Business Plan Hunters Recruitment Agency

MBA Application - IBAT College

The following is a sample Business Plan for a Recruitment Agency for the first year of operation. Carlos R. Boccardo January 20, 2012

Business Plan Hunters Recruitment Agency

Table of Contents
Executive Summary ................................................................................................................................ 2 Business Concept ................................................................................................................................ 2 Company Overview ................................................................................................................................ 3 Business Description........................................................................................................................... 3 Business Name ................................................................................................................................... 3 Mission and Vision.............................................................................................................................. 3 Strengths and Core Competencies ..................................................................................................... 3 Challenges .......................................................................................................................................... 3 Marketing Plan ....................................................................................................................................... 4 Market Description ............................................................................................................................. 4 Market Analyses ................................................................................................................................. 4 Market Audience and Niche ............................................................................................................... 5 PESTEL Analyses ................................................................................................................................. 6 SWOT Analyses ................................................................................................................................... 7 Client Development Strategies ........................................................................................................... 9 Website Development ...................................................................................................................... 10 Unique Selling Point ......................................................................................................................... 10 Strategies to Grow Sales and Revenue............................................................................................. 11 Organisational/HR Plan ....................................................................................................................... 12 Structure ........................................................................................................................................... 12 Personnel Experience and Skills Required ..................................................................................... 12 External Advisors ............................................................................................................................... 14 Financial Analyses ................................................................................................................................ 15 Start-up Expenses ............................................................................................................................. 15 Targeted Costs .................................................................................................................................. 16 Profit and Loss Projection................................................................................................................. 18 Break Even Analyses ......................................................................................................................... 19

Business Plan Hunters Recruitment Agency 1. Executive Summary Business Concept

The concept behind Hunter Recruitment is to place in the work market young adults searching for their first relevant job after a certain level of qualification. On their way out of college, university, independent courses or even after some experience, this prospects are ready to hunt their initial work experience and eager to put into practice what they have been focus on for the previous few years. Here are some points that will be analysed: Hunter Recruitment will provide job opportunities to young adults and new entry level personnel. Hunter Recruitment will seek a niche in the market that is full of opportunities but still overlooked by the competition. Located in a fast growing business area. First time jobs and out of University prospects. Connection between University and companies. To go to the Prospects at the place they are most comfortable at: their colleges.

Business Plan Hunters Recruitment Agency

1. Company Overview

Business Description Hunter Recruitment is a Recruitment Agency specialised in first time jobs and work placement for college students, who can put their academic learning to the test working in their field of expertise.

Business Name Hunter Recruitment Hunter Recruitment is a concept that empowers the agency and says that we will help prospects to look for their first job. To actually Hunt for a job is a common expression, and we want to send the message that this business will do this task for them.

Mission and Vision Mission: To Provide work placement to all college students and people looking for opportunities in a new market. Vision: To provide employment to all who seek. Believing that there is a job out there for everyone, end unemployment and fulfil the dream of the first relevant job. Strengths and Core Competencies Strong knowledge of a very challenging market. Very promising, nevertheless. Focus on a specific niche of the market that possesses strong and beneficial features to the success of the business. Technology will maximize time management and bring clients.

Challenges Hunter Recruitment will have a challenging situation in developing its brand image and attracting customers due to the presence of local and city wide competition.

Business Plan Hunters Recruitment Agency

2. Marketing Plan

Market Description A recruitment Agency can be defined as a facility that is intended to provide the link between job prospectors and companies that need personnel. On todays challenging world, the gap between people and their ideal job can be very wide and Hunters Recruitment is the bridge that links these two entities together.

Market Analysis The Last census has revealed that the actual population of the Dublin County area is 1,270,6031, comprising Dublin City, Dun Longhaire, Fingal and South Dublin. According to the CSO (Central Statistics Office) 588,600 people are in the ages of 15 and 74 years old, apt for the workforce2 in the Dublin area. Out of that number, 73,500 were unemployed in the first quarter of 2011. We can see a graphic representation of our potential market in the Dublin Area.

Dublin Area Population

12%

Unemployed Population Employed population

88%

1 2

Source: http://www.rte.ie/news/2011/0630/censustable.pdf (accessed January 18, 2012) See complete statistics report in the appendix for further information. Source CSO http://www.cso.ie/en/media/csoie/releasespublications/documents/labourmarket/current/qnhs.pdf (accessed January 18, 2012)

Business Plan Hunters Recruitment Agency

And on a more specific note, the Irish Times has reported that, according to the CSO, 62,400 Irish Graduates are unemployed with 110 of these graduates leaving Ireland every day3 in search for a better job opportunity abroad.

Market Audience and Niche In the current economic climate, where the rate of unemployment is an all-time high, the market for recruitment agency is potentially vast and full of prospects. In other hand, companies are downsizing and closing down so the number of job offers is scarce and reduced. The combination of these two factors can lead to the unbalance of clients and impose a difficult situation to the company. The niche that the agency will focus is college students and fresh out of the university professional. These young adult candidates have a strong desire to succeed and are eager to learn and apply the theoretical knowledge receive. Another fact that contributes to the success of this specific group is that due to the lack of experience in the actual business world the prospect will settle for a lower wage than a mature professional, in exchange for training and development. Besides the saving on the salary paid to young professionals, companies can also benefit from the fact that they can model and train these new members to their own standards and norms while they grow in knowledge and productivity. Hunters Recruitment agency will provide the link between these two institutions and will guarantee that both sides feel successful in their choices.

Source: http://www.irishtimes.com/newspaper/features/2011/0926/1224304750575.html (accessed January 17, 2012)

Business Plan Hunters Recruitment Agency

PESTEL Analyses

Political

Economical EU Economy. Irish Recession. Unemployment rate at 14.4%.

Social

Department of Jobs, Enterprise and Innovation: Employment Agency Act 1971. EU directives to Employment Agencies. Registering the business name in the CRO. City and County enterprise boards can support business with grants to start up and development. Register for PAYE and PRSI.

Inclination towards the internet information. High use of social networks among targeted market. Change in Population demographics. Emigration to find better work opportunities.

Technological

Environmental

Legal

High usage of internet among prospects.

Energy cost and consumption. Waste disposal - Recycling. Environmental regulations.

Employment Laws. Advertisement and competition laws. Health and Safety Law. Mobile phone and Driving policies. Taxation.

Growth of advertisement in social networks and other internet tools. Speed of data transfer and capacity of data storage. Real Time Communication

Business Plan Hunters Recruitment Agency

SWOT Analyses

Strengths: Knowledgeable and results driven management with a strong approach to a challenging market. No cost to prospect, low cost to company. Easy accessible technology to help with the process. Company will hire qualified and train staff to the highest of the standards.

Weaknesses: High cost of trained and qualified professionals to work in the agency. High cost of promotional material to attract first pool of customers. Location can be far to some of the prospects to travel to. Not a central location.

Opportunities: Market in need of a more focused approach. High unemployment rate can mean more prospects and more quality professional to offer to companies. No competitions focus on the same market niche. Since prospects are still inexperienced in the market, companies will be able to offer a lower pay rate and train them according to the companys culture

Threats: High rate of business closures in Ireland can reflect in a lower in opening positions available in companies. The easy access of internet for different sources of job opportunities, including competitors websites and governmental entities.

Business Plan Hunters Recruitment Agency

Graphical Representation of SWOT

Knowledge will lead to a more focus on the market High unemployment rate will make people look for jobs No strong competition focus will give the agency the advantage of gaining market share. Technology will boost companys exposition. Team will be ready to gain a high potential market. Will focus more on companies as prospects than on job applicants. Use the internet and other marketing promotion tools to maximize exposure and overcome competitors advantages. Low cost service will attract more companies to our business.

Use of constant training techniques to insure our personnel are focused and specialised in what they do. Use of technology to overcome locations limitation and diminish the travel time to customers. Use of internet, e-mail, social networks and telephone to get to our potential clients, and lower the costs of other promotional material. Search for opening businesses and high volume businesses to offer our services. Advertise on the internet to catch the attention of internet users.

Business Plan Hunters Recruitment Agency

Client Development Strategy It is imperative to understand that a recruitment agency has two distinct types of client: the companies that will hire the services and pay for them and the job prospects that will fulfil the positions opened for these companies. Therefore, different approaches should be taken to reach each one of them effectively. For companies, the following Marketing Mix strategies will be applied: Product: The companies will have a high level of trained prospects to choose from selected by Hunters Recruitment to their appreciation. Place: Hunters Recruitment will visit the companies in their own environment for a more personalised service, but always having its doors opened to clients. Price: The Price penetration strategy will be put in place, until the brand is established in the market. A low cost/high quality service will be provided. Another strategy use is instalment payments, where companies will pay a very low flat rate for use of service, then, if employee hired stays in the job, the company will pay the remaining of the balance in a few instalments until the fee is all paid. Promotion: Hunters recruitment will mainly use the internet as a promotional medium. Personal sales calls will solidify the relationship between the companies.

For Prospects, the following Marketing Mix strategies will be put in place: Product: A differentiated service directing the prospects towards companies that understand their profile and are willing to work with them. Consulting and direction towards the right goal will be part of the companys products as well. Place: Different places of approach will be applied: Direct Sale: The actual office located on Main St, Swords. Internet: The website will contain all the necessary tools for the prospect to register, display their skills and apply for jobs Outdoor Sale: The Recruitment agents will do weekly sales calls to universities, colleges, student unions and other facilities to advertise the company and the services provided.

Price: No charge to prospects Promotion: Hunters Recruitment will use the internet as a main medium of advertisement. Leaflets in strategic places and radio advertisement will be also applied since the beginning of the operation. In the future, magazines and Television will be considered.
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Business Plan Hunters Recruitment Agency

Website Development Due to the nature of this business, website development is a crucial part of the implementation and success of the enterprise. The website should comprise of three different portals: For job prospects a place of interaction with the agency and to search for the offered jobs. The portal will have a place for personal information and CV entry, as well as an interactive chat with the agency if the prospect chooses to do it online. This tool will put the agency in a geographic advantage to competitors and attract more clients due to the easiness of the process. For companies A place of interaction with the agency as well as interface with potential job applicants For the agency The portal will interact with both prospects and companies portals and provide a cross reference of both clients needs and searches.

Another feature of the website will be a strong connection with social networks such as Facebook and twitter and will give the option of linking social network profiles to the website so the information shared is more complete and easily distributed. The easier the access and the more user friendly it is, the more people will be inclined to join and to use the portal, creating a large gama of job prospects. Companies will be able to advertise in the website as well, generating a combination of service provided. The creation and development of the website will be provided by an independent company, who will provide data storage and technical support to the website.

Unique Selling Point In the perspective of companies as clients, Hunters Recruitments Unique Selling Point is the Low Cost/high quality service. The quality of job prospects is proven by the fact that all of them are finishing a high level education and are ready to put their skills to practice. The low cost can be shown in two different ways: Since the prospects are relatively inexperienced in the work market, they will settle for a lower salary in exchange for experience. Also, the instalments payment plan will provide the company with more time to turn the employee into profit. For the prospects, the fact that Hunters recruitment work with companies that understand their profile and are willing to give them the opportunity to grow in experience, will represent peace of mind when looking for a job and going to interviews.

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Business Plan Hunters Recruitment Agency

Strategies to Grow Sales and Revenue The goal for the first year of operation of Hunters Recruitment is to increase and have a large portfolio of both companies that will utilise the recruitment services and a large potential workers list, which can attend the necessities of companies in our portfolio. To achieve these goals and bring more sales and revenue to the recruitment agency the following strategies should be put into practice: High volume of personal sales calls and visits to companies. The higher the volume of clients, the higher the sales and profit. Have always a vast number of job prospects to offer straight away to companies. Decreasing the sale cycle time helps the agencys credibility and giver timer to work on other projects. Be always attentive to the market and focusing on new companies to provide the recruitment services. New companies always need a higher volume of personnel. Bundle offer: Giving incentives to companies that request a high volume of employees.

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Business Plan Hunters Recruitment Agency

3. Organisational/HR Plan Structure The structure of Hunters Recruitment agency will be as follows:

General Manager

Office Adminitrator Recruitment Agent - Prospects Recruitment Agent - Companies

Personnel Experience and skills required General Manager Being able to excel both in customer service and business running areas of the company, the General Manager has to bring a wealth of experience to the service provided, and understand the industry as a whole. People and managerial skills are a must to this role. The General Managers position will require a close interaction with both sides of the recruitment process and the ability to promote and drive all sectors of the company.

Office Administrator A key position in the company, the office administrator position demands extreme organizational skills and attention to details. Some of the requirements to fulfil this position are: Business or Executive Secretarial graduate. Organisational and decision making aptitudes.
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Business Plan Hunters Recruitment Agency

People and customer service skills. Ability to work in a group environment and promote team work. Multitask.

To put the philosophy of the company into practice, the Office Administrator position should be sourced in the colleges or universities that the Recruitment Agency intend to work with in the near future.

Recruitment Agent Prospects - This position is essentially the face of the corporation and requires a driven and outgoing personality. The recruitment agent should be able to blend in and empathize with young job prospects and lead them to the right path to find their future job. Some more characteristics of this position are: Business graduate. Interpersonal skills. The agent should be outgoing and bring personality to work. Sales skills and techniques. The agent should display great aptitude to sale and apply effective sales techniques. Multitask.

To put the philosophy of the company into practice, the Recruitment Agent position should be sourced in the colleges or universities that the Recruitment Agency intend to work with in the near future.

Recruitment Agent Companies - This position is essentially the face of the corporation and requires a driven and outgoing personality. The recruitment agent should be able to display professional communication skills and be able to perform well in a business environment. Some more characteristics of this position are: Business graduate. Interpersonal skills. The agent should be outgoing and bring personality to work. Sales skills and techniques. The agent should display great aptitude to sale and apply effective sales techniques. Multitask.

To put the philosophy of the company into practice, the Recruitment Agent position should be sourced in the colleges or universities that the Recruitment Agency intend to work with in the near future.

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Business Plan Hunters Recruitment Agency

External Advisors Since the business is on a starting point and is still a very small business, some of the essential service providers will be outsourced. Here are the services that will be required by the Recruitment agency: IT A company will be hired to install computers, link the network and manage the interface and data storage. More importantly, the maintenance and care to hardware and data protection and storage that this company can provide will be beneficial to the integrity and importance of the information and data gathered by the Agency. Website Developers Business Design Solution will develop the website and host the domain for the first year of operation. Their services should include: Advance CMS That helps your website to get updated in few seconds One year/12 months registration of .com domain Professional email accounts Copyright images Up to 1 GB Website Hosting for one year/12 months Technical Support Committed Account Manager Enquiry Form Flash Header Design MSN Link Submission Yahoo Link Submission Google Link Submission

Marketing Outsourced marketing service will provide the marketing foundation to develop the company and gain market share in the beginning of the operation, since there is no volume of work to have an in house professional. A marketing company should bring: Creativity to develop, improve and expose our brand. Innovation to brand and business. Focus on target market Relationship between the agency and media sources.

Accountant /Payroll to ensure that the agencys set up and yearly tax assessments are correct and according to the laws and regulations. Legal To assist in any eventual legal matter and consult the agency to insure it is following the law

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Business Plan Hunters Recruitment Agency

4. Financial Analysis Start-up Expenses The start-up expenses for Hunters Recruitment are summarised below:

Start-up Budget
Hunters Recruitment
Cash Needed to Start Monthly Costs Salary of owner-manager All other salaries and wages Rent Advertising and Marketing Travel Expenses Supplies Telephone Other utilities Insurance Maintenance Taxes, including social security Legal and other professional fees Miscellaneous Subtotal 4,500.00 5,225.00 2,000.00 1,400.00 700.00 300.00 400.00 260.00 275.00 200.00 425.00 1,600.00 500.00 17,785.00 14.5% 16.9% 6.5% 4.5% 2.3% 1.0% 1.3% 0.8% 0.9% 0.6% 1.4% 5.2% 1.6% 57.4% % of Total

One-Time Costs Fixtures and Furniture Decorating and remodelling Installation charges Computer and Technology Deposits with public utilities Legal and other professional fees Licenses and permits Advertising and promotion for opening Cash Other Subtotal $3,500 2,350 500 3,350 400 800 200 1,600 300 200 $13,200 11.3% 7.6% 1.6% 10.8% 1.3% 2.6% 0.6% 5.2% 1.0% 0.6% 42.6%

Totals

$30,985

100%

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Business Plan Hunters Recruitment Agency

Targeted Costs The table below displays the targeted cost for the Agency.

EXPENSE BUDGET
Hunter's Recruitment Personnel Manager Office Assistant Recruiter Recruiter External Advisers IT Web Design and Maintenance Marketing Accounting/payroll Legal fees Office and Equipment Desks and Chairs Computer Equipment Rent Lightning and Fixture Office Miscellaneous Maintenance and repairs other Total Expenses Budget 4,500.00 1,425.00 1,650.00 1,650.00 Budget 350.00 700.00 1,400.00 300.00 250.00 Budget 1,500.00 3,350.00 2,000.00 2,000.00 1,000.00 1,000.00 500.00 23,575.00

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Business Plan Hunters Recruitment Agency

Targeted Costs Graphic

Hunter's Recruitment

Office and Equipment 48% External Advisers 13%

Personnel 39%

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Business Plan Hunters Recruitment Agency

Profit and Loss Projection (Quarterly) Year 1 The table below will show the targeted costs, sales and profit for the Agency for the first 12 months of operation, divided into quarterly projections:

Profit and Loss Projection (12 Months)

Hunter's Recruitment

1st Quarter

% B/A 85.7 9.5 4.8 100.0 100.0

2nd Quarter 39,000 7,000 2,300 48,300 48,300

% 80.7 14.5 4.8 100.0 100.0

3rd Quarter 58,000 11,500 3,000 72,500 72,500

% 80.0 15.9 4.1 100.0 100.0

4th Quarter 73,000 14,000 4,500 91,500 91,500

% 79.8 15.3 4.9 100.0 100.0

YEARLY 128,500 113,000 6,800 248,300 248,300

Revenue (Sales)
Sales Membership Consulting services Total Revenue (Sales) 27,000 3,000 1,500 31,500 31,500

Gross Profit Expenses

Salary expenses Rent Travel expenses Supplies Repairs and maintenance Advertising Other professional fees Telephone Utilities Insurance Taxes (real estate, etc.) Misc. (unspecified) Total Expenses

29,175 6,000 2,100 900 600 4,200 4,800 1,200 780 825 1,275 1,500 53,355

54.7 11.2 3.9 1.7 1.1 7.9 9.0 2.2 1.5 1.5 2.4 2.8 100.0

29,175 6,000 2,100 900 600 4,200 4,800 1,200 780 825 1,275 1,500 53,355

54.7 11.2 3.9 1.7 1.1 7.9 9.0 2.2 1.5 1.5 2.4 2.8 100.0

29,175 6,000 2,100 900 600 4,200 4,800 1,200 780 825 1,275 1,500 53,355

54.7 11.2 3.9 1.7 1.1 7.9 9.0 2.2 1.5 1.5 2.4 2.8 100.0

29,175 6,000 2,100 900 600 4,200 4,800 1,200 780 825 1,275 1,500 53,355

54.7 11.2 3.9 1.7 1.1 7.9 9.0 2.2 1.5 1.5 2.4 2.8 100.0

116,700 24,000 8,400 3,600 2,400 16,800 19,200 4,800 3,120 3,300 5,100 6,000 213,420

Net Profit

21,855

69.4

-5,055

10.5 19,145

26.4 38,145

41.7

34,880

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Business Plan Hunters Recruitment Agency

Breakeven Point As we can see in the table below the Agency will reach the breakeven point at about 83 contracts signed in a month.

BREAK-EVEN ANALYSIS
Hunter's Recruitment
Fixed Costs variable Costs Charge per Employment
NET UNITS 0 10 20 30 40 50 60 70 80 83 90 100 110 120 130 140 150 160 NET REVENUE FIXED COST VARIABLE COST

17,785.00 0.00 215.00

TOTAL COST TOTAL PROFIT

0 2,150 4,300 6,450 8,600 10,750 12,900 15,050 17,200 17,845 19,350 21,500 23,650 25,800 27,950 30,100 32,250 34,400

17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785 17,785

17,785 15,635 13,485 11,335 -9,185 -7,035 -4,885 -2,735 -585 60 1,565 3,715 5,865 8,015 10,165 12,315 14,465 16,615

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Business Plan Hunters Recruitment Agency

Breakeven Point - Graphic

Breakeven Analysis
40,000 COST-VOLUME-PROFIT 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 100 110 120 130 140 150 160 0 10 20 30 40 50 60 70 80 83 90

NET UNITS (000)

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