5 reasons why now is the right time to start your own recruitment agency
It has been said many times over the last couple of years, but there really has never been a better time for ambitious recruitment entrepreneurs to go it alone and start their own recruitment business.
For those of us who were involved in recruitment during the financial crisis - which saw as many as 1 in 5 agencies close their doors – the desire for greater control of our own financial future is perhaps even greater than those that didn’t.
But even if you are a relatively recent entrant to the sector; today’s recruitment marketplace presents an almost Utopian set of conditions that turns the question from Should I? to Why wouldn’t I? start my own recruitment business.
Here we take a look at the top 5 reasons why now is the right time to start your own agency:
1. High employment and solid hiring intentions
The Brexit vote did little to dampen employer hiring intentions, with the latest figures from the Office for National Statistics showing that the UK employment rate is at a record high of 74.5%*.
In the three months to August 2016, the number of people finding jobs rose by 4.9% (or 106,000), with 749,000 new jobs advertised between July and September alone. With unemployment at an 11-year low and employer hiring intentions continuing to exceed what economists expected, can you think of a better time to start a recruitment business?
2. It is easier to get the finance you need
The single biggest reason aspiring recruitment business owners give for not starting up is the perceived lack of access to the right finance. But it really has never been easier than it is now.
In 2016 the alternative finance industry grew to £3.2 billion. Fuelled by the tighter restrictions over lending among UK banks – a legacy of the financial crisis – alternative finance has seen remarkable growth as it moves increasingly mainstream.
For small businesses, this has proven to be a Godsend. Simplicity, the specialist recruitment finance provider, has supported more recruitment start-ups with their financial requirements than any other UK provider. So you can have the support you need to make your new venture a success – from day one.
3. Fortune is favouring the brave
With improved economic conditions and easier access to the right finance it is hardly surprising to learn that the number of new recruitment start-ups is also enjoying a record high.
According to figures obtained from Companies House, around 3,000 new recruitment businesses were registered in the first six months of 2016 alone – that’s the equivalent of 500 each month or 125 every week!
This makes recruitment one of the fastest growing sectors in the UK economy. As employer hiring intentions continue to remain strong, there are opportunities to be had for any forward-thinking ambitious recruiter looking to do it for themselves!
4. Tech has levelled the playing field
In the not too distant past pretty much all recruitment agencies needed to have a high street presence – a physical office of some description. Not any more. Better technology has dramatically reduced many of the barriers to entry, and lowered overheads in the process.
Smartphones and cloud technology means we no longer need corridors of filing cabinets to store important documents. Nor do we need to be sat behind a desktop to access our emails, internet or social networks. Teleconferencing saves a huge amount of travel time and money and can often mean recruiters are no longer geographically restricted to the locations they serve.
5. The future looks brighter than some might say
Although the economy slowed during the latter half of 2016 and growth forecasts for the next two years have been adjusted from their original forecast, the chances of the UK slipping into another recession are slim at best.
Growth will remain steady and demand for recruitment services will continue along its upward trajectory; the naysayers can continue to predict doom and gloom, but there are no storm clouds on the horizon quite yet.
If you are considering starting your own recruitment business and would like to know how we can help please call the Simplicity team on 01594 888518 or email sales@simplicityinbusiness.com
*Correct as at 20th October 2016