Small recruitment & staffing businesses have many challenges to stay afloat. Many budding entrepreneurs think that all they need is the idea, a name for their small recruitment & staffing business, and a bit of work and the agency will sell itself and money will come rolling in. This is why collaborative systems are important for growing businesses, to help them grow through the use of technology. If you have ever run a small recruitment & staffing business – even a home based business – you will know there’s much more to it than that!
The first thing you, as a potential Staffingpreneur – small recruitment & staffing business owner must always do, is research and learn your market. Then research your competition, then the available candidate supply for your niche, and find your unique selling position. This alone can take weeks often months depending on your niche and how fast you digest information.
Once you are satisfied that there is a market for your recruiting and staffing niche, then you need to sort out your business plan and cash flow projections.
Small recruitment & staffing businesses are a low cost business venture because you have the ability to outsource your payroll function. However, some start-ups like to start big and may need substantial capital to get up and running, so sorting out how to use alternative methods to finance your recruitment & staffing business is also another option, this can come in the form of getting business cash advance from companies like L3 Funding. Do you remortgage your house? look for investment partners? borrow from friends or family? or approach the bank? Whichever you choose you need to convince others that your small recruitment & staffing business will be profitable and they will get a return on their money.
Once finances are in place the fun part starts. You may have premises to arrange, suppliers to sort out, staff to recruit and manage, accounts to keep, products to design or source, lawyers to consult, enterprise application development (app creation), accountants to hire and we must not forget in all of this market and get the all important customers to look at and purchase your recruiting and staffing services.
To do that you have to advertise your small recruitment & staffing business, but where and at what cost?
Who’s paying for all of this – in simple terms you, and your friends, investors, and/or your bank are paying, until you make placements sufficiently to cover the costs – usually only 3-6 months away.
Fortunately, new small recruitment & staffing businesses most often return a profit in the first year, and because you have the ability to outsource your payroll function, that will allow you to save a ton of money and the opportunity to REALLY finance it properly.
Is it worth doing it? That’s your decision but every year tens of thousands of people do start their own businesses, and hundreds start some version of a recruiting and staffing agency business. Many are successful and reap the rewards of all that hard work, but many also fail, and all too often it’s due to lack of preparation and lack of knowledge.
If you’re about to set off on your new business venture prepare well and Good Luck. With good planning, persistence, and a lot of hard work you too can build a profitable small niche recruitment & staffing business…after all, it is a $126.8 billion dollar industry – seems like there’s plenty of room for you too!