Do you dream of leaving the certainty of a salaried job in favour of the excitement and possibilities of creating your own recruitment start-up? You’re not alone. Many experienced recruiters also dream of going it alone – but often are held back by fears real or imagined. So, what’s stopping you from starting a recruitment business? Below we look at some of the most common reasons that people hesitate to take the plunge into entrepreneurship – and how to overcome them in a practical way.
Reason 1: Time
“I don’t have time to dedicate to starting a recruitment business”
We all have limited hours in the day in which to balance work commitments and the demands of family life. And unless you plan on drastically cutting down the time you spend on work, family, or sleep, devoting time to building and launching your own business can seem logistically impossible.
The key to moving forward with your plans is in working smarter, not harder. Focus in on the priorities and get support for those tasks that are not in your wheelhouse. Often they take up the biggest chunk of your time for the smallest return.
Being smart with your time means finding the right launch partner to take the weight of the most time-consuming tasks. RecruitHub’s ready-made tech stack automates manual processes to eliminate inefficiencies and buy you back precious time. And our support doesn’t end there. We provide our founders with accountancy services, mentoring sessions, contract templates, marketing and branding services, CRM, and more. The goal is to leave you to focus on what you do best – growing your network and making placements.
And if you think you’re too old, think again. 35% of new entrepreneurs in the US last year were aged 50-59 *1.
Reason 2: Money
“I can’t afford to take time off work to launch a business or I don’t have savings”
You’ve analysed your experience, your market and your potential returns and decided that you could well succeed with your own business, but there’s one major stumbling block: money. The good news is that you don’t need thousands in life savings to start a business. Even if you do have savings, you don’t need to funnel them all into your launch.
There are more ways than ever before to access funding for your start-up. These include everything from crowdfunding and angel investors to traditional bank loans and more. Most funding works in one of two ways – accessing a loan that needs to be repaid or receiving funding in return for giving up a portion of equity (in shares) to your investors.
At RecruitHub we work with our founders to help them find the funding they need, without having to give up a huge equity share in their business. The amount of money you’ll need to borrow will depend on a combination of factors:
- How much do you need to cover your monthly living expenses?
- How long do you forecast it will take for your company to start receiving payment from clients?
- How much do you have available in savings to contribute to your expenses during this period?
- What will your company’s costs be during this ramp-up period?
Reason 3: Risk
“I earn well enough and I don’t want to take the risk”
Leaving the security of a full-time job for the rollercoaster of entrepreneurship can be a daunting decision to make. It would be unrealistic to say there is no risk involved in starting your own agency, but at the same time, the potential rewards are enormous.
Here are just some of the benefits that you can enjoy when owning your own business:
- Full control over decision making, finances, operations and company direction
- The opportunity to create a better work-life balance
- The chance to build an equity asset that will increase in value over time
- The satisfaction of owning the full value of the fees you generate
The best way to mitigate the risks of going it alone is to ensure you are prepared for every eventuality. Start with a solid business plan and stress test it – ideally with the help of an advisor that you trust. Founders that launch with RecruitHub have access to support across the whole spectrum of the business, from fundraising and operations to management and leadership advice.
Being realistic about projected turnover in the first year or two is another way to mitigate risk – there’s no need to run before you can walk. In fact, over 95% of British businesses employ fewer than 10 people *2, so you’ll be in good company if you decide to stay small until you gain momentum.
Your Finance Options
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Reason 4: Knowledge
“I don’t know the first thing about starting a recruitment business”
As the aphorism goes, “knowledge is power”. And luckily, knowledge is something that we all have the opportunity to acquire. There are hundreds of books, TED Talks and podcasts out there dedicated to entrepreneurism – if you start reading and listening you’re sure to find a writer or speaker who resonates with you. For starters, you could check out our list of essential TED Talks for would-be entrepreneurs.
Another great way to acquire knowledge about running a successful business is to connect with a mentor that you admire. You can tap into an organised service like the Meet a Mentor programme in the UK, or approach an existing contact for help.
It’s a common misconception to think that the only businesses that succeed are offering something completely new – a product or service that never existed before. But that’s not actually the case. Many successful founders launch into an existing niche; trying to reinvent the wheel can be a waste of time. A simple way to start is to list out all the steps you need to take to get from where you are today to where you want to be – then work on taking those steps one at a time. Whether you choose to go it alone or partner with an accelerator like RecruitHub, the path to entrepreneurship does not have to be a lonely one.