Starting a manpower consultancy is a hard but a rewarding business. There is a problem of finding the right person for the right job. This is where manpower consultancy comes into picture. So, if you are looking for how to start manpower consultancy in India and seek help, we have got you covered.
In fact, you can expect good amount of profit if you have a good business model.
You can skip this step If you have already decided on what kind of positions you'll fill and how.
If not, then planning before starting a business is the best thing to do.
So, how to plan a manpower consultancy business?
Simple, you need to decide on these things :
Having an answer to all these questions before starting manpower consultancy will benefit you to run the business successfully.
After that, select the sector for which you will provide manpower.
For example, ABC Consultants provides a workforce for senior and middle-level management.
On the other hand, International Manpower Resources Private Limited provides candidates for Offshore Manpower Recruitment.
So, instead of providing all types of manpower consultancy, always stick to one and be an expert in that.
Now, the next question is how to select a sector?
The three most important things for choosing a sector are:-
Therefore, if you are thinking of how to start manpower consultancy, first choose a sector. Whether you'll be working for IT, Tax Consultancy, Factories etc.
The next step for starting a manpower consultancy is business registration.
The first step is to register your company.
Documents for Private Limited Company Registration
Also, you can register as a One Person Company or Limited Liability Partnership. It depends on your requirements. Schedule a consultation call with us to help decide that. You can fill out the form on the right and get in touch with our experts.
In fact, a registered business has limited liability, scope of growth and better access to funds.
Moreover, it also has to register with many government departments, such as:
After registering your manpower consultancy, there are a few more registrations you must get.
Recruiting Agent License
For starting a manpower consultancy, apply with the Ministry of Overseas Indian Affairs for the Recruiting Agent License.
However, you will need a recruiting agent license only if you take on Indian applicants for foreign companies.
Documents Required for Recruiting Agent License
The investment to start a manpower consultancy is a minimum of Rs. 5 lacs to Rs. 10 lacs.
You may have to invest more at early stage to set up the business.
For example, rent an office, pay for the repairs, set up the systems, pay salaries, utility bills, marketing bills, build a profile etc.
But, there is no limit to maximum investment.
It depends on the scale of your business and growth goals.
You can also bring in more funds later.
Also, if you already have money, well and good.
Otherwise, you can also go for these options for funding:-
The growing effect of internet motivates people to look for solutions online.
So, having an online presence will help your business grow.
Above all, it will increase the business's status and reach.
That is to say, buy a domain name and website to go online.
Having a website will help you with a good database of companies and candidates.
Meanwhile, buy the official emails for employees to speak with clients and candidates.
Official emails helps in gaining the trust.
Now, let me answer your biggest question.
Where will you find the clients and candidates?
For this purpose, buy logins to job search portals like Naukri, Monster.com, Indeed etc.
You can get a regular, qualified and a complete candidate list from these portals.
In fact, you can know about the latest jobs that companies are hiring.
For starting a manpower consultancy business, you will also need an office to operate.
The office area must not be less than 50 sq. meters.
It should have the following rooms:
Employees are the key to productivity.
Therefore, hiring skilled people for each job is important.
The jobs you need to hire for a manpower consultancy are:
Make sure that you have enough and well trained staff.
Also, have proper set up for skill testing of candidates.
After that, suggest the jobs based on the result and their interest.
For this purpose, aptitude tests is the best option.
To sum up, you are now an expert yourself and know how to start manpower consultancy.
Further do not worry about if this business will give you profit or not.
A manpower consultancy can charge a flat fees from the Companies.
Or, they can also charge 15% - 20% of the candidates annual salary.
In fact, if the position is hard to hire for, it can go up to 30%.
If you need any help or have confusion with the process, get in touch with our experts at StartEazy.