| What is it that prevents the boutique recruiting firm - | | | | the pro level. The components of what makes a |
| those small one to five person firms - from growing | | | | good recruiter need to be defined and separated. It |
| into larger entities? For a lot of small firms, they just | | | | is not possible to simply duplicate everything that |
| do not want to grow. These small businesses are in a | | | | goes into you as a successful recruiter and expect to |
| comfort zone and see no need to change. However | | | | come out with another successful recruiter. |
| there are many owners (and you may be one of | | | | In order to grow a small recruiting business, the |
| them) who are scratching their heads thinking "why | | | | challenge for the recruiter entrepreneur is leaving |
| can't we grow beyond a few good recruiters who | | | | their role as a successful producer and then trying to |
| can consistently bring in placements and billings?" It | | | | figure out what their new role should be. He/she |
| can be done because there are big named recruiting | | | | must "cross the bridge" from a biller to a non-biller. |
| and executive search firms out there that have | | | | Breaking up components is no easy task. |
| grown from two or three recruiters to thousands. | | | | Components can be recruiter specific like research, |
| What is their secret? Why are there so few large | | | | applicant screening, and client prospecting or simple |
| recruiting firms? | | | | mundane tasks that make a component step more |
| One reason that small firms fail completely or fail to | | | | efficient. But quantifying these tasks into metrics is |
| grow is that the cost of entry into the recruiting | | | | critical. Without the metrics the business simply |
| business is extremely low. In today's world you don't | | | | cannot be managed. |
| even need a phone. A computer with VoIP will do | | | | Here are some things to consider when you look at |
| just fine. So you could actually start a recruiting | | | | growing your business: |
| business from a prison cell, have a room at the local | | | | 1. Identify a niche. Recruiters or recruiting firms are |
| YMCA or from a public library. It's no surprise that | | | | rarely successful in explaining to a client that they are |
| these types of recruiting firms fail because the | | | | a "jack of all searches." |
| people creating these companies do not have the | | | | 2. Avoid niches that are so narrow that you are |
| expertise to run any kind of business in the first | | | | dependent on just a few clients. Yes the concept |
| place. | | | | seems to go against the niche concept but it is a |
| So what about the firms with recruiters that do have | | | | balancing act. |
| some professional business skills? In recruiting, as in | | | | 3. Do not settle for assignments that have bare |
| any other type of business, owners consistently | | | | bones margins. You and your firm spend just as |
| make one key mistake - they try to clone their skills | | | | much resource capitol on a thin margin assignment as |
| onto others for business expansion. But businesses | | | | you do on a large margin assignment. |
| simply do not grow by making copies of the | | | | 4. Assign different people to the components you |
| president/founder. The successful recruiter must | | | | have identified as explained above, i.e. "Do not put all |
| break down his/her process into a series of steps | | | | your eggs in one basket." |
| that can be taught or produced by third parties or | | | | 5. When you consider your next hire, consider what |
| tools. Then the recruiter/owner must morph from | | | | your weaknesses are and hire for those. This helps |
| being a good recruiter into being a good leader and | | | | to round out your business team instead of merely |
| teacher. If the successful recruiter only looks and | | | | hiring people who are just like you. |
| trains people to be like him/herself then the only | | | | 6. Drive decisions down to your team. Allowing for |
| success will be making a good recruiter that will start | | | | failures is the only way you can strengthen your |
| their own business. | | | | recruiting firm as a team rather than just a bunch of |
| In fact that is a business model used by a few of | | | | super stars. |
| our customers and, if that is your intent as a | | | | 7. Prepare a business plan. This is hard and requires |
| business owner, it does seem to be successful. | | | | time, thought and continuous review. If you think you |
| These firms hire people to be trained as complete | | | | can whip a business plan out in a day or two than |
| recruiters to leave and go out on their own and hire | | | | you should get some help on effective business plan |
| and train other recruiters into being successful and go | | | | preparation. |
| out on their own. To me, this approach is too | | | | If you are looking at how you can grow your |
| individualistic and does nothing for the original business | | | | business and you are at the beginning of your |
| owner unless they get a portion of the profits from | | | | research, the key is simply focus. Day in and day out, |
| the cloned individual recruiting firms. | | | | focusing on your business has to be your number |
| So how do you 'build' good recruiters to grow your | | | | one priority. The above steps only help you to |
| business? A good recruiter is about as rare as a | | | | maintain your focus. If you are at the end of your |
| professional athlete. There are thousands upon | | | | research then you should have already come to the |
| thousands of good athletes at the high school and | | | | same conclusion. |
| college level but so very few that can actually play at | | | | |