MAYACHI is often asked, “When is the best time to start a recruitment agency?” Based on our many years of experience helping recruiters plan and launch their first recruitment business, there are several factors that can influence the answer.
DON’T CONFUSE LEAVING YOUR JOB WITH STARTING YOUR AGENCY
Starting a new recruitment agency is not something that should be taken lightly. Before deciding to leave your current position, there needs to be careful planning and decision-making before giving notice.
Notice periods, restrictive covenants, client ownership and candidate data all need to be considered, as these factors could affect when you are able to start your new agency.
GIVE YOURSELF TIME TO PLAN
Once the decision has been made, the next step is to create a business plan. Consider the systems, contracts, banking, accounting, insurance and funding that would work best for the new business.
It is also a good idea to speak to recruiters who have taken the plunge themselves. They can provide valuable advice based on their own experiences and highlight mistakes that could potentially be avoided.
THINK ABOUT YOUR SECTOR’S RECRUITMENT CYCLE
Every industry has its own recruitment patterns, which can mean that starting an agency at a particular time of year gives it the best possible chance of gaining momentum quickly.
This could be influenced by the sector, client budgets, holiday periods or even seasonal factors such as the weather.
Understanding the recruitment cycle of your chosen market can help you identify the best time to launch and ensure you are prepared to take advantage of periods of increased demand.
EDUCATION RECRUITMENT? THINK ABOUT SEPTEMBER
When launching an education recruitment agency, September can be an important time to launch, as it coincides with the start of the new school year.
However, the planning and set-up of the business can take place during the summer holidays. This could include company formation, arranging funding, building a candidate pool and putting feelers out to potential clients, so that the business is ready to hit the ground running in September.
TARGETING THE PUBLIC SECTOR? THINK ABOUT APRIL
The start of the new financial year can be an important window for public-sector recruitment, as organisations have greater visibility of their new-year budgets and workforce requirements.
This means that the period from January to March could be an excellent preparation period, allowing the new business to be ready for an April launch.
JANUARY OR SEPTEMBER CAN CREATE GREAT OPPORTUNITIES
January can often be seen as a time for a fresh start, and businesses can be the same, with new targets being set, headcount reviewed and plans agreed towards the end of the previous year put into action.
Similarly, September can be another recruitment hotspot, with businesses returning from the summer holidays, increased hiring following the quieter July and August period, and an increase in commercial activity before the end of the year.
There is no universally perfect month to start a recruitment agency. The best time is when you have prepared properly, understand the recruitment cycle of your chosen market and have sufficient funding to support the business while it establishes itself.
For some recruiters, that may mean launching in January. For others, the summer could be the ideal preparation period ahead of a September push. If you are targeting public-sector recruitment, planning ahead of the April financial year may be more important.
The key is not simply choosing the right date. It is making sure the business is ready to take advantage of it.
MAYACHI has helped hundreds of recruiters who have decided to start their first recruitment agency, providing advice and support based on our many years of experience in the industry. We help new agency owners put the right foundations in place and give their businesses the best possible chance of success.