5 Challenges To Overcome When Starting A Recruitment Business

With the UK recruitment industry valued at £35.7 billion and with the rapid growth in the demand for skilled employees, the recruiting sector is one of the most lucrative. But, starting a recruitment business isn’t as easy as it sounds. It takes lots of passion, commitment, discipline, a vision, not to mention courage and a certain level of recklessness to jump on the bandwagon.

This special cocktail of qualities makes it hard for most people to stay on the right track in the long run. Especially in today’s ever-competitive marketplace. As a recruiter, responsibilities are limited to a job description while in the case of owning a recruitment business, things aren’t exactly as simple and straightforward.

And trading the safety of employment for the adventure of building your own business is certainly not for everyone.As a newly founded recruitment agency, you have lots of tasks to perform. And these give rise to critical challenges too. Unfortunately, it’s exactly these challenges coupled with lack of expertise, guidance, clarity, and support combined what stops many entrepreneurs dead in their tracks, forcing them to abandon their ideas and close doors on their recruitment agencies too soon.

So, if you are thinking of starting your recruitment agency or already have but had a hard time struggling to stay afloat, then here are the top 5 challenges you need to be aware of and how to solve them:

1.Branding, differentiation, and positioning

Aside from the recruiting service itself, one of the best skills you can develop is related to marketing.Sure, being good at your craft will get you some referrals but those can only get you so far. In the end, you will have to rely on more than just referrals to keep clients coming. And by figuring out what makes your business unique, it will also attract more customers to your door. Whether it’s your pricing, niche, or business model, differentiation is key if you want to make it big in this competitive industry.

2.Knowing where to focus your time and energy

This one is so important yet so overlooked. Because we are not superhumans and it’s important to invest your resources only in goals you know you can accomplish. One example in the context of the new GDPR law is the compliance standards you might have to obey. Basically, you must always stay on top of all the rules, regulations and the ever-changing standards of the recruitment industry.

So be realistic about the things you can do, and those you cannot. It might be appealing to do everything yourself and save money, but that’s just an illusion, a dangerous one, that can slow you down by days, weeks, even months and eventually demotivate you.

3.Keeping your pipeline full

Being a self-employed recruiter means that you will have to wear more than just one hat at a time. From recruiter to salesman, you are the #1 person in charge of your recruitment business as well as keeping your customers coming. But if this back and forth is not one of your strengths, then the good news is that there are plenty of tools and strategies for different budgets that you can leverage to make sure you’re covered in every aspect of the recruitment business.

4.Support and guidance

The level of guidance and support needed for sustained success is massively underestimated. Especially since you are forced to work long hours to meet the schedule of candidates and clients alike. So, feeling overwhelmed while juggling between multiple accounts and also doing administrative tasks happens more often than you might think when you are a new business owner. The trick is being understanding and patient with yourself. And try not to push yourself too hard. At the end of the day, the most important thing is to stay motivated and focused by surrounding yourself with like-minded individuals to bounce ideas off each other and set realistic goals.

5.Tool kit and training

Staying up to date with the latest and the best tools and know-how might seem obvious for the success of a recruitment agency start-up. By knowing how to choose the right, relevant tools that offer the best return on investment is a whole other story.

So, running a profitable recruiting business surely doesn’t come with an A to Z manual. There are certain steps to follow for a successful recruiting business, learn from other people’s experiences and success stories that can streamline your progress, minimize risks and ensure a smooth journey.

Most entrepreneurs credit the pursuit of entrepreneurship to higher motivation, a motivation that keeps them going even when things get tough. Because things do get tough. However, nothing compares to the level of satisfaction you get from contributing to society in your own, unique way and giving wings to your idea. The question is what path you are going to choose: the proven and tested one or the solo one?

In our opinion, owning your recruitment business is often the best next step for an ambitious recruiter. However, no one says it should be a lonely journey. One of the things you can do as a newcomer is to get important insights on how to start a recruitment business from knowledgeable people who can contribute with some essential “been there done that” type of wisdom and teach you about growth.

While no two problems are alike, many of the challenges have already been faced and solved by other entrepreneurs in the recruitment industry. So why reinvent the wheel when you can stay on the safe side and reap the rewards?

Human Associates offers you the opportunity to work with an established brand, with established processes and systems. As well as access your unlimited earning potential while enjoying the freedom of flexible work hours. Drop us a line or contact us if you feel like this might be the answer for you. We offer full access to industry-leading recruitment training material for you and eventually your team, together with a suite of videos, checklists, and tools to help you succeed.

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