What do you need to achieve in order to run your own recruitment firm?



Any top-biller with half a brain, after a while, will be thinking about this question.


Giving away 40-70% of your billing revenue will have you thinking at some point: can I get after this whole pie?! Why should I even split any at all...


As someone who has a. done it b. seen others try it and c. recruits recruiters so I see my fair share of who has "made it" and who hasn't, here are some nuggets of wisdom gleaned from my inside look:


1. You NEED a solid capital base/financial foundation


Goes without saying, if you run out of funds to sustain your business, you'll be crawling back to employment again.


2. You NEED a low cost of living/good financial skills


If your personal burn rate is outpacing your revenue growth and much of your income is used to pay off your cost of living, it will be really hard to turn a profit and soon you may be overburdened with mounting bills.


*Note: this is why so many top-billers don't set up their own firm. They need the structure of employment to cover their downside risk.


3. You NEED a strong business partner and/or team


If you're all by your lonesome recruiting away, life can get really burdened with too many reqs and too little time. Plus, who's going to do all the marketing, admin, operating, selling/recruiting, financial budgeting, hiring, training... etc.? YOU.


*Note: This is another reason why top-billers don't start their agencies. At 50-60% commission cuts, it's sometimes much easier to be part of a platform than starting your own.


4. You NEED to have experience


If you personally haven't sold to clients, billed a $mil personally, managed tough client accounts and negotiated hundreds of placements, can you honestly say you have enough experience to run a #recruiting firm where you're responsible for anything and everything that comes up?!


*Note: this is why my mind is boggled when a recruiter-only person or low-level biller thinks they can run a recruiting firm. That's only HALF the job...


5. You NEED to have a strategy


What's the end goal? Work til you drop? Make a few hundred thou and sail off into the sunset? What's the end game here? Why is this better than having a stable job and being a top-biller for someone else? What's your route to market? How are you going to make clients pay you?


6. You NEED to work your a$$ off


The quality of life and work-life-balance as a business owner is always going to be tough because the responsibility and mental burden is stronger than working for someone else.


Long story short:


1. Think long and hard before making perhaps the best (or worst) decision in your life.


and


2. Where there's a will, there's a way. What's comforting is that lesser billers have struck out to do their own thing and they're doing alright!


Just make sure you're doing the right thing for you & your life style.

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