One of the thing we get the most calls and emails about is starting up a recruitment agency, that’s why we established the Start Up Centre (you might even be reading this blog there!). Our partners New Millennia talk about the common concerns they see when speaking to recruiters starting a recruitment agency.
Embarking on your business adventure, starting a recruitment agency for the first time is bound to leave you riddled with questions and concerns about what is coming, how to handle it and how to prepare; and that’s how it should be. Valid concerns and questions show that this is a venture that you care about, and acknowledging them is sensible, plus it’s the only possible way that you’ll be able to prepare for and avoid these concerns.
What If I Run Out Of Money?
Don’t be naive – this could happen, so your concern is valid. Cash flow problems for new businesses are one of the number one issues which can take them down. Medium assessed thousands of startups and reported that 29% of startups fail due to a lack of cash; while this doesn’t seem like a huge percentage, it was the second most common reason.
What If I Make Mistakes?
Mistakes happen. Making mistakes at some point, or more realistically, many points, while setting up your businesses is expected and necessary for you to discover what works and what doesn’t. So making mistakes is fine as long as you learn from them!
Back Office Management Seems Daunting
Not having managed the back office of a recruitment agency from A to Z before, you may find your knowledge in doing so is slightly lacking and therefore your confidence in getting it right also a little scarce! Having worked with recruitment agency startups since 2000, back office solutions specialists, New Millennia could be the perfect choice to alleviate this concern and get your back office running smoothly and professionally, just be sure to budget for outsourcing your back office, so you don’t overspend and fall into the 29%!
I Need To Know My Team Will Help Me Grow
You’re specialising in recruitment, so the hope is that your recruitment skills and knowledge are up to scratch for finding your own team. However, finding a qualified candidate and finding the ones who will really put in the hours aren’t always the same thing; you’ll have to hone your skills here and find candidates who understand the stage of your business and appreciate that extra hard work and dedication may be required. You’ll also want this to be a team who can communicate incredibly well, that feels comfortable flagging potential issues or clients who aren’t entirely satisfied and who are happy receiving feedback from day one so that you can mould the kind of B2B processes and relationships that work.
Starting A Recruitment Agency Will Take All Of My Time
Yes. Most of your time will be spent, planning, working on directly or thinking about business when you’re starting a recruitment agency. This is purely the nature of being an entrepreneur, so expect your thoughts and time to be all consumed by the project at hand. One way to combat this is to plan realistically; don’t give yourself unrealistic deadlines which mean you must work day and night for two weeks straight to meet a self-inflicted timeline. And also, plan for your work-life balance. You’ll be weighing heavily on the work side until you’re up and running, but if you can keep to a couple of regular weekly workouts or meetups, this should help to keep you grounded. There is such a thing as being too close to a project, some distance can help you keep perspective.
What if the clients don’t come?
Souring your clients promptly when you’re starting a recruitment agency is crucial to success, without clients to place candidates with, you’re not recruiting so much as cultivating a community of job seekers. So, again, a valid concern! Marketing may not come under your skillset; however, lead generation will be something you have done in your previous recruitment roles and this consists of generating client leads through networking, both on and offline, tapping into your contacts and possibly even some cold calling to find some new connections.
Your business plan will already have a detailed marketing plan and may include the addition of a marketing professional at an early stage in your business lifespan. This marketing strategy will enable you to bring in more business and generate more leads, so consider this when planning financial timelines.
Setting in place a logistical tracker for new leads from networking or marketing efforts will help you and your marketing force or the rest of your team to track and follow leads effectively.
You might also find Things To Consider When Starting A Recruitment Agency a useful article.
