What You Should Know About Being Your Own Boss
If you’ve always worked for someone else, stepping up to become a Director may mean more profit – but is also means more responsibilities. You can also expect to face tests you’ve never had before.
If you’re thinking about your own agency you’re probably a great recruiter. But ask yourself this: What don’t you know about the agency you work for? What skills will you need to learn?
At TBOS we’ve all but lost count of the number of agencies we’ve helped to start up. We offer advice to any new Director who comes to us. After all, seeing the same mistakes repeatedly is frustrating.
Below are five mistakes we see more than any others.
Can You Check Contracts?
Most recruiters don’t handle their own contracts and compliance – their agency’s administration team take care of it.
If you’re not used to dealing with contracts, there are two easy places to slip. Make sure contracts are signed before the placement starts, and check all clauses are correct.
This is easier if you bought a contract template from a reputable supplier. Just make sure you have a process in place.
Taking on the Time Management Challenge
You’re on your own clock now – you can start working as late as you want and knock off as early as you want. But if you do, the consequences are all on you. You must stay motivated. You also need to find time to do all the other jobs your agency needs.
Pay Attention to Cashflow
Any new Director who’s used to their salary and commission just being paid on time has adjustments to make. Your agency gets income when payments are made. Your agency spends when contractors need it or as suppliers demand it. Watching this cashflow can be vital.
Be Ready to Pull the Trigger
Have you ever had a colleague you really liked but who never met their targets? The decision over cutting them is yours now. Balancing personal and HR requirements is tough enough before you remember you’ll have to judge recruiters; are they not up to standards or on a bad run? How long can you leave it before you can’t afford the difference?
Will You Be Ready When Tax is Due?
Every payment you receive has tax implications. Corporation tax, PAYE, VAT… You need to be sure that when tax is due you have enough money free. It’s better to keep on top of it as you go.
We recommend tax money be kept in a separate account. You’ll need up to date management figures to keep on top of it.
If you’re not ready to handle these, you have trouble coming for you.