Are you thinking about starting your own recruitment company? Considering the current economic climate you might be forgiven for thinking that most people would be reluctant to take the plunge but that isn’t the case.
The reality is that it’s a tough time to embark on any new venture whatever the industry. However, with UK unemployment currently at a low, maybe now is the perfect time to take the plunge in recruitment. Especially if it is an industry you have an understanding of and the right experience in.
During times of economic turmoil businesses often look to temporary and contract workers to help them manage peaks and troughs in their workloads. This economic climate can therefore provide opportunities for temporary recruiters and there will always be demand for permanent workers too, particularly in areas where there are skills shortages.
So, what are the risks and rewards and how do you decide if it’s time to go for it?
The Risks
Running your own business isn’t going to be easy. Here are some of the risks that you need to consider:
Financial stability
Are you ready to give up the stability of employment and a regular salary? This is something that worries some people more than others and can have as much to do with your attitude to risk and your money mindset as it does with your outgoings and the income you require to maintain your lifestyle.
Cash-flow, bad debts, and late payments
The risk of late payments is unfortunately a very real one. We’re in the middle of a cost-of-living crisis and businesses are struggling. For recruiters, the risk of a client being late to pay an invoice can be frightening but there are, however, some things you can do to mitigate the risks. For example, using invoice finance from finance providers such as Zodeq to release cash from an unpaid invoice immediately will keep your cash flow healthy, even during tricky times.
Responsibility and long hours
Starting a new business is a huge responsibility and as your business grows, so does that level of responsibility. In the early stages you may feel you need to be an expert on everything, from HR and marketing to finance and operations. Outsourcing some aspects such as your payroll to a back office support service such as Zodeq 360 can help with this, giving you the confidence that you have the right expertise in place and avoid feeling overwhelmed.
The Rewards
The rewards on the other hand can make all the hard work and managing the risks worthwhile!
Freedom and flexibility
There can be no better feeling than knowing you are in control of your own career and professional future. From deciding on the values and direction for your business to setting your own hours, you get to be in control of the things that matter to you most.
Earning Potential
Running your own business means there is no ceiling on what you could earn. Recruitment can be a lucrative business; the opportunities are limitless. For those planning ahead for the longer term, there is also the potential to build a business with a plan for a profitable exit strategy.
Career Satisfaction
The satisfaction of not only building a business that suits your lifestyle but also one that adheres to your values is not to be underestimated. We’re not saying it isn’t challenging out there but if you have experience in the recruitment industry and the grit and determination to work through turbulent economic challenges then this could be your year.
If you are thinking about setting up your own recruitment business or have done so recently then do get in touch to find out more about how we can support you with finance solutions and specialist back office services.
