How to Build and Expand Your Recruitment Business
Starting a recruitment business is very easy as long as you go through the proper process in getting the business set up and follow the rules, it should be pretty smooth sailing in the setting up process and I will not touch based on technical aspects but focus more on the expansion of the business itself.
To build and expand your recruitment business you will need to consider the following factors:
1) Excess capital
Your total cash available must be at least 5-6 times your current liability (Your monthly cost), assuming if all your running cost including rental and salaries total up are $10,000, you ought to have $50,000 – $60,000 in your bank. We need to take into account that IF for that next 5-6 months there are absolutely no sales….what will happen? At least there are still enough cash reserves for you to hold on. If your ratio is 10 times or more, you will be pretty safe at this point.
2) Maximum Capacity
Ensure that your recruitment consultants are at their maximum capacity. They should be busy fulfilling the job orders rather that looking for new clients, if some of your consultants are still looking for new clients, if means you are not ready to expand the business.
3)Watch the economy:
is the economy picking up? If yes, it’s a good time to enter the market, if the market is slow and or are going down, do not take your chance to go against the trend and very likely you will not be able to make it. The stock markets of USA and Europe are a fairly good indication on how the market will be heading.
4)Check the rental market
If the office rental is at the peak, it will not be good to expand your business now, it is always better to be safer than to be sorry. Start small and expand slowly. I have seen many aggressive businessmen expanded their business too fast and flopped in less than a few months due to the inability to control cost.
Are you able to specialised in certain industry or you prefer to focus on the general? If you focus on the niche, usually you will be able to charge higher price compared to general placement. With more specialisation, you will have lesser competition.
6)Watch what the big players are doing:
It’s always good to pay attention on what the big player are doing because they have all the resources and manpower to do what you are not able to do. They might have some information that could be critical. Watch out for their recruitment campaign, are they expanding or are they maintaining? If they are not expanding, why not? Do they have information that you do not have? Watch out on their Google pay-per-click (ADWORDS) advertisement, are they doing it or absolutely not into it….check anything and everything, it can save you and also make you a lot of money in your recruitment business.
7) Have you created your BRAND?
Do you have a consistent logo everyone knows, are you located in most of the social media? If not please get the extra efforts to do so, saving money on this area will not bring you higher in BRANDING and STATUS.
8) Pay Per Click Advertisements
Many recruitment agencies, who are at a loss of what to do to ensure that their agencies stay afloat, are searching online for marketing methods and strategies to create more sales and business.
Many times, they will be bombarded with advertisements and articles on pay-per-click advertisements and some of them who are not very sure about this type of advertisement platform yet will venture into it, hoping for some magic to happen. Sad to say, most of them are not finding great or any returns in their investments in the pay-per-click advertisement platform.
The current most popular pay-per-click advertisement platforms are:
- Google Adwords
- Facebook Advertising
- LinkedIn Ads
- Yahoo! Search Marketing (Also known as Overture, formerly under GoTo.com before acquired by Yahoo)
There are still a few other players coming up, but the above are the more popular and acceptable in the market. Overall, regardless of which platform you will be using, the concept is about the same, that is – You will only pay based on the number of clicks, regardless of whether the user is potentially a genuine customer or not. That means you only pay when someone clicks on your advertisement.
You will have to bid for the top spot, usually by the price you are willing to pay. Some platforms, such as Google Adword will also be based on your “quality score” to determine your advertisement placement position and the cost per click.
Determine The Objectives of PPC (Pay-Per-Click)
Many times, the advertiser has the belief and impression that by placing the advertisement in the pay-per-click media, they will be able to bring the visitors to their website and convert them into a sales. With this mindset, it is sad to say that most advertisers who are expecting good returns will be in for a big surprise.
In general, most of the advertisers who are looking to generate good sales will not have a great ROI because the cost and the sales generated are usually not good. As such, many advertisers will face a situation where, after placing the advertisement for a while, they will conclude that PPC (pay-per-click) is not a great platform to generate sales.
Marketing and Branding
If you notice that many players in the PPC are actually BIG players, and they are constantly putting their brand name and advertisements in PPC, their agenda usually is to create the awareness to the public so that people will continue to recognize their brand for a long time. The big players know that by constantly exposing their ads and brands in the Internet PPC campaign, they will be able to secure a firm market share in the long term. Hence, even with a huge budget for the PPC campaign, and with almost negative returns, they are very willing to do so because their agenda is very different.
Whether PPC (pay-per-click) can really help recruitment agencies will really be determined by the objectives of the agencies. If they are seeking quick sales in the short term, many will be pretty disappointed, but if they were to use it from an awareness and branding prospective, then the rewards will be better in the long term.
In summary, PPC (pay-per-click) can be great for sales, only when you know what you are doing. It is also a great avenue to branding and positioning your recruitment agency as more exposure means more people recognize you as a brand. (Provided you have a great brand to be remembered)
In the game of PPC (pay-per-click), do ensure you know the rules of the game, as failure to understand them will lead to a waste of advertisement cost and also a low click-through ratio.
Good luck on your expansion of your recruitment business.