Business Plan –
Hunter’s 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 – Hunter’s 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
1
Business Plan – Hunter’s 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.
2
Business Plan – Hunter’s 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.
3
Business Plan – Hunter’s 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 today’s challenging world,
the gap between people and their ideal job can be very wide and Hunter’s 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
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)
2
4
Business Plan – Hunter’s 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.
Hunter’s Recruitment agency will provide the link between these two institutions
and will guarantee that both sides feel successful in their choices.
3
Source: http://www.irishtimes.com/newspaper/features/2011/0926/1224304750575.html (accessed January
17, 2012)
5
Business Plan – Hunter’s Recruitment Agency
PESTEL Analyses
Political
Economical
Social


EU Economy.

Inclination towards the
internet information.

Irish Recession.


Unemployment rate at
14.4%.
High use of social
networks among targeted
market.

Change in Population
demographics.

Emigration to find better
work opportunities.

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.
Technological
Environmental

High usage of internet
among prospects.

Growth of advertisement in 
social networks and other

internet tools.

Energy cost and
consumption.
Legal

Employment Laws.

Advertisement and
competition laws.

Health and Safety Law.
Waste disposal - Recycling.
Environmental regulations.

Speed of data transfer and
capacity of data storage.

Mobile phone and Driving
policies.

Real Time Communication

Taxation.
6
Business Plan – Hunter’s 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 competition’s 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 company’s 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.
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Business Plan – Hunter’s 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
company’s 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 competitor’s
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 location’s
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.
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Business Plan – Hunter’s 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 Hunter’s Recruitment to their appreciation.
Place: Hunter’s 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: Hunter’s 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 company’s 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: Hunter’s 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.
9
Business Plan – Hunter’s 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, Hunter’s Recruitment’s 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 Hunter’s 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.
10
Business Plan – Hunter’s Recruitment Agency
Strategies to Grow Sales and Revenue
The goal for the first year of operation of Hunter’s 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 agency’s 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.
11
Business Plan – Hunter’s Recruitment Agency
3. Organisational/HR Plan
Structure
General Manager
The structure of Hunter’s Recruitment agency will be as follows:
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 Manager’s 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.
12
Business Plan – Hunter’s 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.
13
Business Plan – Hunter’s 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 agency’s 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
14
Business Plan – Hunter’s Recruitment Agency
4. Financial Analysis
Start-up Expenses
The start-up expenses for Hunter’s Recruitment are summarised below:
Start-up Budget
Hunter’s Recruitment
Cash Needed
% of
to Start
Total
Monthly Costs
Salary of owner-manager
€4,500.00
14.5%
All other salaries and wages
€5,225.00
16.9%
Rent
€2,000.00
6.5%
Advertising and Marketing
€1,400.00
4.5%
Travel Expenses
€700.00
2.3%
Supplies
€300.00
1.0%
Telephone
€400.00
1.3%
Other utilities
€260.00
0.8%
Insurance
€275.00
0.9%
Maintenance
€200.00
0.6%
Taxes, including social security
€425.00
1.4%
€1,600.00
5.2%
€500.00
1.6%
€17,785.00
57.4%
$3,500
11.3%
2,350
7.6%
500
1.6%
3,350
10.8%
Deposits with public utilities
400
1.3%
Legal and other professional fees
800
2.6%
Licenses and permits
200
0.6%
1,600
5.2%
Cash
300
1.0%
Other
200
0.6%
$13,200
42.6%
$30,985
100%
Legal and other professional fees
Miscellaneous
Subtotal
One-Time Costs
Fixtures and Furniture
Decorating and remodelling
Installation charges
Computer and Technology
Advertising and promotion for opening
Subtotal
Totals
15
Business Plan – Hunter’s 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
Budget
€4,500.00
€1,425.00
€1,650.00
€1,650.00
External Advisers
IT
Web Design and Maintenance
Marketing
Accounting/payroll
Legal fees
Budget
€350.00
€700.00
€1,400.00
€300.00
€250.00
Office and Equipment
Desks and Chairs
Computer Equipment
Rent
Lightning and Fixture
Office Miscellaneous
Maintenance and repairs
other
Budget
€1,500.00
€3,350.00
€2,000.00
€2,000.00
€1,000.00
€1,000.00
€500.00
Total Expenses
€23,575.00
16
Business Plan – Hunter’s Recruitment Agency
Targeted Costs – Graphic
Hunter's Recruitment
Office and
Equipment
48%
Personnel
39%
External
Advisers
13%
17
Business Plan – Hunter’s 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
2nd
Quarter
%
3rd
Quarter
%
4th
Quarter
%
YEARLY
Revenue (Sales)
Sales
Membership
Consulting services
27,000
85.7
39,000
80.7
58,000
80.0
73,000
79.8
128,500
3,000
9.5
7,000
14.5
11,500
15.9
14,000
15.3
113,000
1,500
4.8
2,300
4.8
3,000
4.1
4,500
4.9
6,800
Total Revenue (Sales)
31,500
100.0
48,300
100.0
72,500
100.0
91,500
100.0
248,300
Gross Profit
31,500
100.0
48,300
100.0
72,500
100.0
91,500
100.0
248,300
29,175
54.7
29,175
54.7
29,175
54.7
29,175
54.7
116,700
Rent
6,000
11.2
6,000
11.2
6,000
11.2
6,000
11.2
24,000
Travel expenses
2,100
3.9
2,100
3.9
2,100
3.9
2,100
3.9
8,400
Supplies
900
1.7
900
1.7
900
1.7
900
1.7
3,600
Repairs and maintenance
600
1.1
600
1.1
600
1.1
600
1.1
2,400
Advertising
4,200
7.9
4,200
7.9
4,200
7.9
4,200
7.9
16,800
Other professional fees
4,800
9.0
4,800
9.0
4,800
9.0
4,800
9.0
19,200
Telephone
1,200
2.2
1,200
2.2
1,200
2.2
1,200
2.2
4,800
Utilities
780
1.5
780
1.5
780
1.5
780
1.5
3,120
Insurance
825
1.5
825
1.5
825
1.5
825
1.5
3,300
Taxes (real estate, etc.)
1,275
2.4
1,275
2.4
1,275
2.4
1,275
2.4
5,100
Misc. (unspecified)
1,500
2.8
1,500
2.8
1,500
2.8
1,500
2.8
6,000
53,355
100.0
53,355
100.0
53,355
100.0
53,355
100.0
213,420
21,855
69.4
-5,055
26.4 38,145
41.7
34,880
Expenses
Salary expenses
Total Expenses
Net Profit
10.5 19,145
18
Business Plan – Hunter’s 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
NET
REVENUE
FIXED
COST
VARIABLE COST
€17,785.00
€0.00
€215.00
TOTAL
COST
0
€0
€17,785
€0
€17,785
10
€2,150
€17,785
€0
€17,785
20
€4,300
€17,785
€0
€17,785
30
€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
€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
40
50
60
70
80
83
90
100
110
120
130
140
150
160
TOTAL
PROFIT
€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
19
Business Plan – Hunter’s Recruitment Agency
Breakeven Point - Graphic
Breakeven Analysis
€35,000
€30,000
€25,000
€20,000
€15,000
€10,000
€5,000
160
150
140
130
120
110
100
90
83
80
70
60
50
40
30
20
10
€0
0
COST-VOLUME-PROFIT
€40,000
NET UNITS (000)
20