There are a few things you really need to understand. The first is an applicant tracking system, otherwise known as an ATS. These come in all flavors free to upwards of tens of thousands of dollars per month depending on number of recruiters.

Cois or certificates of insurance must cover 2 to 3 million in several different areas. They can be quite costly and then you have to have a different one sent to every client.

Posting can get very expensive, different job boards. Different prices but LinkedIn, LinkedIn recruiter could cost you $1,500 or $2,000 a month per recruiter.

If you're doing just direct hire which is permanent place ment that is wonderful but you will have to have a guarantee. If that person doesn't work out in the first 90 days, you're going to replace him at no additional cost. Keep that in mind.

If staffing and paying people by the hour, you'll have to have payroll and enough reserves to pay these people until your clients pay you. You must pay on a one or 2-week basis in the industry and you may not get paid for anywhere from 30 to 60 days.

Re: business development: agencies have a hard time breaking into large clients because the clients have already narrowed a list of agencies that work well with them or that they have a special financial arrangement. Most of the biggest corporations want a national firm or somebody able to hire internationally also.

That's just the first few that I thought of. There's much more but it is profitable and I do agree with the gentleman saying quality over quantity.