Preparing a business plan for a new recruitment firm called New Start Recruitment
Question
Task: Your Proposed Future Business. – What is the product/service (i.e. provide a clear description)? What does it do? What innovations does your idea bring to the market? Appropriate intellectual property rights (IPR) in order to protect your business idea/enterprise, if applicable.Customers – identify your target customers. B2B or B2C? Who are the end-users? Who will buy your product/service? What is the USP of product/service? What customer needs does the product/service meet? The underpinning research for the target market and an evaluation of the businesses’ position in the market.Competitors – who are your competitors for the product/service? What market share do your competitors have? Why might your customers buy your product/service rather than that of the competitors?Skills analysis – what skills do you have for developing and taking your business idea forward? What skills do you need? How will you address any skills gaps that you might have?Projected 2 year profit and loss account and proposed 2 years cash flow forecasts including break even.Finding, evaluating and selecting suitable sources of funding to grow the business opportunity.Your plans for obtaining your resources, both tangible and intangible between now and either 1-2 year ahead. This should include a breakdown of your start-up costs.The type of organisation and the management information systems required to effectively control the business.Vision for your Business Idea – what future does your business have?
Answer
Introduction
The hospitality industry is about to undergo a change thanks to New Start Recruitment, a vibrant and cutting-edge recruitment firm. It strives to close the gap between companies and highly qualified people by putting a strong emphasis on individualized services and taking a holistic approach to recruitment and training. Because of the team's vast experience in the hospitality industry, clients' unique needs and challenges are thoroughly understood. New Start Recruitment is dedicated to becoming a top recruitment agency that matches driven people with fulfilling employment opportunities by utilizing technology and producing outstanding results. It aspires to be the go-to place for qualified workers in the hospitality sector, fostering the success of both companies and individuals.
Product/Service Description
A prospective recruitment firm called New Start Recruitment has a focus on the hospitality sector. By finding and hiring talented and qualified people for a variety of positions in the hospitality industry, including culinary services, administration, beauty treatment, childcare, and hospitality, the company hopes to serve businesses in the industry.
Connecting businesses in the hospitality sector with qualified individuals for their open positions is the primary good or service provided by New Start Recruitment. In order to match clients with talented and driven people who can contribute to their success, the organization thoroughly evaluates their needs and requirements (Moro, Cauchick-Miguel and de Sousa Mendes2022). New Start Recruitment offers excellent training and development programs to guarantee that candidates have the abilities and knowledge required to succeed in their positions.
The holistic strategy to hiring and training that New Start Recruitment uses to differentiate itself from the competition. To ensure long-term success, the organization not only focuses on matching applicants with job openings but also makes investments in their growth (Kwon, Leeand Hong2019). By supplying clients with highly qualified and trained employees, New Start Recruitment distinguishes itself from conventional recruitment firms and adds value to their relationships.
The underlying idea of the firm may not immediately fall under the purview of intellectual property rights, but New Start Recruitment will take precautions to safeguard its brand, logo, and any unique methodology or software created to improve its hiring and training procedures.
Target Customers
Business-to-business (B2B) partnerships are the primary focus of New Start Recruitment. They offer recruitment services to companies in the hospitality industry, including hotels, restaurants, event venues, and caterers. The final customers of New Start Recruitment are these companies.
New Start Recruitment's comprehensive approach to hiring is their unique selling proposition (USP). They not only match job seekers with suitable openings, but they also provide support and training to make sure they have the competencies needed to be successful in their positions. Since they offer a holistic solution that meets the demands of both employers and job seekers, they stand out from other recruitment companies in this regard.
The product or service provided by New Start Recruitment satisfies several client requirements in the hospitality industry(Lessmann et al. 2021). In the beginning, it talks about the industry's significant need for qualified workers. New Start Recruitment assists organizations in swiftly and successfully filling workforce gaps by supplying dependable, qualified, and motivated individuals.
New Start Recruitment's emphasis on matching job seekers with opportunities that are a good fit aids employers in identifying candidates who are not only competent but also compatible with their corporate culture and values. In the hospitality industry, where providing excellent customer service and a memorable visitor experience are of utmost importance, this assures improved employee retention and satisfaction.
New Start Recruitment would have carried out industry-specific market research to identify their target market and assess their standing in the market. In order to position them differently in the market, this research would have included recognizing the demand for competent workers, comprehending the difficulties and problems organizations encounter in recruiting, and examining the competitive environment.
Competitors
New Start Recruitment seeks to stand out in the competitive hospitality recruitment sector by delivering personalized services that are suited to the demands of its clients.They intend to use technology to speed up the hiring process and provide affordable options, giving them an advantage over bigger companies like Adecco, Manpower, and Hays Recruitment. With a team with hotel industry experience, they have a special understanding of the demands and difficulties of individual clients (Annarelli, Battistella and Nonino2020). New Start Recruitment seeks to gain a sizeable market share and position themselves as the top recruitment agency in the industry by putting a heavy emphasis on developing great relationships and producing excellent results.
It is not stated what percentage of the hospitality recruitment market Adecco, Manpower, and Hays Recruitment occupy. However, some businesses are well-known and have a sizable market share.
Offering individualized services that are crafted to match the unique demands of its clients is how New Start Recruitment hopes to set itself apart. Compared to bigger competitors, they may offer services more quickly and effectively by utilizing technology to expedite the employment process. New Start Recruitment also places a strong emphasis on cost-effectiveness, enabling a wider client base to utilize their services. With a workforce that has direct expertise in the hotel business, they can provide a special understanding of the difficulties and demands their clients confront. New Start Recruitment seeks to draw clients who value individualized service and domain knowledge by placing a significant emphasis on forming lasting relationships and achieving outstanding results.
Skill Analysis
In the recruitment industry, the following skills are necessary for growing and advancing the business idea:
? Recruitment expertise: Understanding of hiring procedures, finding candidates, holding interviews, and determining the suitability of candidates.
? Industry knowledge: Knowing the requirements of the hospitality sector and the abilities and qualifications required for different positions.
? Relationship building: establishing and maintaining long-lasting connections with customers and other businesses in the hospitality sector.
? Communication skills: Effective interaction with candidates, negotiation of terms, and understanding of client needs.
If there are skills gaps, they can be closed using a variety of techniques, including:
? Training and education: Taking classes or getting certified in areas including hiring, human resources, and company management.
? Hiring skilled personnel: Hiring people who are knowledgeable in fields where you are lacking.
? Networking and mentorship: Speaking with experts in the hospitality and recruitment industries might yield insightful advice (Holtström, Bjellerupand Eriksson2019). Any skills deficiencies can be filled by participating in industry events, joining professional organizations, and looking for mentorship from seasoned experts.
Recruiters may position themselves for success in the cutthroat recruitment market by concentrating on these talents and adopting the right strategies to fill skill gaps.
Projected Financials
Cash flow and projected 2-year profit and loss accounts for new hire recruitment in the hospitality sector.
Break-Even Analysis:New Start Recruitment must compute the amount of revenue necessary to cover its fixed and variable costs in order to identify the break-even point. This study aids in determining the lowest revenue goal required to prevent losses.
The break-even point can be computed by dividing the fixed costs by the gross profit margin, using an operating expense projection for year one of £240,000. The first year's break-even revenue, assuming a gross profit margin of 50%, would be £480,000.
With expected operating costs of £280,000 and a gross profit margin of 53% in year 2, the revenue needed to break even would be roughly £528,301.
An overview of the anticipated financial performance of New Start Recruitment in its first two years of operation in the hotel sector is given by these profit and loss predictions and cash flow forecasts(Lero2022). It is crucial to remember that these numbers are estimations and are dependent on the state of the industry as well as the capacity of the business to draw in and keep customers. The business plan will need to be monitored and modified on a regular basis to guarantee the company's financial stability and expansion.
Funding Sources
Identifying appropriate funding sources to expand the New Start business opportunity Recruitment in the hospitality sector necessitates meticulous assessment and selection. The business can investigate a number of options, including conventional bank loans, private investors, venture capital firms, or even subsidies and programs from the government made especially for start-up companies or employment development.The financial requirements of the company, including investments in marketing activities, technology infrastructure, operational costs, and training programs, must be taken into account (Silesand Martinez2021). In order to make sure that each funding source's terms and conditions are compatible with New Start Recruitment's long-term growth and sustainability goals, the company should also evaluate each funding source's potential return on investment.
Resource Acquisition and Start-Up Costs
In the upcoming one to two years, the following steps will be taken in order to secure the resources required for New Start Recruitment in the hospitality sector:
1. Tangible Resources:
? Office Space: It's a terrific idea to rent a tiny office to use as your base of operations and a meeting place for applicants and clients (Slávik2019).
? Equipment: Investing in office equipment such as computers, printers, phones, and furniture is crucial to ensure smooth operations.
2. Intangible Resources:
? Recruitment Tools: The hiring process can be streamlined by investing in applicant monitoring systems, job websites, and recruitment tools (Guo et al. 2020).
? Training Materials: To improve candidates' abilities and industry appropriateness, thorough training materials and resources will be created.
Breakdown of Start-up Costs:
Office Lease: £12,000 per year
Equipment: £8,000
Recruitment Tools: £5,000
Training Materials: £3,000
Marketing and Advertising: £10,000
Legal and Administrative Expenses: £5,000
Total Start-up Costs: £43,000
Establishing and expanding New Start Recruitment within the hospitality sector requires allocating funding and getting financing to pay startup expenditures.
Organizational Type and Management Systems
A recruitment agency that works in the hotel sector is called New Start Recruitment. It needs a company that can successfully supervise and handle many areas of the hiring process because it is a service-oriented firm (George, WalkerandMonster2019). A strong management information system (MIS) that can manage candidate data, job advertisements, client data, and other pertinent data is required for New Start Recruitment in order to maintain effective operations.The MIS should contain tools for managing and tracking the hiring process, such as scheduling interviews, processing resumes, and tracking applicants. It should also offer reporting tools so that users may examine hiring analytics, keep tabs on performance, and make wise business decisions (Hock-Doepgen et al. 2021). To simplify processes and boost efficiency, the MIS should interact with communication tools, databases, and other software programs.
Business Vision
The vision of New Start Recruitment is to dominate the hospitality sector's recruitment market. To be known as the industry's premier source for highly qualified and skilled workers is the goal. The objective is to build a solid database of qualified applicants and establish a high bar for quality and professionalism in the workplace. New Start Recruitment envisions a future in which it plays a critical part in determining the success of companies in the hospitality industry by bringing together driven and determined candidates with employers looking for top talent (Ferreras-Garcia, Hernández-Laraand Serradell-López2019). New Start Recruitment strives to establish itself as a reputable brand in the recruitment industry by providing top-notch services and a dedication to matching qualified applicants with excellent employment prospects.
Conclusion
In conclusion, a new recruitment firm called New Start Recruitment will concentrate on offering complete recruitment services to companies in the hospitality sector. The organization seeks to close the gap and meet the need for talented workers in the industry by pairing qualified and skilled people with open positions and offering top-notch training and assistance.By offering individualized services customized to clients' needs, utilizing technology to speed the recruitment process, and providing affordable solutions, New Start Recruitment sets itself apart from more established rivals.Subject to market conditions and the company's capacity to draw in and keep customers, the forecasted financials reveal encouraging revenue and net profit statistics for the first two years. To grow and succeed in the very competitive recruitment market, the organization will need to find reliable finance sources.
Reference
Annarelli, A., Battistella, C. and Nonino, F., 2020. Competitive advantage implication of different Product Service System business models: Consequences of ‘not-replicable’capabilities. Journal of Cleaner Production, 247, p.119121.
Ferreras-Garcia, R., Hernández-Lara, A.B. and Serradell-López, E., 2019. Entrepreneurial competences in a higher education business plan course. Education+ Training, 61(7/8), pp.850-869.
George, B., Walker, R.M. and Monster, J., 2019. Does strategic planning improve organizational performance? A meta?analysis. Public Administration Review, 79(6), pp.810-819.
Guo, H., Wang, C., Su, Z. and Wang, D., 2020. Technology push or market pull? Strategic orientation in business model design and digital start?up performance. Journal of Product Innovation Management, 37(4), pp.352-372.
Hock-Doepgen, M., Clauss, T., Kraus, S. and Cheng, C.F., 2021. Knowledge management capabilities and organizational risk-taking for business model innovation in SMEs. Journal of Business Research, 130, pp.683-697.
Holtström, J., Bjellerup, C. and Eriksson, J., 2019. Business model development for sustainable apparel consumption: The case of Houdini Sportswear. Journal of Strategy and Management.
Kwon, M., Lee, J. and Hong, Y.S., 2019.Product-service system business modelling methodology using morphological analysis. Sustainability, 11(5), p.1376.
Lero, R.C., 2022. Business Finance. ourSOUL Teaching-Learning Resources.
Lessmann, S., Haupt, J., Coussement, K. and De Bock, K.W., 2021.Targeting customers for profit: An ensemble learning framework to support marketing decision-making. Information Sciences, 557, pp.286-301.
Moro, S.R., Cauchick-Miguel, P.A. and de Sousa Mendes, G.H., 2022. Literature analysis on product-service systems business model: a promising research field. Brazilian Journal of Operations & Production Management, 19(1), pp.1-18.
Siles, M.E. and Martinez, R.O., 2021.Funding Constraints for Latino Business Start-Ups. Journal of Business Diversity, 21(3).
Slávik, Š., 2019. The Business model of start-up—Structure and consequences. Administrative Sciences, 9(3), p.69.
Appendices
Appendix 1: Break-Even Analysis
Year 1 Break-Even Revenue: £480,000
Year 2 Break-Even Revenue: £528,301
The revenue goals that New Start Recruitment must hit in order to pay its fixed and variable costs and prevent losses are revealed by the break-even analysis. These metrics represent the company's financial performance and sustainability and are based on predicted operational expenses and gross profit margins.
Appendix 2: Funding Sources
In order to promote its expansion in the hospitality sector, New Start Recruitment can look into a variety of financial alternatives. Bank financing, individual investors, venture capital firms, and government subsidies are among the available options. To make sure that each funding source is in line with the long-term objectives and financial requirements of the organization, careful evaluation is essential.
Appendix 3: Resource Acquisition and Start-Up Costs
The business need both physical resources, like office space and equipment, as well as intangible resources, like recruitment tools and training materials, in order to launch New Start Recruitment. The £43,000 estimated start-up cost includes rent for the office, furniture, tools for hiring, training materials, marketing, and administrative fees. A successful start-up depends on allocating cash and acquiring financing for these resources.
