Key considerations for recruitment business owners
As the owner of a recruitment business heading into 2018, now is the ideal time to be looking at what took place last year; you should also look at what considerations you should be taking into account as the New Year marches on.
If your soul-searching is leaving you feeling a little overwhelmed with a good understanding of what needs to be done but no idea of where to start, here is our take on what you should focus on.
Are your systems up to scratch?
It’s now increasingly possible to have your entire technology stack integrated with one another. Your CRM, phone system, CV search, lead generation and advert posting to name a few are all now able to sit within one system, interacting with one another.
The end result is huge amounts of time saved to re-invest into generating revenue. If your CRM system doesn’t integrate with the rest of your technology stack, it’s worth investigating either upgrading or changing to a completely new CRM to avoid being at a competitive disadvantage.
Fully integrated systems tend to be more expensive but for good reason – the initial financial outlay is more than made up for in the return you see on your investment.
Are you delegating sufficiently?
Did last year see you spending most of your time on the phone, chasing payments, raising invoices and basically involved in admin rather than working on the business? If so, consider whether you may benefit by getting someone else to do this, enabling you to boost performance and profitability which would pay for the cost of the outsourcing.
Sites such as People Per Hour, Fiverr and the like provide freelancers who can take a lot of the administrative work away from you and allow you to focus on revenue generating or growth activities, without having to add to your payroll.
Are you growth-ready?
The Recruitment and Employment Confederation (REC) have announced that the industry is now worth £32.2bn, forecasting that 56% of jobs will be dealt with by recruitment companies this year. With such a big pot to dip into, make sure that you are ready to grab every opportunity. Time consumed working with inefficient systems, or spent on administrative tasks that can easily be outsourced, will impact your ability to maximise revenues from a strong and growing market.
Is your cash-flow healthy?
With revenue from temporary placements having increased by 12% in the last year, you need to be confident that you are able to pay your workers on time all of the time; let them down and not only may the contract disappear but so will your workers.
Don’t always head for the biggest accounts
Whilst securing them can provide you with a nice feeling, don’t forget that the larger the deal the higher the risk. If payments from them get delayed or even worse, they don’t pay for some reason, you may find yourself short of cash. Including plenty of smaller accounts that bring in regular amounts frequently will improve cash flow and ensure you don’t fall foul of putting all your eggs into one basket.
So there we have our top tips for 2018. As a business leader, it’s worth taking into account these key considerations as you move through the year, maybe adding a few of your own along the way.
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