If a budding entrepreneur is exploring enterprises that will be both highly profitable and rewarding, then launching a recruitment firm could be the business pursuit for them. Nevertheless, profits and rewards must be earnt, and if a businessperson was seeking an easy way to do this, then recruitment most certainly is not for them.
With over 30-years of running her own firm, recruitment specialist and industry leader, Mandy Watson, reveals five fundamentals to consider before launching a recruitment organisation.
1. Understanding recruitment
Recruitment is one of the most misconceived industries there is. It is incredibly stigmatised for its alleged “fast-sale nature”, but in reality, it is an incredibly bureaucratic industry.
Recruiting supplies the B2B and B2C market, which means to have a reputable and profitable organisation within it, a business leader must be outstanding at managing multiple expectations at one time.
It’s a fast-paced and complex industry, and any aspiring entrepreneur considering launching a recruitment firm, needs to be engaged and passionate about recruiting as well as working with a variety of people.
2. Location is one thing, what’s in it is another
Location is critical for a recruitment firm, even in the digital age and the remote working revolution. Working from home is not an option for everyone.
The labour market will vary everywhere, and this must be thoroughly researched before the launch of a recruitment firm. The bigger a place, the longer it will take to ascertain its economic cycle.
An employer’s requirement for workers can only be met when there is a suitable candidate pool. It’s crucial to consider if a location has a pre-existing skills shortage, as well as it’s demographic and the quality of its transportation links.
If talent is not attracted to an area then there will be a shortage of quality candidates.
3. There’s more to financing than money
Recruitment entrepreneurs should engage with an accountant and bank from the offset, and remember it is a partnership when establishing the funding line and growth plan of a start-up.
There are many options out there for start-ups and recruitment businesses, but individuals need to identify the right option for them depending on their client base and the type of contracts they will be dealing with.
The recruitment industry is notorious for the slow payment of invoices, especially when dealing with new clients. Invoice Financing is an incredibly popular option for recruitment businesses which is when the bank provides a percentage of a debtor to ensure an income until it’s paid. And it is available for start-up recruitment firms.
4. Resiliency comes from a willingness to learn
When a recruiter is going to supply multiple sectors this is usually shaped by the area. For example, an industrial town will demand industrial workers and an inner-city area will have more commercial opportunities.
Nevertheless, as COVID has exemplified how rapidly, and unexpectedly, the job market can change. Globally, so few vacancies for non-key worker roles were active during the height of lockdown. Innovators behind recruitment start-ups should remember that diversity is key to resiliency, and they should be prepared to learn about different industries.
5. The secret to outperforming the competition
Recruitment is one of the most competitive industries there is. To outperform the competition it is critical that a recruiter and business leader treats their clients, candidates and internal staff well and earns their trust.
It’s an industry that is heavily reliant on repeat business; therefore, customer service is paramount. For a recruitment start-up, building a strong team and retaining it should be a priority as business owners need staff they can rely on.
In the event of their absenteeism, for any reason, a leader should know their business is in safe hands. No matter how big or small, the better a leader treats their team, the better the team will treat their clients and candidates.
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