance
options to help here are:
• Owner’s cash or loans
from family/friends.
• Bank overdraft.
• Invoice Finance or Payroll
Funding.
Page 18
WHAT ARE SOME OF THE
KEY CONSIDERATIONS
WHEN DECIDING ON
WHICH OPTION IS BEST
SUITED?
• Weighting of Perm v. Temp
and the implication of this
on cash flow- Can you use
perm fees to help cover DANNY MARLOW
payroll for example?
Co-Founder & CEO
• How much do I need?
- It helps to forecast and
budget based on projected
sales levels and customer
payment terms. A simple
calculation would be
estimating your weekly Years in the
payroll and multiplying that recruitment industry
by how long you think your 20
customers will take to pay
your invoices. Number of agencies
worked with:
• What security am I willing 100+
XXX
to put up - e.g. my home
or other property? Or, do
I want to keep my personal
assets separate and safe?
HOW DOES PAYROLL
FUNDING DIFFER FROM
INVOICE FINANCE?
Invoice finance is a generic
standalone product where
funding is created by advancing
cash against invoices raised
for services provided. Payroll
funding is based on a similar
concept of funding against
invoices but is integrated into
the operational processes and
systems of the hiring business.
Page 19
HOW DOES IT WORK
ONCE THE FACILITY IS SET
UP – IS IT LIKE A LINE OF
CREDIT?
Payroll funding can run in
various forms depending on
the client’s systems, processes
and funding needs. It can
also depend on whether the
business manages their
payroll in-house or chooses to
outsource it. It can run as a line
of credit, a come and go facility
to access cash only when you
need it, or, you can automate
the funding to ensure cash is in
your bank on a certain day each
week in time to pay payroll.
WHAT ABOUT PERM
RECRUITMENT - WHAT
ARE THE OPTIONS FOR
FUNDING?
Similarly, you can start out with
your own cash, credit cards,
fintech loans and overdrafts.
They all come with varying
costs and relative funding
limits.
For a low or no cost option to
get your invoices paid quicker,
to help with cash flow, you can
consider APay – a ‘Recruit Now
Pay Later’ instalment option.
If you get your customers to
take up an instalment option
for your perm fees, you can
get your invoice paid to you in
full upfront while the customer
pays it off.
These types of arrangements
ensure that your customers’
cash flow needs don’t impact
yours.
Compliance
5 THINGS TO KNOW FOR
CONTINGENCY STAFFING
BUSINESSES?
• Cash is King –
having your cash flow under
control when you’re starting
out is key. Make your clients
aware that you are a start-
up and getting paid on time
is important. Try to keep to
7-day terms, keep a close
eye on this area, by ensuring
timesheets are completed on
time, and make sure you coach
the candidates to get that
information. From your side
send invoices out promptly and
nail down that process. Start as
you wish to continue.
• Extend the relationship -
don’t just get to know the user
or buyer but also get familiar
with the account’s payable
personnel. Build a relationship
and be open about your journey.
• Make sure your tech stack
is right for your business and
working well
• OHS - know what you’re
getting yourself into in regards
to safety and making sure
workers are safe. Ensure you
have the right licensing for the
states you will operate in.
• Nail the process - ensure
that all requirements are met
such as medical, drug and
alcohol testing etc
WHERE DO NEW
COMPANIES GO WRONG?
• Not understanding how or
what they should be paying.
Getting calculations right,
getting rates right.
Page 20
• Most problems come
from the beginning of the
business - the business
transactions are key
• Not calculating rates
properly, ensuring you are
registered for workers
compensation and the
rates are aligned with the
workplace requirements. COL LEVANDER
Mistakes can be made here.
• Don’t race to the bottom! CEO
Try not to go too low on rates
and forget the important
things along the way
• Technology is critical,
as is market knowledge.
Startups are keen to get
out and get into all markets, Years in the
but knowledge is required recruitment industry
and legislation governs 30
requirements.
• Front office systems
Number of agencies
worked with:
can’t support contingent
staffing business so don’t
60+
get distracted by shiny new
items. Find a tool that works
WHAT ARE THE REAL
for you and the business for GOTCHAS? FROM A
now and into the future. COMPLIANCE POINT OF
• Don’t think a payroll VIEW?
system is going to solve all
• It’s a complex landscape
your problems. Rules still
from an industrial
have to be established inside
perspective and where
the system and it’s your
companies fail is in training.
responsibility to know how to
Don’t underestimate
drive it
the importance of
• When selecting a system
understanding the numbers
you need a future plan
and sharing that with
for growth. Growing and
consultants.
planning and ensuring the
• You need to do things
systems talk and integrates is
profitably, managing teams
of most importance.
and putting a structure
in place regarding the
approach to market
• Don’t assume consultants
know what to do. Impart
knowledge and use tech to
help
HOW CAN COMPANIES BE
PROFITABLE?
• There are many
organisations that are
not putting a margin on
allowances, it’s surprising
how many don’t do it.
• Ignoring the cost of money
and debtor funding
• Money costs money and
this needs to be factored
into all the pricing
• Getting rates right and
being compliant
• Invoicing for costs to the
client also need to factor
in a margin as an admin or
management fee
• Rounding the costs up, it’s
easy and neat plus clients
won’t argue about small
amounts.
• Partnerships with clients
are important and it has to
be a two-way relationship,
a lot of work goes into
getting that client.
Page 21
HOW DO YOU SEE THE
NEXT 12-24 MONTHS?
• There are amazing
opportunities out there, as
we know there is always
opportunity from disaster.
• Flickers in the embers -
work hard and work out
who you want to work with
• Credit checks are
important as things are
getting tight and it’s best
practice going forward
• Partner with other
organisations that
complement your business.
People on the same
journey with a different
offering and different
services could lead to more
credibility.
TIPS & TRICKS WHEN
LEAVING BIG AGENCIES?
It’s a big change and a
different kind of hard work
as you have to wear 20
different hats, at once!
You will no longer
have access to various
departments and
documentation takes time to
set up.
Industry organisations
eg: RCSA, APSCO have
resources that will save
you time. When you are on
your own there is no one
else to do the work for you.
For example just building
a website is a huge task
but as you know, it’s an
important sales tool.
WHAT DOES RATESCALC
DO?
I built Ratescalc because I
managed to get my nose
under the bonnet of lots of
different tech in the market
and no one had solved
the problem. At the time,
many said I was insane or
a genius. The landscape
changes are important and
Ratescalc handles that and
more (including employment
schedules) and we integrate
with the majority of players
in the market.
A recent in-depth case study
from of our clients revealed
the savings of Ratescalc
can make to even a small
business are around $70K
per year. And, for the cost of
$2K, it’s a no brainer.
For that amount, you’re
getting years of experience
from those who know the
market. We pride ourselves
on getting it right and
supporting the industry at
the same time.
We are always here to help
and understand that it’s a
lonely road when you’re
starting out. I personally
have done it 7-8 times and I
wish everyone the very best.
Insurance
WHAT SHOULD EVERY
AGENCY SHOULD
KNOW WHEN BUYING
INSURANCE?
There’s no one size fits all
insurance solution for the
industry, each agency will
need their own insurer. Online
insurance generally won’t
cater for an agency that is on
hiring workers (restricted to
permanent placement only).
Premium is also only directly
linked to first year estimated
turnover so be as realistic
as possible about these
estimates.
WHICH INSURANCES
MUST AND SHOULD
EVERY AGENCY HAVE?
Statutory insurances such as
workers compensation and
motor vehicle third party.
As well as all contractually
required policies under any
landlord or client agreements.
As a minimum, you should
have public liability and
professional indemnity as most
clients will expect you to have
these (PL/PI).
Page 22
An agency should also
preferably have management
liability and cyber insurance
(ML/CI).
As you scale, consider property
(laptops, phones, office
equipment etc.), travel and
employee protections. MARK LAUDRUM
WHAT SHOULD THESE Head of Commercial
INSURANCE POLICIES
COST?
Roughly, expect to pay the
following in your first year:-
• Perm only and consulting
$2k (PL/PI) Years in the
recruitment industry
• White collar on hiring 14
$3-4k (PL/PI/ML/CI)
Number of agencies
worked with:
• Blue collar on hiring $6-8k
(PL/PI/ML/CI)
50+
• Nursing on hiring $6-8k
(PL/PI/ML/CI)
• Medical on hiring $7-10k
(PL/PI/ML/CI)
WHAT DO WE AS AN
INSURANCE BROKER AND
ADVISER CHARGE YOU?
Insurance brokers generally
earn an income through a
combination of broker fees
as well as a percentage
commission of the premium.
We choose not to receive any
commission and charge a flat
fee of $660 (including GST) to
arrange your policy(s).
Page 23
WHAT SHOULD YOU ASK HOW DO I GET A QUICK
OF YOUR INSURANCE QUOTE?
PROVIDER?
After an initial meeting or
• Am I covered if a phone call discussion where
permanent candidate makes we’ll gather the necessary
a mistake once working with information about you and your
my client? business.
• Am I covered if an agency
worker injures one of my
clients’ employees?
• Am I covered if an agency
worker gives bad advice to a
customer of my client?
• What happens if one of my
on hired agency worker’s
assignments finishes early
and they take me to the Fair
Work Commission?
Measuring your
success
THERE ARE SO MANY
DIFFERENT METRICS
THAT CAN BE MEASURED,
WHAT ARE THE KEY ONES
THAT YOU ADVISE START-
UP OWNERS TO FOCUS
ON IN THE EARLY STAGES?
1. Cash
2. Debtor days
3. Income v expenditure
4. Productivity – bang for your
buck
HOW DO START-UPS
KNOW IF THEY ARE DOING
WELL IN AREAS GIVEN
THEY DON’T HAVE ANY
HISTORICAL DATA TO
BENCHMARK AGAINST?
Staffing Industry Metrics has
developed a special dashboard SPEND ENOUGH TIME
and cost effective service for
start-ups. We can import &
display your financial data from THEM WITH THEIR TEAM?
concept or from right now, we
just need your P&L.
You can view historical industry
comparisons at the touch of
Page 24
a button and you can monitor
your progress with ease using 16
instant reports.
Providing data is quick and simple,
and regular quarterly online
meetings help you get the best NIGEL HARSE
from our platform and my valued
insights into what your data is Director
telling us.
DO THE METRICS CHANGE
AS THE BUSINESS
MATURES?
Yes, they do and it’s easy to
compare as you grow, headcount Years in the
filters provide peer comparisons recruitment industry
43
DO YOU THINK AGENCY
Number of agencies
FOUNDERS TYPICALLY
worked with:
UNDERSTANDING THEIR 100+
NUMBERS AND SHARING
No, they often don’t see the value
WHAT BROADER ADVICE
or importance of understanding DO YOU HAVE FOR
their numbers and without doubt, SOMEONE THAT IS ABOUT
few have the foresight to treat TO START AN AGENCY IN
team members as investors. THE CURRENT MARKET?
Don’t get too far ahead of
yourself, don’t spend more
than you have planned and
remember cash is king. Build
robust processes that can be
easily automated and wipe out
any double handling. Be fair,
effective and objective in all
that you do.
 I nvo ic e Payroll Payroll
F in a n c e Funding Man age me n t Rec ru i te rs g e t
pa i d u p f ro n t .
Unti e the Confident ly G row you r E m pl oye rs can
mo ney i n meet payroll , on b u s i n es s, w h i l s t pay by
unp ai d i nvo i c e s t ime, ever y t im e we t a ke c a re of i n s t a l me n t s.
th e res t.

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