Entrepreneurs are everywhere. In fact, speak to most recruiters and they will agree that managing their own desk is akin to running their own business. So, it perhaps comes as no surprise to learn that the number of consultants opting to set up their own recruitment agency continues to rise year on year. The challenge, of course, is how to get started in the first place.
Here we take a look at three of the most common myths that deter many ambitious recruiters from starting their own recruitment business.
Myth 1: You need a healthy savings account and a supportive bank manager
If everyone relied on the banks to fund their recruitment business at the outset there would be fewer agencies around. Tighter controls over borrowing have meant that traditional lenders are no longer the finance providers of choice for many start-ups – that accolade is increasingly attributed to alternative finance providers.
There are a number of very good reasons for this – perhaps the two most important being the need to have immediate access to money to pay their contractors, and having unrestricted access to the funds to scale the business itself.
For instance, one of the things that we offer is a 100% recruitment finance solution that can pay your workers accurately and on time. So, if you win a contract for 100+ workers you won’t have to worry about having enough cash flow to pay them next week. You find the clients and candidates and we pay them and you – your margin every Friday.
For those looking to launch a new permanent recruitment agency, our unique 12 Month Rebate Scheme can help get you ahead of the competition. Furthermore, our 100% advance on Perm Placements means you don’t have to wait 30+ days to get paid – you get your 100% advance on your perm placements within a few days of raising an invoice.
And for peace of mind our Debt Protection and Compliance come as standard. Also, when you are ready to scale up the business, it’s good to know that there is access to multiple insurers and extra insured funding as and when you need it.
Myth 2: As a one-person business, you need to be a Jack-of-all-Trades
One of the biggest frustrations that ambitious recruitment business owners report is that the excitement of launching their agency quickly wears off once they realise the how much of their time is taken up by non-billable activities. Namely, back office tasks. But it doesn’t have to be like that.
Chances are that your primary motivations for wanting to start your own agency were a mix of a) wanting to have greater control over your own career, and b) recognising that ‘your way’ could be better than what is already out there. So, the thought of spending a large proportion of your time raising and chasing invoices, managing payroll, performing compliance checks or processing timesheets among other things, is unlikely to be an attractive proposition.
Rather, your focus should be on generating revenues and delivering a great service. Take a look at our comprehensive guide to back office solutions to see how letting this side of your business be managed by someone else gives you greater control over the direction your new agency will head.
Myth 3: You need to invest heavily in the right technology and systems
There is no escaping the fact that technology is essential for recruiters, whether it be a CRM or ATS or a whole host of other options. In fact, it can be a minefield identifying and deciding the systems that will be right for you in the here and now, and those that can be adapted to meet your future needs and without breaking the bank. But this isn’t always the case.
We recently launched GEMS, the unique end to end Recruitment CRM and workflow solution that has already seen users gain time and drive new sales. GEMS can make your business more efficient by combining front and back office systems into one seamless process. Your consultants will have access to prospect data, candidate information, weekly payroll records, live or historic bookings and online reporting - all in one place. What’s more, it’s also available with our Finance or Back Office Solutions. This in turn frees up more time to spend on client and candidate facing activities and the beauty of it is that GEMS is completely FREE to all Simplicity partners. So if you want to have more time to increase sales and reduce costs see here for more details.
2018 is set to be a great year for the recruitment industry. Employer confidence is predicted to remain strong for the foreseeable future and economic growth is already defying initial forecasts.
Against this backdrop, we expect to see more ambitious recruiters seek to fulfil their entrepreneurial aspirations. As we have shown here, many of the perceived barriers to start up your own recruitment business no longer exist – it really has never been easier to make your entrepreneurial dreams a reality.