How do you know when you’re ready to set up your own recruitment business or any business for that matter?
Here are a few simple tips to consider if you’re ready to make that next step:
May sound silly but experience is essential no matter what your industry. If you are looking at setting up a recruitment business you need to have been successful working in an agency. This will not only give you the confidence that you have evidence you can succeed but also it is the natural next step in your career progression.
It’s important to understand why being an entrepreneur is important to you. There are many advantages, financial security, autonomy, flexibility but why are these things important to you? What motivates you to earn more money? Why is autonomy important for you? What would the flexibility free you up to do?
Most recruiters will face restrictive covenants when setting up a new business. It’s important to have a plan in place to work around this in the initial period. What will be your focus of business development outside of these restrictions?
It’s also key to understand from a planning side what you will need from a business perspective. What jobs boards will you need? Which CRM will you use? What will your branding look like, website, social media, email signature, business cards? What insurances will your business need? If you’re a temp recruiter, payroll and factoring will be essential.
Planning and forecasting is key for any business. Knowing your average turnaround time for a role, notice periods and payment terms will allow you to project when your business will be able to generate enough money to support you financially.
As well as the initial set up what are the long term plans for your business? Are you looking to scale and grow organically, at a faster rate or even create an exit value for your business? These long term plans will allow you to forecast and budget effectively before the business gets going.
Firstly it’s essential to have the support from those closest to you. Again this comes back to giving you the confidence that this is the right thing for you.
As well as that it is important to surround yourself with the right business support. It is impossible to cover all aspects of running a business and any time that is taken up will impact on the money your business is able to generate. It all comes down to doing what you do best and surrounding yourself by experts in other areas, accountants, payroll, legal and compliance, technical, creative and marketing, business advisory.
There’s always the old cliché that there is never the perfect time to launch your own business. The key things to consider when setting up your own recruitment business is your market area and the seasonal impacts that may have. For example, if you are an Education recruiter and the peak for you is the new school year in September then you don’t want to launch your business in September as you will be behind your competition. Launching the business prior to the school year ensuring you have your clients needs well in advance will out your business in a much stronger position.
With all these in place you will be in a strong position to becoming an entrepreneur. That is just the start of your journey though and what happens from then is limitless!