Recruitment jobs starting your own agency

It’s fair enough, recruitment agencies have all the overheads and the associated risks with this, offices, staff, advertising contracts and so on. So should you really go it alone in recruitment jobs? Well, from here, I can’t really give you the answer to this, as the answer can only lie with yourself.

Firstly, you do need a reality check. Some people decide to take this step based on the ‘grass is greener’ principle. The boss drives a bigger car, has a nice house and appears to tell everyone else what to do. What you perhaps can’t see is the stress he’s under having to pay all the bills each month, his car loan is bigger than your mortgage and inevitably he’s having to deal with as many employees who ‘aren’t’ doing what they should as those who are. Running your own business is not for everyone, there are huge benefits and huge sacrifices, if you understand these and are starting up with your eyes open to this, good for you. If you are not really sure what running a business is like, I would strongly suggest you read up on the internet and speak to some people who have already done it.

Here’s a few things to consider when setting up.

You may end up having to work exceptionally long and unsociable hours when the chips are down

You may end up having to risk you house, savings and family stability.

Taking holidays may be difficult for the foreseeable future

The perceived risks you take have far greater consequences than they have previously, and this brings with it higher stress.

The buck really does stop with you, both operationally and legally!

On the plus side

In time you will likely earn more than you could in employment if you are successful

You will have greater flexibility with your time

The personal satisfaction of success is unparalleled

Nobody will be giving you orders

You have the freedom to use your talents as you see fit.

If you are a successful recruitment consultant and I haven’t put you off yet, it’s time to start planning. Here’s my top tips for setting up.

Create a spreadsheet of ALL your running costs

Create a spreadsheet of you projected income

Run the above on the same spreadsheet with a running bank figure from your starting investment and see if it works over the first 12 months.

Now add 20% onto 1) and take 20% off 2 and see if it still works! Plans hardly ever go as you expect, you need to examine your plans from a worse case scenario and see whether you still have options to progress (contingencies)

4) works or you have a viable plan if it doesn’t, you’re in business.

If 3) works but 4) doesn’t think carefully, your risk of failure is high.

Once you have a 4) that works, proceed as follows.

a) Buy your company along with associated domain for e-mail and web site

b) Have your website created and e-mail set up using your domain. A basic ‘who we are and what we do’ website will suffice at this stage.

c) Create an initial database an list all your potential clients who you can approach for vacancies….software available on the internet, try searching ‘CRM’ systems.

d) Ensure you have all you need for your desk, phone line, mobile and Computer with internet access

e) Set yourself clear and realistic targets and off you go.

In general, I reckon you need at least 3-4 months operating costs in the bank at any given time. Without this, you run the risk of failure through not having the budget to operate properly. When you start you may need 5-6 months money to even begin to be comfortable. If you are an experienced consultant, you are unlikely to fail because you can’t make placements, but there is likely to be a lag before you make you first placements and the first money comes in. Once you’re in the groove, meeting your operating costs should be okay on a quarterly basis, although expect fluctuations monthly.

Remember, your database is starting from scratch. My final top tip is to start with as much money as possible, and in particular start with bold advertising costs. When I hear of people with no database trying to compete on the basis of only gaining ‘free trials’ I do feel these people are doomed before they have started.

Good luck.