January 20 2017 - Would you like to start your own HR business? It's a daunting prospect for many would-be entrepreneurs, but it is possible if you follow certain steps. There is always a high demand for this type of service, so establishing your own HR consultancy could pay off handsomely. Below are some of the most important steps you should take when you're starting your own HR business.
Complete the Relevant Courses
In most instances, obtaining the appropriate qualification or qualifications is the first step on the road to a successful career. The fact that you will be working in HR and becoming a business owner at the same time means you need to choose a course that will enhance your business skills and include an HR element to it.
For example, a number of bachelor of arts business administration programs include all of the modules you need to get started. Once you have completed a course like an online bachelor of arts business administration program, you should also consider further HR certificates that will develop your skills and give you more credibility in your chosen field.
Legal and Commercial Obligations
As the owner of a business, you have many more responsibilities than someone who is an employee. You need to create a specific business structure for your new organization. This can include becoming a sole trader or creating a limited liability company or corporation. At this stage, you should also be aware of the insurance, licenses and permits you may need to operate in your state.
Get Your Finances in Order
It's crucial to take control of the financial aspect of your business from the start. You should begin by creating a financial plan for your proposed company and drawing up a budget.
Initially, you may have a limited amount of capital, so look at cost-effective ways to raise money to buy equipment, hire people and pay for business premises. If possible, discuss your situation with a financial expert or an established business owner who knows what you're going through.
Finally, make sure you set up processes and systems that allow you to keep a record of every financial transaction that takes place in your new business. Once again, it's a good idea to get a financial expert involved, to ensure all of your financial affairs and tax affairs are in order.
Decide What Services and Industry You Will Specialize In
Some companies try to be all things to all people. However, it's the businesses that specialize in specific areas of an industry that often perform better. This is particularly true if you are starting out small and have limited resources. Some HR companies focus on certain industries, while others focus on certain sizes of business, so you should decide what you want to specialize in as quickly as possible.
Starting your own HR business has the potential to become an extremely profitable and successful venture. However, many new companies stumble at an early stage because they fail to prepare properly by not following the steps above.