The Recruitment Consultant’s Ideal Business Model and Why It’s Important For You To Know It
It goes without saying that a recruitment consultant’s principal job is to identify the right talent for any job opening, permanent or temporary. Alternatively, he may even focus on a particular industry niche like nurse or executive recruitment only. However, any consultant who starts his own recruiting agency needs to evolve a proper business model or plan first before he embarks on the man hunting process. The business model is an inextricable part of his operations as it is on this that he will base his future recruitment strategies, growth and expansion procedures as also his marketing plan to gain clients. A basic business model for any recruitment consultant involves the following:
Identification of Recruitment Service Types: This needs careful consideration as it is all about setting your basic objectives and goals. Begin by asking yourself this simple question: What is it that I wish to provide? Take the first step by studying structures of existing recruitment consultants or agencies in order to get a feel of the challenges and benefits of various types of agencies. This would help you identify niche markets like permanent / contractual job openings panning numerous industries or perhaps focus on one specific industry.
Mapping The Right Recruitment Niche: Be selective about your sphere of expertise and focus on it. For instance, you might select the financial services industry and choose to recruit financial professionals only. That would be your specific niche.
Correct Evaluation of Costs: This is absolutely mandatory to your business model as finance is the lifeblood of commerce. Calculate overhead costs which include salaries of recruitment staff, their benefits, marketing & insurance costs as also other assorted business expenses. Take a hard look at your available funds or whether you will be able to get loans or business grants to start your business and, more importantly, to sustain it effectively.
Assessing the Market and Prevalent Competition: After you select your niche, calculate whether there exists a demand for it at all. If your market is saturated already, shift your focus elsewhere, get into a partnership with an agency that’s already existing or shift your operations to a different location where there’s an actual demand.
Thorough Examination of Your Abilities & Recruiting Experience: To be an effective recruitment consultant and to find the right manpower, you need to have a solid knowledge and understanding of all principal strategies pertaining to recruitment. This is more so because as an agency owner, it will also be within your professional ambit to guide and direct your staff in day to day operations.
Strengthening & Fortifying: Your business model should be such that it allows for constant upgrading of recruitment skills. It, therefore, always pays to work for any professional recruitment agency to gain the requisite experience before starting out on your own. If you focus on one specific industry, try working in that particular industry first or for an agency that is niche-specific.
Researching laws: This involves the knowledge of laws pertaining to business licenses, employment based on equal opportunity and restrictions on discriminatory practices, business taxes and insurance.
Why is it important to know your model?
- Your model helps you to focus, clarify and research every prospect of your business in its initial stages or for further expansion and growth in future.
- It gives you a logical and considered framework within the parameters of which you can develop your business in the forthcoming period.
- It also offers benchmarks against which it becomes possible to measure the business’s actual performance and to take remedial measures.
- Your model is your basic offering to investors, creditors and shareholders and is the key tool for initiating discussions with them for raising finances or giving shape to expansion plans.
In sum, the model will help you identify clearly your objectives and how to achieve them. It will also help you to avoid mistakes and recognize hidden challenges and opportunities.