There’s no denying it; since 2003, the recruitment market has changed. Insightful I know. But it’s true; like many fantastic things, the recruitment market has changed, developed and progressed over time and therefore it has demanded that SSG do the same.
While, back in 2003, SSG was part of a very small, unique handful of options out, therefore, motivated recruiters to start their own recruitment agencies; what we’ve seen over the years is a surge in the various ways recruiters can achieve entrepreneurialism in today’s market.
Which, for SSG at least, is fantastic. Increased options for recruiters result in better and more meticulous decision making for these fantastic professionals, which in turn increases the quality of start-ups out there today.
Ironic, I know but we don’t want to support every recruiter out there in their own agency. As ironic as it might sound, we’ve never wanted that. What we’ve always wanted, however, is to be given the opportunity to support motivated and informed recruiters for whom the SSG model is the right model for them to achieve what they want. Not simply “the only option”.
So what are they? These mystical “other options” to the SSG offering? For SSG, there have always been another 4 clear ways to start your own recruitment business.
- Self-Fund DIY
Raise the required capital yourself. Coordinate the launch of your business. Buy access to the tools you need to make money.
For me, as an alternative to SSG, this is my favourite one. Although it may seem scary, daunting and down-right tough, if you weren’t to go with SSG to launch and support your business, this could be the most viable & satisfying alternative. Of course, there’s no denying, you need to take particular care to ensure you have enough capital to cover you in the three main areas of expense:
- The cost of physically launching your business
- Simply living during the “baked bean” period
- The cost of the tools to help you succeed (& not just a few job boards, of course, we’re talking all the on-going back office, branding and technical costs too)
But ignoring the obstacles for a moment & taking a look at it from a far, if you believe that SSG wouldn’t be right for you then Self-Fund DIY would be high on my list of recommendations.
2. A Franchise
Buy into Recruitment Franchise from an established Franchise Vendor. Invest your capital (around £10,000 – £30,000). With that investment, buy the backing of the Vendor.
There are a considerable amount of Recruitment Franchise opportunities out there today, many backed by big household Recruitment names! A quick internet search of “Recruitment Franchise” will suggest to you that, although you would be trading using the franchise’s branding, you’ll have the support and expertise of their umbrella. What do most franchises stipulate?
- Well usually there’s an upfront investment from yourself, presented by them as an investment into your future and your clear commitment to the longevity of this agency.
- There’s usually a monthly management fee which is either a fixed fee or a percentage of the placements made.
Critics of the model base their feelings around the high financial investment & lack of personal branding for the recruiters who choose this avenue. For me the major obstacle would be – if the Franchise owner really believed that they could help you succeed, then why do they need payments up front? But then again, I could just be a little bias.
3. An Investor
Find an Investor. Present your plans & goals for the business. Be willing to give away some ownership of your business for some hard cash & expertise.
Gone are the days of pension funds, housing and saving accounts. Society is changing and the increase in private investors within the marketplace are demonstrating this. While they’re not all 6ft 6 & own a wide collection of colourful socks, investors all want one thing – security & return on their investment. Generally speaking, they all want to see a progression, return, growth and a clear exit strategy.
If you need hard cash to get the job boards you need, the website you desire and the ability to outsource your accounts, then this is a route you should seriously consider. A word of warning, of course, would be that this hard cash does not come for free – if you’re happy giving up a percentage of control over your business then this is a route worth exploring.
Work for an existing Recruitment Company, in the sector you enjoy. Work from home (usually) on a Commission-Only scheme. Trade through their business, share their branding & enjoy the flexibility of a commission-only role.
There are several Recruitment Companies out there willing to let you work through their business as a self-employed commission-only Recruiter. Long story short, this route will allow you to:
- Work from home
- Make the odd placement
- Keep (pre-tax) up to 70% of what you bill (OK you have to sort out your own tax etc, but you get the point)
No real commitment & the freedom to walk away when you want – sounds great & I can see why. However, critics always point out 4 main issues with the model:
- You have to pay your own tax (& that means dealing with the tax-boogie man)
- You have a clear restricted market
- You have no security
- You’re in “recruiting limbo” (you haven’t got salaried employment nor do you own your own business)
My view is that it is an understandable route to consider but, before you embark on this journey, ask yourself again – why are you doing it? What are you hoping to achieve & is this really the best route for you?
Plan of action?
Review the options in front of you – please do. This is a big (& very exciting) decision & therefore you need to ensure you find the best route for you.
I guess all that I can hope is that now you are aware of the options, perhaps you will revisit SSG and choose to talk to me about how we might be able to help?…