THE 5 (+1) THINGS TO THINK ABOUT WHILST EATING YOUR MINCE PIES
The Christmas break is a wonderful opportunity to switch off from work and relax with your loved ones, and goodness knows, all of us in the recruitment sector feel like we need it this year after the extraordinary ten months we have just lived through.
But that downtime is also a great opportunity to think about your working life or your agency, without the usual daily pressures interrupting your musings. So why not spend some of the time clarifying your plans for the coming year? Below are some starting points to get your thought processes going - and we find a glass of brandy and a slice of Christmas cake really help the process.
STARTING YOUR OWN RECRUITMENT AGENCY
If recruitment is in your blood, but the hard truth of seeing just 30% of the profit your placements make in your pay packet is starting to hurt, it might be the time to think about starting your own agency. January is a great time to do this when you are refreshed from your break and ready to face new challenges. And whilst we’d never try to pretend it’s an easy option, it does bring multiple benefits. There’s nothing quite like being your own boss, dictating your own culture and being responsible for your earnings.
GETTING YOUR PLANS ON PAPER
Whether you currently run your own agency or have decided to take that plunge in 2021, now is a good time to document your plans, and combine them with your financial projections. Think about your overheads and the profits you want to create and work this back to decide on what your sales targets should be. And how will you achieve those sales targets – do you need to take on more staff, look at new markets, revamp your marketing?
THINK ABOUT DIVERSIFICATION
Delving into your plans a bit more, take a look at whether there are more industries within your chosen sector that you can recruit into. Are there other opportunities to diversify, for example, if you are a permanent only agency then there may be contract placements you are missing out on? Perhaps there are opportunities to make similar placements to those you are making in the UK to overseas clients. Researching these possibilities could help you generate further income for your company and expand your presence within the industry.
REVIEW YOUR BUSINESS PROCESSES AND SUPPLIERS
This is an easy one to let slide but the end of the year is the ideal time to look afresh at the suppliers you work with to see if there are new ways of improving your internal processes or ways that you can reduce your overheads. New and innovative products that support the recruitment sector are launched all the time. Think about what information would make it easier to run your business, for example, detailed reporting that helps you decide where to focus. Or are there routine processes that you manually conduct that might be automated with the right software? You need to ensure that what you are paying for continues to meet your current needs, or it may reveal some cost savings or sensible investment areas.
THINK ABOUT YOUR BACK OFFICE OPERATIONS AND ACCOUNTS TEAM
If you currently handle your own support work, it is worth thinking through whether outsourcing is a more effective option. If you find yourself spending time on raising invoices, chasing or making payments, you’re not maximising the time you spend developing clients and candidates. And if you employ people internally to do this, you need to accommodate them with office space, desks, computers, phones and so on. You also have to cover the work when they are on holiday or sick. Outsourcing removes all those concerns and frees up the time of you and your team to focus on the activities that drive profits, confident that the back-office functions are being handled efficiently.
AND OUR BONUS TIP - REVIEW YOUR FINANCE ARRANGEMENTS
Another area that often gets overlooked is your finance arrangement. If you have upped your turnover in recent years, or are planning for significant growth in 2021, you should definitely speak to your invoice finance company to see if you can get a better deal. It’s always a good idea to compare your current supplier with others on the market as costs can vary quite dramatically. A bit of shopping around will ensure you are receiving the best value for money and the right service for your business as it is now.
HOW TBOS CAN HELP
If any of these things resonate with you, we should have a chat. TBOS have many years’ experience in developing new agencies which is why we always look forward to meeting the next generation of agency directors.
We believe we have the best possible team to help support new directors as we review all of our new clients’ financial plans and ensure they are given the best possible start by setting up the business bank account, registering their business with Companies House, negotiating the best rates for their invoice finance and much, much more.