Starting your own recruitment agency is an exciting time, a chance for you to take everything you’ve learned in your industry and apply it to your own business.
However it’s not without its challenges.
Below we’ve taken a look at the different challenges you might face as a recruitment start-up, and how you can begin to overcome them:
1. The current economy
If you’re considering starting a recruitment agency in 2020, then you’re likely wondering if it’s the right time! 2020 has been a year like no other and certainly created many challenges for those working within the recruitment industry.
However there are green shoots of recovery. Temporary recruitment for example is growing, as companies look to employ people with less risk, creating lots of opportunities for recruiters.
2. Brand recognition
Getting your name out there when you’re first starting out can be tough. You’re going up against the big players who have the recognition (and the budget) to really market their services and the roles they have available.
However being small has many advantages. Build a brand that reflects your experience and the knowledge and personal service you can bring to a client’s business. Working with a marketing professional can be a good idea to help you establish a look and tone of voice.
3. Saturated markets
You probably won’t be surprised to hear that you’ll have a lot of competition when you’re first starting out. Statistics show that in 2018 there were nearly 40,000 recruitment agencies in the UK, with the number expected to grow.
Carving out a niche for your business can be a really successful approach. Think about where you’ve had success before, and what unique skills you have that you can bring to your client’s business.
4. Talent shortages
Talent shortages are a growing issue in the UK and one that many recruiters feel will get worse now we’ve left the EU. If you’re considering starting an agency then chances are you already know the challenges.
You can’t fix talent shortages, but you can use your proactive and knowledgable recruitment style to find these highly sought after professionals! If you know where to look for the right person then you can stay one step ahead of the competition.
5. Cashflow
Cashflow is a challenge for any new business, as you often need to spend before you’ve earned a penny! It’s the same in recruitment – you place a candidate then wait months to get paid which can dissuade many recruiters from going out on their own.
Don’t blow your savings before you’ve first spoken to the team here at New Millennia about the finance options available. Our startup funding solutions mean you can get paid when you’ve made a placement and we’ll invoice the client and pay the candidate on your behalf as part of our back office solutions.
To find out more get in touch with our team!
