Starting your own recruitment consultancy often involves leaving an existing job, the subsequent security that provides and heading out into the unknown. Usually individuals who are seeking new recruitment consultancy opportunities are confident that they have the necessary skills to thrive as a consultant. However, it is important to consider that those same skilled consultants will be running a business for the first time and as a result often look for guidance or advice on how they can plan, manage and monitor their success as a business owner.
Below are a couple of points we believe should be considered when looking to start your own recruitment consultancy:
Understand the benefits of running your own business:
When looking to start your own recruitment consultancy it is key that you ask yourself what benefits you wish to experience when running your own business. For many, the most common answers include: time freedom, flexible working hours, limited restriction by their own imagination and drive and the all-time classic of earning extra income. Understanding the benefits and the impact they can have is important to drive business success.
Set realistic goals:
If individuals are confident that they can achieve their required benefits through running their own business, then realistic and achievable goals for the first year of trading need to be set. Setting realistic goals for a new recruitment consultancy depends upon the following:
The industry the business is looking to venture into
How many staff they currently have
The geographical area that they are looking to trade in
The ability to set realistic goals will provide a sense of direction for the business and staff involved.
Determine the ability to measure business success:
Measuring the success of a business is unique and should never be compared to alternative businesses. For example a London-based IT agency will measure their success in a completely different way to a regional agency who supplies a high-number of freelance worked into their industrial sector. When starting a recruitment consultancy businesses, owners need to clarify how they quantify success and how they will achieve that success. The ability to measure the success of a business can be one or a combination of the following examples:
Number of temporary workers
Average weekly margins
Number of new clients
Setting realistic goals based on the above measures will help a new Recruitment Consultancy enjoy their first year of trading. If you aim to turnover a specific amount of money overall in your first year (as opposed to an average), the chances are that you may be disappointed at the end of the year, even if you have actually performed significantly well.
Putting this into practice, if the idea of business success is to generate £1,000,000 in turnover, instead of focusing on that number, ask yourself how many clients and candidates it will take on a weekly basis to achieve that figure. What is your average timesheet value? How many candidates will you start with? How many will you need to finish on to achieve your target?
Ultimately the most important thing to remember is to enjoy what you are doing and enjoy the benefits that you originally wanted to achieve from running your own Recruitment Consultancy!
Here at Quba Solutions we continuously work with individuals who are seeking the opportunity to start their own recruitment consultancy. If you are interested in taking the leap or starting a Recruitment Consultancy, please feel free to contact our team on:01305 233178.