Pandemic has impacted the jobs globally. Several experienced Recruiters will have chosen the route to launch their recruitment agency start-up. Utilising the skills, knowledge and contacts is probably the best way to establish the business.
The situation is not the most favourable for the recruitment agency start-up. There are more barriers to start a recruitment agency against launching the recruitment business in a pre-pandemic condition.
So, what are the top barriers to a recruitment agency start-up?
LACK OF JOBS
Most companies have a hiring freeze. Those recruiting will take cost-effective routes like utilising internal recruitment teams against partnering with an agency. Generating new business is one of the foremost challenges faced by everyone that has launched a recruitment agency start-up.
There are several ways to source vacancies such as utilising past contacts, partnering with other recruiters to work on split fee model, and joining associations like NPA Worldwide. Furthermore, outsourcing vacancy monitoring activity to an offshore recruitment company will provide detailed research on companies that are recruiting.
We all know the importance of funds when starting a new business. One thing that takes most recruitment agency start-ups is funding. Having sufficient funds to last while one starts generating clients and placements is critical. The most attractive type of finance is bootstrapping. However, there are other routes to choose from in case self-financing is not an option, some of the many alternatives outlined below.
- Bank loans
- Start-up loans and grants
The recruitment industry has continuously evolved and generated many small-to-midsized businesses over the years. An industry with a turnover of circa £39B has many private investors. There are passionate recruitment business investors like James Caan and Rhys Jones that support budding recruitment entrepreneurs.
They not only provide funding and support services but with their wealth of experience in the business world, they also provide knowledge and guidance to recruitment entrepreneurs for success in their venture.
Launching a recruitment agency start-up is challenging like every new business. Limited funds are a reality, and one must make difficult choices—the choice of investing in the most wanted against most desirable.
Some of the most critical factors new recruitment start-up agency owners face are:
- Access to tools of the trade, i.e. job boards, LinkedIn recruiter, etc.
- Generating new candidate database (resourcing and candidate generation support)
- Admin and back-office support for tasks such as CV processing, CV formatting, Timesheet processing, payroll, etc.
Recruitment agency start-up entrepreneurs must roll up their sleeves to be successful. Being hands-on is not a choice, but a requirement critical to the success of the venture. Playing the role of a 360-degree recruiter paves the way forward. Optimising the resources is imperative for a new recruitment agency start-up.
While this might not be the best time for recruitment agency start-ups to generate new business in real-time, it is probably the right time to go out there and develop new contacts. The tide will turn, and the jobs will come back.
Utilising this time in developing new client and candidate relationships will highly impact the outcome of the success of your recruitment agency start-up.
Ending the blog with this quote by Calvin Coolidge.
Nothing in this world can take the place of persistence. Nothing is more common than unsuccessful men with talent. Persistence and determination alone are omnipotent”
Want help optimising resources and running a successful recruitment business? Let us connect!