How to Start a Healthcare Recruitment Agency

a nurse in a hospital operating room.

Main Sections In This Post

Steps To Starting A Healthcare Recruitment Agency
Points to Consider
Knowledge Is Power
Featured Video


Steps to Starting a Healthcare Recruitment Agency

If you’re interested in offering a service that can help the healthcare industry, which is currently struggling to find qualified personnel, then a start-up recruiting healthcare professionals is something to consider.

We will look at the steps you need to take to start your agency, followed by resources you can use to become familiar with healthcare recruiting.

Let’s get started with the steps.

1. Ensure Running a Business Is the Right Choice for You

Finding out if you have the essential abilities and interests is the first step in becoming an entrepreneur because it’s not for everyone.

More information below can help you decide if starting a healthcare recruitment agency is right for you.

2. Research

Business Research

Understanding healthcare recruitment will aid in your success. You can access industry insiders and various ways to contact them using the link below and gain firsthand knowledge of healthcare recruitment.

See An Inside Look Into the Business You Want To Start for more.

Target Market

Setting up your business to attract customers will be easier if you know your target market well.

Understanding your target audience allows you to connect with them and understand their wants and needs, which you will need for your advertising campaigns once your business is open to the public.

For more, see, How To Understand Your Target Market.

3. Considerations for your Setup

Your healthcare recruitment agency setup should be based on your vision. Answering the questions below can help you create a vision.

It’s okay if your idea changes during your research. You can adjust later if necessary but start with a vision for now.

Here are some questions to get you started:

  • Are you planning on a home-based setup or operating from a commercial location?
  • Will you operate full or part-time?
  • Will you do all the work or hire a team for operations and management?
  • Will you target a certain sector in healthcare recruiting or focus on a broad market?

4. Your Business Location

Location is a key factor in success if you are operating offline. A poor location will result in a struggle, and having a good one will contribute to your success.

Look for an area where healthcare recruitment is in demand, and the market is not saturated.

For more, see Choosing The Best Location for Your Business.

5. Choose an Agency Name

A memorable, catchy, easy-to-pronounce, and available business name is essential. Additionally, you will need a matching domain name.

Below is a list of business names for a Healthcare Recruitment Agency to spark your creativity. Before finalizing your choice, conduct a name search to ensure another company hasn’t registered it.

  1. CareForce Solutions
  2. HealthStaff Connect
  3. ProHealth Recruiters
  4. MedSelect Personnel
  5. VitalCare Staffing
  6. EliteMed Recruiters
  7. CareMatch Professionals
  8. HealthPro Staffing
  9. PrimeCare Connections
  10. Apex Medical Recruiters
  11. MedLink Personnel
  12. CareTalent Solutions
  13. Wellness Workforce
  14. HealthQuest Recruiters
  15. ProMed Partners
  16. CareWise Staffing
  17. MedPro Connect
  18. VitalLink Recruitment
  19. Pulse Healthcare Solutions
  20. CareFirst Recruiters
  21. HealthSource Staffing
  22. ApexCare Professionals
  23. MediPro Connections
  24. VitalStaff Solutions
  25. CareBridge Recruiters
  26. WellnessWorks Personnel
  27. MedLink Staffing
  28. HealthConnect Recruiters
  29. ProHealth Workforce
  30. CareMatch Solutions

The following links provide more information:

6. Company Registration

Choosing the right business structure, getting the required permits, and registering your business are all steps to ensure your business operates legally. Several factors will determine your business structure, such as your financial situation and the size of your operation.

Here is a general list to consider:

  1. Business Registration: Register your agency as a legal entity with the appropriate government department or agency responsible for business registration.
  2. Professional Licensing: If your agency engages in the recruitment of licensed healthcare professionals (e.g., nurses, doctors), you may need to obtain a professional license or accreditation. This can vary depending on the jurisdiction and the specific healthcare professions involved.
  3. Business Name Registration: Register your agency’s business name with the appropriate authority to ensure it is unique and legally recognized.
  4. Employer Identification Number (EIN): Obtain an EIN from the relevant tax authority, especially if you plan to hire employees.
  5. Insurance: Consider obtaining liability insurance to protect your agency against potential risks and liabilities associated with healthcare recruitment.
  6. Health and Safety Compliance: Familiarize yourself with health and safety regulations and ensure compliance with relevant workplace safety standards, including establishing protocols to protect your staff and the healthcare professionals you recruit.
  7. Data Protection and Privacy: Comply with data protection and privacy laws by implementing proper procedures for handling healthcare professionals’ and clients’ sensitive personal information.
  8. Labor Laws and Employment Regulations: Ensure compliance with labor laws and employment regulations governing recruitment, employment contracts, wages, benefits, and other labor-related matters.
  9. Background Checks and Screening: Understand and adhere to background check requirements, including criminal record checks, employment history verification, and other relevant screenings for the healthcare professionals you recruit.
  10. Permits for Physical Location: If your agency has a physical office, check if you need permits or licenses related to the location, such as zoning permits or occupancy permits.
  11. Marketing and Advertising Compliance: Familiarize yourself with advertising regulations and ensure compliance when promoting your agency’s services.
  12. Tax Registration: Register your agency with the appropriate tax authorities and obtain the necessary permits and licenses related to taxation, such as sales tax or value-added tax (VAT) registration.
  13. Employment Agency License: In some jurisdictions, specific licenses or permits are required for operating as an employment agency or recruitment firm. Check with your local authorities to determine if such a license is necessary.
  14. Professional Association Memberships: Consider joining relevant professional associations or organizations in the healthcare or recruitment fields. In comparison, not a permit or license, membership can provide credibility and networking opportunities.

It’s important to note that this list is a general guideline, and the specific permits and licenses required may vary depending on your location and the nature of your healthcare recruitment agency. Consult with local authorities or legal professionals to ensure compliance with all applicable regulations.

See, How to Register Your Business for all the details.

7. Design Your Corporate ID

A corporate identity contains a logo, business cards, stationery, giveaways, and brochures, among other things.

Add the other parts as necessary after creating a logo and business cards. To have a positive effect on your clients, you should make sure your design is professional.

See A Complete Introduction to Corporate Identity Packages for more.

8. Start-Up and Monthly Cost To Consider

Knowing how much money you’ll need to start and operate a business is important. Therefore, you must have an accurate estimate when you apply for a start-up loan.

You will need to create a list and estimate the costs. Below is a sample to help you generate a list specific to your business.

These are rough estimates, and actual costs may vary significantly depending on your business model, location, and other variables.

Startup Costs for a Healthcare Recruitment Agency

  1. Legal Costs: Incorporation, licensing and permits, attorney fees
    • Cost: $2,000
  2. Insurance: General liability insurance, worker’s compensation, professional liability insurance
    • Cost: $3,000
  3. Office Space: Lease/Rent, renovation, furniture, utility set-up
    • Cost: $10,000
  4. Office Equipment: Computers, phones, printers, fax machines, etc.
    • Cost: $5,000
  5. Website: Design, development, domain, hosting
    • Cost: $5,000
  6. Software: Recruitment software, HR software, project management tools, email, and collaboration tools
    • Cost: $1,500
  7. Marketing: Branding, business cards, brochures, website SEO and marketing, launch event
    • Cost: $5,000
  8. Miscellaneous Expenses: Unanticipated expenses
    • Cost: $2,000

Subtotal: $33,500

Monthly Expenses for a Healthcare Recruitment Agency

  1. Rent: Monthly lease or rental payment
    • Cost: $2,000
  2. Utilities: Electricity, internet, phone, water
    • Cost: $500
  3. Salaries: Compensation for employees. This will vary greatly depending on the size of your team.
    • Cost: $10,000
  4. Software Subscriptions: Ongoing costs for necessary software
    • Cost: $300
  5. Insurance: Monthly insurance premiums
    • Cost: $250
  6. Marketing and Advertising: Social media ads, Google ads, content creation, etc.
    • Cost: $1,000
  7. Website Maintenance and Hosting: Ongoing website costs
    • Cost: $100
  8. Office Supplies: Paper, ink, stationery, etc.
    • Cost: $200
  9. Professional Services: Accounting, legal, and other professional services
    • Cost: $500
  10. Miscellaneous: Unanticipated costs
    • Cost: $150

Subtotal: $15,000 per month

Remember, these are just sample costs. Actual expenses can differ based on several factors, including location, scale, and business model. You may also qualify for business loans or grants to offset some of these costs. Always conduct thorough market research and financial analysis before starting a business.

For more, see, Estimating Start-up Costs: Are you Missing Anything? Also, see, Business Expenses To Consider.

9. Create Your Business Plan

You’ll need a business plan to help you get a clear vision of your business and keep you on track, and you’ll need one if you plan on getting a business loan or attracting investors.

Sample business plan outline for a Healthcare Recruitment Agency.

1. Executive Summary This will be a brief overview of the entire business plan. It should cover the following:

  • Business name and location
  • The services offered and their uniqueness
  • The target market
  • Your business goals

2. Company Description Provide more detail about the company. Discuss:

  • The nature of your business and the needs it will fulfill
  • Your competitive advantage

3. Services Discuss the services you’ll be providing, such as:

  • Permanent placement
  • Temporary staffing
  • Locum tenens staffing
  • Nurse staffing
  • Physician staffing
  • Healthcare executive search

4. Market Analysis In this section, show that you’ve done your homework about your industry, target market, and competition. It will include the following:

  • Industry Description: Discuss the healthcare staffing industry’s current and future outlook.
  • Target Market: Describe your target customers, their location, and how you plan to reach them.
  • Competitor Analysis: Provide a detailed analysis of your competitors, showing their strengths and weaknesses.

5. Marketing and Sales Strategy This section describes how you’ll attract and retain clients. You’ll need to outline the following:

  • Marketing Strategy: Discuss your strategy to reach your target market.
  • Sales Strategy: Describe how you’ll convert leads into clients.

6. Organizational Structure Describe your company’s structure. Include:

  • Ownership Information: Who owns the company, and what is their involvement?
  • Employee Roles: Detail what roles you’ll need to hire for and their responsibilities.

7. Financial Projections Provide an overview of your financial projections. Include:

  • Startup Costs: Detail the costs to start your business.
  • Revenue Projections: Estimate your revenues for the first few years.
  • Operational Expenses: Discuss your estimated ongoing expenses.
  • Profit and Loss Projection: Give a projection of your profitability over time.

8. Funding Request If you’re seeking funding, include your request here. Detail:

  • The amount of funding you need
  • How you’ll use the funds
  • How you plan to repay any loans

9. Exit Strategy Investors will want to know your long-term plans. Include potential exit strategies such as:

  • Selling the company
  • Merging with another company
  • Initial public offering (IPO)

10. Appendices Include any additional information, such as:

  • Resumes of the business owners
  • Letters of support from potential clients
  • Legal documents

Remember, this is a simplified version of a business plan. You may need to add or remove sections depending on your specific circumstances. For example, you wouldn’t need the “Funding Request” section if you’re not seeking funding. Always customize your business plan to best represent your unique business and goals.

A few options for creating one are outlined in the link below.

For details, see How to Write a Business Plan.

10. Set up Your Banking

Your business and personal finances must be kept separate. Separate checking accounts are the most effective way to achieve this.

You should also consider getting a merchant account for credit and debit card payments.

More information about business banking can be found in the articles below.

11. Get the Funding for Your Operation

Lenders are less likely to lend capital to start-up businesses due to their high risk. A lender will evaluate your business plan and collateral, although obtaining a startup business loan can be challenging. But you have a better chance of approval with an excellent business plan and enough collateral.

Meeting with a loan officer to discuss financing for your new healthcare recruitment agency is a significant step. Here are some considerations to take into account:

1. Preparation: Research and understand the various types of loans available to you, such as small business loans, SBA loans, lines of credit, etc. Knowing what you’re looking for can make the conversation more productive.

2. Business Plan: Have a comprehensive, well-thought-out business plan. The loan officer will want to understand your business’s viability and growth potential.

3. Know Your Numbers: Understand your financial projections, including revenue, expenses, and profitability. Be ready to discuss these numbers in detail.

4. Collateral: Many loans require collateral. Be prepared to discuss what assets you could potentially use.

5. Repayment Plan: Have a clear plan for how to repay the loan. This should align with your financial projections.

6. Questions: Be prepared with questions for the loan officer. This could include questions about the loan terms, interest rate, fees, or other important details.

As for the documents needed to apply for a business loan, here’s a typical list, although the exact requirements can vary depending on the lender:

  1. Business Plan: This document explains what your business does, who your customers are, and how you plan to earn money.
  2. Personal Identification: Driver’s license or passport for the business owner.
  3. Business Licenses and Permits: Proof you’re legally allowed to operate your business.
  4. Employer Identification Number (EIN): The IRS uses This number to identify your business for tax purposes.
  5. Personal and Business Credit Reports: Some lenders want to see your credit history.
  6. Financial Projections: Include revenue, expenses, and profitability for the next 3-5 years.
  7. Personal and Business Tax Returns: Usually for the past two years.
  8. Bank Statements: Personal and business, usually for the past two years.
  9. Collateral Documentation: If you plan to use collateral for the loan, you’ll need documentation for these assets.
  10. Legal Documents: Depending on your business, this could include articles of incorporation, commercial leases, franchise agreements, etc.

Before meeting with a loan officer, it’s a good idea to call ahead and ask what specific documents you’ll need to bring. Different lenders may have different requirements, so it’s always best to confirm beforehand.

For ideas, see our article, Getting a Small Business Loan.

12. Software Setup

Use software to organize your business, analyze important data, and run it well.

You might want to read reviews and research the software packages you’re considering to find out what others have said about them.

Click on the links below to learn more about the software that can help you run your business better.

13. Get Business Insurance

To begin operations, you must carry the appropriate insurance. Working with a qualified insurance broker facilitates the protection of your clients, employees, and assets.

Securing the right insurance for a new healthcare recruitment agency is crucial for managing risks. Here are some of the key concerns to consider:

1. Understanding Different Types of Insurance: You’ll need to understand what each type of insurance covers. Common types of business insurance include general liability insurance, professional liability insurance, worker’s compensation insurance, property insurance, and more.

2. Appropriate Coverage: Ensure the insurance coverage is appropriate for the risks your agency could face. This might involve consulting an insurance broker or attorney to understand your potential liabilities.

3. Cost: Premium costs can be a significant business expense. You’ll need to balance getting the coverage you need with what you can afford to pay.

4. Deductibles: Understand the deductibles on your insurance policies. You must pay out-of-pocket amounts before your insurance coverage kicks in.

5. Professional Liability: You could potentially face placements-related lawsuits in recruitment. For instance, if a candidate you place causes problems for a client, the client might sue you. Professional liability insurance can help protect you in such cases.

6. Worker’s Compensation: Even if you have only a few employees, you’ll typically need worker’s compensation insurance to protect you and your employees in case of work-related injuries or illnesses.

7. Understanding the Exclusions: Each insurance policy will have exclusions, which are situations the policy doesn’t cover. You need to understand these exclusions to ensure you’re adequately protected.

8. Cyber Liability: With the rise of digital records and communications, cyber liability insurance is increasingly important. This can cover you in case of data breaches or other cyber incidents.

9. Reputation of the Insurance Provider: Research the insurance provider’s reputation, financial stability, and customer service. You want to ensure they will be able to pay claims and that they provide good service to policyholders.

10. Reviewing Policies Regularly: Your insurance needs may change as your business grows or evolves. It’s important to review your insurance policies regularly to ensure they continue to provide adequate coverage.

Insurance is a complex topic, and it’s often beneficial to consult with an insurance broker or legal counsel to ensure you’re making the right choices for your business.

The following are links to information about commercial insurance:

14. Office Setup

You want an attractive office to leave a positive impression on recruits and clients.

Your office is where the majority of your work will take place. Therefore, you need a fully equipped office setup to be productive and comfortable.

For more, see Here are Considerations for The Setup of Your Office.

15. Creating a Website

Effectively communicating with your clients can be accomplished by promoting your business on your website. Therefore, your website must be mobile-friendly, quick, and designed professionally to impress users.

In addition to your hosting account, you must register a domain name to completely control your website.

Detailed information is available in the following articles:

16. Create an External Support Team

You can use an external support team for professional advice or assistance.

The formation of a team can take months or even years, but you don’t have to wait until they’re fully formed to utilize their services.

Create a list of potential team members and arrange to meet with them. For instance, the team may include a lawyer, accountant, banker, marketing expert, IT specialist, etc.

For more, see, Building a Team of Professional Advisors.

17. Hiring Considerations

The number of employees you hire shouldn’t exceed your needs. The cost of your operations will increase, and your profits will decrease if you overstaff.

Ensure the candidate is an appropriate fit for each open position.

Failure to hire the right person can result in starting over from scratch.

Errors in hiring waste time, productivity, and money that could have been spent more productively.

For more, see, How and When to Hire a New Employee. You may also be interested in Common Job Positions for a Business.


Points to Consider

In this section, you’ll find some key points to consider when starting a healthcare recruitment agency. They are intended to provide an overview of what to expect, and you will be given a few pointers to keep in mind before you begin.

Healthcare is an extremely fast-growing industry, thanks to the aging population. Over the last century, life expectancy has doubled. This leaves a large population of elderly people who need in-home care.

In addition, people recovering from illnesses, surgeries, or injuries also need to help care for themselves in the privacy and comfort of their homes.

The healthcare recruiting business is full of great opportunities for helping people find the right placement in the field of medicine. This job involves finding the best healthcare workers and placing them where they are most needed based on their individual skills.

Recruiters use networking skills to pair up doctors with firms in their field. Healthcare recruiting is a way to make sure that job seekers and employers in the medical community find each other.

Among the challenges of job placement agencies is finding clients for the services that they offer. Decide how you will inform employers and companies of your placement agency services. Tell potential clients about the advantages and benefits of your recruitment agencies.

Skill Set:

  • Excellent communication and administrative skills.
  • Understand intimately how networking works in the job search process.
  • Previous nursing or nursing assistance is a huge plus but not required.
  • Basic understanding of emergency medical treatments and CPR.
  • Understanding of the nursing and other medical industries.
  • Common Business Skills.

Tips and Considerations:

  • Find out all you can about the trends in the industry. Know your competition: in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you determine what you can give your customers they’re not getting from the other agencies.
  • Perform all necessary criminal and background investigations for each hired home health care worker.
  • Location – It may be possible to operate from your home. A high-traffic area with high visibility will significantly increase your marketability. Choosing a large city with a large medical industry may be to your advantage.
  • Once you’ve narrowed your list of locations, check into the existing competition. If many health recruitment agencies are already operating in the area, your competition may be too great to overcome. However, that also means you’re on the right track because demand exists.



During the start-up phase, you’ll find useful resources once your business is up and running. You can access these at any time.

Industry Trends and Statistics

Trends and statistics can provide tips and insights you may not have considered. Another aspect of trends and statistics is telling whether the industry is improving, deteriorating, or changing.

Click Here for the Latest Google Search Results Related to Trends in the Healthcare Industry.

Agencies for Sale

Consider buying an existing business before starting one from scratch. There are pros and cons to owning an existing business.

Some of the pros include:

  • Start-up is bypassed.
  • The business is already successful.
  • You gain a customer base.
  • You start earning revenue from the day you take over.
  • You benefit from the reputation that the business has built.

Some of the cons of buying an established business include the following:

  • It’s more expensive to purchase an established business than start one from scratch.
  • When you purchase a business, you get the good and the bad.
  •  Making extensive changes could disrupt business operations, so you’re better off starting from scratch if the business is not set up the way you want.

Having said all that, looking at listings on the market isn’t a bad idea. You may find a good match or not, and the worst that can happen is you have gained a stronger overview of owning a healthcare recruitment agency. See the latest Google search results for healthcare recruitment agencies for sale.

Industry Terminology

As a business owner, being familiar with your industry is important. However, you can wait to pick up the terminology from experience or look at glossaries to get a head start.

Search Results Related to Terminology in the Healthcare Industry.


There are many benefits to joining an association. Many of them offer publications and news that you can take advantage of. In addition, many of them host events for you to network with industry colleagues.

Click Here To View Associations Related to the Healthcare Industry. You may also want to check out our page for tips and insights about Joining a Trade Association.

Top Agencies

Studying other businesses will gain insight into what the market offers, pricing, and other ideas. Thus, you may develop a unique idea or discover something missing in your business. Generally, I don’t think about the competition too much. Instead, I like to know what my competition offers and focus on providing the best products and services.

View the Lastest Google Search Results for the Top Healthcare Recruitment Agencies in Your Area.


Knowledge Is Power When You Use It!


It’s crucial to stay up-to-date with the latest trends, tips, and insights relevant to your industry. However, finding all this information in one place can be challenging.

The link below provides a comprehensive list of publications to help you stay in touch with the industry.

Keep up-to-date on your industry by visiting the link below at least once a month.

Click here for the latest publications related to a healthcare recruitment agency.

Marketing Tips

Marketing is an integral part of running a business. Without customers, a business ceases to exist. It is difficult to gain customers without marketing. Luckily, marketing doesn’t need to be tedious or hard to understand. It simply involves raising awareness about your business, products, and services.

When marketing your business, try one technique at a time, test it, and do more of what works and less of what doesn’t. See the Latest Articles for Marketing a Healthcare Recruitment Agency.


You can also read books to gain a deeper understanding of your industry. In non-fiction books, you don’t have to read them from cover to cover; you can go through the table of contents or the index to find the information you want.

View the Most Recent Google Search Results for Healthcare Recruitment Agency Books.


The better you know your business, the greater your chances of success. So why not take a few minutes to read the latest publications related to healthcare recruitment agency training?

Keep an open mind regarding training, especially if you know the topic. This way, you can review what you already know and learn more about unfamiliar issues.

Google’s Search Results Related to Healthcare Recruitment Agency Training.


An excellent way to find stories about healthcare recruitment agencies covered in the media is to use Google News.

In addition, you can set up a Google alert to receive notifications whenever something new about the healthcare industry is posted.

See Google’s News Search Results Related to the Healthcare Industry.


Featured Video

YouTube is an excellent source of information for visual learners, where you can find videos containing tips and insights to help you expand your knowledge in your industry.

While watching YouTube videos, one point worth mentioning is the related topics. I watch for them because they provide easy access to topics I hadn’t considered. So you might want to look out for them.

See the Most Recent Videos Related to a Healthcare Recruitment Agency.