If you’re thinking of starting your own business you’ll probably do all sorts of preliminary research, which might well include asking the mighty Google ‘How to start up a business?’.

Six Key Steps To Starting Up A Recruitment Business
– From The Highest Authority!
HM-Logo

Now, in truth, this advice is generic, and aimed at helping people set up any kind of business but these six points are extremely relevant.

If you’re thinking of starting your own business you’ll probably do all sorts of preliminary research, which might well include asking the mighty Google ‘How to start up a business?’ Do that and you’ll find advice, direct form the government. At WWW.GOV.UK you’ll find a checklist of six key steps.

Now, in truth, this advice is generic, and aimed at helping people set up any kind of business. If you’re thinking of starting a recruitment business though, these six points are extremely relevant.

The WWW.GOV.UK list is set out as –

Start with an idea
Get funding
Research your market
Develop and plan
Find partners, suppliers and premises
Set up your business
Think about that in terms of founding a recruitment consultancy and you’ll find that it’s pretty good advice.
Let’s take ‘Start with an idea’ and assume it’s a given. You’re probably a recruitment professional who wants to use your experience to ‘do it your way’. You’ll be looking to reap more of the rewards of your own hard work, and you’re probably bursting with ideas on how to run your own consultancy. So far, so good.

‘Funding’, is next, and it’s essential. You may of course be massively wealthy and want to run a recruitment business to relieve the boredom of daily golf rounds, but it’s more likely that you’ll need funding to start up. Interest rates might not be at their highest, but you still need realistic terms, and, dream ticket, not have to plunder any of your own funds. Totally dream ticket is if you can find finance that covers not only the initial injection for set up costs, but also continued support to smooth out the peaks and troughs of cash flow that are inevitable in the first few months. And you probably don’t want a franchise, because you really want to go it alone. The right funding takes research.

Which leads us to ‘Research your market’. You’re going to know a bit about the recruitment market. Why else would you be doing this? But, now that you’re planning to be your own boss you need to really know the market you can best aim at and service. What geographical area can you cover? Are there any specific industries or recruitment requirements that are prevalent on your patch, and can you take advantage of them? Do you have special knowledge of any market sector that you can exploit? Who is already operating in your area, and how much competition do they represent? And when you’ve answered all those questions you can start to think about your brand, and what it should convey. Getting through those stages takes time, and it will pay to take professional advice to supplement your own knowledge.

‘Develop and plan’. Sounds obvious, and covers a multitude of sins, but it makes real sense to lay down a proper business plan. Work with experts and advisors to prepare a strategy that sets out achievable goals and expectations. Plan your marketing and get your message out there. But also, and crucially, plan your income and expenditure forecast, and establish how you’ll be able to sustain yourself financially from the outset.

Next on the list comes ‘Find partners, suppliers and premises’. The ideal would be to find a partner who can help find suppliers and premises. And if that partner is also helping with the funding then so much the better. Suppliers are more important in the early stages for a recruitment start up. You need to think about hardware, software, furniture and marketing materials. And maybe a car. As you get into your stride the supplier relationship will become, to be frank, secondary to the client relationship.

Which leads nicely into the final point of ‘Set up your business’. And the real point is that it’s not going to work if you don’t have clients. As a recruitment business of course you’ll have two sets of clients. Employers and candidates are the two inextricably linked elements of your customer base. So, with your idea in your head, your funding in place, your research done, your plans on paper and your partner found, all you have to do is find the business. And that’s the real trick. If you can get all the essential resources and plans in place so that you can concentrate, with total focus, on getting out there to do business, you’ll build a successful consultancy.

Let’s be honest, none of us, no matter what our political allegiance, believe that any government gets it right all the time. But, in this case it looks like WWW.GOV.UK have got some pretty good advice for the would be recruitment start up.

If you’re a recruitment start up aiming to be number one-you need to consider two audiences and that’s something that often gets overlooked.

The Two Vital Markets For A Start-Up Recruitment Business
markets

If you’re a recruitment start up aiming to be number one-you need to consider two audiences and that’s something that often gets overlooked.

In truth, there are many challenges that face the start-up recruitment business. Issues like finance, branding and operational systems, all of which need to be in place before you start. However, one key area that many start-ups overlook in their enthusiasm to get going is the fact that they have two key markets.

You need to attract clients, of course. You need a solid base of employer organisations who want to use your services. But then, to satisfy that need, you need candidates.

It sounds obvious, but it’s a vital part of your communications strategy from day one. As a resource for employers you need to ensure that you represent a credible, knowledgeable and reliable service. Key to that is being able to provide quality candidates.

As an attractive option for candidates you need to be seen as well connected, experienced and trustworthy. Key to that is having good clients.

All too often even the most well managed and highly driven start-ups will miss the opportunities to develop those twin images. Even worse, they’ll create a website that does a great job of selling to employers and then relegate the essential interface with candidates to a less than accessible button buried on the home page.

If you’re starting up you’ll doubtless be experienced. And you’re probably a great recruitment consultant who now wants to ‘do it you way’. As great a consultant as you are, it doesn’t necessarily mean you’re a great marketer, website builder or strategist. It will pay to talk to experts who can be objective about your plans, and give you sound advice.

Sometimes you can get so close to your own project you lose focus on essential points. Even something as obvious as the fact that you have two audiences, and they need different messages.

It’s worth talking to specialists who can run a reality check on your plans, because having all the wrinkles ironed out before you launch will pay handsome dividends.

It’s going to be challenging enough, so address the key ones sensibly from the outset.

David Simons, Managing Director of Recruit Ventures shares his views on starting a recruitment business. He says, do the maths!

There’s Room For You To Start Your Own Recruitment Business
maths

David Simons, Managing Director of Recruit Ventures shares his views on starting a recruitment business. He says, do the maths!

‘I’ve been looking at the size of the UK recruitment market. Last year’s figures give us a picture of a sector worth somewhere around £26billion. Now, even if you’re starting out in a small way, that’s a big cake from which even a modestly sized slice represents a big number’, says David Simons, Managing Director of Recruit Ventures.

‘Our business model is aimed at helping recruitment professionals start up their own businesses. We offer the financial backing, free of outlay, free of being a franchisee and without the need for a bank loan. We provide the back-up systems, and help with branding. It’s a package that gives entrepreneurially minded consultants the opportunity to do it their way. But, even with the peace of mind and firm footing we provide some would be start-ups are daunted by the fear of competition’.

In developing his point, David Simons went on to say, ‘Do the maths. Way less than 1% of the market would be a significant figure in turnover. In reality, even 1% market share is of course an optimistic target, certainly to start with. But, given the sheer size of the market, there is room for more recruitment consultancies to thrive. Geography, specific sectors, specialising in a particular service are all ways in which you can build a niche, and in such a big market focusing on a niche is an excellent launch pad’.

Recruitment agencies have certainly lifted off from the Recruit Ventures launch pad over recent months. A nationwide string of start-ups is now operating successfully having been backed by the organisation. ‘We have funds available now to help recruitment professionals start their own businesses’, says David Simons. ‘Properly supported, and funded, you can do it your way. And if the competition is still a sticking point for you, just consider the size of the market. There’s room for you’.

He added, ‘just suppose you invested 1% of your day to check us out. What’s that in minutes? Do the maths!’

No offence meant there! I’m sure you’re very good at what you do. But have you stopped to ask yourself that question?

What Are You Doing
Working In Recruitment?
lost

No offence meant there! I’m sure you’re very good at what you do.
But have you stopped to ask yourself that question?

No offence meant there! I’m sure you’re very good at what you do. But have you stopped to ask yourself that question? On two levels? Firstly, what is it exactly that you do? And secondly, why are you doing it in the way that you do?

First then, the big question. What is recruitment? In many ways it’s a sales job. If you’re a recruitment consultant you’re selling your employer’s organisation to companies, convincing them that you can find them staff. You’re also selling candidates to employers. In fact you’re selling the organisation to candidates too.

It’s an advertising job too. You’ll be involved in writing and placing the ads that sell the jobs.

It’s more complicated than that when you factor in the market sectors, the temporary and permanent roles, the targets and commissions, but in the big picture that’s what you’re doing.

If you’re happy, then fine. But if you’re asking yourself what are you doing working in recruitment you’re probably, maybe unwittingly, feeling the first stirrings of the entrepreneurial character that runs through many recruitment consultants. You’re beginning to wonder if it wouldn’t be better, rather than working in recruitment, if you were working at recruitment. And that means working for yourself.

Starting a recruitment business is as daunting as launching any company. But, the very nature of the business means as an employee you’re working autonomously, responsible for a bottom line and tasked with growth. For someone else.

Apply the same skills and determination to your own business and it starts to look different. Now the hard earned rewards are your own.

The recruitment business is probably one of the best sectors for start-ups. Careful consideration of backing, finance, systems and branding are essential. Good support at financial and operational levels are vital. But, you’re already using the skills it takes to run your own show. So why not do it?

Back to the question then. What are you doing working in recruitment? Ask yourself. You might be surprised at the answer.

For a successful take off you need a sound launch pad. And if you’re aiming for the stars you need a clear sky.

Where To Focus Your Limited Resources
In A Startup Recruiting Business
clear-sky

For a successful take off you need a sound launch pad. And if you’re aiming for the stars you need a clear sky.

If, in the unlikely event, that you’re starting up a recruitment business with unlimited resources, you won’t need to read on! If however, you’re starting up and have to be realistic about how to deploy your probably limited resources, then there are some key factors to consider, and prioritise.

Let’s take that in reverse order. That clear sky means you need to be able to concentrate on what you do best, and what, almost certainly, you’ve promised most – service. You’ll want to use all your experience, contacts and motivation to get in front of prospective clients and, having won their business, put in place the kind of service that will make you stand out.

The problem is, that’s harder to do when you’re constantly thinking about creating your new website, sorting out the stationery and furniture and setting up the office. And that’s without juggling the cash flow because the next start up loan repayment is due. Managing those, with limited resources, the most precious of which is time, is not easy. It also doesn’t make for the clear mind you need to be out there winning business.

Your plan therefore should be to have all the essentials in place and ‘up and running’ so that you can concentrate on growing.

Those essentials really fall into three categories.

Finance. You need the initial capital of course. Importantly you need it at favourable rates, and without the restraints of a franchise. Why would you be going it alone if it means working under another brand? Just as importantly you need the credit facility to accommodate 30 day invoicing periods and maintain a steady cash flow.

Systems. You will crash and burn very soon after take-off if you don’t have robust, tried and tested systems on which to run the business. The recruitment industry has procedures that are essential to administer the process, and without them all your efforts will flounder. Get the office back up in place before you make the first pitch.

Branding. In theory you can pick up the phone and start making appointments. ‘I’ll worry about the logo and branding later. Let’s get some business in first’. Wrong! This is a competitive market and a nameless one man (or woman) band, no matter how good your reputation, just won’t cut it.

So, consider your resources and match them against the essential requirements. Focus on your finance, systems and brand. Get them sorted, as cost effectively as possible. Make sure they are firmly in place, and that you can rely on them.

Then, and only then, are you ready for blast off. And with your mind clear of the details and worries you can fly. Able to focus, you’ll make better pitches, close more deals and deliver the service that ultimately is the mark of a successful recruitment business.

Author

David SimonsDavid Simons has extensive recruitment knowledge having worked within the industry for over 20 years. He is Managing Director of Recruit Ventures who provide investment and back office support to individuals who wish to start up their own business and existing Joint Venture partners grow their business.