Firstly, define success? Success for some may be a mere lifestyle business whilst for others, success is a defined income. Some recruitment agency owners will define success in monetary values, others will determine success by the positive impact the business has on clients and candidates. Each recruitment consultancy is different, essentially once you’ve set up you’ll need to define some short-term goals. Hitting or exceeding those goals will define if you’ve been successful – in your opinion.
1. Build a network
A small niche agency needs to rely on its network and the level of expertise in the owners. Be niche, with an inch wide, mile deep mentality. Recruitment businesses are people businesses and your network is the strongest weapon you have in the early days. Get out and meet your clients, don’t forget to get on the phone and drum new business up. A strong pipeline through business development will help pay for the other important elements like social media presence, brand awareness, CRM systems etc.
2. Utilise Social Media platform
Talking of social media – embrace it. The internet is a deep pool of opportunity. LinkedIn, Twitter and sector-specific forums all provide a mouthpiece and wealth of information regarding your industry. Online job postings are available 24/7 to a vast audience and CV databases are highly searchable and can unearth good candidates depending on what you are willing to spend. You really can run your business from a laptop and mobile.
3. Stay up-to-date with latest laws and regulations
It’s your responsibility to keep up to date on the laws affecting you and your business, something that may be new. Legal documents, legislation and tax regulations can seem like a chore but it pays to know your stuff and protect your business. This may be an area to outsource and pay an expert to keep you up to speed. Apsco and the Recruitment Employment Confederation are good organisations to join up to that will provide you with both advice, contracts and legislative updates.
4. Manage cash flow
You’ll need it and recruitment isn’t kind to your cash flow. The more workers you place the more cash you’ll spend. With typical debtor days of 44, and many larger clients exceeding 90+ days into bad debt, you’ll be paying workers for 5-6 weeks before your invoices are paid. That’s where Quba Solutions can help, we can provide both the finance and back office capability in a convenient online platform allowing you to spend more time on business development and subsequent fee-generating activities rather than back-office administration.
5. Invest in efficient online platforms
Investing in online dashboards allows business owners the ability to agree credit limits for clients, whilst also providing the functionality to track all credit control processes providing full visibility of all outstanding invoices. Investing in e-timesheets will ensure workers get paid, you are regularly invoicing your clients and paying your margin weekly. Considering 100% finance schemes will enable you to trade without the usual cash-flow constraints of traditional finance.