96023274 MBA Business Plan

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

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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


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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.


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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.


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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.

1 Source: http://www.rte.ie/news/2011/0630/censustable.pdf (accessed January 18, 2012)

2 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)

12%

88%

Dublin Area Population

Unemployed Population

Employed population

http://www.rte.ie/news/2011/0630/censustable.pdf

http://www.cso.ie/en/media/csoie/releasespublications/documents/labourmarket/current/qnhs.pdf


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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)

http://www.irishtimes.com/newspaper/features/2011/0926/1224304750575.html


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PESTEL Analyses

Political

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.

Economical

EU Economy.

Irish Recession.

Unemployment rate at

14.4%.

Social

Inclination towards the

internet information.

High use of social

networks among targeted

market.

Change in Population

demographics. Emigration to find better

work opportunities.

Technological

High usage of internet

among prospects.

Growth of advertisement in

social networks and other internet tools.

Speed of data transfer and

capacity of data storage.

Real Time Communication

Environmental

Energy cost and consumption.

Waste disposal - Recycling.

Environmental regulations.

Legal

Employment Laws.

Advertisement and

competition laws.

Health and Safety Law.

Mobile phone and Driving

policies.

Taxation.


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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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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.

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.

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.

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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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.


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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.


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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.


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3. Organisational/HR Plan

Structure

The structure of Hunter’s Recruitment agency will be as follows:

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.

Gen

eral

Man

ager

Office Adminitrator

Recruitment Agent - Prospects

Recruitment Agent - Companies


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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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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


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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% Legal and other professional fees €1,600.00 5.2%

Miscellaneous €500.00 1.6%

Subtotal €17,785.00 57.4%

One-Time Costs

Fixtures and Furniture $3,500 11.3%

Decorating and remodelling 2,350 7.6%

Installation charges 500 1.6%

Computer and Technology 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%

Advertising and promotion for opening 1,600 5.2%

Cash 300 1.0%

Other 200 0.6%

Subtotal $13,200 42.6%

Totals $30,985 100%


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Targeted Costs

The table below displays the targeted cost for the Agency.

EXPENSE BUDGET Hunter's Recruitment

Personnel Budget

Manager €4,500.00

Office Assistant €1,425.00

Recruiter €1,650.00

Recruiter €1,650.00

External Advisers Budget

IT €350.00

Web Design and Maintenance €700.00

Marketing €1,400.00

Accounting/payroll €300.00

Legal fees €250.00

Office and Equipment Budget

Desks and Chairs €1,500.00

Computer Equipment €3,350.00

Rent €2,000.00

Lightning and Fixture €2,000.00

Office Miscellaneous €1,000.00

Maintenance and repairs €1,000.00

other €500.00

Total Expenses €23,575.00


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Targeted Costs – Graphic

Personnel 39%

External Advisers

13%

Office and Equipment

48%

Hunter's Recruitment


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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)


1st

Quarter %

B/A 2nd

Quarter % 3rd

Quarter % 4th

Quarter % YEARLY

Revenue (Sales)

Sales 27,000 85.7 39,000 80.7 58,000 80.0 73,000 79.8 128,500

Membership 3,000 9.5 7,000 14.5 11,500 15.9 14,000 15.3 113,000

Consulting services 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

Expenses

Salary expenses 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

Total Expenses 53,355 100.0 53,355 100.0 53,355 100.0 53,355 100.0 213,420

Net Profit -

21,855 -

69.4 -5,055 -

10.5 19,145 26.4 38,145 41.7 34,880


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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


Fixed Costs €17,785.00

variable Costs €0.00

Charge per Employment €215.00

NET

UNITS NET

REVENUE FIXED COST VARIABLE COST

TOTAL COST

TOTAL PROFIT

0 €0 €17,785 €0 €17,785 -

€17,785

10 €2,150 €17,785 €0 €17,785 -

€15,635

20 €4,300 €17,785 €0 €17,785 -

€13,485

30 €6,450 €17,785 €0 €17,785 -

€11,335

40 €8,600 €17,785 €0 €17,785 -€9,185

50 €10,750 €17,785 €0 €17,785 -€7,035

60 €12,900 €17,785 €0 €17,785 -€4,885

70 €15,050 €17,785 €0 €17,785 -€2,735

80 €17,200 €17,785 €0 €17,785 -€585

83 €17,845 €17,785 €0 €17,785 €60

90 €19,350 €17,785 €0 €17,785 €1,565

100 €21,500 €17,785 €0 €17,785 €3,715

110 €23,650 €17,785 €0 €17,785 €5,865

120 €25,800 €17,785 €0 €17,785 €8,015

130 €27,950 €17,785 €0 €17,785 €10,165

140 €30,100 €17,785 €0 €17,785 €12,315

150 €32,250 €17,785 €0 €17,785 €14,465

160 €34,400 €17,785 €0 €17,785 €16,615


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Breakeven Point - Graphic

€0

€5,000

€10,000

€15,000

€20,000

€25,000

€30,000

€35,000

€40,000

0

10

20

30

40

50

60

70

80

83

90

10

0

11

0

12

0

13

0

14

0

15

0

16

0

CO

ST-V

OLU

ME-

PR

OFI

T

NET UNITS (000)

Breakeven Analysis

96023274 MBA Business Plan

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