The pinned post about starting your own firm could use some more financial details. We had a discussion about this last year, and I think the following breakdown might be helpful. I’ve categorized my thoughts into three tiers:
1. Shoestring Budget
$250/month minimum (no office)
2. Good Setup
$800/month for essential tools + $500-$900/month for office space
3. Money is No Object
$2000-$4000+/month for a top-tier setup + $900-$1400+/month for office space and an assistant (virtual/part-time)
Breakdown of Costs
$250 +/- (assuming you have a laptop/computer; if not, add a one-time cost of $500-$800)
- $79 for Sales Navigator (including 100 InMail)
- Free or $20 for Loxo or Manatal ATS/CRM
- $50 for cell phone
- $50 for internet
- $39 for SalesQL (email/phone lookup)
- $20/year for GoDaddy domain/personal email
- $50+ for cloud storage and miscellaneous expenses
$800/month includes:
- $79 for Sales Navigator
- $200 for a full premium Loxo with all features
- $29 for Grasshopper or similar phone service
- $100 for internet/cell service
- $200-$400 for sourcing systems like Hirez, Seekout, or Chatterworks (with email/phone lookups)
- $50-$100 for cloud/miscellaneous
- $20 for a simple website and Outlook 365 suite
$2000-$4000+/month includes:
- $79-$140 for a higher-level Sales Navigator or $200-$1000/month for Recruiter/Recruiter Lite
- $200 for Loxo
- $200 for a fully integrated office phone system
- $800-$1000 for ZoomInfo Premium
- $100-$300 for cloud storage
- $200 for training programs (e.g., Next Level Exchange/Morgan Consulting)
- $20-$100+ for a website with job board integration
- $200 for Monster/CareerBuilder/Indeed ads
One-Time Costs (vary by budget):
- New computer: $500-$2000
- 2-3 monitors: $300-$2500
- Keyboard/mouse: $100
- Headset: $50-$500
- Desk/stand-up desk: $100-$1000+
- Office chair: $50-$500
- Misc. office supplies: $100-$300
This is based on my 25 years of experience. When I started my firm in 2011, all I had was a cell phone, a GoDaddy URL for email, Google Voice, Google Suite for email/docs/cloud storage, and LinkedIn (which didn’t yet offer Recruiter Lite). I also rented an office, and my total costs, including the office, came to about $600. Today, the total costs (including office space) range from $1300 to $1600, with the office being $800. Costs may vary if I’m hiring a sourcer who earns commissions.
Since this information is a year old, I would now also factor in an additional $50-$100 per month for note transcription services (like Metaview or Otter, around $20-$40) and a ChatGPT Pro subscription ($20), along with a Merlin or MaxAI type assistant ($10-$30).
RCadmin
Thank you for sharing your detailed breakdown of the financial aspects of starting a firm! Your insights are incredibly valuable, especially for those just starting out or looking to refine their budget.
I appreciate how you categorized the costs into three tiers, making it easy for prospective business owners to gauge what they can afford based on their budget. The inclusion of both ongoing monthly expenses and one-time costs provides a comprehensive view of what to expect when starting out.
I also agree that incorporating tools like note transcription services and AI assistants can enhance productivity and efficiency in today’s fast-paced environment. The addition of these technologies is a smart move and reflects the evolving landscape of recruitment.
Your personal experience in starting your firm brings a practical perspective that can help others avoid common pitfalls. It’s great to see firsthand how you balanced costs while acquiring essential tools.
If someone were considering jumping into the industry without a lot of initial capital, your “shoestring budget” category gives them a realistic starting point. Meanwhile, your recommendations for those with more resources will certainly help them maximize their potential.
Overall, your post serves as an excellent resource for anyone looking to navigate the financial side of launching their firm. Thank you again for sharing your knowledge!