Decide Which Recruitment Sector to Specialise in

The sector you recruit for will be one of the biggest decisions that you make when setting up your own recruitment business. Although you can choose to diversify later and start new divisions, the services you offer at the beginning will invariably define you to your market.

Even if you feel there is an obvious choice for what sector you will specialise in, it is worth having an open mind. You may have recruited for a particular niche sector when you worked for an employer, but it may not be appropriate to continue in the same area.

Experience

Most people who set up their own recruitment business have worked for another recruitment agency before as an employed consultant. They see that they are doing the majority of the work, yet the company is taking the majority of the commission, so they decide to go it alone. You may feel as though it is a no-brainer to continue in the same recruitment sector – you have clients and candidates that know you, after all – but this may not be a wide enough employment sector to sustain a business.

Competitors

If you choose to continue recruiting in the same field, not only will your old employer be a direct competitor, but it may be that you are contravening the rules of your employment contract. It is a common clause that ex-employees are unable to work for another recruitment company or set up their own business in the same field, within a certain distance and a certain time frame.

Look around your local area, or the area in which you plan to open an office if you are not working from home initially, see what types of agencies are available. Look on the internet and see which agencies have a good presence in your area. Gather all the information you can about your potential competitors and make sure you offer something different.

Economic Climate

There is no point establishing your own recruitment business in a declining sector. Think about what sectors are growing and what sectors are emerging and see where your experience fits in. For example, there have been a number of new agencies popping up around east London to utilise the possibilities that the 2012 Olympics will bring. There are also a number of agencies currently doing very well out of the building boom in the area.

Personal Interest

If you have a passion for architecture or teaching, why not establish your new business in that field? Just because you have always worked in banking recruitment, for example, when you have a business to build it is far better that it is in an area that you are passionate about. This will come across when you are talking to candidates and clients, or potential PR contacts, so you will soon be up to speed with the recruitment side of things.

With the internet being so widely used, having an excellent website built means that you can offer a niche service wherever you are in the country. Just make sure that you appeal to your target audience and be flexible about travelling to meet people – you could also invest in a webcam so that you can conduct interviews for jobs on line, far better for your carbon footprint!