With the global markets still fluctuating due to Brexit and the new Trump administration coming into power from January, November is the best time to put those plans in place to ensure you start the year with new focus and give yourself the best chance of succeeding in 2017. Taking some time to sit down and review what went well in 2016, the potential changes that could affect your business in the coming year and making plans to ensure your continued success is time well spent.
Below are some of the plans you should be making in order to be as successful as possible in 2017:-
- START YOUR OWN RECRUITMENT AGENCY
If you are a successful recruitment consultant who has had a profitable year working in an agency, it may be time to see if 2017 is the year to be your own boss and start your own business. Getting an agency formed and ready to go normally takes 4-6 weeks, so it is ideal to begin planning in November in order to start in January.
2. CREATE YOUR 2017 BUSINESS PROJECTIONS
Producing a set of financial projections and a business plan will ensure that your agency has targets to achieve and clear aims on how to accomplish them. When creating the projections, it is advisable to be realistic in the sales growth plans and make sure you have researched any costs thoroughly to ensure that you do not over spend.
3. EVALUATE YOUR MARKETS FOR OPPORTUNITIES
Every industry has different opportunities that are constantly changing, so it is important to be staying ahead of the curve. It may be that there will be a greater need for contractors, certain international clients require your candidates skills set or there are new sectors emerging in your industry. Once you identify an opportunity, it needs to be fully researched for profit viability, assessed for what process changes need to be made (additional funding, training, legislation, etc.) and added into into your business plan.
4. ANALYSE YOUR SUPPLIERS COSTS AND SERVICES
Taking stock of the suppliers to your agency is important to ensure that they are providing the most cost effective solution, and/ or providing the most up to date technology or services. Reviewing the providers of your databases, job boards, contract templates and accountancy services will ensure that your agency is remaining up to date with new products and can also bring simple efficiencies to your business.
5. REVIEW YOUR FINANCE ARRANGEMENTS
All businesses have grand plans to grow and whether this is achieved by increasing staff numbers, moving to bigger premises, buying office equipment or expanding the number of contractors, it will all require finance and funding. Invoice finance companies like recruitment clients who make timesheet based placements, so there are many providers around who can offer competitive rates and it is advisable to review your arrangements on their anniversary. Furthermore, speaking to your bank about Asset Finance can help with buying office equipment over a period of time in order to aid cash flow.
6. ENSURE YOU ARE PREPARED FOR NEW LEGISLATION CHANGES
The recruitment industry has been through many legislation changes over the years, most recently being the big AWR change. 2017 brings another major legislation change in April, whereby recruitment agencies making placements in the public sector (medical, teaching, policing, government, etc.) will become responsible for the IR35 status of their contractors and the candidates tax obligations. This will have a huge impact on the way that current agencies process payments to their contractors and may mean that some internal changes need to be planned for in advance to guarantee minimal disruption.
7. ASSESS IF THIS IS THE YEAR TO SELL YOUR BUSINESS
At a certain time, each agency director decides it is time to exit their business but this is something that needs to be planned for in advance to ensure that the best price is achieved. Generating a plan showing the required growth in your accounts, making changes to the business to secure key staff and extracting the directors from the sales process needs to be discussed and agreed to entice the right buyer. Speaking with your accountant or using an expert in the sale of recruitment agencies is advisable to ensure the plan is concrete and achievable.
TBOS works with its recruitment agency clients to create viable financial and business plans, including advising on any changes in legislation and preparing them for the coming year. With TBOS’s help, our agencies are able to concentrate on building and growing their businesses to achieve their targets by looking after all their back office, finance and accounting needs. TBOS also advises its agencies on how to plan for their exit and helps them in achieving the price they are looking for.