Although the Christmas break is often spent with family and friends and involves eating and drinking a little too much, it can also be a good opportunity to review the past 12 months and make some business decisions for 2019.
For those working in the recruitment industry either as a consultant or as a director of their own agency, it’s a good idea to utilise this down time to set yourself some targets for the next year.
Below are some of the things that recruiters should think about during the Christmas break:
1. STARTING YOUR OWN RECRUITMENT AGENCY
If you are a recruiter working in an agency it may be a New Year plan to start your own recruitment agency. If you are reviewing the placements you have made for the agency and see only 30% of the profit in your pay packet then you may want to start your own agency to receive a larger slice of the pie. It may also be that you want to be your own boss or your current agency has left you disillusioned due to the poor internal culture, increase targets or unfair commission schemes. Starting your own new agency in January is an ideal time to hit the ground running when you are refreshed after the Christmas break.
2. CREATE PROJECTIONS AND BUSINESS PLANS FOR 2019
If you are an existing agency or starting your own recruitment business it is important to document your plans for 2019 and combine these with some financial projections of sales targets, overhead costings and profits generated. It is important to start with the amount you want to earn and work backwards to ensure you know how many placements you need to make to generate your desired income.
3. REVIEW CURRENT BUSINESS PROCESSES AND SUPPLIERS
The new year break is an ideal time to review your current suppliers to see if there are new ways of improving your internal processes and cutting costs. There are many new innovative products being developed which can help transform your recruitment process. Some products even provide informative reporting to help you decide where to improve your efforts or marketing spend. Reviewing your current providers may also reveal some unnecessary expenditure, delivering further savings on your company’s profit.
4. CONSIDER YOUR CURRENT BACK-OFFICE OPERATIONS AND ACCOUNTS TEAM
As part of your review of internal processes you may also want to consider if you should outsource your back office and accounting processes. If you are currently raising invoices, making payments, chasing debts or completing your own bookkeeping then this is taking up valuable sales time away from you. Additionally, having an internal accounts team means you are using valuable desks which could be occupied by experienced recruiters who close sales. It’s also worth noting how much your accounts team combined salaries are, is this amount much higher than the cost of outsourcing? Are you struggling to manage staff sickness and annual leave? Outsourcing your accounts team can provide peace of mind, giving recruiters more time to concentrate on growing an excellent sales team instead of managing administrative tasks.
5. INVESTIGATE DIFFERENT INDUSTRIES, CONTRACT PLACEMENTS AND INTERNATIONAL RECRUITMENT OPPORTUNITIES
When developing your business plans for 2019 you may also want to see if there are further industries within your chosen sector that you can recruit into, if you are a permanent only agency then there may be contract placements you are missing out on or there may be opportunities to make the same placements you are making in the UK to overseas clients. Doing your research into these possibilities could help you generate further income for your company and expand your presence within the industry.
6. SEE IF YOU CAN GET A BETTER DEAL ON YOUR INVOICE FINANCE ARRANGEMENT
If you have an invoice finance arrangement it is often overlooked as something that needs to be reviewed, especially if it is doing its job. However, if your turnover has increased during the past 12 months or there is a possibility of further expansion in 2019 then speaking to your invoice finance company about your current deal could make significant cost savings. It’s always a good idea to compare your current funding arrangement to other providers as the costs can vary between invoice finance companies, shopping around ensures you receive the best deal for your business.
How TBOS can help
TBOS often finds that January is a prime time when recruiters decide to start their own recruitment business, we have many years’ experience in developing new agencies which is why we 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.
For more information on how TBOS can help you achieve your 2019 targets then please contact our office on 0345 504 6333, alternatively you can email firstname.lastname@example.org