Every person who looks to start their own recruitment agency has their own reasons to take that leap of faith. However, not everyone can be a director of their own agency, and the possibility of failing can be quite high if they have not been a successful recruiter previously or they have not had the right business experience.
Whilst there are many advisers to help new start recruitment directors with the initial part of their journey, it is down to the directors’ previous skills and experience for the agency to be successful in the long run.
Below are some of the types of recruiters who should be looking to start their own agency:
YOU HAVE STARTED A BRAND-NEW DESK WITHIN ANOTHER AGENCY
If a recruiter has previously started and grown a successful desk for another recruitment agency, then they are an ideal candidate to start their own recruitment agency as the process is similar. Some internal recruitment consultants will be gifted their desk from a previous staff member or building it based on previous agency relationships which means that they may not have the skill set to do this themselves when they start their own business.
YOU CAN GENERATE YOUR OWN CLIENTS AND CANDIDATES FROM SCRATCH
Many recruiters will have restrictive covenants within their contracts which stipulate that they cannot work with existing clients or candidates for a period after they leave their employment. This means that in the early days of starting a new recruitment agency, the directors will have to rely on their skills to generate new placements from clients and candidates they have not worked with previously. If the directors are relying on using previous client and candidate relationships, then they may be subject to legal action which can be costly when a business starts if they are in breach of their restrictive covenants.
YOU HAVE MANAGED OTHER RECRUITERS WITHIN A SUCCESSFUL TEAM
If the new business is planning to grow by taking on recruitment consultants, it is advisable that the directors have the skillset to be able to motivate and manage these staff members. Taking on staff can be a very lucrative way of growing a new agency, but it can also be costly if not done correctly or if this becomes a distraction for the directors in the early stages of the business.
YOU ARE DISILLUSIONED BY YOUR CURRENT EMPLOYER
Many recruiters start their own recruitment business due to being disillusioned by their current agency. This may be due to changes in commission structures, unachievable targets or a change in management or office culture. These types of recruiters will often start their own agency and ensure that these do not become the same factors for their staff under their management.
MAYACHI has helped many recruiters transition from working in an agency to becoming a director of their first recruitment business. MAYACHI can help with the business planning, company setup and formation plus provide help and advice to ensure that the business has the best possible chance of success.
