This article has been submitted by The Recruit Venture Group.
Before you leap in with the view that the headline is a statement of the obvious, just take a breath and think it through.
Firstly, these two key considerations have been identified by research as being the main, and consistent, factors that are not only needed, but come top of would be start up’s worry list. Yes, not surprising, but it’s good to have it confirmed.
Secondly, let’s look at the question of experience. A career shift is not unusual nowadays. Gone are the days when people ‘retired’ to take on a pub; it doesn’t work like that anymore. But, in a world of transferrable skills, the notion of a new direction is an attractive one to a lot of people. The fact is though, the recruitment business is a specialist business. You need direct experience of it and perhaps, to succeed on your own, in depth experience of a specific sector. There’s little likelihood of someone from an accountancy or manufacturing background moving seamlessly, or successfully, into recruitment, no matter how many generically transferable skills, such as communication or numeracy, they bring with them.
When it comes to funding, there’s a similar issue to address. Unless you’re sitting on an impressive pile of savings the reality is that you’re going to need to raise finance to launch your recruitment business. It will be your experience that allows you to understand some of the oddities and demands of the business, and to plan for them. Think for instance of the recurring cash flow squeeze that kicks in every time you have a cohort of temps to pay, before your client has paid you.
Not only is funding essential then, because of the demands you’ll face, but ideally it needs to come from backers who understand that the recruitment business has these unique considerations.
What’s more, an informed and ‘recruitment aware’ investor will see that you – that’s you personally – will need to be able to pay yourself a realistic salary from the outset; if you’re worrying about paying the mortgage and bills, you’re not going to be at the top of your game.
Pull all of that argument together and what becomes clear is that the recruitment start up needs sound financial backing from people who understand recruitment. They’re out there, and if you’re serious about starting on your own you’ll take the time to do the research and choose wisely.
What also becomes transparently obvious is that the best people to start recruitment businesses are recruitment consultants who have notched up a good five or six years experience with probably three of those years in one specific sector. These are the people who know how to make it work, because they know how it works.
In short, your experience backed with informed investment is a winning combination. Maybe now’s the time to get it together.
The Recruit Venture Group offers entrepreneurial recruiters with five years + experience within the industry, a truly risk-free, and fully funded way to help launch their own recruitment business. Find out more at www.recruitventures.com or email [email protected]