Not everyone who works in recruitment is cut out to start their own recruitment agency. There could be various reasons, including a lack of experience, skillset, or motivation to become a company director. Furthermore, although some recruiters are fantastic at making placements, they may struggle with managing the other aspects required to run a business, such as managing cash flow and people management, or they may struggle with business acumen.
However, many recruiters have several traits that contribute to making someone an ideal candidate for starting their own recruitment agency and becoming successful. Below are some of the traits that MAYACHI has observed over the years that contribute to making ideal recruitment agency directors:
A TOP BILLER CONSULTANT CAN BE AN EXCELLENT NEW RECRUITMENT AGENCY DIRECTOR
Being a top biller in a recruitment agency is one of the key aspects of successful new agency owners. Starting a new agency requires the owner to be able to make placements and hopefully generate the required sales income to help the agency survive as quickly as possible. If the new agency director is a sub-par biller, this can put a strain on the business early on and even lead to the company failing.
360 CONSULTANTS HAVE THE SKILLS FOR SUCCESS
A new recruitment agency director should have the skillset to generate new clients, find quality candidates, and fulfil the placement requirements. If a director only has experience resourcing candidates or generating new clients, this could jeopardise whether the new agency will make placements due to this lack of all-around experience.
TEAM LEADER OR DIVISION MANAGER EXPERIENCE INCREASES SUCCESS
Previous experience working successfully as an organisation’s manager or team leader will give a new director the people management skills to manage new staff members and potentially suppliers or outsourced providers. In some cases, team leaders or managers may also have experience working to divisional and financial targets, which will help any new director when they start their business.
RECRUITERS WHO HAVE PREVIOUSLY SET UP A NEW DESK ARE PRIMED TO START A NEW RECRUITMENT AGENCY
When a new agency starts, often the new director may be under some restrictive covenants that could delay them working within a particular industry or with previous clients/candidates. However, if the director has previously had the experience of setting up in a new industry or sourcing new clients, then they can replicate this when they start their new business until they are outside of their restrictions.
SUCCESSFUL RECRUITMENT AGENCY DIRECTORS ARE SELF-MOTIVATED
Not everyone is cut out to start their own recruitment agency – some consultants like the security of having a regular salary and generating commission each month. However, the self-motivated ones who see beyond making money for someone else and are willing to take the chance can make great new business owners.
Over the years, MAYACHI Ltd has spoken with hundreds of top-billing, self-motivated recruitment consultants to help them understand what is involved in starting their own recruitment agency, how to ensure success and avoid the common errors new recruitment directors make. MAYACHI goes through all the aspects of setting up a new company, introducing reputable providers, helping with HMRC registrations, and creating business plans to help with the first year of their new business.