This is the final post in a series of blogs written for us by the team at BlueSky PR from our conference at the end of last year. I’ve linked to them all at the very end of this blog.
At the conference Chris Ledbury and Helen Reynolds presented on the subject of Building a Future Busting Business. We work with Helen and RIDA to host the Recruitment Director Only events at which themes like this are discussed.
Onto BlueSky’s summary of the presentation.
Growing your own business as a recruiter is a dream which is becoming ever more popular in the modern world. In 2011/12 alone over 2,000 recruitment agencies started trading. In 2012 SMEs made up a staggering 99.9% of all enterprises. Of course, these new companies will experience varying degrees of success and growth.
So what makes a successful recruitment business?
This was the question addressed by Chris Ledbury and Helen Reynolds at the UK Recruiter’s Network Conference as they presented to an audience of recruiters from across the country.
They began by presenting the example of the Nigel Frank International Group, which started as a one man band in 2006, and was sold after five years for close to £30 million. How did they achieve this?
Firstly, the company knew their sector (Microsoft Dynamics) inside out, and they were aware that it was a niche and important industry within employment. The Group had a long term plan for growth over several years rather than just planning for a few months, and made sure all of their employees and partners shared this vision. Most importantly, they hired staff very early on, rather than attempting to do everything amongst the directors. This was the catalyst for success.
As Chris and Helen pointed out, this is different from what most new recruiters do. Many unsuccessful start-ups wait until their second year to hire staff and try to establish their brand at the same time as growing the company. This short term policy often makes it difficult to retain their top employees due to lack of career structure and development plans.
Crucially for new agencies, risks must be taken early so that enough staff (as well as a solid structure) is in place to deal with the planned growth in the second year. Another successful recruitment agent, Dartmouth Partners, advised “Think about the team. Hiring the right people initially is key. No attrition means a stable platform to grow from.”
The presentation finished with a summary of the four vital things to remember when growing your own recruitment business:
1. Know your market sector
2. Invest not only in infrastructure but also in your own staff
3. Ensure you have sufficient funding for a 3-5 year plan, not just 6 months
4. Don’t skim on advisors. Quality advice costs money
Summaries of all presentations from the event are below plus an overall summary I wrote:
dan-mcguire-graham-palfery-smith-planning-exitor-just-exit-curious/
andy-headworth-making-day-effective-social-media/
roy-ripper-recruit-superstars-recruitment-business/
recruitment-conference-2013-notes-lisa-jones-presentation/
katherine-robinson-future-sourcing/
paul-dewick-business-development-vs-account-management/
roderick-smyth-effective-marketing-with-your-crm/
kevin-crews-sourcing-candidates-using-mobile-technology/
Plus photos on our Facebook Page and a montage video
