Over the years TBOS has heard from many budding recruitment entrepreneurs looking to start their own agency. Most of them are confident in their own ability to start straight away but there are many who use a number of excuses which either delay the start-up process or mean they never get started. Here is a selection of ones that TBOS has heard in the past few years:-
- “I need an office to work from” – As a new business owner keeping your costs low in your first year is important and working from home when starting is always a possibility. Using coffee shops and hotel bars for meetings with clients and candidates and using public libraries for Wi-Fi access can minimise the need for an office. Also, using a registered address service can mean your company appears to have an office without having the high cost if that is what you feel your company needs.
- “I don’t have a large amount of start-up capital” – You can start an agency with minimal start-up funds. As long as you have a phone and a laptop you can start recruiting straight away. Using tools like LinkedIn to find leads and candidates, using job boards trial periods to get CV’s and job posts, using Skype and Wi-Fi access to keep your phone and internet costs down are all methods to drive costs down in the early period.
- “My website isn’t ready to launch” – A company website is a luxury item for any new start up agency and should not be the first thing to be produced. Using company pages on LinkedIn and registering on internet directories can get your company found on the web. Also, having a holding webpage with your company contact details and your logo will do the job until you have enough funds for a full website
- “I have a restrictive covenant in my contract” – Restrictive covenants can make it hard for any consultant to start their own business but not impossible. Making relationships with new clients and new candidates does not breach your restrictive covenant as long as they are not doing business with your previous agency. During your restrictive period see if there is an opportunity to explore similar job roles/areas within your industry that doesn’t conflict with your covenant
- “I can’t get funding for my contract placements” – Most agencies believe that if they have no previous track record then they will not be able to secure finance for their contract placements. Using companies like Fund My Contractor can give you the funding required on contract placements. Alternatively, invoice finance companies are happy to provide funding as long as you have enough contract business to warrant a facility.
- “I don’t want to work alone” – Running a recruitment agency alone can be a very lonely place and can make or break a consultant who thrives on the buzz of working in a team. Going into partnership with another recruiter or working in a shared/serviced office can eliminate the loneliness of working by yourself and once you are more successful you can hire consultants to work alongside you.
- “I need an investor” – Having an outside investor can be as restrictive as working for an agency as they will often want an equity stake and want you to hit certain targets and deadlines. The reason most recruiters start up an agency is because they are fed up with losing the profits generated to their boss so why give it up to an investor.
All of the above excuses are often personal barriers that consultants use to avoid taking the plunge and often once they get started they realise that there was no need to worry about these issues as they are trivial in the grand scheme of running an agency.
TBOS works with many new start-up recruitment agencies and give help and advice to consultants to make the formation process as smooth as possible to enable them to start making placements as soon as possible. Find out what TBOS can offer and get in touch today.