Five Most Common
The initial decisions you make have a tremendous impact on the success or failure of your new Staffing and Recruiting Firm. Do all you can to avoid the five most common mistakes made by new owners including:
- Generalist vs. Specialized
If you want to generate the highest level of sales, it is important to select a niche or area of specialization. This allows you to multi-use your job orders, temp assignments or contracts and clients. - Exit Plan Not Established
If you do not establish your exit plan, you will make mistakes when you are making initial business decisions. A specific exit plan provides you with clear direction and clarity when setting up your business. - Incurring Expenses Not Needed
Most Staffing and Recruiting Firms can start out as a home based business unless you are going to specialize in light industrial or clerical temp and direct placements. Keep your expenses as low as possible.Initially you need to invest in a reliable computer, internet access, cell phone, two land lines, basic ATS System, responsive website, business email, logo, business forms, corporate entity, QuickBooks and basic business insurance.Once you are making money, you can consider office space, employees and other tools to enhance your ability to attract the best candidates and clients.
- No Trust or Corporate Entity
You need to protect your assets and family. Often, a new business owner does not want to pay for a corporate entity or trust, but this is a necessary expense. If you have more than $50,000 in assets you should put those assets in a trust. You want to own nothing but control everything.A corporate entity provides tax advantages and separates your personal assets from your business assets. There are people on both sides of this sale and lawsuits are always a possibility, which is why you need the protection of an entity.When you are making these decisions compare the advantages, protection, tax ramifications and costs of one type of entity over another. Your entity must also align with your exit plan.
- Daily Minimum Standards Not Established
The basics must be accomplished on a daily basis and you must commit to minimum daily standards. Your main function in your new business is sales. You can establish a great business model, but unless you are on the phone selling your services daily to prospective clients and candidates, you will not succeed.
Avoid these five most common mistakes and you will greatly improve your chances of establishing a successful business.