People sometimes fall in love with the idea of setting up that new business. It is a rather romantic notion, and dreams of success prevail – not always common sense. Don’t get me wrong, I am all for entrepreneurs and the success of new businesses. It just makes me sad that so many of them fall by the wayside because of a lack of planning and judgement. Here are just some of the things to think about if you are considering starting that dream recruitment business.
Do You Have the Funding?
Many new businesses fail because their business plan has not properly considered the full implications of the cost of the start-up and the ongoing cash flow. It is important to understand upfront the costs that will be involved in setting up a recruitment agency. Make sure you know where the initial funding is coming from, be it personal funding, loans, financing, or family. Ideally, you should have enough to cover what you think to be your initial costs for the first 18 months. You should also be prepared to cut personal expenditures if needed. It often takes some sacrifices in the first few years of a new business.
Decide on Your Business Format
If you are looking for the entrepreneurial spirit, then the best option here is to go at it alone. All you really need is a laptop and some contacts to get you off to a start. There are almost no overheads, so this is the cheapest option. However, it is also the riskiest, as you have no professional support, and getting started on your own is tricky even in the best of times. You can always look for outside help as well from someone like Startupsimply.
Another option would be to purchase a franchise. This is the corporate option, and you will get lots of training and support – and also access to things like infrastructure and marketing. However, it can be an expensive option and has many legal implications which should be fully understood before embarking upon such agreements. Finally, you could choose to join a recruiting network. Any type of networking can be invaluable to a business, and speaking to other professionals in the same sector as you can provide a lot of useful support and information.
Running a Business Means Extra Work
If you have previously worked as a recruitment consultant and are now thinking of going at it alone, it is worth remembering all of the extra help you will have had as an employee. Things like the administration and marketing were probably all done by other staff members, leaving you free to follow up on leads. Once you start your own recruitment agency, this will all be gone, and you will have to bear the responsibility for these things yourself – either that, or be fully responsible for the staff you hire to do it for you. Many new start-ups consider outsourcing some of the day-to-day tasks such as payroll, just to leave more time for the activities that will pull in more income.
Before you do anything, make sure that you have done your research and know what it is that you are getting yourself into. Having a good support system and experienced people around you will make a big difference, and it will hopefully in the years to come mean that you have a successful business that you can enjoy to the fullest.