Thinking of starting your own recruitment business? Read this first!
Some of us have been there – excited, ambitious, and ready to take on the industry. But here’s the truth: recruitment isn’t just about making placements; it’s about building a business that lasts. And that means avoiding the costly mistakes most founders make.
From choosing the right tech to structuring commissions the smart way, we’ve learned some hard-hitting lessons – some the easy way, others the painful way. If you’re launching (or scaling) your own recruitment agency, these insights could save you time, money, and stress.
Let’s dive into it!
- INVEST IN GOOD TECH
In a data-driven world, technology is the key to your success. Without it, you’re nothing. Start as you mean to go on – playing catch-up later is no fun. - SYSTEMISE EVERYTHING
Create smart processes, document them, and ensure everyone follows them. Consistency is crucial for scalability and efficiency. - BUILD A SUSTAINABLE BUSINESS, NOT JUST AN EXIT STRATEGY
Focus on delivering to your clients’ needs. If you build a strong, sustainable business, the rest will follow. - UNDERSTAND YOUR MARKET: CLIENT-DRIVEN vs CANDIDATE-DRIVEN
The quality of your agency depends on either your client book (in a client-driven market) or your candidate pool (in a candidate-driven market). Whichever it is, strategise, invest, and drive it proactively – not reactively. - PAY STRUCTURE MATTERS
How much you pay your people directly impacts your bottom line. Don’t overpay in the market and be clear on what your commission structure incentivises. Ensure it drives the behaviours you want – changing a commission structure later is painful and often results in people leaving. - LIFESTYLE BUSINESS vs SCALE BUSINESS
Understand the difference. Your strategy should align with your long-term vision. - INTUITION ISN’T A BUSINESS STRATEGY
Data and logic should guide your decisions – not gut feelings. - KEEP IT SIMPLE
Don’t overcomplicate commissions, processes, or team management. Simplicity leads to efficiency. - PREPARE FOR SACRIFICES
As a founder, you will have to make sacrifices. Be ready for the challenges ahead. - CHOOSE YOUR PARTNERS WISELY
Be cautious about who you go into business with – misaligned values can sink a company. - THINK TWICE ABOUT INVESTORS
If you’re considering taking on an investor, make sure you fully understand the long-term implications and why you need them.
