Recruitment Business Plan – Essential Guide
Most early stage recruitment businesses attempt to write a business plan and then go on to ignore it or fail to keep it up to date. If you are going to go the effort of writing a business plan it must be well thought through, relevant, up to date and have specific and measurable business goals.
So, what are the essential elements of a good recruitment business plan?
External Evaluation – a detailed assessment of Sector, Competitor and Client Trends.
What is happening in your particular niche sector? Which areas are growing? What are the competitors doing? What economic trends are having an impact? Any new regulations you need to be aware of? Which candidates are your clients asking for? In order to formulate an effective business plan, you must have a strong understanding of the business environment in which you are operating in.
SWOT Analysis – an internal evaluation of the business’s strengths, weaknesses, opportunities and threats.
This is a useful tool which provides a framework for analysing your existing business. It helps you focus on your strengths, minimise threats and take the greatest possible advantage of the opportunities open to you.
Clear and Measurable Business Goals
You must set clear and measurable business goals. SMART goals can be used to help guide your goal setting i.e. all business goals need to be specific, measurable, achievable, realistic and time specific. Without specific and measurable business goals, your business will have no clear direction for future growth.
Client Acquisition and Development
Acquiring new clients is obviously going to be a key element in the success of any recruitment business. But even more importantly, you need to obtain more business from the clients you already dealing with. Any increase in sales is always much more easily achieved by gaining more business from those organisations you are already dealing with.
To build a recruitment business of significant scale you will need to generate the best candidates in your particular niche sector. As clients continue to face challenges in sourcing specialist experienced talent, those niche recruiters who possess the expertise to gain access to these key talent pools will almost definitely experience higher demand for their services and subsequent higher fee generation. If you can formulate and execute a plan to generate the best candidates, your business will have a great chance of succeeding.
To execute your business plan you will need a specific talent acquisition plan in place. What are the profiles of the individuals you need to hire and how and when are you going to go about it? Hiring the best talent is difficult and time consuming, but without the right individuals in place, your recruitment business will struggle to grow.
Financial forecasts for the next 12 months are always the most critical. Sales projections, a Profit and Loss and a Cashflow are absolutely essential. All financial forecasts need to be realistically achievable and also sensitivity tested to allow for the worse possible scenario.
TAG Capital provides business advisory services to early and mid-stage recruitment companies. If you need assistance in formulating your recruitment business plan or would like ongoing access to sector specific recruitment business advice, then please do not hesitate to get in touch. Email: email@example.com