There are many pitfalls you can face when starting your own recruitment business. Take these 10 into account before taking the plunge, and you’ll be better prepared for your new business start-up journey.
1) More than a job
Running your business is more than just being involved in performing the recruitment activities. You need to keep the growth of your business in mind and have clear goals mapped.
2) Knowledge not broad enough
There is certainly a gap between being a single top billing recruitment consultant and a business owner. You need to acquire commercial skills across all areas of the business, not simply those which are customer facing. Thankfully the skills you have as a seasoned recruiter will stand you in good stead as you will be comfortable dealing with people and fast moving situations.
3) Wrong business partner
Working in a business with someone else is challenging, many partnerships struggle and often there is a clash of vision / approaches to the business which can form massive cracks in your operations. Why not hire people to support you in the business?
4) Starting from scratch
The time taken to start a business from scratch, rather than buying into an existing support system / franchise model is very expensive. There are only so many hours in the day. By working with an existing model, everything is on the shelf ready to the customised for your business, saving you the most valuable resource you have – your time.
5) Too small
Challenge yourself, aim to have a business that will grow and be profitable. If you think too small you may miss opportunities to hire the right people that can accelerate the rate of growth in your business.
6) No added value
It is key to ensure that the offer you take to market is not simply based on price. You need to deliver a valued service at a price which will ensure the success of the business – you need profit.
7) Cutting corners
It is important when growing a business to make sure you are not too busy, bogged down in administration and cost saving that you have no time to generate new sales.
8) Cheap staff
It’s your business; you deserve to hire staff that will add to this, hire the best you can afford and take your time in selecting them. There is a saying – if you pay peanuts you will get monkeys! Enough said!
9) Tunnel vision
It is important to remember there are a number of key areas in a business, not just one. You need to be use that areas of sales and marketing, finance and administration, and operations are all working together – in-line with your plan, else the ship will veer off to one side.
10) No accountability
it is vital that you keep a very close track of performance within your business. There needs to be clear Key Performance Indicators so you can identify issues well in advance and correct these before they crippled your operations. There is a rule of thumb which argues you can’t manage what you don’t measure.
It is essential to the success of any new business, let alone in recruitment, that you come ready for the many obstacles that may face you. But you need not go it alone.
If you’d like to speak to an expert in business start-ups and mentoring of new companies, then get in touch with Gavin Chase, at GChase@antal.com, for a free, no obligation, conversation.