STARTING your own recruitment business can be as risky as walking a tightrope. But the rewards are there for those who are prepared to take the risk.
The recruitment industry has long been known to be a reliable barometer for the health of the UK economy; when the staffing industry is doing well the nation's economic health is in good shape, while a cut in the number of candidates finding jobs means that the picture is not so rosy.
Currently, with all indicators showing that the staffing sector has turned a corner after several years in the doldrums,according to the REC's Report on Jobs, recruitment is on the up and up. And as a dynamic, lively sector, peopled by entrepreneurial, independent individuals, this signifies one thing - start-ups.
Recruitment as a sector has been built on start-ups. Many of the global brands we recognise today are based on the vision of individuals who had the energy and tenacity to grow their businesses from the ground up. As a business, recruitment tends to have low barriers to entry. With no professional qualifications required and little equipment needed to initiate the service to clients, many have taken the gamble to build their own business.
It is certainly true that without some sort of support, it is far more difficult to set up your own recruitment business now than it was just a decade ago, due to the increased competition in the marketplace from established agencies and the relatively new online recruiters. Start-up costs are higher, with the need to invest in software systems, hardware and advertising to carve out your niche in the marketplace. At the same time, margins have dropped as clients demand higher levels of service for a lower price, all driven by the intense competition within the sector. Jo Keating, managing director of Bournemouth's Fresh Recruits, knows exactly what it's like to take the plunge and start up on your own.
"Like many small businesses, recruitment start-ups can be undone by any number of problems - cashflow difficulties, bad debt, problematic staff or clients - at least some of which are entirely beyond the control of the fledgling managing director. Recruitment is very much a people business and, as we all know, people can let you down. Setting up your own recruitment business is a risky strategy, and certainly not for the faint-hearted, but there will always be those who want to have a go, because of the freedom and rewards it brings.".
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