Do you work in recruitment? Are you the enterprising sort that has always wanted to be your own boss? Starting your own recruitment business may be the move for you, provided you have an established professional network and a few years of experience in the industry. This article will cover some legal and commercial factors you may want to consider before starting your journey. <\/p>\n\n\n\n
You can think of a business structure<\/a> as the legal framework your business will operate under. The four most common business structures are:<\/p>\n\n\n\n Sole traders and general partnerships are unincorporated structures. Limited companies and LLPs are incorporated.<\/p>\n<\/div>\n\n\n\n There are various advantages and disadvantages of each business structure. The structure best for your business depends on certain factors, including:<\/p>\n\n\n\n For some sectors, especially those in the professional service industries (law, accounting, finance, and consulting), your clients expect to contract with incorporated businesses. However, if you are not incorporated, you may have to jump through more hoops to secure contracts. <\/p>\n\n\n\n Additionally, if you intend to employ others, it is generally easier to trade as an incorporated business<\/a>. Finally, it is usually easier to raise financing through a limited company. <\/p>\n\n\n\n From a legal perspective, be aware of the implications of being a sole trader versus trading through an incorporated company. <\/p>\n\n\n\n As a sole trader or partner in a general partnership, there is no distinction between your personal assets and your business\u2019 assets. Suppose you accidentally revealed sensitive client information and the client pursues an action in Court. Then, the Courts might use your personal assets to cover the cost of any damages awarded by a court. <\/p>\n\n\n\n On the other hand, if you trade through a company (or, less likely, an LLP), there is a legal barrier between your personal and business assets. Absent fraud or certain other forms of misconduct, the Courts can only use the business assets to settle a claim or pay any debt. <\/p>\n\n\n\n As an industry, recruitment is comparatively \u201casset-light\u201d. Hence, you need a few assets upfront to start your recruitment business because you are selling a service rather than a product.<\/p>\n\n\n\n Additionally, to date, it is mostly an unregulated market (except for regulations surrounding data and privacy rights), which means you do not need any certification to start trading. <\/p>\n\n\n\n Nonetheless, nearly all businesses benefit from establishing a well-contemplated business plan from the outset. You can think of a business plan as a road map to follow for the first couple of years from when you launch your business.<\/p>\n<\/div>\n\n\n\n When developing your business plan, consider the following questions:<\/p>\n\n\n\n Your financing plans are a crucial element of your business plan and should be considered. However, if you intend to start your business solo, you only need to provide for yourself. You may not need to consider raising outside finances if you have sufficient savings. For example, if you have a large book of clients and an established position in the market, you most likely will not need to raise funds.<\/p>\n\n\n\n On the other hand, you might intend to make several upfront hires and want to start your business with a sophisticated database and IT system. In that case, you may need to raise additional money from outside sources. <\/p>\n\n\n\n Some general matters to consider include:<\/p>\n\n\n\nSole Trader vs Incorporated Company <\/h4>\n\n\n\n
Developing a Business Plan<\/h3>\n\n\n\n
Financing Considerations<\/h2>\n\n\n\n