The recruitment industry is one of the toughest industries to start out in and one of the hardest to retain longevity of business, while the barriers to start up a recruitment business remain lax. More than 9,000 recruitment agencies were set up in 2017 and by the end of December 2017 35, 275 agencies were currently trading.
So you are taking the leap to set up your own recruitment agency, you are full of ambition and enthusiasm to drive your new business forward but what are some of the everyday start-up pitfalls and hurdles that can often be experienced?
Clear goals are essential
The reality is running your own recruitment agency is hard work and tough-going at times! Clear goals and a focus of what you ultimately want to achieve is imperative. Research the area you want to operate in and know your niche. What are competitors doing and how can you offer something distinctive?
Understanding Cash Flow
Managing your cash flow from day one is crucial and one of the main reasons many small businesses fail. Spend control should be exercised; from a spreadsheet in the very beginning to moving to more formal procedures as soon as possible, A cash reserve for unforeseen circumstances or emergencies is always a good idea, and can help keep you calm in more troublesome times. Getting help and using a professional to advise in this area is a must. Managing funds is both a complex and time consuming task and can take your eye off the main business requirements.
Social media is an indispensable tool in the recruitment world, especially if you are just starting out. Not only does social media offer new opportunities to build relationships with candidates and clients, it also builds your brand’s reputation. Social media is a free channel that allows you to lay the foundations of your PR campaigns and create a voice for your agency. You can share opinions on current industry topics and promote company news whilst encouraging interaction with this content. Not maximising opportunities in this area could prove a huge oversight.
A professional website is the single most effective and inexpensive way to advertise your business. Your website is always available and ready to promote you, plus is an easy way to engage with both clients and candidates. You can learn about your target audience behaviour through your website and the more you learn the more competitive you can become. Investment in a good website -an extension of your business and brand - is crucial.
Demand for talented candidates within the recruitment world is greater than ever and a good pool of candidates can set you apart, but how can you start building a talent bank? Job fairs are a more traditional route, but still often a worthwhile option, while networking is essential - the more people you know who know what you do, the more recommendations you will gain. Successful and sustained businesses are built on referrals, and this must always be a focus. As a contingency plan build a talent pool - whereby you gather a bank of potential future candidates that you continue to engage with regularly.