Is 2022 The Year You Start Your Own Recruitment Business?

2 November 2021|In Blog|By Tom Filby

You don’t really get into recruitment unless you’ve got some sort of entrepreneurial streak. And you don’t usually last in the industry unless you’re a self starter, comfortable working autonomously, and endlessly motivated to succeed.

For many people, running their own recruitment business remains a wishful thought throughout their entire career.

For the few that do it, it’s the chance to finally be your own boss. To do recruitment the way you believe is best. And to retain the lions share of your billings.

Redundancies and furlough gave many people an opportunity to experience this for the first time. Which just so happens to have coincided with a trend among clients, who want a more personal service from their recruiters.

There’s been a noticeable rise of independent groups operating without the shackles of the agency model who can cater for this.

Nearly 8 thousand recruitment entrepreneurs registered a new business last year. A 3% increase on the year before.

 

And the industry had been growing for a while aready. The rate new recruitment businesses are being registered is roughly three times higher now than it was 10 years ago.

The recruitment industry is one of the largest economies in the UK at the moment – worth an estimated £40B+ – meaning the opportunity’s ripe for savvy recruitment entrepreneurs looking to make a name for themselves.

District4 support experienced, successful, driven recruiters into starting their own business. They offer financial, back office, and community support while they’re getting off the ground, and long into the future.

They sponsor The RAG Podcast, and know an awful lot about what it takes to start your own recruitment business. Here’s what they say are the most important things to get right.

Your Why

This is what will differentiate you from your competition. Keep you focused through the hard bits. And make all the good times worth it.

Why do you want your recruitment company to exist? Beyond making money.

Do you want to raise the standard of the industry?

Change the world through the placements you make and the teams you build?

Is it simply that you’ve got a particular niche you absolutely love working in?

Clarifying your thinking around your reason for being is the first step in turning an idea into reality.

Your Vision

Your vision and your why differ in that your why is your reason for doing things, whereas your vision is how you see the world once you’ve done it.

Essentially it’s your plan, unfolded, at the end of the day.

Where do you see your business ending up?

Do you want it to function as a ‘lifestyle business’? Allowing you the financial freedom to work when and how you please, at the same time as keeping the bills paid and the lights on.

Are you already preparing for a massive exit you can retire on?

Or do you have world domination in your sights, and will stop at nothing until you’ve grown the largest and most reliable staffing business in your space?

Having a clear vision gives you a bigger picture to aim for, which in turn will shape your daily actions until that vision becomes a reality.

 

 

Your Financials

In theory, recruiters don’t need much more than a phone and a functioning internet connection to do their jobs well.

But there are investments you need to make in your business immediately, and others you might prefer to make later.

Either way, going into business isn’t free.

All businesses need the company to be registered. Today it’s fair to see you need a well designed website too.

You’ll need a business bank account to start trading. And if you want to get out of spreadsheets and LinkedIn you’ll need to invest in a CRM.

Accounting. Payroll. Insurance. It all adds up quickly.

Your Market

New markets emerge unpredictably, often as the result of technological advancements. Consider what’s happening in the automotive sector.

Electric cars are increasingly commonplace, and an industry that has historically revolved around manufacturing is seeing growing levels of demand for developers and techies as well.

Is the market you intend to work futureproof?

If it’s a mature market, how do you intend to approach it in a fresh way?

If it’s new, how do you intend to endure the inevitable influx of competition?

Perhaps most importantly: do you enjoy working in the sector? Is it the right fit for you?

 

Your Business Plan

Your business plan is your on-paper strategy for making sure your business is a profitable one. From blue sky to granular detail, a good business plan covers all manner of process, function, and contingency planning.

A key consideration at the moment is: at what point do you consider renting office space?

Do you wait until you’ve made a hire yourself? Or are you content working from the kitchen table for the time being?

Do you need to have an established base from day one? Or is it more on brand for your business to be completely remote?

It sounds like a minor consideration for further down the line, but remote companies avoid certain overheads while trading off on company culture.

That’s the kind of decision you need to make in advance, in order to limit risk in the future.

What equipment do you need to buy?

What overheads are you willing to take on?

Are you confident enough in market conditions that you’ll recoup your startup investment quickly?


This is when it starts to get real. Which is why having a plan helps. Especially if you’ve got insight and advice from people who’ve been there and done it.

If you’re ready to find out whether you’ve got what it takes, there’s a 5 day challenge happening next week for experienced recruiters serious about starting their own recruitment business.

Join Lyndsey Meredith at District4 where over the course of 5 days you’ll explore your why, your vision, your financials, your market, and put together a business plan.

At the end of the challenge you’ll either be raring to go, or you’ll have realised it’s not for you.

Want to make 2022 the year you finally take action?

Join District4 from Mon 8th November to Friday 12th November 2021 to explore what being a recruitment business owner could mean for you.

More information and the link to sign up for the challenge on the LinkedIn group and event page.