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How to start a HR Firm?

Published by MBA Skool Team in Entrepreneurship Articles category , Published on January 20, 2016Read time:

The article covers steps on how to start a Human Resources (HR) Firm. A human resource firm offers a plethora of HR related services to different organizations. In today’s competitive market scenario organization want to minimize their personnel related cost. Hence the demand for human resource firms has grown in the last few years.


Following are some important steps to start a HR firm:

Make a business plan

The first step in starting any business is making a B plan. A business plan outlines your entire business idea and strategy along with all the required financial information. There are many specialty areas in field of HR. You may be required to decide your field of expertise. This may vary as per the competency of your team, your area of interest and your research. Your business plan must include your area of expertise which will ensure that you focus more on the areas of human resource field that are most relevant to you.

File necessary legal documentations

To ensure that your firm is legally accepted, register your company with all the required tax documentations and other legal papers. To operate in any state you are required to register your company and meet all the legal requirements. This will ensure that there won’t be any kind of inconvenience in future. Incase you bypass any legal documentations; the local authority can file cases against you. This will spoil the reputation of your business and you may also end up losing your clients.

Design and host your website

Ensure you get a professional website design for your company. This might require a little investment. A website is a necessity to reach out to professional organizations. All necessary information regarding the services that your firm provides can be posted on the webpage.

Make a competitive team

To start your own human resource firm, you may be required to make a team of HR professionals who will provide HR related services to clients. Your team must be competent with different labor laws. Also the laws vary from one state to another; the team must be updated with different laws in different states. You will also be required to do your research and identify your target market. This will required studying various businesses and identify your target industry.

Buy a job portal login

In order to supply candidates to your clients, you may have to buy a job portal login (naukri or monster). Buying a job portal login can be costly. The job portals provide various packages. You must choose a package which suits your needs. It is most recommended to buy a login once you get your first client.

Join local chamber of commerce

Join a few local professional bodies which will enable you access to customers. You must start building on your network. In the commerce chambers you will interact with different people who will be referred to you by other professional organizations. You must try to join professional networks where you can exchange ideas with other professionals. This will help you acquire skills that you make required to help your consulting firm grow.

Promote your business

Apart from networking, you must reach out to professional organizations by send marketing letters that explain your services. You must ensure that you keep contact with your customers via the mode of communication with which they are most comfortable. Also your customer must be aware of the kind of services you provide. You can achieve this through advertising. There are various forms of advertising available. You must select the one which is most suitable to you and which fits into your budget. Many organizations require such services to minimize their personnel related cost. Hence you must ensure that your marketing campaign includes your organization's ability to provide cost-effective professional HR related services.

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