Perhaps you are tired of being set unrealistic targets or feel like your boss is constantly breathing down your neck. But, before you take the leap of faith and hand in your resignation, here are a few things you may want to consider if you are planning to start your own recruitment agency:
1. Does your contract have a non compete clause?
Check your contract and check for any restrictions that may be placed on you and for how long once you leave your job. Any restrictions could affect your plans to set up a competing agency or prevent you from approaching some previous clients that you’ve worked with already.
2. Will you be placed on Gardening Leave?
It is common for businesses to place employees who hand in their notice on gardening leave as a protection method. If this happens how will your plans be affected?
3. How to leave in the right way to maintain good relationships?
It’s always better to leave on good terms with your existing employer. Even if you feel you have not been treated fairly, rise above it and focus on the future. If you plan to compete within the same market you don’t want your employer to do anything to affect your reputation.
4. How much money do you need to survive?
When you start your own business you leave behind the comfort of receiving a monthly salary. As the boss, it is your responsibility to make placements to pay bills and start earning a salary. Work out how much money you need to live each month (mortgage, bills, food etc) on a simple spreadsheet and perhaps add a little contingency in case there are some unexpected costs. Bills such as rent, car payments or telephone bills will need to be paid each month on a fixed day, so make sure you have sufficient cash reserves to cover these until you receive your first client payment comes in.
5. How will you make your first placement?
You may have existing relationships you can build upon to make your first placement. But if you have a non-compete clause to adhere to or your connections are clients of your existing employer, making that first placement may not be as simple. Your first placement may affect how and when you get paid, so work on your plan for top line sales.
6. How much money do you need to start your new Agency?
Every business has some start up costs, items like such as new computers or business cards. Consider how much money you need to spend up front to get your recruitment agency off the ground and make sure you have this set aside so your new business gets the start it needs.